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Dajia Weikang: 2026 Semi-annual Report

Shenzhen Stock Exchange

2026/08/29

Full text of Hunan Dajia Weikang Pharmaceutical Industry Co., Ltd.'s 2026 Semi-Annual Report Hunan Dajia Weikang Pharmaceutical Industry Co., Ltd.'s 2026 Semi-Annual Report

2026-047

【2026-8-29】

Full text of the 2026 semi-annual report of Hunan Dajia Weikang Pharmaceutical Industry Co., Ltd.

Section 1 Important Tips, Table of Contents and Definitions

The company's board of directors, directors and senior managers guarantee that the contents of the semi-annual report are true, accurate and complete, and that there are no false records, misleading statements or major omissions, and bear individual and joint legal liability.

Wang Yiqing, the person in charge of the company, Hu Shengli, the person in charge of accounting work, and Qin Hao, the person in charge of the accounting department (accounting supervisor), declare that they guarantee the authenticity, accuracy and completeness of the financial report in this semi-annual report. All directors have attended the board meeting to review this semi-annual report.

The report involves forward-looking statements such as future plans, which do not constitute the company's substantive commitment to investors. Investors and related parties should maintain adequate risk awareness and understand the differences between plans, forecasts and commitments.

The company has described in detail the risks and countermeasures that the company may face in its operations in the "10. Risks and Countermeasures Facing the Company" section of "Section 3 Management Discussion and Analysis" of this report. Investors are advised to pay attention to the risks.

The company plans not to distribute cash dividends, give away bonus shares, or convert public reserve funds into share capital.

Full text of the 2026 semi-annual report of Hunan Dajia Weikang Pharmaceutical Industry Co., Ltd.

Section 2 Company Profile and Main Financial Indicators

1. Company Profile

Stock abbreviation Dajia Weikang Stock code 301126 Stock Exchange Shenzhen Stock Exchange

The Chinese name of the company: Hunan Dajia Weikang Pharmaceutical Industry Co., Ltd.

The company’s Chinese abbreviation (if any) Dajia Weikang

The company’s foreign name (if any) Hunan Dajiaweikang Pharmaceutical Industry Co.,Ltd.

The legal representative of the company Wang Yiqing

2. Contact person and contact information

Secretary of the Board of Directors Name of Securities Affairs Representative Jiang Qian Luo Ziyuan

Contact address: No. 30, Fuling Road, Yuelu District, Changsha City, Hunan Province No. 30, Fuling Road, Yuelu District, Changsha City, Hunan Province Tel: 0731-84170075 0731-84170075 Fax: 0731-88911758 0731-88911758 Email [email protected] [email protected]

3. Other situations

Company contact information

Whether the company's registered address, company office address and its postal code, company website, e-mail address, etc. have changed during the reporting period?

□Applicable Not applicable

The company's registered address, company office address and its postal code, company website, e-mail address, etc. did not change during the reporting period. For details, please refer to the 2025 annual report.

Information disclosure and preparation location

Whether the location of information disclosure and preparation changes during the reporting period

□Applicable Not applicable

The name and URL of the stock exchange website and media where the company discloses its semi-annual report. The location where the company's semi-annual report is prepared has not changed during the reporting period. For details, please refer to the 2025 annual report.

Registration changes

Whether the registration status has changed during the reporting period

□Applicable Not applicable

The full text of the 2026 semi-annual report of Hunan Dajia Weikang Pharmaceutical Industry Co., Ltd. The company registration status has not changed during the reporting period. For details, please refer to the 2025 annual report.

Other relevant information

Whether other relevant information has changed during the reporting period

Applicable □Not applicable

The company held the 20th meeting of the fourth board of directors on June 8, 2026, and held the first extraordinary shareholders' meeting of 2026 on June 25, 2026, at which the "Proposal on Changing the Business Scope, Amending the Articles of Association, and Handling Industrial and Commercial Change Registration" was reviewed and approved. For details, please refer to the company's announcements on June 9, 2026, and July 2026 respectively. On March 28, the "Announcement on Changing the Business Scope, Amending the Articles of Association, and Handling the Industrial and Commercial Change Registration" (Announcement Number: 2026-028) and the "Announcement on Completing the Industrial and Commercial Change Registration and Renewing the Business License" (Announcement Number: 2026-040) were disclosed on the cninfo.com (www.cninfo.com.cn).

4. Main accounting data and financial indicators

Whether the company needs to retroactively adjust or restate previous years’ accounting data

□Yes No

This reporting period Same period last year This reporting period increased or decreased operating income compared with the same period last year (yuan) 2,701,647,581.95 2,708,337,434.78 -0.25% Net profit attributable to shareholders of listed companies (yuan) 7,256,514.92 893,533.16 712.11% Net profit attributable to shareholders of listed companies after deducting non-recurring losses

8,469,084.58 -724,381.93 1,269.15% net profit (yuan)

Net cash flow generated from operating activities (yuan) 11,472,736.91 -155,437,309.27 107.38% Basic earnings per share (yuan/share) 0.04 0.004 900.00% diluted earnings per share (yuan/share) 0.04 0.004 900.00% Weighted average return on net assets 0.44% 0.05% 0.39%

End of the reporting period End of the previous year Total assets increased or decreased at the end of the reporting period compared with the end of the previous year (yuan) 6,329,819,946.94 6,336,943,018.04 -0.11% Net assets attributable to shareholders of listed companies (yuan) 1,495,120,642.30 1,487,864,127.38 0.49%

5. Differences in accounting data under domestic and foreign accounting standards

Differences in net profit and net assets in financial reports disclosed in accordance with both international accounting standards and Chinese accounting standards

□Applicable Not applicable

During the reporting period, there was no difference between the net profit and net assets in the financial reports disclosed in accordance with international accounting standards and Chinese accounting standards.

Differences in net profit and net assets in financial reports disclosed in accordance with both foreign accounting standards and Chinese accounting standards

□Applicable Not applicable

During the reporting period, there was no difference between the net profit and net assets in the financial reports disclosed in accordance with foreign accounting standards and Chinese accounting standards.

Full text of the 2026 semi-annual report of Hunan Dajia Weikang Pharmaceutical Industry Co., Ltd.

6. Non-recurring profit and loss items and amounts

Applicable □Not applicable

Unit: Yuan

Item Amount Description of gains and losses from disposal of non-current assets (including offsets for which asset impairment provisions have been made)

-232,888.77 pin part)

Government subsidies included in the current profit and loss (closely related to the company’s normal operating business)

Except for government subsidies that are relevant, comply with national policies and regulations, are enjoyed in accordance with determined standards, and have a lasting impact on the company’s profit and loss of 200,772.22)

Gains and losses from entrusting others to invest or manage assets 177,320.31 Other non-operating income and expenses other than the above items -2,261,160.05 Less: Income tax impact -477,653.81

Amount of impact on minority shareholders’ equity (after tax) -425,732.82 Total -1,212,569.66 Details of other profit and loss items that meet the definition of non-recurring gains and losses:

□Applicable Not applicable

The company has no other specific circumstances of profit and loss items that meet the definition of non-recurring profits and losses.

Explanation on defining the non-recurring profit and loss items listed in the "Explanatory Announcement No. 1 on Information Disclosure of Companies Publicly Offering Securities - Non-recurring Profit and Loss" as recurring profit and loss items

□Applicable Not applicable

The company does not define the non-recurring profit and loss items listed in the "Explanatory Announcement No. 1 on Information Disclosure of Companies that Offer Securities to the Public - Non-recurring Profit and Loss" as recurring profit and loss items.

Full text of the 2026 semi-annual report of Hunan Dajia Weikang Pharmaceutical Industry Co., Ltd.

Section 3 Management Discussion and Analysis

1. The main business of the company during the reporting period

(1) Industry conditions of the company during the reporting period

The pharmaceutical distribution industry continues to develop under the trends of standardization, centralization and digitization.

During the reporting period, the reform of the medical and health system continued to deepen, and policies such as medical insurance fee control, centralized drug procurement, prescription outflow, drug traceability, and standardized operation of retail pharmacies jointly promoted the industry's transformation from scale expansion to quality improvement. Enterprises in the industry are facing higher requirements in terms of compliance operations, supply chain efficiency, pharmaceutical service capabilities and regional coverage capabilities. The competitive advantages of enterprises with scale, standardization and digital capabilities are further reflected.

In terms of digitization and intelligence, drug distribution companies continue to promote informatization construction in warehousing, sorting, distribution, temperature and humidity monitoring, and quality traceability to improve drug circulation efficiency and quality management levels. For the company, continuous improvement of the supply chain management system and improvement of store and customer service efficiency are important foundations for adapting to industry regulatory requirements and changes in market competition.

The pharmaceutical distribution and supply chain is accelerating its expansion into professional and refined services.

In recent years, the state and industry authorities have successively introduced policies to promote the high-quality development of the pharmaceutical retail industry, strengthen the construction of modern pharmaceutical logistics, and promote the construction of a pharmaceutical traceability system, encouraging pharmaceutical retail companies to improve their professional services, health promotion, emergency supply guarantees, and standardized operating capabilities. Pharmaceutical circulation companies are extending from traditional warehousing and distribution to comprehensive supply chain services, and retail pharmacies are extending from single drug sales venues to pharmaceutical services, chronic disease management and health management scenarios. The value of industry services continues to increase.

Driven by the overlay of policies such as the "Opinions on Promoting the High-Quality Development of the Pharmaceutical Retail Industry" issued by nine departments including the Ministry of Commerce, the "Guiding Opinions on the Standardized Construction of Modern Pharmaceutical Logistics" issued by the State Food and Drug Administration, and the "Guiding Opinions on the High-Quality Development of the Pharmaceutical Distribution Industry during the 14th Five-Year Plan", the pharmaceutical distribution industry is accelerating its transformation from traditional warehousing and distribution to a modern supply chain integrated service provider. In terms of supply network optimization, the policy encourages the integration of wholesale and retail, cross-provincial multi-warehouse linkage and the sinking of urban and rural networks (with counties as the center and towns as the focus), building a three-level system of regional logistics centers, provincial centers and prefecture and county distribution centers with a reasonable layout, and continuing to improve the "last mile" drug accessibility and emergency supply resilience; Information In terms of informatization upgrading, relying on 5G, big data, AI and Internet of Things technologies, the information traceability of all varieties of drugs ("one code for each item, and the same code for each item") and intelligent monitoring of temperature and humidity are promoted. Enterprises widely use warehouse management systems, electronic label selection and RFID equipment. The Food and Drug Administration has made it clear that modern logistics must have independent computing The machine information system and the whole-process quality traceability system have compressed the timeliness of clinical trials and circulation approval to less than 30 working days, realizing upstream and downstream data exchange and element iteration in the supply chain; in terms of improving comprehensive service capabilities, the policy guides retail pharmacies to build "health stations" and expand remote prescription review, chronic disease management, and DTP expertise. Commercial pharmacies, outpatient coordination and commercial health insurance coordinated payment, wholesale companies are deeply involved in SPD supply chain management, promoting the industry's transformation from a single "drug porter" to a high value-added ecosystem that integrates pharmaceutical services, health management, logistics collaboration, and data empowerment, substantively supporting the construction of a strong pharmaceutical country and universal health protection.

Innovative drugs and professional pharmaceutical services drive upgrading of out-of-hospital market service capabilities

The continuous development of innovative drugs, negotiation drugs and specialty drug varieties will promote the expansion of professional service scenarios such as out-of-hospital professional pharmacies, DTP pharmacies, and chronic disease management pharmacies. With the gradual advancement of policies such as "dual channels" of medical insurance, outpatient coordination, and prescription circulation, retail pharmacies with the ability to undertake prescription drugs, professional pharmacist service capabilities, patient follow-up management capabilities, and compliance operation capabilities are expected to play a more important role in out-of-hospital prescription acceptance and long-term patient services.

Since "innovative drugs" were first mentioned in the government work report, in July 2024, the State Council executive meeting reviewed and approved the "Implementation Plan for Full-chain Support for the Development of Innovative Drugs"; in the same month, the State Food and Drug Administration issued the "Pilot Work Plan for Optimizing the Review and Approval of Clinical Trials of Innovative Drugs". The efficiency of innovative drug approvals has continued to improve, and the clinical trial approval time limit has stabilized within 30 working days, accelerating the launch of global new drugs in China. In July 2025, the National Medical Security Administration and the National Health Commission jointly issued "Several Measures to Support the High-Quality Development of Innovative Drugs" by accelerating the launch process of innovative drugs, optimizing the medical insurance access and payment mechanism, strengthening the full-chain incentives for research and development, improving full life cycle management, promoting internationalization and protecting patients' rights and interests in drug use and other systematic measures. Pain points such as long drug research and development cycles, difficult market access, and uncertain returns not only encourage companies to innovate in the fields of "global market demand" and "major clinical needs", but also allow patients to share the dividends of innovation through dynamic adjustments to medical insurance and efficacy-linked payments. This promotes the transformation of my country's innovative drug industry from "quantitative accumulation" to "qualitative leap" and lays the policy foundation for building a powerful pharmaceutical country. Superimposed on the "15th Five-Year Plan" and the new regulations on the drug price formation mechanism, the policy orientation has completely shifted from "controlling costs and forcing people" to "encouraging true innovation and supporting differences"

Full text of the 2026 semi-annual report of Hunan Dajia Weikang Pharmaceutical Industry Co., Ltd.

"." In the first half of 2026, 38 innovative drugs were approved for marketing, including 31 domestically produced innovative drugs, accounting for more than 80%. The external technology licensing of innovative drugs has reached a new high, with the total transaction volume in the first half of this year exceeding US$100 billion, fully demonstrating the systematic improvement in the innovation quality of my country's pharmaceutical industry.

The concentration of the pharmaceutical retail industry has increased, and the trend of chaining and specialization is clear.

Drug operation supervision continues to emphasize full life cycle quality management and responsibility implementation, and requirements such as "one code for one item", drug traceability, licensed pharmacists, medical insurance compliance, and prescription review are constantly strengthened. The improvement of regulatory standards is conducive to promoting the standardized development of the industry, and also puts forward higher requirements for enterprise quality management systems, personnel professional capabilities, information system construction, and compliance and internal control.

In 2025, the full implementation of the "Drug Administration Law of the People's Republic of China" has entered an in-depth stage, the responsibilities of the drug marketing authorization holder system (MAH) have been further consolidated, and the regulatory requirements for the entire life cycle of drugs have become more refined. The comprehensive popularization of traceability technologies such as "one item, one code" has basically established a full traceability system for drugs from production to use, providing a solid data foundation for strengthening the supervision of circulation links. Against this background, the state continues to encourage and guide pharmaceutical retail chain operations and promote the development of the industry in the direction of scale, standardization, and specialization. At the same time, the dividends of the "decentralization, regulation and service" reform continue to be released. While optimizing the process and improving efficiency, drug business license access management puts more emphasis on "lenient access and strict control". The detailed rules of the "Measures for the Supervision and Administration of the Quality of Drug Distribution and Use" have been strictly implemented, and substantial improvements in regulatory standards and qualification thresholds have become the norm. This has accelerated the structural adjustment and market clearing of small and medium-sized independent pharmacies and enterprises with irregular operations.

Against the above background, the increase in chain rates, the integration of regional leaders and the development of professional pharmacies have become important trends in the pharmaceutical retail industry. Enterprises with store networks, supply chain systems, professional pharmaceutical services and brand influence have comparative advantages in procurement negotiation, commodity management, medical insurance services, patient management and cross-regional replication.

Professional pharmacy service scenarios continue to expand, and the importance of patient service capabilities increases

In January 2026, nine departments including the Ministry of Commerce issued the "Opinions on Promoting the High-Quality Development of the Pharmaceutical Retail Industry" (hereinafter referred to as the "Opinions"), pointing out that the pharmaceutical retail industry is an important part of the national medical and health undertakings and is related to people's health and life safety. The "Opinions" require strengthening the functions of professional services, health promotion, and emergency supply guarantees in the pharmaceutical retail industry, and creating a "health station" that better serves the people's medical and health needs. The "Opinions" highly recognize the important position of retail pharmacies in the national health undertakings and are conducive to the standardized, healthy and sustainable development of the pharmaceutical retail industry. The State Council's "15th Five-Year Plan for Expanding Consumption" also proposes to build more than 10,000 "health stations" to strengthen the professional service functions of pharmacies in health monitoring, medication guidance, and chronic disease management.

As an important part of the medical and health system, the pharmaceutical retail industry is upgrading from "sales terminal" to "health service terminal". The policy encourages retail pharmacies to strengthen functions such as professional services, health promotion, and emergency supply guarantees, and promotes pharmacies to play a greater role in guidance on rational drug use, chronic disease management, health monitoring, and convenient services.

As the scale of the pharmaceutical retail industry continues to develop, especially the expanding professional market demand, the transformation of professional pharmacies into diversified services will become an important direction in the future. This is also an opportunity and breakthrough for the development of the pharmaceutical retail industry. The development of professional pharmacies requires enterprises to have the ability to undertake compliant prescriptions, manage cold chain and special drugs, establish patient records and follow-up, coordinate medical insurance payments, and provide professional pharmacist services. The company has long-term layout of professional pharmacies and special services, and relevant experience will help the company continue to improve its terminal service capabilities under the trend of prescription outflow and professional pharmaceutical services.

Digital and intelligent technology promotes efficiency improvements in pharmaceutical circulation, retail and medical services.

Medical care is an important part of people's livelihood. The accessibility and quality of medical services directly affect the health level and quality of life of the people. As the aging of the population accelerates and residents pay more and more attention to health, my country's demand for medical care continues to grow, and the medical system is facing greater pressure. In April 2025, seven departments including the Ministry of Industry and Information Technology issued the "Implementation Plan for the Digital and Intelligent Transformation of the Pharmaceutical Industry (2025-2030)", which clearly proposed to deepen the application of artificial intelligence empowerment. The plan proposes that by 2027, more than 10 large-scale pharmaceutical model innovation platforms will be built, and summarizes six typical scenarios of digital and intelligent transformation of the pharmaceutical industry, covering applications in multiple fields such as pharmaceutical research and development, pharmaceutical production, business management decision-making, pharmaceutical circulation and traceability. The "Implementation Opinions on Promoting and Standardizing the Development of "Artificial Intelligence + Medical and Health" Applications issued by the National Health Commission and others and the National Medical Insurance Bureau will include 12 AI-assisted diagnoses in the National Medical Insurance Category B Catalog in 2026, opening up a closed loop of commercialization from the clinical access and payment side. At the same time, the "15th Five-Year Plan for National Health" clearly supports the construction of high-quality data sets and trusted data spaces in the pharmaceutical industry in key areas, aiming to consolidate medical AI The training data element base promotes the implementation of digital intelligence technology in diagnosis, treatment, medical insurance and other scenarios. In terms of industry transformation performance, AI is penetrating into all aspects of "research, production, supply, management, and use"; on the production and circulation side, digital twins and intelligent wiring systems promote process decision-making from experience to data-driven, and combine with the full variety of drug traceability systems to achieve supply chain visualization; clinical and service On the business side, the large-scale deployment of intelligent assisted diagnosis of medical imaging, large-scale pathology models and embodied intelligent surgical robots, and the acceleration of the sinking of high-quality resources through intelligent assistance in grassroots diagnosis and treatment, mark the industry's complete shift from "trying new concepts" to a new normal of digital intelligence with clinical value and data elements as the core.

Full text of the 2026 semi-annual report of Hunan Dajia Weikang Pharmaceutical Industry Co., Ltd.

As the digital transformation of the pharmaceutical industry advances, the application of artificial intelligence, big data, Internet of Things and other technologies in pharmaceutical circulation traceability, warehousing and distribution, store operations, patient services and medical assistance scenarios continues to deepen. The company can continue to promote information system construction and data management based on its own pharmaceutical retail, distribution and medical service scenarios, and improve the efficiency of business decision-making, quality control and customer service.

Centralized procurement and price management continue to be optimized, and corporate operation quality requirements are improved.

The 2026 Government Work Report proposes “optimizing centralized pharmaceutical procurement and price governance.” This is the second consecutive year that centralized procurement work has focused on "optimization" after "optimizing the centralized procurement policy for drugs and consumables" in 2025. Through the "price-for-volume" mechanism, centralized procurement has significantly reduced the price of pharmaceuticals and equipment in the circulation link. At present, the quantity-based procurement system continues to move towards normalization and refinement, and the dynamically controlled winning price mechanism is gradually established and improved. The word "optimization" in the report sends a clear signal: in the future, centralized procurement will no longer simply give priority to price, but should further strengthen the importance of quality in the evaluation system and achieve equal emphasis on quality and price. National centralized procurement fully follows the principles of "stabilizing clinical practice, maintaining quality, preventing bid rigging, and resisting involution". While optimizing centralized procurement policies, it also strengthens quality assessment and supervision.

Centralized drug procurement and price governance continue to advance, and the industry's price system, channel profits and variety structure will still face adjustments. Relevant policies help reduce patients' medication burden and standardize market order. They also require pharmaceutical distribution and retail companies to improve their refined operation capabilities, category management capabilities and cost control capabilities, and respond to gross profit margin pressure through professional services and supply chain efficiency improvements.

(2) The main business engaged in by the company during the reporting period

Dajia Weikang takes the layout of the entire industry chain as the strategic cornerstone, deeply explores the field of modern medicine and health, firmly implements the development path of "circulation as the basis, retail as the body, industrial efficiency enhancement, and medical extension", and builds a comprehensive service system with up-down linkage, wholesale and retail integration, and industrial and commercial collaboration. In the pharmaceutical distribution sector, the company relies on intelligent warehousing and digital supply chain systems to continue to strengthen the stickiness of upstream and downstream cooperation and consolidate the basic distribution base. The pharmaceutical retail segment uses national chain pharmacies as a carrier to innovate DTP and special specialty pharmacy operating models, integrate online and offline consumption scenarios, and promote the transformation and upgrading from drug sales to a patient-centered health management hub. The company gives full play to the synergy between the distribution network and the industrial end, extends to the upstream pharmaceutical links, opens up the "research-production-sales" closed loop, and achieves industrial interaction and chain reinforcement. The medical services segment focuses on differentiated tracks, relying on Jiachen Hospital and Dajia Weikang Regenerative Medicine Research Institute to promote product and technology development in key areas such as disease diagnosis and treatment, accelerate the transformation of scientific research, and focus on exploring the practical paths of regenerative medicine in disease diagnosis and treatment and complex clinical problems. At present, the company has built a solid foundation for development through wholesale and retail collaboration, increased value space through mutual promotion of industry and commerce, opened up a long-term growth pattern with specialty medical care, and gradually built a comprehensive pharmaceutical and health industry ecosystem with resilience and scalability. The main business conditions are as follows:

Distribution business segment

The company's distribution business is carried out by its subsidiary Dajia Pharmaceutical. Dajia Pharmaceutical is a national 4A pharmaceutical logistics enterprise, a pharmaceutical reserve enterprise in Hunan Province, and a storage enterprise for drugs that are in constant shortage in Hunan Province. Dajia Pharmaceutical's pharmaceutical distribution is mainly based on the pure sales model, supplemented by the allocation model, and has established a distribution network radiating throughout Hunan Province. Its sales customers are public, grassroots, private medical institutions, as well as retail chains and independent pharmacies.

Dajia Pharmaceutical operates more than 10,000 types of drugs, and is unique in the management of new and special drugs such as anti-tumor drugs, immunomodulatory drugs, cardiovascular and cerebrovascular drugs, respiratory drugs, and antiviral drugs. Dajia Pharmaceuticals has established long-term and stable cooperative relationships with many well-known domestic and foreign pharmaceutical companies such as Jiangsu Hengrui, Chia Tai Tianqing, Xinlitai, Jiangsu Hansoh, CSPC Pharmaceutical Group, Qilu Pharmaceutical, AstraZeneca, Novartis, Bayer, Boehringer Ingelheim, Pfizer, Astellas, Sumitomo Pharmaceuticals, etc., and has become the main distributor of these companies in Hunan.

In addition, Dajia Pharmaceutical established the Hunan Provincial Emergency Drug Distribution Service Center in 2011, which is equipped with professional service personnel, implements 24-hour telephone duty and dispatch distribution, and carries out cold chain transportation throughout the process. It distributes emergency drugs of more than 20 specifications, mainly antivenom, and goes all out to ensure the medication needs of emergency patients. In 2026, the company will deepen the integrated operation of "intelligent warehousing hardware + digital supply chain system" and switch from a traditional pharmaceutical distributor to a "comprehensive supply chain service provider". During the reporting period, pharmaceutical distribution business revenue was 1,043.5715 million yuan, accounting for 38.63% of operating revenue. The distribution business revenue decreased by 156.0803 million yuan compared with the same period last year, a decrease of 13.01%.

Retail business sector

As of June 30, 2026, the company had opened a total of 1,563 pharmacies across the country, including 424 in Hunan, 201 in Hainan, 388 in Ningxia, 408 in Shanxi, 22 in Beijing, and 120 in Anhui. A situation has been formed in which Hunan is the foundation, radiating to the south, with the acquired chain pharmacies in Ningxia and Shanxi as the northern fulcrum, and expanding to surrounding provinces. Based on the vertical development of Hunan Province, one body and two wings are developed to the whole country. The company actively adopts the expansion model of "direct operation + mergers and acquisitions + franchising", while focusing on the development strategy of cross-provincial regional professional pharmacies, it also actively promotes the expansion of chain pharmacy business, rapidly promotes cross-regional development, and focuses on expanding the pharmaceutical retail chain pharmacy network to core provinces. Through optimizing layout and deepening market penetration, it enhances market share, expands business scale, and insists on taking professional pharmacies as its core business.

Full text of the 2026 semi-annual report of Hunan Dajia Weikang Pharmaceutical Industry Co., Ltd.

Features, enhance professional pharmaceutical service capabilities, and inject new growth momentum into the company. In 2026, the company will shift from "scale expansion" to "improving quality and efficiency + deepening professional development". With pharmaceutical services as the cornerstone, health management as an extension, and intelligent experience as the support, the company will focus on the three major needs of the elderly group: "health protection, convenient services, and quality life." It will provide patients with full-cycle services from drug protection to health management, creating a new paradigm of "pharmaceutical services + health management".

The company specializes in operating professional pharmacies such as DTP pharmacies and "special service" pharmacies. In 2016, it became one of the first batch of specialty drug agreement pharmacies in Hunan Province. Its main products are new specialty drugs against tumors, hepatitis C, HIV, autoimmune diseases, etc. It focuses on concentrated areas and emphasizes the creation of long-term cooperation with patients through professional services. In 2019, the company passed the "Retail Pharmacy Operation Specifications for Special Disease Drug Services" ("Specialty Drug Pharmacy Standards"), becoming the first batch of DTP pharmacies in the country to meet the standards, and has been continuously rated as an excellent DTP professional pharmacy. It has accumulated valuable experience in pharmaceutical services. With professional and comprehensive pharmaceutical services, the company's prescription drug business has developed rapidly. As of June 30, 2026, 560 DTP products were sold. Combined with the increase in customer flow and product optimization, DTP sales were 569.8 million yuan, an increase of 4.47% over the same period last year, and there were 91 dual-channel pharmacies. During the reporting period, pharmaceutical retail business revenue was 1,572.8852 million yuan, accounting for 58.22% of operating revenue. The pharmaceutical retail business revenue increased by 168.85 million yuan compared with the same period last year, with a growth rate of 12.03%.

Pharmaceutical industry sector

The company currently owns two pharmaceutical companies, Dajia Biopharmaceutical and Tianji Caotang, building the company's pharmaceutical industry system. The company's pharmaceutical industry continues to focus on the research and development of original chemical drugs, innovative traditional Chinese medicines, first-of-its-kind drugs, and comprehensive health products. It is a "Hunan Province Intelligent Manufacturing Benchmark Workshop" and "National High-tech Enterprise." Up to now, Dajia Biopharmaceutical has 71 drug production approvals, including 6 national exclusive varieties (including product regulations), 36 varieties included in the National Medical Insurance List, 19 varieties included in the National Essential Drug List, and 26 OTC (over-the-counter drugs) varieties, of which 9 are double-span varieties. The leading products include: Xiaojianzhong Granules, Wuwei Anshen Granules, Jiuwei Gantai Capsules, Xiaoeryanbian Granules, Xinshenghua Granules, Azithromycin Dry Suspension, etc.; Tianji Caotang’s traditional Chinese medicine product line covers 14 varieties in four major dosage forms: pills (water pills, concentrated pills), hard capsules, tablets, and granules. It has 12 approvals for traditional Chinese medicines and 2 approvals for chemical drugs. 11 products have been included in the National Medical Insurance List, and 3 products have been included in the National Essential Drugs List. The leading products include: Qingre Sanjie Capsules, Naodesheng Pills, Zhuangyanming Capsules, Shujinhuoxue Capsules, etc. During the reporting period, the company's pharmaceutical industry segment continued to promote product research and development, production quality management and business channel collaboration. The company relies on its existing pharmaceutical distribution and retail network to promote the cultivation and sales of its own products in the terminal market, and gradually enhance the synergy between the industrial sector and the commercial sector. During the reporting period, the industrial segment achieved revenue of 64.2622 million yuan, accounting for 2.38% of operating revenue.

Medical services sector

The company's medical services segment uses Jiachen Hospital and other entities as carriers, and operates around existing medical service capabilities and related industrial resources. The company also focuses on clinical transformation and industrial synergy opportunities in cutting-edge fields such as regenerative medicine. In the field of regenerative medicine, the company has introduced a professional team of regenerative medicine and joined hands with Hunan University, Hunan Provincial Cancer Hospital, Changsha Maternal and Child Health Hospital and other universities and top medical institutions to jointly initiate the establishment of the Hunan University Regenerative Medicine Clinical Research Center, focusing on the clinical transformation and industrialization development of regenerative medicine research results. The company will lead the key work of commercializing scientific research results. As the company's core strategic engine, the regenerative medicine sector will not only promote the accelerated development of Hunan's biomedical industry cluster, but will also be expected to introduce cutting-edge regenerative medicine products to the company's pharmaceutical industry sector, further broadening business boundaries and growth space. During the reporting period, Jiachen Hospital’s business income was 3.3807 million yuan, accounting for 0.13% of the operating income.

2. Analysis of core competitiveness

Synergetic advantages of wholesale and retail integration

The company has both pharmaceutical distribution and pharmaceutical retail business foundations, and can form synergies in terms of product introduction, terminal coverage, supply chain distribution, and professional pharmacy operations. The distribution business provides variety, logistics and supply chain support to retail terminals, while the retail business helps the company stay close to the needs of end patients and improve its prescription drug and professional pharmacy service capabilities. The company is increasing its efforts in the development of out-of-hospital products, continuing to enrich its business varieties, expanding its operating advantages in professional pharmacies, and promoting the coordinated development of its upstream distribution business and downstream retail business. At the same time, the company continues to innovate service models and strives to strengthen the development of online and offline (O2O) businesses. Through cooperation with various mini programs, mobile applications and third-party e-commerce platforms, the company expands sales channels and builds a diversified sales network to adapt to changing market dynamics and consumer needs.

Advantages of professional pharmacy operations and pharmaceutical services

Full text of the 2026 semi-annual report of Hunan Dajia Weikang Pharmaceutical Industry Co., Ltd.

The company has earlier deployed chronic disease pharmacies, special service pharmacies and DTP professional pharmacies, and has accumulated rich experience in prescription drug operations, patient filing, medication guidance, medical insurance services, and professional pharmacist management. With the outflow of prescriptions, the continuous advancement of the "dual-channel" policy of medical insurance, and the growing demand for chronic disease management, the company's professional pharmacy operation capabilities and pharmaceutical service system advantages have become more prominent, helping to increase customer stickiness and service added value.

In recent years, the company's DTP business has developed steadily. The company became the first batch of specialty drug agreement pharmacies in Hunan Province in 2016, and became the first batch of DTP standard pharmacies in the country in 2019. It has been continuously rated as an excellent DTP professional pharmacy, forming strong professional service capabilities and brand influence. In the future, the company will continue to deepen strategic cooperation with drug manufacturers, expand market and product coverage, increase the development of potential new drugs, and further consolidate its variety resource advantages; at the same time, the company will steadily promote the layout of retail pharmacies inside and outside the province, rely on the first-mover advantage of professional pharmacies and store networks, continue to improve pharmaceutical service capabilities, and provide patients with more professional, convenient, and comprehensive health services.

In addition, the company will actively promote the construction of informatization and digital service systems, innovate the pharmacy business model, enrich the comprehensive health management product matrix, focus on expanding categories such as medicinal and food homologous food, personal care and cosmetics, accurately layout segmented tracks, and gradually build a patient-centered "health service hub" supported by professional pharmaceutical services.

Regional deep cultivation and cross-regional replication capabilities

The company has been deeply involved in the professional pharmacy field for more than 20 years, and has formed a systematic and standardized operation and management system. It has strong pharmaceutical service capabilities and a mature professional pharmacy operation model, laying the foundation for cross-regional replication and national expansion. As of the end of the reporting period, in addition to the core market of Hunan, the company has deployed retail pharmacies in Ningxia, Shanxi, Hainan, Beijing, Anhui and other provinces and cities. In the Hainan region, branches have been set up and the medical insurance card swiping business has been launched, and relevant stores have been included in the local medical insurance designated system; in the northern market, with Ningxia Delixin and Shanxi Simile as the fulcrum, it has expanded to surrounding provinces through "new construction + mergers and acquisitions + franchising"; in the east China market, with Anhui Dajia Weikang as the fulcrum, it has steadily increased the coverage of professional pharmacies. In the future, the company will focus on the "one body, two wings" development strategy, continue to expand service boundaries, enhance the depth and breadth of store network coverage, further consolidate regional market share, and enhance brand influence and core competitiveness.

Intelligent logistics system helps distribution services to achieve efficient operation

Relying on "intelligent warehousing hardware + digital system" technology, the company shares "human, machine, and material" data across departments and integrates the "entry, storage, and exit" process of drugs, which greatly improves the storage capacity, sorting capacity and logistics distribution efficiency of the company's products, and effectively alleviates the problem of insufficient warehousing and logistics space caused by continued business growth. The company relies on the intelligent logistics center as a hub to encrypt and optimize city-level distribution nodes, and develop flexible and personalized terminal distribution solutions for hospital-side stores, DTP pharmacies, community clinics and online orders. We will solidly advance the construction of a three-level drug supply and distribution network at the county, township and village levels, and further deepen the integrated operation mechanism of "channel sinking and urban-rural linkage". We are committed to making the intelligent logistics system an important engine for the company's development. We not only ensure the efficient and stable operation of distribution services, but are also committed to building a new ecosystem of agile, transparent and sustainable pharmaceutical supply chains, so as to continue to create value for customers that exceeds expectations and consolidate the company's leading position in the field of pharmaceutical distribution.

Industrial and commercial collaboration and the ability to cultivate own products

The company currently owns two pharmaceutical companies, Dajia Biopharmaceutical and Tianji Caotang. Focus on the research and development of original chemical drugs, innovative traditional Chinese medicines, first generic drugs, and comprehensive health products. The company gives full play to the synergy between its existing pharmaceutical distribution business advantages and pharmaceutical industry business, deploys to the upstream pharmaceutical industry, realizes complementary advantages and industrial interaction, gradually forms a large-scale pharmaceutical industry business system with up-down linkage, and improves the industrial chain structure. By giving full play to the company's commercial channel advantages, we will accelerate the distribution of the company's industrial enterprise products in pharmaceutical terminals across the country. In the pharmaceutical terminal, we focus on cultivating and promoting self-produced brands of the company's industrial enterprises, optimizing variety specifications and packaging based on the terminal market, and quickly increasing sales. At the same time, we will build a strong national marketing team to achieve sustained and steady growth in the sales scale of the industrial segment, and strive to contribute new growth points to the company's profits.

Collaborative exploration of medical services and innovative businesses

Relying on its wholly-owned subsidiary Dajia Weikang Regenerative Medicine Research Institute, the company continues to promote its layout in the field of regenerative medicine and strengthen its ability to accumulate medical service-related technologies and transform results. The institute deepens strategic cooperation with universities, scientific research institutes and clinical institutions, builds a multi-disciplinary cross-innovation platform, focuses on the research and development of cutting-edge products and key technologies in the fields of disease diagnosis, precision treatment, health management and other fields, and promotes efficient collaboration between scientific research innovation and clinical application. In the future, the company will further give play to the role of the research institute in talent training, technology research and development, and achievement transformation, and strengthen business linkage with Jiachen Hospital, expand the collaborative space for medical services and innovative businesses, seize development opportunities in the medical and health industry, provide customers with more comprehensive and high-quality services, and continue to enhance the company's sustainable development capabilities and comprehensive competitiveness.

Full text of the 2026 semi-annual report of Hunan Dajia Weikang Pharmaceutical Industry Co., Ltd.

3. Main business analysis

Overview

Please refer to the relevant content of "1. Main businesses engaged in by the company during the reporting period".

Year-on-year changes in major financial data

Unit: Yuan

This reporting period The same period last year Year-on-year increase or decrease Reasons for changes

Operating income 2,701,647,581.95 2,708,337,434.78 -0.25%

Operating costs 2,207,175,085.56 2,260,232,104.72 -2.35%

Sales expenses 310,748,547.28 288,336,879.13 7.77%

Management expenses 86,283,840.59 79,045,453.00 9.16%

Financial expenses 54,354,378.95 53,489,803.37 1.62%

Mainly due to the increase in the company's total profit for the period leading to income tax expenses 6,784,093.80 -873,645.56 876.53%

resulting in an increase in income tax expenses.

Cash generated from operating activities is mainly due to business growth and distribution in the retail segment.

11,472,736.91 -155,437,309.27 107.38%

Net flow is due to the improvement in payment collection from the segment. Cash generated from investing activities is mainly due to the recovery of investment funds and the completion of logistics projects.

13,794,036.66 -78,054,701.84 117.67%

Net flow due to work.

Cash generated from financing activities is mainly due to the reduction of dividend distribution and financing structure

121,096,217.63 212,198,602.25 -42.93%

Adjustments to net flow.

Mainly due to the growth of retail segment business in the current period, net cash and cash equivalents

146,362,991.20 -21,293,408.86 787.36% The distribution segment’s payment collection has improved, and the financing balance has increased.

Due to structural adjustment.

There are major changes in the company's profit composition or profit sources during the reporting period

□Applicable Not applicable

There were no major changes in the company's profit composition or profit sources during the reporting period.

Products or services accounting for more than 10%

Applicable □Not applicable

Unit: Yuan Operating income compared to the previous year Operating costs compared to the previous year Gross profit margin compared to the previous year Operating income Operating costs Gross profit margin

Increase/decrease in the same period over the same period Increase/decrease in the same period during the year Increase/decrease in the same period during the year by product or service

Drugs 2,625,004,469.81 2,150,671,187.24 18.07% 4.84% 1.23% 2.92% Industry

Retail 1,572,885,227.60 1,230,052,137.62 21.80% 12.03% 8.99% 2.18%Wholesale 1,043,571,476.15 932,771,715.91 10.62% -13.01% -12.43% -0.59%

Full text of the 2026 semi-annual report of Hunan Dajia Weikang Pharmaceutical Industry Co., Ltd.

By region

Within the province 1,650,811,512.00 1,483,081,013.35 10.16% -0.11% 1.22% -1.19%Outside the province 1,006,575,056.00 778,731,636.66 22.64% -2.91% -1.48% -1.13% points sales model

Pharmacy retail 1,572,885,227.60 1,230,052,137.62 21.80% 12.03% 8.99% 2.18%Pharmaceutical distribution 1,043,571,476.15 932,771,715.91 10.62% -13.01% -12.43% -0.59%

4. Analysis of non-main business

Applicable □Not applicable

Unit: Yuan

Amount Proportion of total profit Reason for formation Whether there is sustainable investment income 177,320.31 0.61% The income from using idle funds to purchase short-term financial management products of banks. No

Asset impairment 347,376.90 1.19% Mainly due to the reversal of inventory depreciation provisions. No

Non-operating income 71,570.66 0.24% Mainly due to receipt of government subsidies, etc. No

Non-operating expenses 2,334,649.88 7.99% Mainly due to external donations. No

5. Analysis of assets and liabilities

Major changes in asset composition

Unit: Yuan End of the reporting period End of the previous year Proportion Major changes

Amount Proportion of total assets Amount Proportion of total assets Increase or decrease Monetary funds 579,743,737.13 9.16% 586,730,664.27 9.26% -0.10%

Accounts receivable 1,901,789,375.81 30.04% 1,947,795,324.93 30.74% -0.70%

Inventory 900,307,564.46 14.22% 932,632,400.13 14.72% -0.50%

Fixed assets 717,552,403.61 11.34% 709,809,542.23 11.20% 0.14%

Construction in progress 6,821,854.90 0.11% 19,775,440.21 0.31% -0.20%

Right-of-use assets 221,143,109.25 3.49% 232,354,153.34 3.67% -0.18%

Mainly short-term financing loans 2,295,580,336.19 36.27% 2,421,250,222.90 38.21% -1.94% Structure changes

Caused by changes.

Full text of the 2026 semi-annual report of Hunan Dajia Weikang Pharmaceutical Industry Co., Ltd.

Contract liabilities 52,854,227.99 0.84% 51,142,015.65 0.81% 0.03%

Mainly long-term financing loans 719,482,039.71 11.37% 604,952,953.49 9.55% 1.82% Structure changes

Caused by changes. Lease liabilities 119,553,511.23 1.89% 117,439,192.71 1.85% 0.04%

Major overseas assets

□Applicable Not applicable

Assets and liabilities measured at fair value

Applicable □Not applicable

Unit: Yuan included in the right

This issue's announcement This issue

Accumulation of profit, fair value for the period, provision

Item Beginning balance Fair calculation Amount of purchases in the current period Sales Other changes Decrease in loss from changes in closing balance

value change profit value

move

financial assets

Transactional money

financial assets (not

9,822,500.00 0.00 9,822,500.00 Including derivative finance

assets)

Derivative finance

0.00

assets

Other claims

0.00

investment

Other rights and interests

66,921,043.40 50,000,000.00 16,921,043.40 Tool investment

Other non-current

0.00

moving financial assets

investment real estate

0.00

produce

productive organisms

0.00

assets

Others 0.00

Accounts Receivable Finance

8,392,580.55 4,069,204.83 12,461,785.38 capital

Total of the above 85,136,123.95 4,069,204.83 50,000,000.00 39,205,328.78 Financial liabilities 0.00 0.00

Full text of the 2026 semi-annual report of Hunan Dajia Weikang Pharmaceutical Industry Co., Ltd. Other changes: None

Whether there are any significant changes in the measurement attributes of the company's main assets during the reporting period

□Yes No

Restrictions on asset rights as of the end of the reporting period

Unit: Yuan

Item Book balance at the end of the period Book value at the end of the period Restriction type Reason for restriction Monetary funds 179,931,888.19 179,931,888.19 Pledge Bill security deposit, letter of credit security deposit Notes receivable 57,043,714.59 57,043,714.59 Endorsed or discounted Fixed assets endorsed or discounted and not yet terminated 240,150,015.00 148,517,387.36 Mortgage Mortgage loan intangible assets 28,718,906.00 21,264,134.94 Mortgage Total mortgage loan 505,844,523.78 406,757,125.08

6. Investment status analysis

Overall situation

□Applicable Not applicable

Major equity investments obtained during the reporting period

□Applicable Not applicable

Major non-equity investments ongoing during the reporting period

□Applicable Not applicable

Financial assets measured at fair value

□Applicable Not applicable

Usage of raised funds

□Applicable Not applicable

The company has no use of raised funds during the reporting period.

Entrusted financial management and derivatives investment

(1) Entrusted financial management situation

□Applicable Not applicable

The company did not have entrusted financial management during the reporting period.

Full text of the 2026 semi-annual report of Hunan Dajia Weikang Pharmaceutical Industry Co., Ltd.

(2) Derivatives investment situation

□Applicable Not applicable

The company had no derivative investments during the reporting period.

7. Sale of major assets and equity

Sale of major assets

□Applicable Not applicable

The company did not sell any major assets during the reporting period.

Sale of major equity interests

□Applicable Not applicable

8. Analysis of major holding and participating companies

Applicable □Not applicable

Information about major subsidiaries and joint-stock companies that affect the company's net profit by more than 10%

Unit: Yuan

Company name Company type Main business Registered capital Total assets Net assets Operating income Operating profit Net profit Hunan Dajia Weikang Pharmaceutical Co., Ltd. Subsidiary Pharmaceutical distribution 330,200,005.00 3,056,789,750.24 960,905,800.79 1,380,350,005.61 -12,572,417.08 -8,790,064.56 Hunan Dajia Weikang Pharmaceutical Marketing Co., Ltd. Subsidiary Pharmaceutical Distribution 10,000,000.00 188,242,022.43 -82,267,142.89 52,270,941.71 -3,331,103.62 -3,318,118.42 Ningxia Delixin Pharmaceutical Co., Ltd. Subsidiary Pharmaceutical retail 8,000,000.00 481,008,479.62 66,753,849.46 218,991,830.75 11,206,839.46 9,475,723.79 Hunan Tianji Caotang Pharmaceutical Co., Ltd. Subsidiary Pharmaceutical Manufacturing 70,000,000.00 351,424,594.69 246,549,400.55 35,467,194.96 10,376,857.46 8,938,255.51 Dajia Weikang Biopharmaceutical Co., Ltd. Subsidiary Pharmaceutical Manufacturing 213,150,000.00 279,879,830.77 174,513,398.95 44,490,300.26 5,297,972.07 4,683,364.10 Shanxi Simile Pharmaceutical Chain Co., Ltd. Subsidiary Pharmaceutical Retail 45,000,000.00 398,900,715.59 139,281,157.09 475,974,201.48 28,844,954.77 21,570,362.55

Full text of the 2026 semi-annual report of Hunan Dajia Weikang Pharmaceutical Industry Co., Ltd.

Hunan Dajia Weikang Property Co., Ltd. Subsidiary Property 165,000,000.00 188,770,207.46 146,371,552.95 4,814,681.23 -2,448,451.73 -2,587,476.60 Acquisition and disposal of subsidiaries during the reporting period

Applicable □Not applicable

Company name Method of acquiring and disposing of subsidiaries during the reporting period Impact on overall production operations and performance

Hunan Yikang Pharmacy Retail Chain Co., Ltd. Asset acquisition to expand chain influence in the province

Description of major holding and joint-stock companies

In 2026, the company has always adhered to the three-wheel-driven development path of "new construction + mergers and acquisitions + franchises", deeply promoted the strategic layout of cross-provincial professional pharmacies, and shifted its development focus from "scale expansion" to "improving quality and efficiency and deepening professional development". During the reporting period, in order to continue to deepen the local market layout and improve the service network in Hunan Province, the company completed the acquisition of 58 directly operated stores of Hunan Yikang Pharmacy Retail Chain Co., Ltd., further enhancing the market coverage density and penetration capabilities in Hunan Province. Relying on the core advantages of wholesale and retail integration and industrial and commercial collaboration, the company has made breakthroughs in industrial varieties to feed back retail channels, accelerated the introduction and volume expansion of self-produced drugs in terminals, and continued to consolidate the competitive advantages of "R&D-production-retail" integration.

Full text of the 2026 semi-annual report of Hunan Dajia Weikang Pharmaceutical Industry Co., Ltd.

9. Structured entities controlled by the company

□Applicable Not applicable

10. Risks faced by the company and countermeasures

Risks of intensified market competition and countermeasures

Competition in the pharmaceutical retail and pharmaceutical distribution industries is relatively strong. Factors such as medical insurance fee control, centralized drug procurement, online drug purchase, prescription outflow, and regional chain expansion continue to affect the industry competition pattern. If the company cannot continue to improve supply chain efficiency, professional pharmaceutical service capabilities and store operation efficiency, it may face risks of slowing revenue growth, pressure on gross profit margins or fluctuations in regional market share.

Countermeasures: The company will continue to improve the integrated wholesale and retail operation system, optimize product structure and supply chain management, strengthen the construction of professional pharmacies, chronic disease management, DTP pharmacies and online and offline integrated service capabilities, and improve the level of refined store operations and customer service quality. At the same time, the company will adhere to compliance operations and enhance its management capabilities in key aspects such as medical insurance, prescriptions, and quality traceability.

Risks and countermeasures of over-concentration of business areas and cross-regional development

The company's pharmaceutical chain retail business and pharmaceutical distribution business are currently mainly carried out in Hunan Province. The company's main business has obvious regional characteristics, and the company faces the risk of relying heavily on the market in Hunan Province. The company has already established subsidiaries and branches in Ningxia, Hainan, Anhui and other regions. During the process of cross-regional expansion, it may face risks such as local market competition, differences in medical insurance policies, expansion of store management radius, insufficient talent reserves, and less than expected integration effects.

Countermeasures: The company will continue to prudently promote cross-regional layout based on advantageous regions, strengthen store location selection, supply chain coordination, personnel training, medical insurance qualifications, information systems and financial internal control management in new regions, and improve cross-regional replication capabilities and operational quality.

Risks and countermeasures of integration of old and new industries

The company promotes business collaboration around pharmaceutical retail, pharmaceutical distribution, pharmaceutical manufacturing and medical services. Different business segments have differences in business models, regulatory requirements, talent structures and management mechanisms. If the collaborative advancement fails to meet expectations, resource allocation efficiency and operating results may be affected.

Countermeasures: The company will prudently allocate resources around its main business and strategic synergy, improve the operating objectives and assessment mechanisms of each business segment, strengthen collaboration among procurement, warehousing, channels, terminals, R&D and quality management, and promote the effective integration of industry chain resources.

Risks and countermeasures if the results of corporate mergers, acquisitions and investments do not meet expectations

The company has carried out multiple mergers and acquisitions and investments to improve its regional layout and industrial chain capabilities. Due to uncertainties in factors such as industry policies, market competition, target operations, team integration and business synergy, relevant investments may be subject to risks such as less-than-expected integration results, failure to realize performance commitments, or impairment of goodwill.

Countermeasures: The company will continue to improve the investment decision-making, post-investment management and internal control evaluation mechanisms, strengthen the operation tracking, financial control, team integration and business collaboration of merger and acquisition targets, regularly evaluate the operating performance and impairment risks of relevant assets, and prudently control the operating and financial risks caused by investment and mergers.

11. Registration form for reception of research, communication, interviews and other activities during the reporting period

Applicable □Not applicable

The main content of the reception pair’s discussion

Reception time Reception place Reception method Reception objects Basic situation of the survey Index type and information provided

For details, please see the company’s online participating companies

Value Online Industry Policy, Company May 15, 2026 in Ju 2025 Annual Conference

(https://www. Development situation, 2026 Chao Information Network

2026 05 Network Platform 2026 First Quarter

ir- Others First quarter results of the year (www.cninfo.com.cn) Online communication on May 15th Online performance talk

online.cn/) network situation and the "301126 Dajiaming Club's total investment" disclosed in 2025

Online Interaction Performance Weikang Investor Relations Management Credit Investors

Information 20260515》

Full text of the 2026 semi-annual report of Hunan Dajia Weikang Pharmaceutical Industry Co., Ltd.

12. Formulation and implementation of market value management system and valuation improvement plan

Whether the company has formulated a market value management system.

Yes □No

Whether the company has disclosed plans to increase its valuation.

□Yes No

In order to strengthen the company's market value management work, further standardize the company's market value management behavior, and safeguard the legitimate rights and interests of the company, investors and other stakeholders, the company has formulated the "Hunan Dajia Weikang Pharmaceutical Industry Co., Ltd. Market Value Management System" in accordance with the "Company Law", "Securities Law", "Listed Company Supervision Guidelines No. 10 - Market Value Management" and other laws, regulations and relevant provisions in combination with the company's actual situation. This system has been reviewed and approved at the 15th meeting of the fourth board of directors.

13. Implementation of the “Double Improvement of Quality and Return” action plan

Has the company disclosed an announcement on the action plan of “double improvement of quality and return”?

□Yes No

Full text of the 2026 semi-annual report of Hunan Dajia Weikang Pharmaceutical Industry Co., Ltd.

Section 4 Corporate Governance, Environment and Society

1. Changes in directors and senior managers of the company

□Applicable Not applicable

There were no changes in the company's directors and senior managers during the reporting period. For details, please refer to the 2025 annual report.

2. Profit distribution and conversion of capital reserve funds into share capital during the reporting period

□Applicable Not applicable

The company plans not to distribute cash dividends, give away bonus shares, or convert public reserve funds into share capital in the first half of the year.

3. Implementation of the company’s equity incentive plan, employee stock ownership plan or other employee incentive measures

Applicable □Not applicable

Equity incentives

On April 24, 2026, the company held the 19th meeting of the fourth board of directors, and reviewed and approved the "Proposal on Adjusting the Prices Related to the 2023 Restricted Stock and Stock Option Incentive Plan" and the "Proposal on Voiding Part of the Second Class Restricted Stock and Cancellation of Part of the Stock Options in the 2023 Restricted Stock and Stock Option Incentive Plan". The proposal has been reviewed and approved by the sixth meeting of the Remuneration and Assessment Committee of the fourth board of directors of the company, and the law firm issued a legal opinion. It is agreed that the company will adjust the grant price of the second type of restricted stock in the 2023 restricted stock and stock option incentive plan from 6.7582 yuan/share to 6.7362 yuan/share; the stock option exercise price (including reservation) will be adjusted from 13.6382 yuan/share to 13.6162 yuan/share. In view of the fact that some incentive targets have resigned due to personal reasons and no longer qualify as incentive targets or the company-level performance assessment targets for 2025 have not been met and cannot be vested, it is agreed that the number of second-class restricted stocks that have been granted but not yet vested is 369,000, and the total number of stock options that have been granted but not yet exercised is 861,000. For details, please refer to the company’s announcement in April 2026 The "Announcement on Adjusting the Related Prices of the 2023 Restricted Stock and Stock Option Incentive Plan" (Announcement No.: 2026-019) and the "Announcement on the Canceling of Part II Restricted Stocks and Cancellation of Some Stock Options of the 2023 Restricted Stock and Stock Option Incentive Plan" (Announcement No.: 2026-020) were disclosed on the cninfo.com (www.cninfo.com.cn) on the 28th.

On May 8, 2026, after review and confirmation by the Shenzhen Branch of China Securities Depository and Clearing Co., Ltd., the company completed the cancellation of 861,000 stock options.

Implementation of employee stock ownership plan

□Applicable Not applicable

Other employee incentives

□Applicable Not applicable

Full text of the 2026 semi-annual report of Hunan Dajia Weikang Pharmaceutical Industry Co., Ltd.

4. Environmental information disclosure

Whether listed companies and their major subsidiaries are included in the list of companies that disclose environmental information in accordance with the law

Yes □No

Included in companies that disclose environmental information in accordance with the law

Number of companies on the list (houses)

Preface

Company name Query index for environmental information disclosure reports in accordance with the law

No.

List of key environmental supervision units in Changsha City in 2026, the website is:

Hunan Tianji Caotang Pharmaceutical Stock http://hbj.changsha.gov.cn/xxgk/tzgg/202603/t20260326_12345728.html

Co., Ltd. The public version of the national pollution discharge license management information platform, the website is:

https://permit.mee.gov.cn/perxxgkinfo/syssb/xkgg/xkgg!licenseInformation.action Directory of Changde City’s Key Environmental Supervision Units in 2026, the website is:

https://sthjj.changde.gov.cn/zwgk/public/6617357/3852085481.html

Dajia Weikang Biopharmaceutical has a legal corporate environmental information disclosure system (Hunan), the website is:

Co., Ltd. http://yfpl.sthjt.hunan.gov.cn:8181/hnyfpl/frontal/index.html#/home/index The public end of the National Pollutant Discharge License Management Information Platform, the website is:

https://permit.mee.gov.cn/perxxgkinfo/syssb/xkgg/xkgg!licenseInformation.action

5. Social Responsibility

In the process of operation and development, the company actively fulfills its social responsibilities, attaches great importance to the interests of investors, employees, suppliers and customers, environmental protection, public relations and other relevant parties, fully coordinates economic benefits and social benefits, short-term benefits and long-term benefits, self-development and social development, and strives to achieve healthy and harmonious development of the company and employees, the company and society, and the company and the environment. During the reporting period, the company carried out the following work:

(1) Protection of shareholders’ rights and interests

The company strictly complies with the requirements of the Company Law, Securities Law, Shenzhen Stock Exchange GEM Stock Listing Rules and other relevant laws and regulations, constantly improves the corporate governance structure and internal control system, ensures the company's standardized operations, improves the quality of corporate governance, and effectively protects the legitimate rights and interests of investors, especially small and medium-sized investors. During the reporting period, the company held shareholders' meetings in accordance with the law, using a combination of on-site voting and online voting to expand the proportion of shareholders participating in shareholders' meetings and fully protect shareholders' rights to know and participate. Actively communicate with investors through various methods such as online performance briefings, investor hotlines, and interactive platforms. The company strictly fulfills its information disclosure obligations and ensures true, accurate, complete, timely and fair disclosure of information to all investors. The company's financial status is sound, its funds and assets are safe and reliable, and there is no situation where the controlling shareholder or related parties occupy funds, which protects the legitimate rights and interests of investors.

(2) Protection of employees’ rights and interests

The company strictly complies with the requirements of the "Labor Law", "Labor Contract Law" and other relevant laws and regulations, and signs written labor contracts with employees based on the principles of fairness and legality, further improves regulations on personnel recruitment, employee training, salary and benefits, etc., establishes a sound labor employment and welfare security system, and fully protects the legitimate rights and interests of employees.

(3) Protection of rights and interests of suppliers and customers

The company upholds the core value of win-win cooperation, builds long-term and stable strategic partnerships with customers and suppliers, abides by the spirit of the contract, and ensures the accurate and timely performance of contract obligations. Based on in-depth insights into industry development trends and product application needs, the company systematically promotes supplier management, customer rights protection and consumer protection. We are always customer-oriented, committed to providing excellent product quality and professional services, creating sustainable value for customers, and effectively safeguarding the legitimate rights and interests of customers. At the same time, the company actively creates a fair and healthy business ecosystem and fully fulfills its responsibilities to customers, suppliers and all sectors of society.

(4) Environmental protection

The company adheres to the sustainable development strategy, always adheres to the concept of green development, and takes "efficiency enhancement, consumption reduction, energy conservation, and pollution reduction" as the environmental protection principles, actively promotes low-carbon life and green office, improves employees' environmental awareness, encourages employees to develop low-carbon, green working styles, and strives to achieve a "win-win" of economic and environmental benefits.

Full text of the 2026 semi-annual report of Hunan Dajia Weikang Pharmaceutical Industry Co., Ltd.

(5) Public relations

The company has always upheld a high sense of social responsibility, actively built strategic collaborative relationships with government departments at all levels, and deepened the government-enterprise cooperation mechanism. We are committed to supporting the sustainable development of our parks and contributing to the regional economy through resource integration and collaborative innovation. We participate in social welfare activities in various forms and fulfill our corporate citizen responsibilities. During the reporting period, the company actively participated in various donations and social welfare undertakings, with a total value of 227,000 yuan.

Full text of the 2026 semi-annual report of Hunan Dajia Weikang Pharmaceutical Industry Co., Ltd.

Section 5 Important Matters

Commitments made by the company’s actual controller, shareholders, related parties, acquirers, the company and other relevant parties that have been fulfilled during the reporting period and have been overdue as of the end of the reporting period □ Applicable  Not applicable

During the reporting period of the company, there were no commitments made by the company's actual controller, shareholders, related parties, acquirers, the company and other relevant parties that were fully fulfilled during the reporting period and that were overdue and unfulfilled as of the end of the reporting period.

Non-operating capital occupation of listed companies by controlling shareholders and other related parties □Applicable Not applicable

During the company's reporting period, there was no non-operational occupation of funds by the listed company's controlling shareholders and other related parties.

3. Illegal external guarantees

□Applicable Not applicable

The company had no illegal external guarantees during the reporting period.

4. Appointment and dismissal of accounting firms

Has the semi-annual financial report been audited?

□Yes No

The company's semi-annual report has not been audited.

Explanations of the Board of Directors and the Audit Committee on the accounting firm’s “non-standard audit report” for this reporting period □ Applicable  Not applicable
Explanation of the Board of Directors on the “Non-standard Audit Report” of the previous year □ Applicable  Not applicable

7. Matters related to bankruptcy and reorganization

□Applicable Not applicable

The company had no bankruptcy or reorganization related matters during the reporting period.

8. Litigation matters

Major litigation and arbitration matters

□Applicable Not applicable

The Company had no major litigation or arbitration matters during the reporting period.

Other litigation matters

Applicable □Not applicable

Full text of the 2026 semi-annual report of Hunan Dajia Weikang Pharmaceutical Industry Co., Ltd.

Litigation (Arbitration) Litigation (Arbitration) Litigation (Arbitration) Amount involved Whether a pre-litigation (arbitration) is formed

Trial results and execution of judgment Disclosure date Basic information on disclosure index (10,000 yuan) Liability calculation progress

Influence situation

Some cases have been

Cases that have not reached a major conclusion and are subject to judgment and have finalized litigation disclosure standards and results are enforced in accordance with

2,093.66 No No significant impact Other lawsuits that are not applicable, some cases Judgment results and execution summary are still under trial

in process

9. Punishment and Rectification

□Applicable Not applicable

There were no penalties or rectifications during the company's reporting period.

10. Integrity status of the company, its controlling shareholders and actual controllers

□Applicable Not applicable

11. Major related transactions

Related transactions related to daily operations

□Applicable Not applicable

The company had no related transactions related to daily operations during the reporting period.

Related transactions arising from asset or equity acquisition and sale

□Applicable Not applicable

The company had no related transactions related to asset or equity acquisition or sale during the reporting period.

Related transactions related to joint external investment

□Applicable Not applicable

The company had no related transactions related to joint external investments during the reporting period.

Related credit and debt transactions

□Applicable Not applicable

The company had no related creditor's rights or debts during the reporting period.

Dealings with related financial companies

□Applicable Not applicable

There are no deposits, loans, credit or other financial business between the company and its related financial companies, or between the company's financial companies and related parties.

The transactions between the financial company controlled by the company and related parties

□Applicable Not applicable

There are no deposits, loans, credit or other financial business between the financial companies controlled by the company and related parties.

Full text of the 2026 semi-annual report of Hunan Dajia Weikang Pharmaceutical Industry Co., Ltd.

Other major related transactions

Applicable □Not applicable

The company held the 21st meeting of the fourth board of directors on June 23, 2026, and reviewed and approved the "Proposal on the Company's Wholly-Owned Subsidiary to Plan to Carry out Financial Leasing Business and Accept Guarantees from Related Parties", in order to broaden financing channels, optimize the financing structure, improve the efficiency of fund use, and meet the needs of production and operations. To meet the capital needs, the company's wholly-owned subsidiary Hunan Dajia Weikang Pharmaceutical Co., Ltd. acted as the lessee and carried out a sale and leaseback financial leasing business with Haitong Hengxin International Financial Leasing Co., Ltd. The lease principal was RMB 100 million and the lease term was 14 months (calculated from the actual lease start date). Mr. Wang Yiqing, the company's chairman, controlling shareholder and one of the actual controllers, plans to serve as the guarantor of this financial leasing business. The debtor will provide an irrevocable joint and several liability guarantee for the debt owed to the creditor under the main contract and all attachments with the creditor as the beneficiary and sign the "Guarantee Contract". According to the relevant provisions of the "Shenzhen Stock Exchange GEM Stock Listing Rules", the guarantor Mr. Wang Yiqing is a related natural person of the company, and his provision of guarantee for the company's wholly-owned subsidiary Dajia Pharmaceutical's financial leasing business constitutes a related transaction.

Inquiries related to the temporary report disclosure website of major related party transactions

Temporary announcement name Temporary announcement disclosure date Temporary announcement disclosure website name

"About the company's wholly-owned subsidiary's plan to carry out financial leasing, Juchao Information Network

June 23, 2026

Announcement on Leasing Business and Accepting Guarantees from Related Parties" (http://www.cninfo.com.cn)

12. Major contracts and their performance

Custody, contracting and leasing matters

(1) Custody situation

□Applicable Not applicable

There was no custody situation during the company's reporting period.

(2) Contracting situation

□Applicable Not applicable

There was no contracting situation during the reporting period of the company.

(3) Leasing situation

Applicable □Not applicable

Rental situation description

Projects that bring profits and losses to the company exceeding 10% of the company's total profit during the reporting period

□Applicable Not applicable

During the company's reporting period, there were no leasing projects that brought profits or losses to the company that accounted for more than 10% of the company's total profits during the reporting period.

Major guarantee

Applicable □Not applicable

Full text of the 2026 semi-annual report of Hunan Dajia Weikang Pharmaceutical Industry Co., Ltd. Unit: Wan Yuan External guarantees provided by the company and its subsidiaries (excluding guarantees for subsidiaries)

Counter-guarantee status

Announcement related to the guarantee limit. Actual guarantee. Collateral. Whether it is fulfilled. Whether it is a related guarantee object. Guarantee limit. Actual date of occurrence. Guarantee type. Conditions (such as guarantee period).

Disclosure date Amount (if any) Bank completion Party guarantee (if any)

The company’s guarantees for subsidiaries

Counter-guarantee status

Disclosure date Amount (if any) Completion Party guarantee

Yes)

Hunan Dajia Weikang Pharmaceutical 2024/2/4-

20,000 August 22, 2025 1,000 Joint liability guarantee No limited company 2026/8/5

Hunan Dajia Weikang Pharmaceutical 2024/2/4-

20,000 August 25, 2025 1,000 Joint liability guarantee No limited company 2026/8/5

Hunan Dajia Weikang Pharmaceutical 2024/2/4-

20,000 September 8, 2025 1,000 Joint liability guarantee No limited company 2026/8/5

Hunan Dajia Weikang Pharmaceutical 2024/2/4-

20,000 September 11, 2025 2,000 Joint liability guarantee No limited company 2026/8/5

Hunan Dajia Weikang Pharmaceutical 2024/2/4-

20,000 September 15, 2025 2,000 Joint liability guarantee No limited company 2026/8/5

Hunan Dajia Weikang Pharmaceutical 2024/2/4-

20,000 December 24, 2025 2,500 Joint liability guarantee No limited company 2026/8/5

Hunan Dajia Weikang Pharmaceutical 2024/2/4-

20,000 December 30, 2025 1,500 Joint liability guarantee No limited company 2026/8/5

Hunan Dajia Weikang Pharmaceutical 2024/2/4-

20,000 January 9, 2026 2,000 Joint liability guarantee No limited company 2026/8/5

Hunan Dajia Weikang Pharmaceutical 2024/2/4-

20,000 January 13, 2026 3,000 Joint liability guarantee No limited company 2026/8/5

Full text of the 2026 semi-annual report of Hunan Dajia Weikang Pharmaceutical Industry Co., Ltd. Hunan Dajia Weikang Pharmaceutical 2025/3/19-

9,000 January 28, 2026 3,000 Joint liability guarantee No limited company 2028/3/19

Hunan Dajia Weikang Pharmaceutical 2025/3/19-

9,000 February 26, 2026 2,000 Joint liability guarantee No limited company 2028/3/19

Hunan Dajia Weikang Pharmaceutical 2025/3/19-

9,000 April 13, 2026 3,000 Joint liability guarantee No limited company 2028/3/19

Hunan Dajia Weikang Pharmaceutical 2025/3/19-

9,000 June 18, 2026 200 Joint liability guarantee No limited company 2028/3/19

Hunan Dajia Weikang Pharmaceutical 2025/3/19-

9,000 June 23, 2026 800 Joint liability guarantee No limited company 2028/3/19

Hunan Dajia Weikang Pharmaceutical 2025/5/12-

11,000 November 28, 2025 7,000 Joint liability guarantee No limited company 2026/5/11

Hunan Dajia Weikang Pharmaceutical 2025/5/12-

11,000 January 21, 2026 1,000 Joint liability guarantee No limited company 2026/5/11

Hunan Dajia Weikang Pharmaceutical 2025/5/12-

11,000 February 13, 2026 3,000 Joint liability guarantee No limited company 2026/5/11

Hunan Dajia Weikang Pharmaceutical 2020/1/1-

12,000 April 24, 2026 3,000 Joint liability guarantee No limited company 2028/12/31

Hunan Dajia Weikang Pharmaceutical 2020/1/1-

12,000 June 29, 2026 9,000 Joint liability guarantee No limited company 2028/12/31

2025/10/13

Hunan Dajia Weikang Pharmaceutical

10,000 October 21, 2025 4,000 Joint liability guarantee - No Co., Ltd.

2028/10/13

2025/10/13

Hunan Dajia Weikang Pharmaceutical

10,000 October 29, 2025 4,000 Joint liability guarantee - No Co., Ltd.

2028/10/13

Hunan Dajia Weikang Pharmaceutical 2025/10/13

10,000 January 7, 2026 2,000 Joint liability guarantee No limited company -

Full text of the 2026 semi-annual report of Hunan Dajia Weikang Pharmaceutical Industry Co., Ltd.

2028/10/13

Hunan Dajia Weikang Pharmaceutical 2025/9/25-

13,000 October 31, 2025 3,000 Joint liability guarantee No limited company 2026/9/25

Hunan Dajia Weikang Pharmaceutical 2025/4/23-

15,000 September 13, 2023 2,975 Joint liability guarantee No limited company 2028/4/23

Hunan Dajia Weikang Pharmaceutical 2025/4/23-

15,000 September 15, 2023 2,975 Joint liability guarantee No limited company 2028/4/23

Hunan Dajia Weikang Pharmaceutical 2025/4/23-

15,000 September 21, 2023 1,175 Joint liability guarantee No limited company 2028/4/23

Hunan Dajia Weikang Pharmaceutical 2025/4/23-

15,000 November 3, 2023 4,975 Joint liability guarantee No limited company 2028/4/23

Hunan Dajia Weikang Pharmaceutical 2025/4/23-

15,000 November 9, 2023 2,775 Joint liability guarantee No limited company 2028/4/23

Hunan Dajia Weikang Pharmaceutical 2026/4/16-

April 17, 2026 20,000 July 30, 2025 1,300 Joint liability guarantee No limited company 2024/4/15

Hunan Dajia Weikang Pharmaceutical 2026/4/16-

April 17, 2026 20,000 August 1, 2025 2,000 Joint liability guarantee No limited company 2024/4/15

Hunan Dajia Weikang Pharmaceutical 2025/9/19-

3,000 September 28, 2025 1,500 Joint liability guarantee No limited company 2026/9/18

Hunan Dajia Weikang Pharmaceutical 2025/9/19-

3,000 October 10, 2025 500 Joint liability guarantee No limited company 2026/9/18

Hunan Dajia Weikang Pharmaceutical 2025/9/19-

3,000 April 1, 2026 121.12 Joint liability guarantee No limited company 2026/9/18

Hunan Dajia Weikang Pharmaceutical 2025/9/19-

3,000 April 3, 2026 500 Joint liability guarantee No limited company 2026/9/18

Hunan Dajia Weikang Pharmaceutical 2025/9/19-

3,000 April 13, 2026 378.88 Joint liability guarantee No limited company 2026/9/18

Full text of the 2026 semi-annual report of Hunan Dajia Weikang Pharmaceutical Industry Co., Ltd.

2024/11/26

Hunan Dajia Weikang Pharmaceutical

10,000 March 3, 2026 43.01 Joint liability guarantee - No Co., Ltd.

2027/11/25

2024/11/26

Hunan Dajia Weikang Pharmaceutical

10,000 March 4, 2026 104.83 Joint liability guarantee - No Co., Ltd.

2027/11/25

2024/11/26

Hunan Dajia Weikang Pharmaceutical

10,000 March 20, 2026 54.11 Joint liability guarantee - No Co., Ltd.

2027/11/25

2024/11/26

Hunan Dajia Weikang Pharmaceutical

3,000 March 31, 2026 1,360 Joint liability guarantee - No Co., Ltd.

2027/11/25

2024/11/26

Hunan Dajia Weikang Pharmaceutical

3,000 April 10, 2026 820.98 Joint liability guarantee - No Co., Ltd.

2027/11/25

Hunan Dajia Weikang Pharmaceutical 2026/3/23-

March 27, 2026 10,000 July 15, 2025 3,100 Joint liability guarantee No limited company 2027/3/22

Hunan Dajia Weikang Pharmaceutical 2026/3/23-

March 27, 2026 10,000 February 12, 2026 900 Joint liability guarantee No limited company 2027/3/22

Hunan Dajia Weikang Pharmaceutical 2026/3/23-

March 27, 2026 10,000 March 27, 2026 2,000 Joint liability guarantee No limited company 2027/3/22

Hunan Dajia Weikang Pharmaceutical 2026/3/23-

March 27, 2026 10,000 April 3, 2026 3,000 Joint liability guarantee No limited company 2027/3/22

Hunan Dajia Weikang Pharmaceutical 2026/4/3-

April 3, 2026 12,000 April 9, 2026 8,374 Joint liability guarantee No limited company 2028/4/2

Hunan Dajia Weikang Pharmaceutical 2026/6/24-

June 23, 2026 10,000 June 26, 2026 10,000 Joint liability guarantee No limited company 2027/8/25

Hunan Dajia Weikang Pharmaceutical 2026/6/29-

June 30, 2026 8,000 June 29, 2026 8,000 Joint liability guarantee No limited company 2029/6/28

Full text of the 2026 semi-annual report of Hunan Dajia Weikang Pharmaceutical Industry Co., Ltd.

2025/12/25

Hunan Dajia Weikang Pharmaceutical

December 26, 2025 1,000 December 30, 2025 1,000 Joint liability guarantee - Fou Marketing Co., Ltd.

2026/12/31

2025/12/25

Dajia Weikang Biopharmaceuticals

1,000 December 30, 2025 1,000 Joint liability guarantee - No Co., Ltd.

2026/12/31

Dajia Weikang Biopharmaceuticals 2026/3/9-

March 12, 2026 650 March 13, 2026 406 Joint liability guarantee No limited company 2029/3/9

Dajia Weikang Biopharmaceuticals 2026/3/9-

March 12, 2026 650 June 17, 2026 210 Joint liability guarantee No limited company 2029/3/9

Dajia Weikang Biopharmaceuticals 2026/3/18-

March 20, 2026 1,000 March 18, 2026 1,000 Joint liability guarantee No limited company 2027/4/17

Dajia Weikang Biopharmaceuticals 2024/9/23-

1,000 March 31, 2026 1,000 Joint liability guarantee No limited company 2028/12/31

Dajia Weikang Biopharmaceuticals 2026/3/20-

March 27, 2026 1,000 March 31, 2026 1,000 Joint liability guarantee No limited company 2027/3/19

Hunan Tianji Caotang Pharmaceutical 2024/6/20-

1,000 June 28, 2024 800 Joint liability guarantee No joint stock company 2027/6/20

Hunan Tianji Caotang Pharmaceutical 2025/6/13-

1,000 June 30, 2025 990 Joint liability guarantee No joint stock company 2028/6/12

Hunan Tianji Caotang Pharmaceutical 2023/11/1-

7,000 January 1, 2026 1,500 Joint liability guarantee No joint stock company 2028/12/31

Hunan Tianji Caotang Pharmaceutical 2023/11/1-

7,000 January 20, 2026 1,000 Joint liability guarantee No joint stock company 2028/12/31

Hunan Tianji Caotang Pharmaceutical 2023/11/1-

7,000 March 12, 2026 500 Joint liability guarantee No joint stock company 2028/12/31

Hunan Tianji Caotang Pharmaceutical 2026/3/9-

March 12, 2026 950 June 17, 2026 490 Joint liability guarantee No joint stock company 2029/3/9

Full text of the 2026 semi-annual report of Hunan Dajia Weikang Pharmaceutical Industry Co., Ltd. Hunan Tianji Caotang Pharmaceutical 2026/6/23- June 26, 2026 1,000 June 26, 2026 1,000 Joint and several liability guarantee No Co., Ltd. 2027/6/22 Hunan Tianji Caotang Pharmaceutical 2026/6/30- June 30, 2026 1,000 June 30, 2026 1,000 Joint liability guarantee No joint stock company 2027/12/31 Shanxi Simile Pharmaceutical Co., Ltd.

2026/6/23-Lock Co., Ltd. Datonghui June 26, 2026 300 June 30, 2026 300 Joint and several liability guarantee No 2027/6/22 Minxicheng Store

Shanxi Simile Pharmaceutical Co., Ltd.

2026/6/23-Lock Co., Ltd. Datong New June 26, 2026 300 June 30, 2026 300 Joint and several liability guarantee No 2027/6/22 South China Street Store

Shanxi Simile Pharmaceutical Co., Ltd.

2026/6/23-Lock Co., Ltd. Datonghua June 26, 2026 300 June 30, 2026 300 Joint and several liability guarantee No 2027/6/22 Beixing Store

Shanxi Simile Pharmaceutical Co., Ltd.

2026/6/23-Datong New Lock Co., Ltd. June 26, 2026 300 June 30, 2026 300 Joint and several liability guarantee No 2027/6/22 Huajie Store

Shanxi Simile Pharmaceutical Co., Ltd.

2026/6/23 - Lock Co., Ltd. Datong Cao June 26, 2026 300 June 30, 2026 300 Joint and several liability guarantee No 2027/6/22 Changcheng Street Store

Shanxi Simile Pharmaceutical Co., Ltd.

2026/6/23-Datong Ying of Lock Co., Ltd. June 26, 2026 300 June 30, 2026 300 Joint and several liability guarantee No 2027/6/22 Binjie store

Shanxi Simile Pharmaceutical Co., Ltd.

2026/6/23-Lock Co., Ltd. Datong Machinery June 26, 2026 300 June 30, 2026 300 Joint and Several Liability Guarantee No 2027/6/22 Depot Store

Shanxi Simile Pharmaceutical Co., Ltd.

2026/6/23-Lock Co., Ltd. Datong Wei June 26, 2026 300 June 30, 2026 300 Joint and several liability guarantee No 2027/6/22 Dudian

Shanxi Simile Pharmaceutical Co., Ltd.

June 26, 2026 300 June 30, 2026 300 Joint liability guarantee 2026/6/23- Fousuo Co., Ltd. Datong Wei

Full text of the 2026 semi-annual report of Hunan Dajia Weikang Pharmaceutical Industry Co., Ltd.

Duda Avenue Store 2027/6/22

Shanxi Simile Pharmaceutical Co., Ltd.

2026/6/23-Datong Text of Lock Co., Ltd. June 26, 2026 300 June 30, 2026 300 Joint liability guarantee No

2027/6/22

Xing Road Store

Shanxi Simile Pharmaceutical Company 2024/11/18 Lock Co., Ltd. Datong Ying 300 August 28, 2025 300 Joint and several liability guarantee - Nobin West Street Store 2025/11/17

Shanxi Simile Pharmaceutical Co., Ltd. 2024/11/18 Lock Co., Ltd. Datong Mansion 300 July 29, 2025 300 Joint and several liability guarantee - Fuxidian 2025/11/17

Shanxi Simile Pharmaceutical Co., Ltd. 2024/11/18 Lock Co., Ltd. Datong Tai 300 July 29, 2025 300 Joint liability guarantee - Fuyangcheng store 2025/11/17

Shanxi Simile Pharmaceutical Co., Ltd. 2024/11/18 Lock Co., Ltd. Datong Bureau 300 July 29, 2025 300 Joint liability guarantee - Fudongdian 2025/11/17

Shanxi Simile Pharmaceutical Co., Ltd. 2024/11/18 Lock Co., Ltd. Datong North 300 July 29, 2025 300 Joint and several liability guarantee - Fuchen Garden Store 2025/11/17

Shanxi Simile Pharmaceutical Co., Ltd. 2024/11/18 Lock Co., Ltd. Datong Yong 300 July 29, 2025 300 Joint and several liability guarantee - Nohe Road Store 2025/11/17

Shanxi Simile Pharmaceutical Co., Ltd. 2024/11/18 Lock Co., Ltd. Datong Green 300 August 28, 2025 300 Joint and several liability guarantee - Fuzhou Store 2025/11/17

Shanxi Simile Pharmaceutical Company 2024/11/18 Lock Co., Ltd. Datong Day 300 August 28, 2025 300 Joint and several liability guarantee - Fukangdian 2025/11/17

Shanxi Simile Pharmaceutical Company 2024/11/18

300 August 28, 2025 300 Joint liability guarantee Fusuo Co., Ltd. Datongrui -

Full text of the 2026 semi-annual report of Hunan Dajia Weikang Pharmaceutical Industry Co., Ltd.

Xinghuayuan Store 2025/11/17

Shanxi Simile Pharmaceutical Co., Ltd. 2024/11/29 Lock Co., Ltd. Datong 300 July 29, 2025 260 Joint and several liability guarantee - Fuquanli Store 2025/11/28

Shanxi Simile Pharmaceutical Co., Ltd. 2024/11/29 Lock Co., Ltd. Datong Water 300 July 29, 2025 250 Joint and several liability guarantee - Fuquanwan Longyuan Store 2025/11/28

Shanxi Simile Pharmaceutical Co., Ltd. 2024/11/29 Lock Co., Ltd. Datong Ying 300 July 29, 2025 250 Joint and several liability guarantee - Fuzedong Street Store 2025/11/28

Shanxi Simile Pharmaceutical Co., Ltd. 2024/11/29 Lock Co., Ltd. Datong Ying 300 July 29, 2025 290 Joint and several liability guarantee - No Binyuan Store 2025/11/28

Shanxi Simile Pharmaceutical Co., Ltd. 2024/11/29 Lock Co., Ltd. Datong Jin 300 July 29, 2025 290 Joint and several liability guarantee - Fuxiangdian 2025/11/28

Shanxi Simile Pharmaceutical Co., Ltd. 2024/12/25 Lock Co., Ltd. Datong Royal 300 August 28, 2025 285 Joint and several liability guarantee - Fuheyuan Store 2025/12/25

Shanxi Simile Pharmaceutical Co., Ltd. 2024/12/25 Lock Co., Ltd. Datong Wei 300 August 28, 2025 300 Joint and several liability guarantee - Fudu Xincheng Store 2025/12/25

Shanxi Simile Pharmaceutical Co., Ltd. 2024/12/25 Lock Co., Ltd. Datong North 300 August 28, 2025 300 Joint and several liability guarantee - Fuyuan Road Store 2025/12/25

Ningxia Delixin Pharmaceutical Co., Ltd. 2023/9/22-

5,000 September 22, 2023 2,400 Joint liability guarantee No limited liability company 2026/9/22

2023/12/20Ningxia Delixin Pharmaceutical Co., Ltd.

15,000 December 20, 2023 2,200 Joint liability guarantee - No limited liability company

2026/12/20

Full text of the 2026 semi-annual report of Hunan Dajia Weikang Pharmaceutical Industry Co., Ltd.

2023/12/20

Ningxia Delixin Pharmaceutical Co., Ltd.

15,000 January 16, 2024 2,000 Joint liability guarantee - No limited liability company

2026/12/20

2023/12/20

Ningxia Delixin Pharmaceutical Co., Ltd.

15,000 February 23, 2024 5,000 Joint liability guarantee - No limited liability company

2026/12/20

2023/12/20

Ningxia Delixin Pharmaceutical Co., Ltd.

15,000 March 25, 2024 3,000 Joint liability guarantee - No limited liability company

2026/12/20

2025/12/24

Ningxia Delixin Pharmaceutical Co., Ltd.

1,000 January 9, 2026 1,000 Joint liability guarantee - No limited liability company

2026/12/24

Ningxia Delixin Pharmaceutical Co., Ltd. 2025/7/18-

2,000 August 1, 2025 1,400 Joint liability guarantee No limited liability company 2026/7/17

Ningxia Delixin Pharmaceutical Co., Ltd. 2026/6/11-

June 12, 2026 1,000 June 26, 2026 600 Joint liability guarantee No limited liability company 2028/6/9

Ningxia Delixin Pharmaceutical Co., Ltd. 2026/6/11-

June 12, 2026 1,000 June 30, 2026 400 Joint liability guarantee No limited liability company 2028/6/9

Yinchuan Meihetai Pharmaceutical Company 2025/3/28-

2,600 April 29, 2025 620.29 Joint liability guarantee Fusuo Co., Ltd. 2028/3/28

Yinchuan Meihetai Pharmaceutical Company 2025/3/28-

2,600 May 31, 2025 1,043.33 Joint liability guarantee Fusuo Co., Ltd. 2028/3/28

Yinchuan Meihetai Pharmaceutical Company 2025/3/28-

2,600 June 30, 2025 588.2 Joint liability guarantee Fusuo Co., Ltd. 2028/3/28

Yinchuan Meihetai Pharmaceutical Company 2026/6/11-

June 12, 2026 1,000 June 26, 2026 500 Joint liability guarantee Fusuo Co., Ltd. 2028/6/9

Hainan Dajia Weikang Hongchun

2026/6/23-

Tang Pharmacy Chain Co., Ltd. June 23, 2026 500 June 23, 2026 500 Joint and several liability guarantee No

2027/6/22

Division

Full text of the 2026 semi-annual report of Hunan Dajia Weikang Pharmaceutical Industry Co., Ltd. Beijing Zhengjitang Pharmaceutical Co., Ltd.

2025/2/12-Lock Supermarket Co., Ltd. 1,000 February 11, 2026 1,000 Joint liability guarantee No

2026/2/11

Division

Anhui Dajia Weikang Health 2026/6/10-

June 12, 2026 2,400 June 29, 2026 1,000 Joint liability guarantee No Pharmacy Co., Ltd. 2028/6/10

The total approved guarantee amount for subsidiaries during the reporting period The actual guarantee amount for subsidiaries during the reporting period

25,000 84,762.93 (B1) Total amount incurred (B2)

The total amount of approved guarantees for subsidiaries at the end of the reporting period. The balance of guarantees for subsidiaries at the end of the reporting period.

25,000 164,004.76 (B3) Total (B4)

Guarantees provided by subsidiaries to subsidiaries

Counter-guarantee status

Disclosure date Amount (if any) Completion Party guarantee

Yes)

Hunan Tianji Caotang Pharmaceutical 2026/1/27-

500 February 5, 2026 500 Joint liability guarantee No joint stock company 2027/1/27

2025/11/27 Hunan Tianji Caotang Pharmaceutical

1,000 December 10, 2025 997 Joint liability guarantee - No Co., Ltd.

2026/11/26 Anhui Dajia Weikang Health 2026/6/10-

2,400 June 29, 2026 1,000 Joint liability guarantee Fu Pharmacy Co., Ltd. 2028/6/10

The total approved guarantee amount for subsidiaries during the reporting period The actual guarantee amount for subsidiaries during the reporting period

4,900 1,500 (C1) Total amount incurred (C2)

The total amount of approved guarantees for subsidiaries at the end of the reporting period. The balance of guarantees for subsidiaries at the end of the reporting period.

4,900 2,497 (C3) Total (C4)

The total amount of company guarantees (i.e. the total of the first three major items)

The actual amount of guarantees incurred during the reporting period totaled

Total approved guarantee amount during the reporting period (A1+B1+C1) 29,900 86,262.93

Count (A2+B2+C2)

Full text of the 2026 semi-annual report of Hunan Dajia Weikang Pharmaceutical Industry Co., Ltd. Total approved guarantee lines at the end of the reporting period Total balance of all guarantees at the end of the reporting period

29,900 166,501.76 (A3+B3+C3) (A4+B4+C4)

The total guarantee balance (i.e. A4+B4+C4) accounts for 111.36% of the company’s net assets, of which:

Specific instructions for using composite guarantees

Major contracts for daily operations

None

Full text of the 2026 semi-annual report of Hunan Dajia Weikang Pharmaceutical Industry Co., Ltd.

Other major contracts

□Applicable Not applicable

The company had no other major contracts during the reporting period.

13. Description of other major matters

Applicable □Not applicable

The company held the 19th meeting of the fourth board of directors on April 24, 2026, and reviewed and approved the "Proposal on Proposing to Change the Company's Name, Amend the Articles of Association, and Handle Industrial and Commercial Change Registration". For details, please refer to the company's 2026 The "Announcement on the Plan to Change the Company's Name, Amend the Articles of Association and Handle Industrial and Commercial Change Registration" was disclosed on the cninfo.com (www.cninfo.com.cn) on April 28 (announcement number: 2026-015).
The company held the 20th meeting of the fourth board of directors on June 8, 2026, and reviewed and approved the "Proposal on Changing the Business Scope, Amending the Articles of Association, and Handling Industrial and Commercial Change Registration". For details, please refer to the company's 2026 The "Announcement on Changing the Business Scope, Amending the Articles of Association and Handling the Industrial and Commercial Change Registration" (Announcement Number: 2026-028) was disclosed on the cninfo.com (www.cninfo.com.cn) on June 9.

14. Major events of the company’s subsidiaries

Applicable □Not applicable

Dajia Weikang Biopharmaceutical Co., Ltd., a wholly-owned subsidiary of the company, received the "Drug Registration Certificate" for azithromycin dry suspension approved and issued by the State Food and Drug Administration. For details, please refer to the "Announcement on Obtaining the Drug Registration Certificate for Azithromycin Dry Suspension" disclosed by the company on the cninfo.com on June 1, 2026 (announcement number: 2026-026).

Full text of the 2026 semi-annual report of Hunan Dajia Weikang Pharmaceutical Industry Co., Ltd.

Section 6 Changes in Shares and Shareholders

1. Changes in shares

Changes in shares

Unit: Share

Before this change, this change increases or decreases (+, -) After this change, the reserve

issue send

Quantity Ratio Financial Transfer Others Subtotal Quantity Ratio New Shares Shares

1. Limited sales conditions

67,534,931 32.88% -1,653,150 -1,653,150 65,881,781 32.07% shares

State shareholding
State-owned legal persons hold

Other domestic capital holdings

67,534,931 32.88% -1,653,150 -1,653,150 65,881,781 32.07% shares

Among them: domestic

0 0.00% 0 0 0 0.00% legal person shareholding

Domestic natural person

67,534,931 32.88% -1,653,150 -1,653,150 65,881,781 32.07% shareholding

Foreign shareholding

Among them: overseas

Legal person holdings

Overseas natural person

shareholding

2. Unlimited sales conditions

137,868,269 67.12% 1,653,150 1,653,150 139,521,419 67.93% shares

Ordinary RMB

137,868,269 67.12% 1,653,150 1,653,150 139,521,419 67.93% shares

Listed domestically

foreign stocks

Listed overseas

foreign stocks

Others
Total number of shares 205,403,200 100.00% 0 0 205,403,200 100.00% Reasons for changes in shares

Applicable □Not applicable

Full text of the 2026 semi-annual report of Hunan Dajia Weikang Pharmaceutical Industry Co., Ltd.

(1) According to the relevant provisions of the Shenzhen Stock Exchange Self-Regulatory Guidelines for Listed Companies No. 18 - Reduction of Shareholdings by Shareholders, Directors and Senior Management, China Securities Depository and Clearing Co., Ltd. recalculated and set the number of transferable shares based on the shares of the company held by the company's directors and senior management at the end of the previous year, resulting in changes in the locked shares of senior executives.

(2) According to the relevant provisions of the "Shenzhen Stock Exchange Self-Regulatory Guidelines for Listed Companies No. 18 - Reduction of Shareholdings by Shareholders, Directors and Senior Managers", Ms. Li Yulan, the former senior manager, resigned on October 31, 2025. Her shares in the company were reduced after her resignation. All are locked within half a year; from the beginning of the term determined when he takes office (the original term is until October 9, 2026), and ending within six months after the expiration of the original term (that is, until April 8, 2027), 25% of the total number of company shares held by the company will be released every year.

(3) According to the relevant provisions of the "Shenzhen Stock Exchange Self-Regulatory Guidelines for Listed Companies No. 18 - Reduction of Shareholdings by Shareholders, Directors and Senior Managers", the former supervisor Ms. Tang Juan resigned on July 28, 2025, and her company shares held within half a year after leaving office. All are locked; from the beginning of the term determined when he took office (the original term is until October 9, 2026), and ending within six months after the expiration of the original term (that is, until April 8, 2027), 25% of the total number of company shares held by the company will be released every year.

Approval status of share changes

□Applicable Not applicable

Transfer status of changes in shares

□Applicable Not applicable

Implementation progress of share buybacks

□Applicable Not applicable

Implementation progress of using centralized bidding method to reduce and repurchase shares

□Applicable Not applicable

The impact of changes in shares on financial indicators such as basic earnings per share and diluted earnings per share in the most recent year and period, net assets per share attributable to the company's common shareholders □Applicable Not applicable

Other content that the company deems necessary or required to be disclosed by securities regulatory authorities

□Applicable Not applicable

Changes in restricted shares

Applicable □Not applicable

Unit: Share

Lift the limit in this period and increase the limit in this period

Name of shareholder Number of shares subject to selling restrictions at the beginning of the period Number of shares subject to selling restrictions at the end of the period Reasons for selling restrictions Number of shares sold on the date to be lifted from selling restrictions Number of shares sold

According to relevant regulations on executive lock-up shares Wang Yiqing 52,608,164 0 0 52,608,164 Executive lock-up shares

Sale restrictions will be lifted

According to relevant regulations on executive lock-up shares Zhong Xuesong 14,466,267 1,538,025 0 12,928,242 Executive lock-up shares

Sale restrictions will be lifted

Not to transfer the company within six months after leaving office

Holding shares; Li Yulan 165,000 41,250 0 123,750 Executive lock-in shares determined at the time of taking office Starting from the start date of the lock-in period and ending within six months after the expiration of the original term, 25% of the sales restriction will be lifted every year

According to regulations related to executive lock-up shares Coral 150,000 37,500 0 112,500 Executive lock-up shares

Sale restrictions will be lifted

Full text of the 2026 semi-annual report of Hunan Dajia Weikang Pharmaceutical Industry Co., Ltd.

Not to transfer the company within six months after leaving office

Holding shares; Ren Tangjuan 145,500 36,375 0 109,125 Executive lock-in shares determined at the time of taking office Starting from the start date of the lock-in period and ending within six months after the expiration of the original term, each

25% sales restriction lifted annually

Total 67,534,931 1,653,150 0 65,881,781 -- --

2. Securities issuance and listing

□Applicable Not applicable

3. Number of shareholders and shareholding status of the company

Unit: Shares whose voting rights are restored at the end of the reporting period

Hold shares with special voting rights

Total number of common shareholders at the end of the reporting period 13,597 Total number of preference shareholders (e.g. 0 0 Total number of shareholders (if any)

Yes) (see note 8)

Shareholding status of shareholders holding more than 5% of the shares or the top 10 shareholders (excluding shares lent through refinancing)

Pledge, mark or freeze situation During the reporting period, holding is restricted for sale. Holding is unlimited for sale.

Shareholding ratio Name of shareholder holding status at the end of the reporting period Nature of shareholder Increase or decrease Changes Conditional shares Conditional shares

Example number of shares

Situation Quantity Quantity

Share Status Quantity

Nature within the territory

Wang Yiqing 34.15% 70,144,219 0 52,608,164 17,536,055 Not applicable 0 people

Nature within the territory

Zhong Xuesong 8.39% 17,237,656 0 12,928,242 4,309,414 Not applicable 0

people

Changsha Tongjia Investment

non-state within territory

Management partnership 4.77% 9,800,000 0 0 9,800,000 Not applicable 0

Have legal person

(limited partnership)

Tongxiang Jiawo Yunfeng

Equity investment partnership Domestic non-state

2.78% 5,714,185 0 0 5,714,185 Not applicable 0 enterprise (limited legal person)

Guy)

Ningbo Meishan Bonded

Port Liangji Equity Interests Domestic Non-State

1.63% 3,346,094 -390,100 0 3,346,094 Not applicable 0 Investment partnership Legal person

(limited partnership)

Nature within the territory

Dai Xuerong 1.32% 2,718,500 2,565,700 0 2,718,500 Not applicable 0

people

Ningbo Meishan Bonded

Port Chunkang Equity Domestic Non-State

0.86% 1,759,921 -270,000 0 1,759,921 Not applicable 0 Investment partnership Legal person

(limited partnership)

Nature within the territory

Minghui 0.68% 1,400,000 0 0 1,400,000 Not applicable 0

people

Full text of the 2026 semi-annual report of Hunan Dajia Weikang Pharmaceutical Industry Co., Ltd.

Nature within the territory

Liu Jianqiang 0.66% 1,356,453 0 0 1,356,453 Not applicable 0 people

Nature within the territory

#Pan Haijun 0.64% 1,314,500 1,314,500 0 1,314,500 Not applicable 0

people

Strategic investors or general legal persons

Placing new shares to become the top 10 shareholders

None

circumstances (if any) (see note

Wang Yiqing and Minghui are husband and wife, and Wang Yiqing serves as the executive partner of Tongjia Investment. The above-mentioned shareholders of Ningbo Meishan Bonded Port Area Liangji are related or consistent. Explanation of the execution actions between the Equity Investment Partnership (Limited Partnership) of Ningbo Meishan Bonded Port Area and Ningbo Meishan Bonded Port Area Chunkang Equity Investment Partnership (Limited Partnership). The business partners and fund managers are both Shanghai Chunyuan Private Equity Fund Management Co., Ltd. Except for the above circumstances, the company’s other

There is no related relationship or concerted action among other shareholders.

The above-mentioned shareholders are involved in the entrustment/trustee table

voting rights or abstention from voting rights None

Description

Among the top 10 shareholders, there are buyback specialties

Special Instructions for Users (See Note None

11)

Shareholdings of the top 10 shareholders without sales restrictions (excluding shares lent through refinancing and shares locked by executives)

Share type

Name of shareholder Number of shares without selling restrictions held at the end of the reporting period

Type of shares Quantity Wang Yiqing 17,536,055 RMB ordinary shares 17,536,055 Changsha Tongjia Investment Management Partnership

9,800,000 RMB ordinary shares 9,800,000 (limited partnership)

Tongxiang Jiawo Yunfeng Equity Investment Partnership

5,714,185 RMB ordinary shares 5,714,185 Industry (limited partnership)

Zhong Xuesong 4,309,414 RMB ordinary shares 4,309,414 Ningbo Meishan Bonded Port Area Liangji Equity Investment

3,346,094 RMB ordinary shares 3,346,094 Capital partnership (limited partnership)

Dai Xuerong 2,718,500 RMB ordinary shares 2,718,500 Ningbo Meishan Bonded Port Area Chunkang Equity Investment

1,759,921 RMB ordinary shares 1,759,921 Capital partnership (limited partnership)

Minghui 1,400,000 RMB ordinary shares 1,400,000

Liu Jianqiang 1,356,453 RMB ordinary shares 1,356,453

#Pan Haijun 1,314,500 RMB ordinary shares 1,314,500

Full text of the 2026 semi-annual report of Hunan Dajia Weikang Pharmaceutical Industry Co., Ltd.

Wang Yiqing and Minghui are husband and wife, and Wang Yiqing serves as the executive executive of Changsha Tongjia Investment Management Partnership (Limited Partnership) among the 10 shareholders with no sales limit.

business partner. Ningbo Meishan Bonded Port Area Liangji Equity Investment Partnership (Limited Partnership) and Ningbo Meishan Bonded Port Area and the top 10 shareholders without sales restrictions and

The executive partners and fund managers of Chunkang Equity Investment Partnership (Limited Partnership) are all related parties or one of the top 10 shareholders of Shanghai Chunyuan Private Equity.

FUND MANAGEMENT LIMITED. Except for the above circumstances, there is no statement that there is any related relationship or concerted action among other shareholders of the company.

people.

The top 10 common shareholders participated in the financing

In addition to holding 0 shares through ordinary securities accounts, Pan Haijun, the company's shareholder, also holds 0 shares through Caitong Securities Co., Ltd. Client Securities Business Statement (if any)

The credit transaction guaranteed securities account holds 1,314,500 shares, and the actual total holding is 1,314,500 shares. (See note 4)

Situation of shareholders holding more than 5% of the shares, the top 10 shareholders and the top 10 shareholders of unrestricted tradable shares participating in the refinancing business and lending shares □Applicable Not applicable

The top 10 shareholders and the top 10 shareholders of unrestricted tradable shares have changed from the previous period due to refinancing lending/returning.

□Applicable Not applicable

Whether the company has differential voting rights arrangements

□Yes No

Whether the company's top 10 common shareholders and the top 10 common shareholders without selling restrictions have conducted agreed repurchase transactions during the reporting period Yes  No

The company's top 10 common shareholders and the top 10 common shareholders without selling restrictions did not conduct agreed repurchase transactions during the reporting period.

4. Changes in shareholdings of directors and senior managers

□Applicable Not applicable

The shareholdings of the company's directors and senior managers did not change during the reporting period. For details, please refer to the 2025 annual report.

5. Changes in controlling shareholders or actual controllers

If the company has previously disclosed that the actual controller is planning a change of control but has not yet completed it, please explain the progress of the change of control. □Applicable Not applicable

Changes in controlling shareholders during the reporting period

□Applicable Not applicable

The company's controlling shareholder did not change during the reporting period.

Changes in actual controller during the reporting period

□Applicable Not applicable

The actual controller of the company did not change during the reporting period.

Full text of the 2026 semi-annual report of Hunan Dajia Weikang Pharmaceutical Industry Co., Ltd.

Relevant information on preference shares □Applicable Not applicable

There were no preferred shares in the company during the reporting period.

Full text of the 2026 semi-annual report of Hunan Dajia Weikang Pharmaceutical Industry Co., Ltd.

Section 7 Bond-related situations □Applicable Not applicable

Full text of the 2026 semi-annual report of Hunan Dajia Weikang Pharmaceutical Industry Co., Ltd.

Section 8 Financial Report

1. Audit report

Has the semi-annual report been audited?

□Yes No

The company's semi-annual financial report has not been audited.

2. Financial statements

The unit of statements in the financial notes is: Yuan

Consolidated balance sheet

Prepared by: Hunan Dajia Weikang Pharmaceutical Industry Co., Ltd.

June 30, 2026

Unit: Yuan

Item Ending balance Beginning balance

Current assets:

Monetary funds 579,743,737.13 586,730,664.27 Settlement reserves

Loan funds

Trading financial assets 9,822,500.00 9,822,500.00 Derivative financial assets

Notes receivable 94,936,211.54 118,016,288.28 Accounts receivable 1,901,789,375.81 1,947,795,324.93 Accounts receivable financing 12,461,785.38 8,392,580.55 Advance payment 227,839,718.31 182,744,366.41 Premiums receivable

Reinsurance accounts receivable

Receivable reinsurance contract reserves

Other receivables 235,953,827.94 134,540,322.76 Including: interest receivable

Dividends receivable

Buy financial assets under resale agreements

Inventory 900,307,564.46 932,632,400.13

Full text of the 2026 semi-annual report of Hunan Dajia Weikang Pharmaceutical Industry Co., Ltd.

Among them: data resources

contract assets

Assets held for sale

Non-current assets due within one year

Other current assets 59,155,567.79 50,762,480.00 Total current assets 4,022,010,288.36 3,971,436,927.33 Non-current assets:

Grant loans and advances

debt investment

Other debt investments

long-term receivables

long term equity investment

Other equity instrument investments 16,921,043.40 66,921,043.40 Other non-current financial assets

investment real estate

Fixed assets 717,552,403.61 709,809,542.23 Construction in progress 6,821,854.90 19,775,440.21 Productive biological assets

oil and gas assets

Right-of-use assets 221,143,109.25 232,354,153.34 Intangible assets 109,446,466.95 112,486,054.80

Among them: data resources

Development expenditure 31,144.00

Among them: data resources

Goodwill 1,116,761,611.24 1,088,561,611.24 Long-term deferred expenses 51,438,193.53 51,041,771.36 Deferred income tax assets 67,510,383.95 65,954,958.36 Other non-current assets 183,447.75 18,601,515.77 Total non-current assets 2,307,809,658.58 2,365,506,090.71 Total assets 6,329,819,946.94 6,336,943,018.04 Current liabilities:

Full text of the 2026 semi-annual report of Hunan Dajia Weikang Pharmaceutical Industry Co., Ltd.

Short-term borrowings 2,295,580,336.19 2,421,250,222.90 Borrowings from the central bank

borrowing funds

Trading financial liabilities

Derivative financial liabilities

Notes payable 269,970,187.30 173,883,659.28 Accounts payable 570,159,128.04 638,767,563.33 Advance payments 1,766,155.85 696,734.99 Contract liabilities 52,854,227.99 51,142,015.65 Financial assets sold and repurchased

Taking deposits and placing deposits with other banks

Agent for buying and selling securities

Agent underwriting securities funds

Employee benefits payable 34,562,219.29 42,707,406.71 Taxes payable 26,128,154.65 32,042,212.32 Other payables 152,104,740.50 104,859,113.92 Including: interest payable

Dividends payable 1,424,743.21 1,424,743.21 Handling fees and commissions payable

Reinsurance accounts payable

Liabilities held for sale

Non-current liabilities due within one year 438,842,603.00 528,250,064.69 Other current liabilities 2,639,184.65 2,508,591.09 Total current liabilities 3,844,606,937.46 3,996,107,584.88 Non-current liabilities:

insurance contract reserves

Long-term borrowings 719,482,039.71 604,952,953.49 Bonds payable

Among them: preferred shares

perpetual bond

Lease liabilities 119,553,511.23 117,439,192.71

Full text of the 2026 semi-annual report of Hunan Dajia Weikang Pharmaceutical Industry Co., Ltd.

long-term payables

Long-term employee benefits payable

Estimated liabilities

Deferred income 16,850,000.00 15,650,000.00 Deferred income tax liabilities 9,848,631.12 9,848,631.12 Other non-current liabilities

Total non-current liabilities 865,734,182.06 747,890,777.32 Total liabilities 4,710,341,119.52 4,743,998,362.20 Owners’ equity:

Share capital 205,403,200.00 205,403,200.00 Other equity instruments -6,384,500.00 -6,384,500.00 Including: preference shares

perpetual bond

Capital reserve 980,940,204.77 980,940,204.77 minus: treasury shares

Other comprehensive income 3,757,505.79 3,757,505.79 Special reserves

Surplus reserve 7,567,911.15 7,567,911.15 General risk reserve

Undistributed profits 303,836,320.59 296,579,805.67 Total owners’ equity attributable to the parent company 1,495,120,642.30 1,487,864,127.38 Minority shareholders’ equity 124,358,185.12 105,080,528.46 Total owners’ equity 1,619,478,827.42 1,592,944,655.84 Total liabilities and owners’ equity 6,329,819,946.94 6,336,943,018.04 Legal representative: Wang Yiqing Person in charge of accounting work: Hu Shengli Head of accounting department: Qin Hao

Balance sheet of the parent company

Unit: Yuan

Item Ending balance Beginning balance

Current assets:

Monetary funds 227,587,950.39 321,092,539.07

Full text of the 2026 semi-annual report of Hunan Dajia Weikang Pharmaceutical Industry Co., Ltd.

Trading financial assets 9,822,500.00 9,822,500.00 Derivative financial assets

Notes receivable 330,000.00 Accounts receivable 183,574,524.42 176,424,149.21 Accounts receivable financing

Prepayments 32,309,619.06 27,782,403.86 Other receivables 493,667,920.08 1,226,367,410.78 Including: interest receivable

Dividends receivable

Inventory 179,802,747.99 166,719,641.07

Among them: data resources

contract assets

Assets held for sale

Non-current assets due within one year

Other current assets 1,980,233.80 2,972,860.36 Total current assets 1,128,745,495.74 1,931,511,504.35 Non-current assets:

debt investment

Other debt investments

long-term receivables

Long-term equity investment 2,082,996,569.19 2,082,996,569.19 Other equity instrument investments 35,000,000.00 Other non-current financial assets

investment real estate

Fixed assets 6,916,613.00 6,831,352.19 Construction in progress

productive biological assets

oil and gas assets

Right-of-use assets 26,837,825.86 23,828,347.53 Intangible assets

Among them: data resources

Full text of the 2026 semi-annual report of Hunan Dajia Weikang Pharmaceutical Industry Co., Ltd.

development expenditure

Among them: data resources

Goodwill 63,365,377.26 35,165,377.26 Long-term deferred expenses 8,446,362.47 8,197,786.10 Deferred income tax assets 232,954.67 232,954.67 Other non-current assets 15,040,000.00 Total non-current assets 2,188,795,702.45 2,207,292,386.94 Total assets 3,317,541,198.19 4,138,803,891.29 Current liabilities:

Short-term borrowings 1,026,378,522.50 849,219,277.78 Trading financial liabilities

Derivative financial liabilities

Notes payable 201,771,362.22 395,000,000.00 Accounts payable 21,251,366.80 22,028,048.06 Advance receipts 4,259,513.15

Contract liabilities 6,805.08 685,192.50 Employee benefits payable 5,640,044.81 7,587,743.62 Taxes payable 294,326.04 2,242,540.19 Other payables 112,531,605.18 854,096,415.64 of which: interest payable

Dividends payable

Liabilities held for sale

Non-current liabilities due within one year 77,201,853.52 146,652,440.80 Other current liabilities 884.66 89,075.00 Total current liabilities 1,449,336,283.96 2,277,600,733.59 Non-current liabilities:

Long-term borrowings 554,028,541.00 553,961,003.33 Bonds payable

Among them: preferred shares

perpetual bond

Lease liabilities 18,882,394.14 15,057,204.75

Full text of the 2026 semi-annual report of Hunan Dajia Weikang Pharmaceutical Industry Co., Ltd.

long-term payables

Long-term employee benefits payable

Estimated liabilities

deferred income

Deferred income tax liabilities 3,483,719.25 3,483,719.25 Other non-current liabilities

Total non-current liabilities 576,394,654.39 572,501,927.33 Total liabilities 2,025,730,938.35 2,850,102,660.92 Owners’ equity:

Share capital 205,403,200.00 205,403,200.00 Other equity instruments -3,282,500.00 -3,282,500.00 Including: preference shares

perpetual bond

Capital reserve 1,036,545,314.58 1,036,545,314.58 Less: treasury shares

other comprehensive income

special reserve

Surplus reserve 7,567,911.15 7,567,911.15 Undistributed profits 45,576,334.11 42,467,304.64 Total owners’ equity 1,291,810,259.84 1,288,701,230.37 Total liabilities and owners’ equity 3,317,541,198.19 4,138,803,891.29

Consolidated income statement

Unit: Yuan

Project Half-year 2026 Half-year 2025

Total operating income 2,701,647,581.95 2,708,337,434.78 Including: operating income 2,701,647,581.95 2,708,337,434.78 Interest income

Premiums earned

Fee and commission income

Total operating costs 2,673,610,961.15 2,698,969,731.24

Full text of the 2026 semi-annual report of Hunan Dajia Weikang Pharmaceutical Industry Co., Ltd.

Including: operating costs 2,207,175,085.56 2,260,232,104.72 interest expenses

Handling fees and commission expenses

surrender deposit

Net compensation expenses

Net withdrawal of insurance liability reserves

policy dividend payout

Reinsurance cost

Taxes and surcharges 9,785,757.35 9,853,828.65 Sales expenses 310,748,547.28 288,336,879.13 Management expenses 86,283,840.59 79,045,453.00 Research and development expenses 5,263,351.42 8,011,662.37Financial expenses 54,354,378.95 53,489,803.37Including: Interest expenses 47,350,625.65 48,839,748.72

Interest income 1,975,506.95 3,119,041.13 plus: other income 15,051,293.48 18,180,492.93 Investment income (losses are filled in with "-"

177,320.31 160,278.00 columns)

Of which: for associates and joint ventures

corporate investment income

Measured at amortized cost

Income from derecognition of financial assets

Exchange gains (losses are filled in with "-"

column)

Net exposure hedging gains (losses expressed as “—

"Fill in the column)

Gains from changes in fair value (losses calculated as

Fill in the column with "—" sign)

Credit impairment losses (losses are preceded by “—”

-11,886,416.18 -13,534,604.97 (Fill in the numbers)

Asset impairment losses (losses are represented by “—”

No. 347,376.90 -77,783.92 (please fill in the list)

Gains from asset disposals (losses are marked with “—”

-230,969.60 1,602,047.99 (please fill in the list)

Operating profit (loss should be filled in with “—” 31,495,225.71 15,698,133.57

The full text of the 2026 semi-annual report of Hunan Dajia Weikang Pharmaceutical Industry Co., Ltd. is listed)

Add: Non-operating income 71,570.66 542,585.13 Less: Non-operating expenses 2,334,649.88 2,349,990.16

Total profits (total losses are marked with “—”

29,232,146.49 13,890,728.54 fill in the column)

Less: Income tax expense 6,784,093.80 -873,645.56

Net profit (net loss is filled in with "-"

22,448,052.69 14,764,374.10 columns)

(1) Classification by business continuity

Net profit from continuing operations (net loss divided by

22,448,052.69 14,764,374.10 (Fill in “—”)

Net profit from discontinued operations (net loss is listed with “—”)

(2) Classification according to ownership ownership

Net profit attributable to shareholders of the parent company

7,256,514.92 893,533.16 (Net loss is listed with "—")

Profit and loss of minority shareholders (net loss is represented by “—

15,191,537.77 13,870,840.94 (please fill in the numbers)

6. Net amount of other comprehensive income after tax

Other comprehensive income, net of tax, attributable to owners of the parent company

(1) Other comprehensive income that cannot be reclassified into profit or loss

Remeasure the changes in defined benefit plan
Other comprehensive income that cannot be transferred to profit or loss under the equity method
Changes in fair value of other equity instrument investments
Changes in the fair value of the company’s own credit risk

5.Others

(2) Other comprehensive income that will be reclassified into profit and loss

Other comprehensive income that can be converted to profit or loss under the equity method
Changes in fair value of other debt investments 3. Financial assets are reclassified into other comprehensive

Full text of the 2026 semi-annual report of Hunan Dajia Weikang Pharmaceutical Industry Co., Ltd. and the amount of revenue

Credit impairment provisions for other debt investments
Cash flow hedging reserve
Translation differences of foreign currency financial statements

7.Others

Other comprehensive income attributable to minority shareholders

net of tax

Total comprehensive income 22,448,052.69 14,764,374.10 Total comprehensive income attributable to owners of the parent company

7,256,514.92 893,533.16 amount

Total comprehensive income attributable to minority shareholders 15,191,537.77 13,870,840.94

8. Earnings per share:

(1) Basic earnings per share 0.04 0.004

(2) Diluted earnings per share 0.04 0.004 If a business merger under the same control occurs in this period, the net profit realized by the merged party before the merger is: yuan, and the net profit realized by the merged party in the previous period is: yuan.

Legal representative: Wang Yiqing Person in charge of accounting work: Hu Shengli Head of accounting department: Qin Hao

Income statement of the parent company

Unit: Yuan

Project Half-year 2026 Half-year 2025

Operating income 644,147,917.66 561,462,937.17 Less: Operating costs 579,081,429.37 526,157,888.29 Taxes and surcharges 2,325,098.61 1,778,515.41 Sales expenses 36,155,915.71 30,680,784.39 Management expenses 3,488,661.91 4,653,735.01 Research and development expenses

Financial expenses 18,450,637.25 -1,205,592.77 Including: interest expenses 16,900,562.82

Interest income -1,423,640.70

Add: other income 366,355.91 346,470.52 investment income (losses are filled in with "-"

3,104,023.11 columns)

Of which: for associates and joint ventures

investment income

Full text of the 2026 semi-annual report of Hunan Dajia Weikang Pharmaceutical Industry Co., Ltd.

Gains from derecognition of financial assets measured at amortized cost

Net exposure hedging income (losses are listed with “—”)

Gains from changes in fair value (losses are listed with “—”)

Credit impairment losses (losses are preceded by “—”

-624,143.37 -215,257.97 (Fill in the numbers)

Asset impairment losses (losses are listed with "—")

Gains from asset disposals (losses are marked with “—”

-58,141.74 486,250.11 (please fill in the list)

Operating profit (loss should be filled in with “—”

4,330,245.61 3,119,092.61 columns)

Add: Non-operating income -6,186.82 Less: Non-operating expenses 407,586.92 348,454.00

Total profits (total losses are marked with “—”

3,916,471.87 2,770,638.61 fill in the column)

Less: Income tax expense 807,442.40 709,420.86

Net profit (net loss is filled in with “—”

3,109,029.47 2,061,217.75 columns)

(1) Net profit from continuing operations (net loss divided by

3,109,029.47 2,061,217.75 (Fill in “—”)

(2) Net profit from discontinued operations (net loss is listed with “—”)

5. Net amount of other comprehensive income after tax

(1) Other comprehensive income that cannot be reclassified into profit or loss

Remeasure the changes in defined benefit plan
Other comprehensive income that cannot be transferred to profit or loss under the equity method
Changes in fair value of other equity instrument investments
Changes in the fair value of the company’s own credit risk

5.Others

(2) Other comprehensive income that will be reclassified into profit and loss

Full text of the 2026 semi-annual report of Hunan Dajia Weikang Pharmaceutical Industry Co., Ltd.

Other comprehensive income that can be converted to profit or loss under the equity method
Changes in fair value of other debt investments
The amount of financial assets reclassified and included in other comprehensive income
Credit impairment provisions for other debt investments 5. Cash flow hedging reserves
Translation differences of foreign currency financial statements

7.Others

Total comprehensive income 3,109,029.47 2,061,217.75

7. Earnings per share:

(1) Basic earnings per share

(2) Diluted earnings per share

Consolidated cash flow statement

Unit: Yuan

Project Half-year 2026 Half-year 2025

1. Cash flow generated from operating activities:

Cash received from selling goods and rendering services 2,790,319,047.16 2,460,029,961.42 Net increase in customer deposits and deposits from banks Net increase in borrowings from the central bank

Net increase in funds borrowed from other financial institutions Cash received from premiums from original insurance contracts Net cash received from reinsurance business

Net increase in policyholders’ savings and investment funds

Net increase in cash borrowing funds collected from interest, fees and commissions

Net increase in repurchase business funds

Net cash received from buying and selling securities on behalf of agents

Tax refunds received 948,582.44 259,181.72 Other cash received related to operating activities 146,685,046.45 19,373,259.53 Subtotal of cash inflows from operating activities 2,937,952,676.05 2,479,662,402.67

Full text of the 2026 semi-annual report of Hunan Dajia Weikang Pharmaceutical Industry Co., Ltd.

Cash paid for purchasing goods and receiving services 2,232,342,905.92 2,099,302,564.72 Net increase in customer loans and advances

Net increase in deposits with central banks and inter-banks

Cash used to pay compensation from the original insurance contract

Net increase in lending funds

Cash payments for interest, fees and commissions

Cash payment for policy dividends

Cash paid to and for employees 222,480,887.52 195,266,024.49 Various taxes and fees paid 89,989,182.62 98,325,418.68 Other cash paid related to operating activities 381,666,963.08 242,205,704.05 Subtotal cash outflow from operating activities 2,926,479,939.14 2,635,099,711.94 Net cash flow generated from operating activities 11,472,736.91 -155,437,309.27

2. Cash flow generated from investing activities:

Cash received from recovery of investment 50,000,000.00

Cash received from investment income 177,319.31 160,278.00 Disposal of fixed assets, intangible assets and other long-term assets

Net cash amount recovered from period 29,300.00 assets

Received from disposal of subsidiaries and other business units

net cash

Other cash received related to investing activities

Subtotal of cash inflows from investing activities 50,177,319.31 189,578.00 Purchase and construction of fixed assets, intangible assets and other long-term assets

26,403,842.65 52,917,370.22 Cash paid for assets

Cash paid for investment 9,979,440.00 25,318,343.37 Net increase in pledged loans

Obtain payment from subsidiaries and other business units

net cash

Payment of other cash related to investing activities 8,566.25 Subtotal cash outflow from investing activities 36,383,282.65 78,244,279.84 Net cash flow generated from investing activities 13,794,036.66 -78,054,701.84

3. Cash flow generated from financing activities:

Cash received from investment 100,000.00, including: income received from investments by subsidiaries from minority shareholders

Full text of the 2026 semi-annual report of Hunan Dajia Weikang Pharmaceutical Industry Co., Ltd. Cash received

Cash received from borrowings 1,660,730,000.00 1,668,007,059.80 Cash received from other financing activities 212,364,908.97 175,577,855.56 Subtotal of cash inflows from financing activities 1,873,094,908.97 1,843,684,915.36 Cash paid to repay debts 1,442,816,539.79 1,214,016,552.70 Cash paid to distribute dividends, profits or pay interest

41,064,296.95 77,313,529.89 cash

Including: shares paid by subsidiaries to minority shareholders

Profit, profit

Cash payments related to other financing activities 268,117,854.60 340,156,230.52 Subtotal cash outflows from financing activities 1,751,998,691.34 1,631,486,313.11 Net cash flow generated from financing activities 121,096,217.63 212,198,602.25

4. The impact of exchange rate changes on cash and cash equivalents

influence

Net increase in cash and cash equivalents 146,362,991.20 -21,293,408.86 plus: opening balance of cash and cash equivalents 255,252,367.00 520,562,978.06
Balance of cash and cash equivalents at the end of the period 401,615,358.20 499,269,569.20
Cash flow statement of the parent company

Unit: Yuan

Project Half-year 2026 Half-year 2025

1. Cash flow generated from operating activities:

Cash received from selling goods and providing services 700,636,131.00 598,017,720.54 Tax refunds received 151,067.33 193,453.36 Cash received from other operating activities 812,909,879.47 738,630,295.07 Subtotal of cash inflows from operating activities 1,513,697,077.80 1,336,841,468.97 Cash paid for purchasing goods and receiving services 393,969,642.61 283,583,381.35 Cash paid to and for employees 25,939,218.02 24,701,553.33 Various taxes and fees paid 18,526,680.62 19,470,759.92 Other cash payments related to operating activities 553,316,363.46 526,356,731.96 Subtotal of cash outflows from operating activities 991,751,904.71 854,112,426.56 Net cash flow generated from operating activities 521,945,173.09 482,729,042.41

2. Cash flow generated from investing activities:

Full text of the 2026 semi-annual report of Hunan Dajia Weikang Pharmaceutical Industry Co., Ltd.

Cash received from recovery of investment 35,000,000.00

Cash received from investment income

Disposal of fixed assets, intangible assets and other long-term

Net cash received from period assets

Received from disposal of subsidiaries and other business units

net cash

Other cash received related to investing activities 3,104,023.11 Subtotal of cash inflows from investing activities 35,000,000.00 3,104,023.11 Purchase and construction of fixed assets, intangible assets and other long-term assets

730,253.98 1,867,285.71 Cash paid for assets

Cash paid for investment 9,979,440.00 24,508,505.00

Obtain payment from subsidiaries and other business units

net cash

Other cash payments related to investing activities

Subtotal of cash outflows from investing activities 10,709,693.98 26,375,790.71 Net cash flow generated from investing activities 24,290,306.02 -23,271,767.60

3. Cash flow generated from financing activities:

Absorbing cash received from investments

Cash received from borrowing 402,000,000.00 455,200,000.00

Other cash received related to financing activities 10,000,000.00 15,577,855.56 Subtotal of cash inflows from financing activities 412,000,000.00 470,777,855.56 Cash paid to repay debts 706,250,000.00 590,370,000.00 distributed dividends, profits or paid interest

17,645,725.15 28,025,624.43 cash

Cash payments related to other financing activities 213,705,562.87 309,878,139.72 Subtotal cash outflows from financing activities 937,601,288.02 928,273,764.15 Net cash flow generated from financing activities -525,601,288.02 -457,495,908.59

4. The impact of exchange rate changes on cash and cash equivalents

influence

Net increase in cash and cash equivalents 20,634,191.09 1,961,366.22

Add: Balance of cash and cash equivalents at the beginning of the period 71,715,828.42 75,972,160.86

Balance of cash and cash equivalents at the end of the period 92,350,019.51 77,933,527.08

Full text of the 2026 semi-annual report of Hunan Dajia Weikang Pharmaceutical Industry Co., Ltd.

Consolidated statement of changes in owners’ equity

Amount of current period

Unit: yuan for the first half of 2026

Owner's equity attributable to parent company

Other equity instruments 1

Item minus

Specialized

：Minority shareholders’ equity Total owners’ equity items Risk other

Equity Capital Reserves Other Comprehensive Income Surplus Reserves Undistributed Profits Subtotal Reserves Insurance Others

Continue with other saves first

Prepare

stocks bonds stocks

Prepare

Ending balance of the previous year 205,403,200.00 -6,384,500.00 980,940,204.77 3,757,505.79 7,567,911.15 296,579,805.67 1,487,864,127.38 105,080,528.46 1,592,944,655.84

Add: Accounting policy changes

Update

Early error update

Right

Others

Balance at the beginning of the year 205,403,200.00 -6,384,500.00 980,940,204.77 3,757,505.79 7,567,911.15 296,579,805.67 1,487,864,127.38 105,080,528.46 1,592,944,655.84

3. Increase or decrease of change funds in this period

Amount (decreases are listed with a “-” sign 7,256,514.92 7,256,514.92 19,277,656.66 26,534,171.58)

(1) Total comprehensive income 7,256,514.92 7,256,514.92 15,191,537.77 22,448,052.69

(2) Owner’s investment and

4,086,118.89 4,086,118.89 Capital reduction

1． Owner's investment

Hunan Dajia Weikang Pharmaceutical Industry Co., Ltd. 2026 Semi-annual Report Full Text

Capital invested by other equity instrument holders
The amount of share-based payment included in owners’ equity
Others 4,086,118.89 4,086,118.89

(3) Profit distribution

1． Withdrawal from surplus reserve

Extract general risk reserves 3. Distributions to owners (or shareholders)
Others

(4) Internal carryover of owners’ equity

1． Conversion of capital reserves to capital (or share capital)

Conversion of surplus reserves into capital (or share capital)
Surplus reserve to make up for losses 4. Changes in defined benefit plans are carried forward to retained earnings
Other comprehensive income carried forward to retained earnings
Others

(5) Special reserves

Full text of the 2026 semi-annual report of Hunan Dajia Weikang Pharmaceutical Industry Co., Ltd. 1. Extract this period

Used in this issue

(6) Others

Ending balance of the current period 205,403,200.00 -6,384,500.00 980,940,204.77 3,757,505.79 7,567,911.15 303,836,320.59 1,495,120,642.30 124,358,185.12 1,619,478,827.42 Amount of previous year

Unit: yuan for the first half of 2025

Owner's equity attributable to parent company

Project

Other equity instruments

Less: General minority shareholders’ equity Total owners’ equity special items

Share capital Capital reserve Inventory Other comprehensive income Surplus reserve Risk Undistributed profits Others Subtotal

Prioritize sustainable reserves

3. Increase or decrease of change funds in this period

Amount (decreases are listed with "-" 893,533.16 893,533.16 10,600,614.98 11,494,148.14)

(1) Total comprehensive income 893,533.16 893,533.16 13,870,840.94 14,764,374.10

(2) Owner’s investment and

-3,270,225.96 -3,270,225.96 Capital reduction

Full text of the 2026 semi-annual report of Hunan Dajia Weikang Pharmaceutical Industry Co., Ltd. 1. Common stock invested by owners

Capital invested by other equity instrument holders
The amount of share-based payment included in owners’ equity
Others -3,270,225.96 -3,270,225.96

(3) Profit distribution

1． Withdrawal from surplus reserve

Extract general risk reserves 3. Distributions to owners (or shareholders)
Others

(4) Internal carryover of owners’ equity

1． Conversion of capital reserves to capital (or share capital)

Conversion of surplus reserves into capital (or share capital)
Surplus reserve to make up for losses 4. Changes in defined benefit plans are carried forward to retained earnings
Other comprehensive income carried forward to retained earnings
Others

Full text of the 2026 semi-annual report of Hunan Dajia Weikang Pharmaceutical Industry Co., Ltd.

(5) Special reserves

1． Extract this period

Used in this issue

(6) Others

Ending balance of the current period 205,403,200.00 980,941,807.74 2,538,993.51 6,713,841.43 562,077,790.07 1,757,675,632.75 102,518,813.84 1,860,194,446.59
Statement of changes in owner’s equity of the parent company

Amount of current period

Unit: yuan for the first half of 2026

Project Other equity instruments

Other comprehensive income

Share capital Capital reserves Less: treasury shares Special reserves Surplus reserves Undistributed profits Others Total owners’ equity

Preferred shares Perpetual bonds Others

Ending balance of the previous year 205,403,200.00 -3,282,500.00 1,036,545,314.58 7,567,911.15 42,467,304.64 1,288,701,230.37 Add: changes in accounting policies

Early error correction

Others

Balance at the beginning of the year 205,403,200.00 -3,282,500.00 1,036,545,314.58 7,567,911.15 42,467,304.64 1,288,701,230.37

3. Amount of increase or decrease in the current period

3,109,029.47 3,109,029.47 (reduced by "-")

(1) Total comprehensive income 3,109,029.47 3,109,029.47

(2) Owner’s investment and reduction

capital

Full text of the 2026 semi-annual report of Hunan Dajia Weikang Pharmaceutical Industry Co., Ltd. 1. Common shares invested by owners 2. Capital invested by other equity instrument holders

The amount of share-based payment included in owners’ equity
Others

(3) Profit distribution

1． Withdrawal from surplus reserve

Distributions to owners (or shareholders)
Others

(4) Internal carryover of owners’ equity

1． Conversion of capital reserves to capital (or share capital)

Conversion of surplus reserves into capital (or share capital)
Surplus reserve to make up for losses 4. Changes in defined benefit plans are carried forward to retained earnings
Other comprehensive income carried forward to retained earnings
Others

(5) Special reserves

Full text of the 2026 semi-annual report of Hunan Dajia Weikang Pharmaceutical Industry Co., Ltd. 1. Extract this period

Used in this issue

(6) Others

Ending balance of the current period 205,403,200.00 -3,282,500.00 1,036,545,314.58 7,567,911.15 45,576,334.11 1,291,810,259.84 Amount of the previous period

Unit: yuan for the first half of 2025

Project Other equity instruments

Other comprehensive income

Share capital Capital reserves Less: treasury shares Special reserves Surplus reserves Undistributed profits Others Total owners’ equity

Preferred shares Perpetual bonds Others

Ending balance of the previous year 205,403,200.00 1,036,545,314.58 6,713,841.43 56,072,544.43 1,304,734,900.44 Add: changes in accounting policies

Early error correction

Others

Balance at the beginning of the year 205,403,200.00 1,036,545,314.58 6,713,841.43 56,072,544.43 1,304,734,900.44

3. Amount of increase or decrease in the current period

2,061,217.75 2,061,217.75 (reduced by “-”)

(1) Total comprehensive income 2,061,217.75 2,061,217.75

(2) Owner’s investment and reduction

capital

1． Common stock invested by owners

Other equity instrument holders

Invest capital

Full text of the 2026 semi-annual report of Hunan Dajia Weikang Pharmaceutical Industry Co., Ltd. 3. The amount of share-based payment included in owners’ equity

Others

(3) Profit distribution

1． Withdrawal from surplus reserve

Distributions to owners (or shareholders)
Others

(4) Internal carryover of owners’ equity

1． Conversion of capital reserves to capital (or share capital)

Conversion of surplus reserves into capital (or share capital)
Surplus reserve to make up for losses 4. Changes in defined benefit plans are carried forward to retained earnings
Other comprehensive income carried forward to retained earnings
Others

(5) Special reserves

1． Extract this period

Used in this issue

(6) Others

Full text of the 2026 semi-annual report of Hunan Dajia Weikang Pharmaceutical Industry Co., Ltd.

Ending balance of the current period 205,403,200.00 1,036,545,314.58 6,713,841.43 58,133,762.18 1,306,796,118.19

3. Basic situation of the company

Hunan Dajia Weikang Pharmaceutical Industry Co., Ltd. (hereinafter referred to as the "Company" or "the Company") was formerly Changsha Tongjian Pharmacy (hereinafter referred to as "Tongjian Pharmacy"). Tongjian Pharmacy was jointly funded and established by Wang Yiqing, Yin Xulin, and Yi Tuyao. It was established in 20 It was registered with the Furong Branch of the Changsha Administration for Industry and Commerce on October 24, 2002. The company was changed to a joint-stock company with March 31, 2014 as the base date, and was registered with the Changsha Administration for Market Regulation on June 16, 2014. The company currently holds a business license with a unified social credit code of 91430100743169413D, a registered capital of 205,403,200.00 yuan, and a total of 205,403,200 shares (face value 1 yuan per share). Among them, there are 65,881,781 shares with trading restrictions and 139,521,419 shares with no selling conditions. The company's shares have been listed for trading on the Shenzhen Stock Exchange on December 7, 2021.

The company belongs to the retail industry. The company's main business covers four major sectors: pharmaceutical distribution, pharmaceutical retail, pharmaceutical industry, and medical services. The products cover six major categories: chemical drugs, Chinese patent medicines, medical devices, cosmetics, food, and disinfection products. This financial statement has been approved for external reporting at the 22nd meeting of the company's fourth board of directors on August 27, 2026.

4. Basis for preparation of financial statements

Basics of preparation

The company's financial statements are prepared on a going concern basis.

Continued operations

The Company has no events or circumstances that would cast significant doubt on its ability to continue as a going concern within 12 months from the end of the reporting period.

Full text of the 2026 semi-annual report of Hunan Dajia Weikang Pharmaceutical Industry Co., Ltd.

5. Important accounting policies and accounting estimates

Specific accounting policies and accounting estimation tips:

Important note: The Company has formulated specific accounting policies and accounting estimates based on the actual production and operation characteristics for transactions or matters such as impairment of financial instruments, inventory, depreciation of fixed assets, construction in progress, intangible assets, revenue recognition, etc.

Statement on compliance with corporate accounting standards

The financial statements prepared by the company comply with the requirements of the Accounting Standards for Business Enterprises and truly and completely reflect the company's financial status, operating results, cash flow and other relevant information.

Accounting period

The fiscal year begins on January 1 and ends on December 31 of the Gregorian calendar.

Business cycle

The company's operating business has a short operating cycle, and 12 months is used as the liquidity classification standard for assets and liabilities.

Accounting standard currency

RMB is adopted as the standard accounting currency.

Determination method and selection basis of importance standards

Applicable □Not applicable

Project Materiality Criteria

Important accounts receivable with individual provision for bad debts exceeding 0.3% of total assets or more than 1 million Important prepayments aged more than 1 year Important other receivables with individual provision for bad debts exceeding 0.3% of total assets or more than 1 million Important construction projects in progress with individual amounts exceeding 0.3% of total assets or individual amounts exceeding 1 million The total investment in a single project exceeds 0.3% of the total assets

Important accounts payable aged more than 1 year. The individual amount exceeds 0.3% of total assets.

Important contract liabilities with an aging of more than 1 year. The individual amount exceeds 0.3% of the total assets or the individual amount exceeds 1 million. Important other payables with the aging of more than 1 year. The individual amount exceeds 0.3% of the total assets or the individual amount exceeds 1 million. Important cash flow from investing activities. The individual amount exceeds 5% of the total assets.

Subsidiaries and non-wholly owned subsidiaries whose total assets/total income/total profits exceed the group's total assets/total income/profit

15% of total profit

Important commitment matters The amount of a single item exceeds 0.3% of total assets

Important contingencies The amount of a single item exceeds 0.3% of total assets

Full text of the 2026 semi-annual report of Hunan Dajia Weikang Pharmaceutical Industry Co., Ltd.

Important post-balance sheet events The amount of a single item exceeds 0.3% of total assets

Accounting treatment methods for business combinations under the same control and those not under the same control

(1) Accounting treatment for business combinations under common control

The assets and liabilities acquired by the company in a business merger are measured according to the book value of the merged party in the consolidated financial statements of the ultimate controlling party on the merger date. The company adjusts the capital reserve based on the difference between the book value share of the owner's equity of the merged party in the final controlling party's consolidated financial statements and the book value of the merger consideration paid or the total face value of the shares issued; if the capital reserve is insufficient for offset, the company adjusts the retained earnings.

(2) Accounting treatment for business combinations not under common control

On the acquisition date, the company recognizes the difference between the merger cost and the fair value share of the acquiree's identifiable net assets acquired in the merger as goodwill; if the merger cost is less than the fair value share of the acquiree's identifiable net assets acquired in the merger, the difference is first recognized as goodwill. The fair value of the acquiree's identifiable assets, liabilities and contingent liabilities and the measurement of merger costs are reviewed. After review, if the merger cost is still less than the fair value share of the acquiree's identifiable net assets obtained in the merger, the difference is included in the current profit and loss.

Judgment standards for control and preparation methods of consolidated financial statements

(1) Judgment of control

If it has power over the investee, enjoys variable returns by participating in the relevant activities of the investee, and has the ability to use its power over the investee to affect the amount of its variable returns, it is deemed to be control.

(2) Preparation method of consolidated financial statements

The parent company includes all subsidiaries it controls in the consolidated financial statements. The consolidated financial statements are based on the financial statements of the parent company and its subsidiaries, and based on other relevant information, are prepared by the parent company in accordance with the "Accounting Standards for Business Enterprises No. 33 - Consolidated Financial Statements".

Classification of joint arrangements and accounting treatment methods for joint operations

(1) Joint arrangements are divided into joint operations and joint ventures.

(2) When the company is a joint venture partner, the following items related to the interest share in the joint operation are recognized:

① Confirm the assets held individually, and confirm the assets held jointly according to the share held;

② Recognize the liabilities borne individually and recognize the liabilities borne jointly based on the share held;

③ Recognize the income generated from the sale of the company’s share of joint operating output;

④ Recognize the income generated by the joint operation from the sale of assets based on the company’s share;

⑤ Recognize the expenses incurred individually, and recognize the expenses incurred by joint operations based on the company’s holding share.

Determination standards for cash and cash equivalents

The cash shown in the cash flow statement refers to cash on hand and deposits that can be used for payment at any time. Cash equivalents refer to investments held by an enterprise that are short-term, highly liquid, easily convertible into known amounts of cash, and have little risk of value changes.

Full text of the 2026 semi-annual report of Hunan Dajia Weikang Pharmaceutical Industry Co., Ltd.

Foreign currency business and foreign currency statement conversion

Foreign currency transactions are converted into RMB amounts at the time of initial recognition using the spot exchange rate on the date of transaction. On the balance sheet date, foreign currency monetary items are translated using the spot exchange rate on the balance sheet date. The exchange differences arising from different exchange rates, except for the exchange differences on the principal and interest of special foreign currency borrowings related to the acquisition and construction of assets that qualify for capitalization, are included in the current profits and losses; historical costs are used. Foreign currency non-monetary items measured at this time are still translated using the spot exchange rate on the date of the transaction, and their RMB amounts do not change; foreign currency non-monetary items measured at fair value are translated using the spot exchange rate on the date the fair value is determined, and the difference is included in the current profit and loss or other comprehensive income.

Financial instruments
Classification of financial assets and financial liabilities

Financial assets are divided into the following three categories upon initial recognition: (1) Financial assets measured at amortized cost; (2) Financial assets measured at fair value with changes included in other comprehensive income; (3) Financial assets measured at fair value with changes included in current profits and losses.

Financial liabilities are divided into the following four categories upon initial recognition: (1) Financial liabilities measured at fair value and whose changes are included in current profits and losses; (2) Financial liabilities formed by the transfer of financial assets that do not meet the conditions for derecognition or continued involvement in the transferred financial assets; (3) Financial guarantee contracts that do not belong to the above (1) or (2), and loan commitments that do not belong to the above (1) and provide loans at lower than market interest rates; (4) Financial liabilities measured at amortized cost.

Recognition basis, measurement method and derecognition conditions of financial assets and financial liabilities

(1) Recognition basis and initial measurement method of financial assets and financial liabilities

When a company becomes a party to a financial instrument contract, it recognizes a financial asset or financial liability. When initially recognizing financial assets or financial liabilities, they are measured at fair value; for financial assets and financial liabilities measured at fair value and whose changes are included in current profits and losses, relevant transaction costs are directly included in current profits and losses; for other types of financial assets or financial liabilities, relevant transaction costs are included in the initial recognition amount. However, if the company's initial recognition of accounts receivable does not contain a significant financing component or the company does not consider the financing component in a contract that does not exceed one year, the initial measurement will be based on the transaction price defined in "Accounting Standards for Business Enterprises No. 14 - Revenue". (2) Subsequent measurement method of financial assets

①Financial assets measured at amortized cost

The actual interest rate method is adopted and subsequent measurement is carried out based on amortized cost. Gains or losses arising from financial assets that are measured at amortized cost and are not part of any hedging relationship are included in the current profit and loss when derecognized, reclassified, amortized according to the effective interest method, or impairment is recognized.

② Debt instrument investments measured at fair value and changes included in other comprehensive income

Fair value is used for subsequent measurement. Interest, impairment losses or gains and exchange gains and losses calculated using the effective interest rate method are included in the current profit and loss, and other gains or losses are included in other comprehensive income. When derecognition is terminated, the accumulated gains or losses previously included in other comprehensive income will be transferred out of other comprehensive income and included in the current profit and loss.

③ Equity instrument investments measured at fair value and changes included in other comprehensive income

Fair value is used for subsequent measurement. Dividends received (except for the recovery part of investment costs) are included in the current profits and losses, and other gains or losses are included in other comprehensive income. Upon derecognition, the accumulated gains or losses previously included in other comprehensive income will be transferred out of other comprehensive income and included in retained earnings.

④Financial assets measured at fair value and changes included in current profits and losses

Subsequent measurement is carried out at fair value, and the resulting gains or losses (including interest and dividend income) are included in the current profits and losses, unless the financial asset is part of a hedging relationship.

(3) Subsequent measurement method of financial liabilities

①Financial liabilities measured at fair value and changes included in current profits and losses

Such financial liabilities include trading financial liabilities (including derivatives that are financial liabilities) and financial liabilities designated as measured at fair value with changes included in current profits and losses. Such financial liabilities are subsequently measured at fair value. Assets due to changes in the company's own credit risk are designated as measured at fair value and their

Full text of the 2026 semi-annual report of Hunan Dajia Weikang Pharmaceutical Industry Co., Ltd.

The amount of changes in the fair value of financial liabilities whose changes are recognized in profit or loss for the current period is included in other comprehensive income, unless this treatment will cause or expand accounting mismatches in profit or loss. Other gains or losses arising from such financial liabilities (including interest expenses, excluding changes in fair value caused by changes in the company's own credit risk) are included in the current profits and losses, unless the financial liabilities are part of a hedging relationship. Upon derecognition, the accumulated gains or losses previously included in other comprehensive income will be transferred out of other comprehensive income and included in retained earnings.

② Financial liabilities arising from the transfer of financial assets that do not meet the conditions for derecognition or continued involvement in the transferred financial assets

Measurement shall be carried out in accordance with the relevant provisions of "Accounting Standards for Business Enterprises No. 23 - Transfer of Financial Assets".

③Financial guarantee contracts that do not fall under 1) or 2) above, and loan commitments that do not fall under 1) above and provide loans at lower than market interest rates

After initial recognition, subsequent measurement shall be carried out according to the higher of the following two amounts: ① The amount of loss provision determined in accordance with the impairment regulations of financial instruments; ② The balance after the initial recognition amount deducts the accumulated amortization amount determined in accordance with the relevant provisions of "Accounting Standards for Business Enterprises No. 14 - Revenue".

④Financial liabilities measured at amortized cost

Measured at amortized cost using the effective interest method. Gains or losses arising from financial liabilities that are measured at amortized cost and are not part of any hedging relationship are included in the current profits and losses when they are derecognized and amortized according to the effective interest method.

(4) Derecognition of financial assets and financial liabilities

① When one of the following conditions is met, the recognition of financial assets will be terminated:

a. The contractual right to receive cash flows from financial assets has terminated;

b. The financial assets have been transferred, and the transfer meets the provisions of "Accounting Standards for Business Enterprises No. 23 - Transfer of Financial Assets" regarding the derecognition of financial assets. ② When the current obligation of a financial liability (or part thereof) has been discharged, the recognition of the financial liability (or part thereof) shall be terminated accordingly.

Recognition basis and measurement method of financial asset transfer

If the company transfers almost all the risks and rewards of ownership of a financial asset, it shall terminate the recognition of the financial asset, and separately recognize the rights and obligations arising or retained in the transfer as assets or liabilities; if it retains almost all the risks and rewards of ownership of the financial asset, it shall continue to recognize the transferred financial assets. If the company neither transfers nor retains substantially all the risks and rewards of ownership of a financial asset, the following situations will be dealt with: (1) If it does not retain control over the financial asset, the financial asset will be terminated, and the rights and obligations arising or retained in the transfer will be separately recognized as assets or liabilities; (2) If it retains control over the financial asset, the relevant financial assets will be recognized according to the degree of continued involvement in the transferred financial assets, and the relevant liabilities will be recognized accordingly.

If the overall transfer of a financial asset meets the conditions for derecognition, the difference between the following two amounts will be included in the current profit and loss: (1) The book value of the transferred financial asset on the date of derecognition; (2) The sum of the consideration received for the transfer of the financial asset and the amount corresponding to the derecognition part of the cumulative amount of changes in fair value that was originally directly included in other comprehensive income (the financial assets involved are debt instrument investments that are measured at fair value and their changes are included in other comprehensive income). If a part of a financial asset is transferred, and the transferred part as a whole meets the conditions for derecognition, the book value of the entire financial asset before the transfer will be apportioned between the derecognized part and the continued recognition part according to their respective relative fair values on the date of transfer, and the difference between the following two amounts shall be included in the current profit and loss: 1) The book value of the derecognized part; (2) The sum of the consideration of the derecognized part and the amount corresponding to the derecognized part of the cumulative amount of changes in fair value that was originally directly included in other comprehensive income (the financial assets involved in the transfer are debt instrument investments measured at fair value and their changes are included in other comprehensive income).

Determination method of fair value of financial assets and financial liabilities

The company determines the fair value of relevant financial assets and financial liabilities using valuation techniques that are applicable under the current circumstances and supported by sufficient available data and other information. The company divides the input values used in the valuation technology into the following levels and uses them in sequence:

(1) The first level input value is the unadjusted quoted price in an active market for the same asset or liability that can be obtained on the measurement date;

(2) The second level input value is the directly or indirectly observable input value of the relevant assets or liabilities in addition to the first level input value, including: quotations of similar assets or liabilities in active markets; quotations of the same or similar assets or liabilities in inactive markets; other observable input values other than quotations, such as interest rates and yield curves that are observable during normal quotation intervals; market verification input values, etc.;

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(3) The third level of input values are unobservable input values of related assets or liabilities, including interest rates, stock volatility, future cash flows of abandonment obligations assumed in business mergers, and financial forecasts made using its own data that cannot be directly observed or verified by observable market data.

Impairment of financial instruments

Based on expected credit losses, the company calculates financial assets measured at amortized cost, debt instrument investments measured at fair value with changes included in other comprehensive income, contract assets, lease receivables, and financial liabilities classified as measured at fair value with changes included in current profits and losses. Other than loan commitments, financial liabilities that are not measured at fair value through profit or loss for the current period, or financial guarantee contracts that are not financial liabilities arising from the transfer of financial assets that do not meet the conditions for derecognition or continue to be involved in the transferred financial assets, they are subject to impairment treatment and loss provisions are recognized.

Expected credit losses refer to the weighted average of the credit losses of financial instruments with the risk of default as the weight. Credit loss refers to the difference between all contractual cash flows receivable under the contract and all cash flows expected to be received by the company, discounted at the original effective interest rate, that is, the present value of all cash shortfalls. Among them, credit-impaired financial assets purchased or originated by the company are discounted according to the credit-adjusted actual interest rate of the financial assets.

For purchased or originated financial assets that have suffered credit impairment, the company will only recognize the cumulative change in expected credit losses during the entire duration since initial recognition as loss provisions on the balance sheet date.

For lease receivables, receivables and contract assets formed by transactions regulated by "Accounting Standards for Business Enterprises No. 14 - Revenue", the company uses simplified measurement methods to measure loss provisions based on an amount equivalent to the expected credit losses during the entire duration.

For financial assets other than the above measurement methods, the company evaluates at each balance sheet date whether its credit risk has increased significantly since initial recognition. If the credit risk has increased significantly since the initial recognition, the company will measure the loss provision based on the amount of expected credit losses during the entire duration; if the credit risk has not increased significantly since the initial recognition, the company will measure the loss provisions based on the amount of expected credit losses of the financial instrument in the next 12 months.

The Company uses reasonable and evidence-based information available, including forward-looking information, to determine whether the credit risk of a financial instrument has increased significantly since initial recognition by comparing the risk of default on the financial instrument on the balance sheet date with the risk of default on the initial recognition date.

On the balance sheet date, if the company determines that a financial instrument has only low credit risk, it is assumed that the credit risk of the financial instrument has not increased significantly since initial recognition.

The company assesses expected credit risk and measures expected credit losses on the basis of a single financial instrument or a combination of financial instruments. When based on a portfolio of financial instruments, the company divides financial instruments into different portfolios based on common risk characteristics.

The company remeasures expected credit losses on each balance sheet date, and the resulting increase or reversal of loss provisions is included in the current profit and loss as impairment losses or gains. For financial assets measured at amortized cost, the loss provision is deducted from the book value of the financial asset listed in the balance sheet; for debt investments measured at fair value with changes included in other comprehensive income, the company recognizes its loss provision in other comprehensive income and does not deduct the book value of the financial asset.

Offset of financial assets and financial liabilities

Financial assets and financial liabilities are presented separately in the balance sheet and do not offset each other. However, if the following conditions are met at the same time, the company will present the net amount after offsetting each other in the balance sheet: (1) The company has the legal right to offset the recognized amount, and the legal right is currently enforceable; (2) The company plans to settle on a net basis, or realize the financial assets and pay off the financial liabilities at the same time.

For transfers of financial assets that do not meet the conditions for derecognition, the company will not offset the transferred financial assets and related liabilities.

Notes receivable

(1) Accounts receivable and contract assets with expected credit losses based on combination of credit risk characteristics

Portfolio category Basis for determining portfolio Method for measuring expected credit losses

Bank acceptance bills receivable refer to historical credit loss experience, combined with current conditions and

Note type Forecast of future economic conditions, calculate expected credit losses through default risk exposure and expected credit loss rate for the entire duration of commercial acceptance notes receivable

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With reference to historical credit loss experience, combined with the current situation and the forecast of future economic conditions for accounts receivable - aging combination, age, and forecast of future economic conditions, prepare a comparison table between the aging of accounts receivable and expected credit loss rate to calculate expected credit losses.

Referring to historical credit loss experience, combined with the current situation and accounts receivable - receivables from related parties within the consolidated scope The scope of the company's consolidated financial statements

Forecasts of future economic conditions, if no impairment has occurred after testing, the related current accounts in the portfolio

No provision for bad debts is made

With reference to historical credit loss experience, combined with the current situation and the prediction of future economic conditions of other receivables - deposit receivable margin group, through default risk exposure and future

Nature of payment

Combine the expected credit loss rate within 12 months or the entire duration to calculate the expected credit loss

With reference to historical credit loss experience, combined with the current situation and the prediction of other receivables - aging combination, aging, and future economic conditions, prepare a comparison table between the aging of other receivables and expected credit loss rates to calculate expected credit losses.

With reference to historical credit loss experience, combined with the current situation and other receivables - receivables from related parties within the scope of consolidation, the scope of the company's consolidated financial statements

Forecast of future economic conditions, if no impairment has occurred after testing, the current balances between related parties in the current portfolio

No provision for bad debts is made

Comparison table of aging portfolio and expected credit loss rate

Accounts receivable Other receivables

Aging

Expected credit loss rate (%) Expected credit loss rate (%) within 6 months (inclusive, the same below) 0.25 5.00 6 months (exclusive)-1 year 5.00 5.00 1-2 years 10.00 10.00 2-3 years 20.00 20.00 3-4 years 40.00 40.00 4-5 years 70.00 70.00 More than 5 years 100.00 100.00 The aging of accounts receivable/other receivables is calculated from the month when the payment is actually incurred.

Recognition standards for accounts receivable and contract assets for which expected credit losses are to be provided individually

For receivables and contract assets whose credit risk is significantly different from the combined credit risk, the company accrues expected credit losses on an individual basis.

Accounts receivable

For details of the Company’s determination method and accounting treatment method of expected credit losses on accounts receivable, please refer to the explanation in “Section 8, 5.12. Notes Receivable” of this report.

Accounts receivable financing

None

Other receivables

Determination method and accounting treatment method of expected credit losses of other receivables

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Contract assets

Companies present contract assets or contract liabilities on their balance sheets based on the relationship between the fulfillment of performance obligations and payments from customers. The company will present the net amount after offsetting contract assets and contract liabilities under the same contract.

The Company presents the right to receive consideration from customers that is unconditional (i.e., dependent only on the passage of time) as receivables and the right to receive consideration for goods transferred to the customer (that right is dependent on factors other than the passage of time) as a contract asset.

Inventory

(1) Classification of inventory

Inventories include finished products or commodities held for sale in daily activities, work-in-progress in the production process, materials and supplies consumed in the production process or in the process of providing services, etc.

(2) Valuation method for issued inventory

Inventories are issued using the weighted average method at the end of the month.

(3) Inventory inventory system

The inventory system of inventories is the perpetual inventory system.

(4) Amortization method for low-value consumables and packaging materials

① Low value consumables

Amortization is carried out according to the one-time write-off method.

②Packaging

Amortization is carried out according to the one-time write-off method.

(5) Provision for inventory decline

Recognition standards and accrual methods for inventory depreciation provisions

On the balance sheet date, inventories are measured at the lower of cost and net realizable value, and inventory depreciation provisions are made based on the difference between cost and net realizable value. For inventories that are directly used for sale, the net realizable value is determined by the estimated selling price of the inventory minus the estimated sales expenses and related taxes in the normal production and operation process; for inventories that need to be processed, the estimated selling price of the finished products produced during the normal production and operation process is deducted by the estimated costs to be incurred upon completion. The amount after the estimated sales expenses and related taxes is determined to determine its net realizable value; on the balance sheet date, if part of the same inventory has a contract price and other parts do not have a contract price, its net realizable value is determined separately and compared with its corresponding cost to determine the amount of provision or reversal of inventory depreciation provisions.

Assets held for sale

(1) Classification of non-current assets or disposal groups held for sale

The company classifies non-current assets or disposal groups that meet the following conditions into the category held for sale: (1) According to the practice of selling such assets or disposal groups in similar transactions, they can be sold immediately under the current conditions; (2) The sale is very likely to occur, that is, the company has made a resolution on the sale plan and obtained a firm purchase commitment, and the sale is expected to be completed within one year.

If the non-current assets or disposal groups acquired by the company specifically for resale meet the condition of "the sale is expected to be completed within one year" on the acquisition date, and are likely to meet other classification conditions for the held-for-sale category in the short term (usually 3 months), they will be classified as held-for-sale category on the acquisition date.

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If a transaction between unrelated parties fails to be completed within one year due to one of the following reasons beyond the control of the company, and the company is still committed to selling non-current assets or disposal groups, the non-current assets or disposal groups will continue to be classified as held for sale: (1) The buyer or other party unexpectedly sets conditions that lead to the postponement of the sale, and the company has taken timely action on these conditions and expects to be able to successfully resolve the delay factors within one year from the setting of the conditions that lead to the postponement of the sale; (2) Due to rare circumstances, the sale of non-current assets or disposal groups held for sale failed to be completed within one year. The company has taken necessary measures in response to these new circumstances within the first year and has re-satisfied the conditions for classification into the held-for-sale category.

(2) Accounting treatment of non-current assets or disposal groups held for sale

①Initial measurement and subsequent measurement

During initial measurement and re-measurement on the balance sheet date of non-current assets or disposal groups held for sale, if their book value is higher than the net amount of fair value minus selling expenses, the book value will be written down to the net amount of fair value minus selling expenses. The amount of the write-down is recognized as an asset impairment loss and included in the current profit and loss, and an impairment provision for assets held for sale is made at the same time.

For non-current assets or disposal groups that are classified as held for sale on the acquisition date, at the time of initial measurement, the initial measurement amount and the net amount of fair value minus selling expenses are compared assuming that they are not classified as held for sale, and the lower of the two is measured. Except for non-current assets or disposal groups acquired in business combinations, the difference arising from the initial measurement amount of non-current assets or disposal groups based on their fair value minus selling expenses shall be included in the current profit and loss.

For the amount of asset impairment loss recognized by a disposal group held for sale, the book value of the goodwill in the disposal group is first deducted, and then the book value is deducted proportionally based on the proportion of the book value of each non-current asset in the disposal group.

No depreciation or amortization is provided for non-current assets held for sale or non-current assets in the disposal group, and interest and other expenses on liabilities in the disposal group held for sale continue to be recognized.

②Accounting treatment for reversal of asset impairment losses

If the net amount of the fair value of non-current assets held for sale less selling expenses increases on the subsequent balance sheet date, the amount previously written down will be restored and reversed within the amount of asset impairment losses recognized after being classified as held for sale, and the reversed amount will be included in the current profit and loss. Impairment losses on assets recognized before they are classified as held for sale are not reversed.

If the net amount of the fair value of the disposal group held for sale less selling expenses increases on the subsequent balance sheet date, the previously written-down amount will be restored and reversed within the amount of asset impairment losses recognized after the non-current assets were classified as held-for-sale, and the reversed amount will be included in the current profit and loss. The book value of goodwill that has been deducted and the asset impairment losses recognized before non-current assets are classified as held for sale are not reversed.

The subsequent reversal amount of asset impairment losses recognized by the disposal group held for sale will increase its book value in proportion according to the proportion of the book value of various non-current assets in the disposal group except goodwill.

③The accounting treatment of no longer being classified as held for sale and derecognition

When a non-current asset or disposal group is no longer classified as a held-for-sale category because it no longer meets the conditions for classification into a held-for-sale category or when a non-current asset is removed from a held-for-sale disposal group, it is measured according to the lower of the following two: 1) The book value before being classified as a held-for-sale category, adjusted for the depreciation, amortization or impairment that would have been recognized if it was not classified as a held-for-sale category; 2) The recoverable amount.

When non-current assets or disposal groups held for sale are derecognised, the unrecognized gains or losses will be included in the current profits and losses.

(3) Confirmation standards for discontinued operations

Components that meet one of the following conditions, have been disposed of or classified as held for sale and can be individually distinguished are recognized as discontinued operations:

① This component represents an independent main business or an independent main operating area;

② This component is part of an associated plan to dispose of an independent main business or an independent main operating area;

③This component is a subsidiary acquired exclusively for resale.

(4) Presentation method of discontinued operations

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The company separately lists profits and losses from continuing operations and profits and losses from discontinued operations in the income statement. Impairment losses and reversal amounts from discontinued operations and other operating gains and losses as well as disposal gains and losses are presented as gains and losses from discontinued operations. For discontinued operations reported in the current period, the information originally presented as profits and losses from continuing operations will be re-presented as profits and losses from discontinued operations in the comparable period in the financial statements for the current period. If the discontinued operations no longer meet the conditions for classification into the held-for-sale category, the information originally presented as profits and losses from discontinued operations will be re-presented as profits and losses from continuing operations for the comparable period in the current financial statements.

Debt investment

None

Other debt investments

None

Long-term receivables

None

Long-term equity investment

(1) Judgment of joint control and significant influence

If there is shared control over an arrangement in accordance with the relevant agreement, and the relevant activities of the arrangement must be decided with the unanimous consent of the parties sharing control rights, it is deemed to be joint control. Having the power to participate in decision-making on the financial and operating policies of the investee, but not being able to control or jointly control the formulation of these policies with other parties, is deemed to have significant influence.

(2) Determination of investment cost

① Formed by a business merger under the same control, if the merging party pays cash, transfers non-cash assets, assumes debts or issues equity securities as the merger consideration, the initial investment cost shall be the share of the book value of the owner's equity of the merged party in the consolidated financial statements of the ultimate controlling party on the merger date. The difference between the initial investment cost of the long-term equity investment and the book value of the merger consideration paid or the total face value of the shares issued is adjusted to the capital reserve; if the capital reserve is insufficient for offset, the retained earnings are adjusted.

The company realizes the long-term equity investment formed by the merger of enterprises under the same control step by step through multiple transactions to determine whether it is a "package transaction". If it belongs to a "package transaction", each transaction shall be accounted for as a transaction that obtains control. If it does not belong to a "package deal", on the merger date, the initial investment cost will be determined based on the share of the book value of the combined party's net assets in the ultimate controlling party's consolidated financial statements that should be enjoyed after the merger. The difference between the initial investment cost of the long-term equity investment on the merger date and the book value of the long-term equity investment before the merger plus the book value of the new payment for further shares acquired on the merger date is adjusted to the capital reserve; if the capital reserve is insufficient for offset, the retained earnings are adjusted.

② If it is formed by a business combination not under the same control, the fair value of the merger consideration paid on the purchase date shall be used as its initial investment cost.

The company realizes the long-term equity investment formed by the merger of enterprises not under common control step by step through multiple transactions, and distinguishes individual financial statements and consolidated financial statements for relevant accounting treatment:

a. In individual financial statements, the sum of the book value of the original equity investment plus the new investment cost is regarded as the initial investment cost that is calculated according to the cost method.

b. In the consolidated financial statements, determine whether it is a "package deal". If it belongs to a "package transaction", each transaction shall be accounted for as a transaction that obtains control. If it does not belong to a "package transaction", the equity of the purchased party held before the purchase date will be remeasured according to the fair value of the equity on the purchase date, and the difference between the fair value and its book value will be included in the investment income of the current period; if the equity of the purchased party held before the purchase date involves other comprehensive income under equity method accounting, the other comprehensive income related to it will be converted into the current period income on the purchase date. However, other comprehensive income arising from changes in the net liabilities or net assets of the defined benefit plan due to the remeasurement of the investee is excluded.

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③Except for those formed through business mergers: if it is obtained by paying cash, the actual purchase price paid will be used as its initial investment cost; if it is obtained by issuing equity securities, its initial investment cost will be based on the fair value of the equity securities issued; if it is obtained by debt restructuring, its initial investment cost will be determined according to "Accounting Standards for Business Enterprises No. 12 - Debt Restructuring"; if it is obtained by exchanging non-monetary assets, its initial investment cost will be determined according to "Accounting Standards for Business Enterprises No. 7 - Exchange of Non-monetary Assets".

(3) Subsequent measurement and profit and loss recognition methods

Long-term equity investments that control the invested unit are accounted for using the cost method; long-term equity investments in associates and joint ventures are accounted for using the equity method. (4) Method of handling investments in subsidiaries through multiple transactions and step-by-step disposal until the loss of control

①Principles for judging whether it belongs to a “package deal”

If the equity investment in a subsidiary is disposed of in stages through multiple transactions until it loses control, the company shall determine whether the step-by-step transaction is a "package transaction" based on the transaction agreement terms of each step of the step-by-step transaction, the disposal consideration obtained respectively, the object of the equity sale, the disposal method, the time of disposal, and other information. If the terms, conditions and economic impact of each transaction meet one or more of the following conditions, it usually indicates that multiple transactions are a "package deal":

a. These transactions were entered into at the same time or with consideration of mutual effects;

b. Only these transactions as a whole can achieve a complete business result;

c. The occurrence of one transaction depends on the occurrence of at least one other transaction;

d. A transaction is uneconomical when viewed alone, but is economical when considered together with other transactions.

② Accounting treatment that does not belong to “package transaction”

a.Individual financial statements

For the equity disposed of, the difference between its book value and the actual price obtained shall be included in the current profit and loss. For the remaining equity, if it still has a significant influence on the invested unit or exercises joint control with other parties, it will be converted to equity method accounting; if it can no longer exercise control, joint control or significant influence on the invested unit, it will be accounted for in accordance with the relevant provisions of "Accounting Standards for Business Enterprises No. 22 - Recognition and Measurement of Financial Instruments".

b.Consolidated financial statements

Before the loss of control, the difference between the disposal price and the share of the subsidiary's net assets corresponding to the disposal of the long-term equity investment continuously calculated from the date of purchase or merger will be adjusted to the capital reserve (capital premium). If the capital premium is insufficient to offset, the retained earnings will be offset.

When control over the atomic company is lost, the remaining equity will be remeasured according to its fair value on the date of loss of control. The difference between the sum of the consideration obtained for disposing of the equity and the fair value of the remaining equity, minus the share of the original subsidiary's net assets calculated continuously from the date of purchase or merger based on the original shareholding ratio, shall be included in the investment income for the period when control is lost, and goodwill shall be offset at the same time. Other comprehensive income related to the equity investment in the original subsidiary shall be converted into investment income for the current period when control is lost.

③Accounting treatment for “package transactions”

a.Individual financial statements

Each transaction is accounted for as a transaction in which a subsidiary is disposed of and control is lost. However, the difference between the price of each disposal before the loss of control and the book value of the long-term equity investment corresponding to the disposal investment is recognized as other comprehensive income in individual financial statements, and is transferred to the profit and loss of the current period when control is lost.

b.Consolidated financial statements

Each transaction is accounted for as a transaction in which a subsidiary is disposed of and control is lost. However, before the loss of control, the difference between the price of each disposal and the share of the subsidiary's net assets corresponding to the disposal investment is recognized as other comprehensive income in the consolidated financial statements, and is transferred to the profits and losses of the current period when the control is lost.

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Investment real estate

Investment real estate measurement model

Not applicable

Fixed assets

(1) Confirmation conditions

Fixed assets refer to tangible assets held for the production of goods, provision of labor services, leasing or operation and management, and with a useful life of more than one accounting year. Fixed assets are recognized when it is likely that economic benefits will flow in and the cost can be measured reliably.

(2) Depreciation method

Category Depreciation method Depreciation life Residual value rate Annual depreciation rate Houses and buildings Straight-line method 20-30 0-3% 3.23%-5.00% Machinery and equipment Straight-line method 3-5 0-3% 19.40%-33.33% Transportation Straight-line method 3-5 0-3% 19.40%-33.33% Electronic equipment Straight-line method 3.00 0-3% 32.33%-33.33% Medical equipment Average age method 5-10 0-3% 9.70%-20.00% Other equipment Average age method 3.00 0-3% 32.33%-33.33%

Projects under construction

(1) Construction in progress is recognized when it is likely that economic benefits will flow in and the cost can be measured reliably. Construction in progress is measured based on the actual costs incurred before the asset reaches its intended usable condition.

(2) When the project under construction reaches the intended usable state, it will be transferred to fixed assets according to the actual cost of the project. If the asset has reached its intended usable state but has not yet completed the final settlement, the estimated value will be transferred to fixed assets first. After the final settlement has been processed, the original estimated value will be adjusted based on the actual cost, but the originally accrued depreciation will not be adjusted.

Category Standards and timing for transferring construction in progress to fixed assets

Machinery and equipment and medical equipment must meet the design requirements or standards stipulated in the contract after installation and commissioning.

Houses and buildings meet construction completion acceptance standards

Borrowing costs

(1) Recognition principles for capitalization of borrowing costs

If the borrowing costs incurred by the company can be directly attributed to the purchase, construction or production of assets that meet the capitalization conditions, they shall be capitalized and included in the cost of the relevant assets; other borrowing costs shall be recognized as expenses when incurred and included in the current profits and losses.

(2) Capitalization period of borrowing costs

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① Capitalization begins when borrowing costs meet the following conditions at the same time: 1) Asset expenditures have occurred; 2) Borrowing costs have been incurred; 3) The purchase, construction or production activities necessary to bring the asset to its intended usable or salable state have begun.

② If an asset that meets the capitalization conditions is abnormally interrupted during the acquisition, construction or production process, and the interruption lasts for more than 3 months, the capitalization of borrowing costs is suspended; the borrowing costs incurred during the interruption are recognized as current expenses until the acquisition, construction or production activities of the asset are restarted.

③ When the assets purchased, constructed or produced that meet the capitalization conditions reach the intended usable or salable state, the capitalization of borrowing costs ceases.

(3) Capitalization rate and capitalization amount of borrowing costs

If a special loan is borrowed for the purpose of purchasing, constructing or producing assets that meet the capitalization conditions, the interest expense actually incurred on the special loan in the current period (including the amortization of the discount or premium determined according to the actual interest rate method) shall be deducted from the interest income obtained from depositing the unused borrowed funds in the bank or the investment income obtained from temporary investment. The amount of interest that should be capitalized is determined based on the amount after profit; if general borrowings are occupied for the purchase, construction or production of assets that meet the capitalization conditions, the amount of interest that should be capitalized on the general borrowings is calculated and determined based on the weighted average of the cumulative asset expenditures exceeding the special borrowings multiplied by the capitalization rate of the general borrowings occupied.

Biological assets

None

Oil and gas assets

None

Intangible assets

(1) Useful life and its basis for determination, estimation, amortization method or review procedure

① Intangible assets include land use rights, patented technology and software, etc., which are initially measured at cost.

② Intangible assets with limited service life shall be amortized systematically and reasonably within the service life according to the expected realization method of the economic benefits related to the intangible asset. If the expected realization method cannot be reliably determined, the straight-line method shall be used for amortization. The details are as follows:

Items Useful life and its determination basis Amortization method software 5 years (best estimate) Straight-line method patented technology 10 years (life of use rights) Straight-line method Land use rights 40-50 years (life of property rights registration) Straight-line method

(2) Scope of aggregation of R&D expenditures and related accounting treatment methods

① Scope of aggregation of R&D expenditures

a. Personnel labor costs

Personnel labor expenses include the wages and salaries of the company's R&D personnel, basic pension insurance premiums, basic medical insurance premiums, unemployment insurance premiums, work-related injury insurance premiums, maternity insurance premiums and housing provident funds, as well as labor costs for external R&D personnel.

If R&D personnel serve multiple R&D projects at the same time, labor costs will be recognized based on the working hours records of R&D personnel for each R&D project provided by the company's management department, and will be allocated proportionally among different R&D projects.

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If those who are directly engaged in R&D activities or external R&D personnel are also engaged in non-R&D activities, the company will allocate the actual labor costs incurred by the R&D personnel between R&D expenses and production and operating expenses based on reasonable methods such as the proportion of actual working hours based on the R&D personnel’s working time records in different positions.

b. Direct investment costs

Direct investment expenses refer to the actual expenditures incurred by the company to implement research and development activities. Including: 1) direct consumption of materials, fuel and power costs;

Development and manufacturing fees for molds and process equipment used for intermediate testing and product trial production, purchase fees for samples, prototypes and general testing means that do not constitute fixed assets, and inspection fees for trial products; 3) Costs for operation, maintenance, adjustment, inspection, detection, repair and other expenses of instruments and equipment used for research and development activities.

c. Depreciation expenses and long-term deferred expenses

Depreciation expenses refer to the depreciation expenses of instruments, equipment and buildings in use used for research and development activities.

If instruments, equipment, and buildings in use are used for R&D activities and are also used for non-R&D activities, necessary records shall be made of the use of such instruments, equipment, and buildings in use, and the actual depreciation expenses incurred shall be allocated between R&D expenses and production and operating expenses in a reasonable manner based on factors such as actual working hours and usage area. Long-term deferred expenses refer to the long-term deferred expenses incurred during the reconstruction, modification, decoration and repair of R&D facilities. They are collected based on actual expenditures and amortized evenly in installments within the specified period.

d. Amortization expenses of intangible assets

Amortization expenses of intangible assets refer to the amortization expenses of software, intellectual property, non-patented technology (proprietary technology, licenses, design and calculation methods, etc.) used in research and development activities.

e. Design costs

Design expenses refer to the expenses incurred in conceiving, developing and manufacturing new products and new processes, and designing processes, technical specifications, procedures, operating characteristics, etc., including expenses related to creative design activities to obtain innovative, creative, and breakthrough products.

f. Commissioned external research and development expenses

Entrusted external research and development expenses refer to the expenses incurred by the company entrusting other institutions or individuals at home and abroad to conduct research and development activities (the results of research and development activities are owned by the company and are closely related to the company's main business).

g.Other expenses

Other expenses refer to other expenses directly related to research and development activities in addition to the above expenses, including technical book materials fees, data translation fees, expert consultation fees, high-tech R&D insurance fees, retrieval, demonstration, review, identification, and acceptance fees for R&D results, application fees, registration fees, agency fees for intellectual property rights, conference fees, travel expenses, communication fees, etc.

② Expenditures in the research phase of internal research and development projects shall be included in the current profits and losses when incurred. Expenditures in the development phase of internal research and development projects are recognized as intangible assets if they meet the following conditions: a. It is technically feasible to complete the intangible asset so that it can be used or sold; b. There is the intention to complete the intangible asset and use or sell it; c. The way in which the intangible asset generates economic benefits includes being able to prove the use of the intangible asset There is a market for the products produced or the intangible asset itself has a market. If the intangible asset will be used internally, its usefulness can be proven; d. It has sufficient technical, financial and other resource support to complete the development of the intangible asset, and has the ability to use or sell the intangible asset; e. Expenditures attributable to the development stage of the intangible asset can be measured reliably.

Impairment of long-term assets

For long-term equity investments, investment real estate measured using the cost model, fixed assets, construction in progress, productive biological assets measured using the cost model, oil and gas assets, right-of-use assets, intangible assets with limited useful lives and other long-term assets, if there are signs of impairment on the balance sheet date, the recoverable amount is estimated. Goodwill and intangible assets with indefinite useful lives formed due to business combinations are subject to impairment testing every year regardless of whether there are signs of impairment. Goodwill is tested for impairment in combination with its related asset groups or combinations of asset groups.

If the recoverable amount of the above-mentioned long-term assets is lower than its book value, the asset impairment provision shall be recognized based on the difference and included in the current profit and loss.

Full text of the 2026 semi-annual report of Hunan Dajia Weikang Pharmaceutical Industry Co., Ltd.

Long-term deferred expenses

Long-term deferred expenses are calculated as expenses that have been spent and have an amortization period of more than 1 year (excluding 1 year). Long-term deferred expenses are recorded based on the actual amount incurred, and are amortized evenly over the benefit period or a specified period. If a long-term deferred expense item cannot benefit future accounting periods, all the amortized value of the item that has not yet been amortized will be transferred to the current profit and loss.

Contract liabilities

The Company presents obligations to transfer goods to customers for consideration received or receivable from customers as contract liabilities.

Employee compensation

(1) Accounting treatment method for short-term compensation

During the accounting period when employees provide services to the company, the actual short-term compensation is recognized as a liability and included in the current profit and loss or related asset costs.

(2) Accounting treatment of post-employment benefits

Post-employment benefits are divided into defined contribution plans and defined benefit plans.

① During the accounting period when employees provide services to the company, the deposit amount payable calculated according to the defined contribution plan is recognized as a liability and included in the current profit and loss or related asset costs.

②The accounting treatment of defined benefit plans usually includes the following steps:

a. Based on the expected cumulative benefit unit method, use unbiased and consistent actuarial assumptions to estimate relevant demographic variables and financial variables, measure the obligations arising from the defined benefit plan, and determine the period to which the relevant obligations belong. At the same time, the obligations arising from the defined benefit plan are discounted to determine the present value of the defined benefit plan obligations and the current service cost;

b. If there are assets in the defined benefit plan, the deficit or surplus formed by deducting the present value of the defined benefit plan obligations from the fair value of the defined benefit plan assets is recognized as a net liability or net asset of the defined benefit plan. If a defined benefit plan has a surplus, the net assets of the defined benefit plan shall be measured at the lower of the surplus of the defined benefit plan and the asset upper limit;

c. At the end of the period, the employee compensation costs generated by the defined benefit plan are recognized as service costs, net interest on the net liabilities or net assets of the defined benefit plan, and changes caused by remeasurement of the net liabilities or net assets of the defined benefit plan. Among them, the service costs and the net liabilities or net assets of the defined benefit plan are The net interest on assets is included in the current profit and loss or related asset costs, and the changes resulting from the remeasurement of the net liabilities or net assets of the defined benefit plan are included in other comprehensive income, and are not allowed to be transferred back to profit or loss in subsequent accounting periods, but these amounts recognized in other comprehensive income can be transferred within the scope of equity.

(3) Accounting treatment method for dismissal benefits

For dismissal benefits provided to employees, the employee compensation liabilities arising from the dismissal benefits are recognized and included in the current profit and loss at the earliest of the following two situations: (1) when the company cannot unilaterally withdraw the dismissal benefits provided due to the termination of labor relations plan or layoff proposal; (2) when the company recognizes costs or expenses related to the restructuring involving the payment of dismissal benefits.

(4) Accounting treatment methods for other long-term employee benefits

Other long-term benefits provided to employees that meet the conditions of the defined contribution plan shall be accounted for in accordance with the relevant provisions of the defined contribution plan; other long-term benefits shall be accounted for in accordance with the relevant provisions of the defined benefit plan. In order to simplify the relevant accounting treatment, the employee compensation costs incurred are recognized as service costs.

Full text of the 2026 semi-annual report of Hunan Dajia Weikang Pharmaceutical Industry Co., Ltd.

The total net amount of the service costs, net interest on other long-term employee benefit net liabilities or net assets, and changes resulting from the remeasurement of other long-term employee benefit net liabilities or net assets are included in the current profit and loss or related asset costs.

Estimated liabilities

(1) Obligations resulting from contingencies such as external guarantees, litigation matters, product quality guarantees, loss-making contracts, etc., become current obligations borne by the company. When the performance of the obligation is likely to cause economic benefits to flow out of the company, and the amount of the obligation can be measured reliably, the company will recognize the obligation as an estimated liability.

(2) The company initially measures estimated liabilities based on the best estimate of the expenditure required to fulfill relevant current obligations, and reviews the book value of estimated liabilities on the balance sheet date.

Share-based payment

(1) Types of share-based payment

Including equity-settled share-based payments and cash-settled share-based payments.

(2) Accounting treatments related to the implementation, modification and termination of share-based payment plans

① Equity-settled share-based payment

Equity-settled share-based payments that become exercisable immediately after grant in exchange for employee services will be included in relevant costs or expenses based on the fair value of the equity instrument on the date of grant, and the capital reserve will be adjusted accordingly. For equity-settled share-based payments in exchange for employee services that are vested upon completion of services within the waiting period or upon meeting specified performance conditions, on each balance sheet date during the waiting period, based on the best estimate of the number of exercisable equity instruments and the fair value on the date of grant of the equity instrument, the services obtained in the current period are included in the relevant costs or expenses, and the capital reserve is adjusted accordingly.

For equity-settled share-based payments in exchange for services from other parties, if the fair value of the other party's services can be reliably measured, it will be measured based on the fair value of the other party's services on the date of acquisition; if the fair value of the other party's services cannot be reliably measured, but the fair value of the equity instrument can be measured reliably, it will be measured based on the fair value of the equity instrument on the date of service acquisition, and the relevant costs or expenses will be included, and the owner's equity will be increased accordingly.

②Cash-settled share-based payment

Cash-settled share-based payments that are exercisable immediately after grant in exchange for employee services will be included in relevant costs or expenses based on the fair value of the company's liabilities on the date of grant, with corresponding increases in liabilities. For cash-settled share-based payments in exchange for employee services that are vested upon completion of services within the waiting period or upon meeting specified performance conditions, on each balance sheet date during the waiting period, based on the best estimate of the vesting situation and the fair value of the liabilities borne by the company, the services obtained in the current period are included in the relevant costs or expenses and corresponding liabilities.

③ Modify and terminate the share-based payment plan

If the modification increases the fair value of the equity instruments granted, the company will recognize the increase in the services obtained according to the increase in the fair value of the equity instruments; if the modification increases the number of equity instruments granted, the company will recognize the increased fair value of the equity instruments as an increase in the services obtained accordingly; if the company modifies the vesting conditions in a way that is beneficial to employees, the company will consider the modified vesting conditions when processing the vesting conditions.

If the modification reduces the fair value of the equity instruments granted, the company will continue to recognize the amount of services obtained based on the fair value of the equity instruments on the date of grant, regardless of the decrease in the fair value of the equity instruments; if the modification reduces the number of equity instruments granted, the company will treat the reduction as the cancellation of the equity instruments granted; if the vesting conditions are modified in a way that is unfavorable to employees, the modified vesting conditions will not be considered when processing the vesting conditions.

If the company cancels the granted equity instruments or settles the granted equity instruments during the waiting period (except for cancellation due to failure to meet vesting conditions), the cancellation or settlement will be treated as accelerated vesting, and the amount originally recognized during the remaining waiting period will be immediately recognized.

Preferred shares, perpetual bonds and other financial instruments

None

Full text of the 2026 semi-annual report of Hunan Dajia Weikang Pharmaceutical Industry Co., Ltd.

Income

Disclose accounting policies adopted for revenue recognition and measurement by business type

(1) Principle of revenue recognition

On the contract commencement date, the company evaluates the contract, identifies each individual performance obligation contained in the contract, and determines whether each individual performance obligation is to be performed within a certain period of time or at a certain point in time.

When one of the following conditions is met, the performance obligation is fulfilled within a certain period of time; otherwise, the performance obligation is fulfilled at a certain point in time: ① The customer obtains and consumes the economic benefits brought by the company's performance while the company performs the contract; ② The customer can control the goods under construction during the company's performance; ③ The goods produced during the company's performance have irreplaceable uses, and the company has the right to collect payment for the cumulative performance part that has been completed so far during the entire contract period.

For performance obligations performed within a certain period of time, the company recognizes revenue based on the performance progress within that period of time. When the progress of contract performance cannot be reasonably determined, if the costs incurred are expected to be compensated, revenue shall be recognized based on the amount of costs incurred until the progress of contract performance can be reasonably determined. For performance obligations fulfilled at a certain point in time, revenue is recognized at the point when the customer obtains control of the relevant goods or services. When judging whether the customer has obtained control of the goods, the company considers the following signs: ① The company has the current right to receive payment for the goods, that is, the customer has current payment obligations for the goods; ② The company has transferred the legal ownership of the goods to the customer, that is, the customer already has the legal ownership of the goods; ③ The company has The commodity is physically transferred to the customer, which means that the customer has physical possession of the commodity; ④ The company has transferred the main risks and rewards of ownership of the commodity to the customer, that is, the customer has obtained the main risks and rewards of ownership of the commodity; ⑤ The customer has accepted the commodity; ⑥ Other signs indicating that the customer has obtained control of the commodity.

(2) Income measurement principles

①The company measures revenue based on the transaction price allocated to each individual performance obligation. The transaction price is the amount of consideration that the company expects to be entitled to receive for the transfer of goods or services to the customer, excluding amounts collected on behalf of third parties and amounts expected to be returned to the customer.

② If there is variable consideration in the contract, the company determines the best estimate of the variable consideration based on the expected value or the most likely amount, but the transaction price including the variable consideration shall not exceed the amount at which a significant reversal of the cumulative recognized revenue is unlikely to occur when the relevant uncertainty is eliminated.

③ If there is a significant financing component in the contract, the company determines the transaction price based on the amount payable in cash when the customer obtains control of the goods or services. The difference between the transaction price and the contract consideration is amortized using the effective interest method during the contract period. On the contract start date, if the company expects that the interval between the customer's obtaining control of the goods or services and the customer's payment of the price will not exceed one year, it will not consider the significant financing component in the contract.

④ If the contract contains two or more performance obligations, the company will allocate the transaction price to each individual performance obligation based on the relative proportion of the stand-alone selling price of the goods promised by each individual performance obligation on the contract commencement date.

Similar business adopts different business models and involves different revenue recognition methods and measurement methods.

①Income recognized on time

The company's pharmaceutical distribution, pharmaceutical retail, and outpatient services are performance obligations at a certain point in time. The recognition of product revenue must meet the following conditions: the company has delivered the product to the customer in accordance with the contract and the customer has accepted the product, the payment has been recovered or a receipt has been obtained and the relevant economic benefits are likely to flow in, the main risks and rewards of the ownership of the product have been transferred, and the legal ownership of the product has been transferred.

② Income recognized based on contract performance progress

The company provides hospitalization services. Since the customer obtains and consumes the economic benefits brought by the company's performance when the company performs the contract, and the company has the right to collect payment for the cumulative performance part completed so far during the entire contract period, the company treats it as a performance obligation performed within a certain period of time and recognizes revenue according to the performance progress, unless the performance progress cannot be reasonably determined. The company determines the performance progress of services provided according to the input method. When the progress of contract performance cannot be reasonably determined and the costs incurred by the company are expected to be compensated, revenue will be recognized based on the amount of costs incurred until the progress of contract performance can be reasonably determined.

Full text of the 2026 semi-annual report of Hunan Dajia Weikang Pharmaceutical Industry Co., Ltd.

Contract costs

The incremental costs incurred by the company to obtain the contract are expected to be recovered and are recognized as an asset as the contract acquisition cost. If the amortization period of the contract acquisition cost does not exceed one year, it will be directly included in the current profit and loss when incurred.

If the costs incurred by the company to fulfill the contract do not apply to the scope of relevant standards such as inventories, fixed assets or intangible assets and meet the following conditions at the same time, they will be recognized as an asset as contract performance costs:

(1) The cost is directly related to a current or expected contract, including direct labor, direct materials, manufacturing overhead (or similar expenses), costs expressly borne by the customer, and other costs incurred solely because of the contract;

(2) This cost increases the company’s future resources for fulfilling performance obligations;

(3) The cost is expected to be recovered.

The company amortizes assets related to contract costs on the same basis as the revenue recognition of goods or services related to the assets, and includes them in the current profits and losses.

If the book value of an asset related to the contract cost is higher than the remaining consideration expected to be obtained from the transfer of the goods or services related to the asset minus the estimated costs to be incurred, the company will make an impairment provision for the excess and recognize it as an asset impairment loss. If the factors of impairment in the previous period subsequently change, so that the remaining consideration expected to be obtained from the transfer of the goods or services related to the asset minus the estimated costs to be incurred is higher than the book value of the asset, the asset impairment provision that has been originally accrued will be reversed and included in the current profit and loss, but the book value of the asset after the reversion shall not exceed the book value of the asset on the date of reversal if no impairment provision is made.

Government subsidies

(1) Government subsidies are recognized when the following conditions are met at the same time: (1) the company can meet the conditions attached to the government subsidy; (2) the company can receive the government subsidy. If government subsidies are monetary assets, they shall be measured based on the amount received or receivable. If the government subsidy is a non-monetary asset, it shall be measured at fair value; if the fair value cannot be obtained reliably, it shall be measured at the nominal amount.

(2) Judgment basis and accounting treatment method for government subsidies related to assets

Government documents stipulate that government subsidies used to purchase, construct or otherwise form long-term assets are classified as asset-related government subsidies. If the government documents are unclear, the judgment will be based on the basic conditions that must be met to obtain the subsidy. If the basic condition is the acquisition, construction or other means of forming long-term assets, it will be regarded as an asset-related government subsidy. Government subsidies related to assets are offset against the book value of the relevant assets or recognized as deferred income. If government subsidies related to assets are recognized as deferred income, they shall be included in profits and losses in installments in a reasonable and systematic manner within the useful life of the relevant assets. Government subsidies measured according to the nominal amount are directly included in the current profit and loss. If the relevant assets are sold, transferred, scrapped or damaged before the end of their useful life, the undistributed balance of relevant deferred income will be transferred to the profit and loss of the current period of asset disposal.

(3) Judgment basis and accounting treatment method for government subsidies related to income

Government subsidies other than asset-related government subsidies are classified as income-related government subsidies. For government subsidies that contain both asset-related parts and income-related parts, it is difficult to distinguish whether they are asset-related or income-related, and are generally classified as income-related government subsidies. If government subsidies related to income are used to compensate for relevant costs, expenses or losses in the future period, they are recognized as deferred income. During the period when the relevant costs, expenses or losses are recognized, they are included in the current profits and losses or offset the relevant costs; if they are used to compensate for the relevant costs, expenses or losses that have already occurred, they are directly included in the current profits and losses or offset the relevant costs.

(4) Government subsidies related to the company's daily operating activities shall be included in other income or offset related costs and expenses according to the economic business essence. Government subsidies that are not related to the company's daily activities are included in non-operating income and expenses.

(5) Accounting treatment method for policy preferential loan interest discounts

① If the finance department allocates interest discount funds to the lending bank, and the lending bank provides loans to the company at policy preferential interest rates, the actual loan amount received will be used as the entry value of the loan, and the relevant borrowing costs will be calculated based on the loan principal and the policy preferential interest rate.

② If the finance department directly allocates interest discount funds to the company, the corresponding interest discount will be used to offset related borrowing costs.

Full text of the 2026 semi-annual report of Hunan Dajia Weikang Pharmaceutical Industry Co., Ltd.

Deferred income tax assets/deferred income tax liabilities
Based on the difference between the book value of assets and liabilities and their tax basis (if the tax basis of items not recognized as assets and liabilities can be determined in accordance with tax laws, the difference between the tax basis and their book amount), deferred income tax assets or deferred income tax liabilities are calculated and recognized according to the applicable tax rate during the period when the asset is expected to be recovered or the liability is settled.
Deferred income tax assets are recognized to the extent that it is probable that the taxable income will be available to offset the deductible temporary differences. On the balance sheet date, if there is conclusive evidence that sufficient taxable income is likely to be obtained in the future period to offset the deductible temporary differences, deferred income tax assets that have not been recognized in previous accounting periods will be recognized.
On the balance sheet date, the book value of the deferred tax assets is reviewed. If it is likely that sufficient taxable income will not be available in the future period to offset the benefits of the deferred tax assets, the book value of the deferred tax assets will be written down. The amount of the write-down is reversed when it is probable that sufficient taxable income will be obtained.
The company's current income tax and deferred income tax are included in the current profit and loss as income tax expenses or income, but do not include income tax arising from the following situations: (1) business merger; (2) transactions or events directly recognized in owner's equity.
When the following conditions are met at the same time, the company will present the deferred income tax assets and deferred income tax liabilities as the net amount after offsetting: (1) It has the legal right to settle the current income tax assets and current income tax liabilities on a net basis; (2) Deferred income tax assets and deferred income tax liabilities are related to income taxes levied by the same tax collection and administration department on the same taxable entity or to different taxable entities. However, in each future period when important deferred income tax assets and deferred income tax liabilities are reversed, the taxable entity involved intends to settle the current income tax assets and current income tax liabilities on a net basis or to obtain assets and pay off debts at the same time.
Leasing

(1) Accounting treatment method for leasing as lessee

The company as lessee

On the start date of the lease period, the company identifies leases with a lease period of no more than 12 months and that do not include a purchase option as short-term leases; leases with a low value when a single leased asset is a new asset are identified as low-value asset leases. If a company subleases or anticipates subletting a leased asset, the original lease will not be deemed a low-value asset lease.

For all short-term leases and low-value asset leases, the company includes the lease payments into the relevant asset cost or current profit and loss on a straight-line basis throughout the lease term.

In addition to the above-mentioned short-term leases and low-value asset leases that adopt simplified treatment, the company recognizes right-of-use assets and lease liabilities for leases on the start date of the lease period.

(1) Right-of-use assets

The right-of-use assets are initially measured at cost, which includes: 1) the initial measurement amount of the lease liability; 2) the lease payment amount paid on or before the start date of the lease period, and if there is a lease incentive, the amount related to the lease incentive that has been enjoyed is deducted; 3) the initial direct costs incurred by the lessee; 4) the costs expected to be incurred by the lessee to dismantle and remove the leased asset, restore the site where the leased asset is located, or restore the leased asset to the state agreed upon in the lease terms.

The company depreciates right-of-use assets on a straight-line basis. If it is reasonably certain that the ownership of the leased asset will be obtained at the expiration of the lease term, the company will accrue depreciation over the remaining useful life of the leased asset. If it is not reasonably certain that the company will be able to obtain ownership of the leased asset at the expiration of the lease term, the company will accrue depreciation during the shorter of the lease term and the remaining useful life of the leased asset.

(2) Lease liabilities

At the beginning of the lease period, the company recognizes the present value of the unpaid lease payments as lease liabilities. When calculating the present value of lease payments, the interest rate implicit in the lease is used as the discount rate. If the interest rate implicit in the lease cannot be determined, the company's incremental borrowing rate is used as the discount rate. The difference between the lease payment and its present value is regarded as an unrecognized financing expense, and the interest expense is recognized at the discount rate used to confirm the present value of the lease payment during each period of the lease term, and is included in the current profit and loss. Variable lease payments that are not included in the measurement of lease liabilities are included in the current profit and loss when they actually occur.

Full text of the 2026 semi-annual report of Hunan Dajia Weikang Pharmaceutical Industry Co., Ltd.

After the start date of the lease period, when the actual fixed payment amount changes, the estimated amount payable of the guaranteed residual value changes, the index or ratio used to determine the lease payment amount changes, the evaluation results or actual exercise of the purchase option, lease renewal option or termination option change, When a change occurs, the company remeasures the lease liability based on the present value of the changed lease payment, and adjusts the book value of the right-of-use asset accordingly. If the book value of the right-of-use asset has been reduced to zero, but the lease liability still needs to be further reduced, the remaining amount will be included in the current profit and loss.

(2) Accounting treatment method for leasing as lessor

On the lease commencement date, the Company classifies leases that substantially transfer almost all risks and rewards related to the ownership of the leased assets as finance leases, and other leases as operating leases.

① Operating lease

The company recognizes the lease receipts as rental income according to the straight-line method in each period during the lease period. The initial direct expenses incurred are capitalized and apportioned on the same basis as the rental income recognition, and included in the current profit and loss in installments. Variable lease payments obtained by the company related to operating leases that are not included in the lease receipts are included in the current profit and loss when they actually occur.

②Financial lease

On the start date of the lease period, the company recognizes financial lease receivables based on the net lease investment (the sum of the unguaranteed residual value and the present value of the lease payments not yet received on the start date of the lease discounted at the interest rate implicit in the lease), and terminates the recognition of financial lease assets. During each period of the lease term, the company calculates and recognizes interest income based on the interest rate implicit in the lease.

Variable lease payments obtained by the company that are not included in the measurement of the net lease investment are included in the current profit and loss when they actually occur.

Other important accounting policies and accounting estimates

None

Changes in important accounting policies and accounting estimates

(1) Changes in important accounting policies

Applicable □Not applicable

Unit: Yuan

Contents and reasons for changes in accounting policies Names of report items that are significantly affected Amount affected

The company will implement the financial plan starting from January 1, 2025.

According to Interpretation No. 17 of the Accounting Standards for Business Enterprises promulgated by the Ministry of Finance, this accounting policy change has no impact on the company’s financial statements.

No. 0.00" "On the impact of current liabilities and non-current liabilities

"Dividing" provisions.

The company will implement the financial plan starting from January 1, 2025.

No. 0.00" "Disclosure of Supplier Financing Arrangements" Impact

regulations.

The company will implement the financial plan starting from January 1, 2025.

No. 0.00》"Accounting Office Impact on Sale and Leaseback Transactions"

"Principles".

The company will implement the financial plan starting from December 6, 2025.

According to Interpretation No. 18 of the Accounting Standards for Business Enterprises promulgated by the Ministry of Finance, this accounting policy change has no impact on the company’s financial statements.

No. 0.00" "About the impact of guarantees that do not belong to individual performance obligations

"Accounting Treatment for Certificate Quality Assurance" regulations.

Full text of the 2026 semi-annual report of Hunan Dajia Weikang Pharmaceutical Industry Co., Ltd.

(2) Changes in important accounting estimates

□Applicable Not applicable

(3) Adjustments to relevant items in the financial statements at the beginning of the year when the new accounting standards are implemented for the first time in 2026.

□Applicable Not applicable

Others

None

6. Taxes

Main tax types and tax rates

Tax Type Tax Calculation Basis The tax rate is based on the sales of goods and taxable goods calculated in accordance with tax laws.

Calculate output tax based on labor service income and deduct

Value-added tax 13%, 9%, 6%, 3%, 1%, tax-free, exempt from the input tax allowed to be deducted in the current period, the difference will be

VAT payable

Urban maintenance and construction tax Actual turnover tax paid 7%

Corporate income tax: taxable income 25%, 20%, 15%

Compensated transfer of state-owned land use rights and above-ground buildings

Land value-added tax 20%; 8% value-added amount generated by property rights of property and other attachments

If the tax is assessed on an ad valorem basis, it will be deducted once from the original value of the property.

Real estate tax is 1.2% of the residual value after 20%; 1.2% is levied on rent; 12%

, calculated at 12% of rental income

Education fee surcharge Actual turnover tax paid 3%

Local education surcharge Actual turnover tax paid 2%

If there are taxpayers with different corporate income tax rates, a description of the disclosure

Name of tax payer Income tax rate Ningxia Delixin Pharmaceutical Co., Ltd., Yinchuan Meihetai Pharmaceutical Chain Co., Ltd., Hunan Tianji Caotang Pharmaceutical Co., Ltd.

15% Company, Dajia Weikang Biopharmaceutical Co., Ltd.

Hunan Jiaxinkang Medical Technology Co., Ltd., Hunan Zhuoruikang Medical Technology Co., Ltd., Loudi Dajiaweikang Pharmacy Co., Ltd., Xinhua Dajiaweikang Wanliren Pharmacy Co., Ltd., Xinhua Dajiaweikang Shimao Hongchengtang Pharmacy Co., Ltd., Xinhua Dajiaweikang Tianhua Pharmacy Co., Ltd., Xinhua Dajiawei Kangtai An Pharmacy Co., Ltd., Xinhua Dajia Weikang Xinyang Tai'an Pharmacy Co., Ltd., Hainan Dajia Weikang Pharmacy Chain Co., Ltd., Dajia Tongjian Medical Management Co., Ltd., Furong District, Changsha City, Hunan, Hainan Dajia Weikang Pharmaceutical Co., Ltd., Hunan Jianpingyuan Pharmacy Chain Co., Ltd., Qingyang Delixin Pharmaceutical Co., Ltd. 20% Ren Company, Zhongwei Delixin Pharmaceutical Co., Ltd., Pengyang County Delixin Pharmaceutical Co., Ltd., Zhongning County Delixin Pharmaceutical Co., Ltd., Hunan Dajiawikang Internet Hospital Co., Ltd., Hunan Cili Dajiawikang Pharmacy Chain Co., Ltd., Anhui Dajiawikang Health Pharmacy Co., Ltd., a subsidiary of Yinchuan Meihetai Pharmaceutical Chain Co., Ltd., Hunan Dajiawikang Regenerative Medicine Research Institute Co., Ltd.

Other tax entities other than the above 25%

Full text of the 2026 semi-annual report of Hunan Dajia Weikang Pharmaceutical Industry Co., Ltd.

Tax incentives

(1) According to the "Announcement on Value-Added Tax Reduction and Reduction Policies for Small-Scale Taxpayers" (Ministry of Finance State Administration of Taxation Announcement No. 19, 2023), from January 1, 2023 to December 31, 2027, small-scale VAT taxpayers with monthly sales of less than 100,000 yuan (inclusive) are exempt from VAT; small-scale VAT taxpayers are subject to a 3% taxable sales rate, and a reduced tax rate of 1% VAT is levied; items that are subject to prepayment of VAT at a 3% prepayment rate are prepaid at a reduced rate of 1%; the company's subsidiaries include Ningxia Delixin Pharmaceutical Co., Ltd., Shanxi Simile Pharmaceutical Chain Co., Ltd., Hunan Dajia Weikang Pharmaceutical Industry Co., Ltd., Hunan Jianpingyuan Pharmacy Chain Co., Ltd., Hainan Dajia Weikang Hongchuntang Pharmacy Chain Co., Ltd., Dajia Tongjian Medical Management Co., Ltd., Furong District, Changsha City, Hunan, Beijing Zhengjitang Pharmaceutical Supermarket Chain Co., Ltd., Anhui Dajia Weikang Health Pharmacy Co., Ltd. are small-scale taxpayer stores that meet the above conditions, and Qingyang Delixin Pharmaceutical Co., Ltd., the subsidiary company of our company Subsidiaries of the company, Zhongwei Delixin Pharmaceutical Co., Ltd., Pengyang County Delixin Pharmaceutical Co., Ltd., Xinhua Dajia Weikang Shimao Hongchengtang Pharmacy Co., Ltd., Xinhua Dajia Weikang Tai'an Pharmacy Co., Ltd., Hunan Dajia Weikang Yaowangtang, and Yinchuan Meihetai Pharmaceutical Chain Co., Ltd. enjoy the above-mentioned VAT preferential policies.

(2) According to the "Announcement of the Ministry of Finance and the State Administration of Taxation on Relevant Tax Policies to Further Support the Development of Small and Micro Enterprises and Individual Industrial and Commercial Households" (Announcement No. 12 of the Ministry of Finance and the State Administration of Taxation of 2023), small and low-profit enterprises will be subject to a 25% reduction in taxable income calculation and a corporate income tax policy of 20%, which will continue to be implemented until December 31, 2027. The company's subsidiaries include Hunan Jianpingyuan Pharmacy Chain Co., Ltd., Hainan Dajia Weikang Pharmacy Chain Co., Ltd., Hunan Changsha Furong District Dajia Tongjian Medical Management Co., Ltd., Hunan Cili Dajia Weikang Pharmacy Chain Co., Ltd., and Hunan Dajia Weikang Regenerative Medicine Research Institute Co., Ltd. Division, Anhui Dajia Weikang Health Pharmacy Co., Ltd., Loudi Dajia Weikang Pharmacy Co., Ltd., Sun Company Hunan Jiaxinkang Medical Technology Co., Ltd., Hunan Zhuorikang Medical Technology Co., Ltd., Xinhua Dajia Weikang Wanliren Pharmacy Co., Ltd., Xinhua Dajia Weikang Shimao Hongchengtang Pharmaceutical Housing Co., Ltd., Xinhua Dajia Weikang Tianhua Pharmacy Co., Ltd., Xinhua Dajia Weikang Tai'an Pharmacy Co., Ltd., Xinhua Dajia Weikang Xinyang Tai'an Pharmacy Co., Ltd., Hainan Dajia Weikang Pharmaceutical Co., Ltd., Qingyang Delixin Pharmaceutical Co., Ltd., Zhongwei Delixin Pharmaceutical Co., Ltd. The subsidiaries of the company, Pengyang County Delixin Pharmaceutical Co., Ltd., Zhongning County Delixin Pharmaceutical Co., Ltd., Hunan Dajia Weikang Internet Hospital Co., Ltd., and Yinchuan Meihetai Pharmaceutical Chain Co., Ltd. are small and low-profit enterprises and will enjoy the above-mentioned corporate income tax preferential treatment in 2025.

(3) According to the "Announcement on the Continuation of the Corporate Income Tax Policy for the Development of the Western Region" (Ministry of Finance Announcement No. 23, 2020) of the Ministry of Finance, the State Administration of Taxation, and the National Development and Reform Commission, from January 1, 2021 to December 31, 2030, enterprises in encouraged industries located in the western region will be levied a corporate income tax at a reduced rate of 15%. Subsidiary Ningxia Delixin Pharmaceutical Co., Ltd. and subsidiary company Yinchuan Meihetai Pharmaceutical Chain Co., Ltd. enjoy preferential corporate income tax policies for the development of the western region, and a corporate income tax rate of 15% will apply in 2025.

(4) The company's subsidiary Hunan Tianji Caotang Pharmaceutical Co., Ltd. obtained a high-tech enterprise certificate numbered GR202443002767 on December 16, 2024, and the company's subsidiary Dajia Weikang Biopharmaceutical Co., Ltd. obtained a high-tech enterprise certificate numbered GR202443000406 on November 1, 2024. Both can enjoy the preferential high-tech enterprise income tax policy, which is valid for three years, and corporate income tax is calculated and paid at a rate of 15%. Hunan Tianji Caotang Pharmaceutical Co., Ltd. and Dajia Weikang Biopharmaceutical Co., Ltd. will apply a corporate income tax rate of 15% in 2025.

(5) According to the "Announcement on the Additional Deduction Policy for Value-Added Tax for Advanced Manufacturing Enterprises" (Ministry of Finance and State Administration of Taxation Announcement No. 43 of 2023), from January 1, 2023 to December 31, 2027, advanced manufacturing enterprises are allowed to offset the value-added tax payable by an additional 5% of the deductible input tax for the current period. Subsidiaries Hunan Tianji Caotang Pharmaceutical Co., Ltd. and Dajia Weikang Biopharmaceutical Co., Ltd. enjoy the above-mentioned additional VAT deduction policy.

Others

None

7. Notes on Consolidated Financial Statement Items

Monetary funds

Unit: Yuan

Item Ending balance Beginning balance

Full text of the 2026 semi-annual report of Hunan Dajia Weikang Pharmaceutical Industry Co., Ltd.

Cash on hand 2,177,573.15 909,722.25 Bank deposits 393,878,899.99 246,495,023.56 Other monetary funds 183,687,263.99 339,325,918.46 Total 579,743,737.13 586,730,664.27Other instructions

For details on the restricted monetary funds at the end of the period, please refer to Note 5 (1) 20 of this financial statement.

Trading financial assets

Unit: Yuan

Item Ending balance Beginning balance

Measured at fair value with changes included in current profit and loss

9,822,500.00 9,822,500.00 beneficial financial assets

Among them:

Performance compensation equity 9,822,500.00 9,822,500.00 of which:

Total 9,822,500.00 9,822,500.00Other instructions:

None

Derivative financial assets

None

Notes receivable

(1) Classified presentation of notes receivable

Unit: Yuan

Item Ending balance Beginning balance

Bank acceptance notes 44,134,849.65 55,412,238.18 Commercial acceptance notes 50,801,361.89 62,604,050.10 Total 94,936,211.54 118,016,288.28 (2) Classified disclosure according to bad debt accrual method

Unit: Yuan

Category Closing Balance Opening Balance

Full text of the 2026 semi-annual report of Hunan Dajia Weikang Pharmaceutical Industry Co., Ltd.

Book balance Provision for bad debts Book balance Provision for bad debts

Book value Book value provision ratio Provision ratio

Amount Ratio Amount Amount Ratio Amount

Example Example

Among them:

The provision for bad debts should be made on a group basis

95,839,628.35 100.00% 903,416.81 0.94% 94,936,211.54 119,233,610.63 100.00% 1,217,322.35 1.02% 118,016,288.28 Bill collection

Among them:

Bank acceptance bill 44,134,849.65 46.05% 44,134,849.65 55,412,238.18 46.47% 55,412,238.18 Commercial acceptance bill 51,704,778.70 53.95% 903,416.81 1.75% 50,801,361.89 63,821,372.45 53.53% 1,217,322.35 1.91% 62,604,050.10Total 95,839,628.35 100.00% 903,416.81 0.94% 94,936,211.54 119,233,610.63 100.00% 1,217,322.35 1.02% 118,016,288.28 Category name of bad debt provisions accrued by group:

Unit: Yuan ending balance

Name

Book balance Bad debt provision Provision ratio

Bank acceptance draft 44,134,849.65

Commercial acceptance bill 51,704,778.70 903,416.81 1.75% Total 95,839,628.35 903,416.81

Description of what this combination is based on:

If bad debt provisions for notes receivable are made according to the general expected credit loss model:

□Applicable Not applicable

(3) Bad debt provisions accrued, recovered or reversed in the current period

Bad debt provisions for the current period:

Unit: Yuan Amount of changes in the current period

Category Opening balance Ending balance Provision Recovery or transfer Write-off Others

Bad provision based on combination

Account provisions receivable 1,217,322.35 313,905.54 903,416.81 bills

Total 1,217,322.35 313,905.54 903,416.81 Among them, the amount of bad debt provision recovery or reversal in the current period is important:

□Applicable Not applicable

Full text of the 2026 semi-annual report of Hunan Dajia Weikang Pharmaceutical Industry Co., Ltd. (4) The company’s pledged notes receivable at the end of the period

None

(5) Notes receivable that have been endorsed or discounted by the company at the end of the period and have not yet matured on the balance sheet date

Unit: Yuan

Item Amount derecognized at the end of the period Amount not derecognized at the end of the period

Bank acceptance notes 50,332,637.93 Commercial acceptance notes 31,114,744.76 Total 81,447,382.69

(6) Notes receivable actually written off in the current period

None

Accounts receivable

(1) Disclosure based on aging

Unit: Yuan

Aging Book balance at the end of the period Book balance at the beginning of the period

Within 1 year (inclusive) 1,659,226,131.31 1,706,090,533.35 Within 6 months (inclusive, the same below) 1,221,549,679.45 1,326,574,622.35 6 months (exclusive)-1 year 437,676,451.86 379,515,911.00 1 to 2 years 195,890,737.94 202,455,568.73 2 to 3 years 69,589,591.75 70,943,454.53 More than 3 years 82,429,704.12 63,764,085.40 3 to 4 years 55,577,419.67 37,203,411.43 4 to 5 years 10,017,915.81 13,693,856.87

More than 5 years 16,834,368.64 12,866,817.10 Total 2,007,136,165.12 2,043,253,642.01

(2) Classified disclosure according to bad debt accrual method

Unit: Yuan Ending balance Beginning balance

1. Original book value:

Opening balance 735,122,027.59 145,168,407.90 44,777,787.16 12,066,840.16 28,094,504.50 16,448,313.98 981,677,881.29 2. Increase in the current period 22,648,524.42 3,782,947.61 2,932,842.25 371,592.23 499,476.99 30,235,383.50 (1) Purchase 78,463.37 3,782,947.61 2,932,842.25 371,592.23 499,476.99 7,665,322.45 (2) Transfer of construction in progress 22,570,061.05 22,570,061.05

(3) Increase in business mergers

Decrease amount in this period 149,345.10 974,991.30 41,367.54 49,358.97 1,215,062.91

(1) Disposal or scrapping 47,575.19 974,991.30 41,367.54 49,358.97 1,113,293.00 (2) Decrease in investment 101,769.91 101,769.91 4. Closing balance 757,770,552.01 148,802,010.41 46,735,638.11 12,066,840.16 28,424,729.19 16,898,432.00 1,010,698,201.88

2. Accumulated depreciation

Opening balance 126,824,337.20 67,711,309.09 35,925,527.81 11,200,547.08 19,185,030.22 11,021,587.66 271,868,339.06 2. Increase in the current period 10,584,140.44 5,315,117.92 3,979,133.97 584,242.84 1,101,169.25 746,986.30 22,310,790.72

(1) Provision 10,584,140.44 5,315,117.92 3,979,133.97 584,242.84 1,101,169.25 746,986.30 22,310,790.72

Decrease amount in this period 24,232.76 941,263.45 18,476.33 49,358.97 1,033,331.51

(1) Disposal or scrap 24,232.76 941,263.45 18,476.33 49,358.97 1,033,331.51

Closing balance 137,408,477.64 73,002,194.25 38,963,398.33 11,784,789.92 20,267,723.14 11,719,214.99 293,145,798.27

3. Impairment provision

Opening balance
Increase amount in this period

(1) Provision

Reduction amount in this period

(1) Disposal or scrapping

Ending balance

4. Book value

Book value at the end of the period 620,362,074.37 75,799,816.16 7,772,239.78 282,050.24 8,157,006.05 5,179,217.01 717,552,403.61 2. Book value at the beginning of the period 608,297,690.39 77,457,098.81 8,852,259.35 866,293.08 8,909,474.28 5,426,726.32 709,809,542.23

(2) Temporarily idle fixed assets

None

(3) Fixed assets leased through operating leases

Unit: Yuan

Item Closing book value

Full text of the 2026 semi-annual report of Hunan Dajia Weikang Pharmaceutical Industry Co., Ltd.

Houses and buildings 9,077,051.89

(4) Fixed assets whose property rights certificates have not been obtained

None

(5) Impairment testing of fixed assets

□Applicable Not applicable

(6) Fixed assets liquidation

None

Projects under construction

Unit: Yuan

Item Ending balance Beginning balance

Construction in progress 6,821,854.90 19,775,440.21 Total 6,821,854.90 19,775,440.21

(1) Projects under construction

Unit: Yuan Ending balance Beginning balance

Project

Book balance Impairment provision Book value Book balance Impairment provision Book value Biopharmaceutical factory

4,538,413.83 4,538,413.83 19,583,569.57 19,583,569.57Construction project

Dormitory building renovation worker

194,795.05 194,795.05 191,870.64 191,870.64 Cheng

Shanxi Simale Office

Office and warehouse decoration 2,088,646.02 2,088,646.02

repair project

Total 6,821,854.90 6,821,854.90 19,775,440.21 19,775,440.21

(2) Changes in important projects under construction during the current period

Unit: Yuan Accumulated interest capital transferred to the project during the current period, including: principal

Increase in this period Others in this period Interest in this period Capital item name Budget number Beginning balance Fixed assets Ending balance Investment accounted for in advance Project progress Accumulated funds Interest capital for the period

Amount Reduction amount Capitalization rate Source

Amount Calculation ratio Amount Localized amount

biopharmaceutical

68,000,00 19,583,56 14,186,37 26,198,28 3,033,245 4,538,413

Factory construction 79.07% 80% Others

0.00 9.57 7.79 7.74 .79 .83

Engineering

Full text of the 2026 semi-annual report of Hunan Dajia Weikang Pharmaceutical Industry Co., Ltd. Dormitory building renovation 13,000,00 191,870.6 194,795.0

2,924.41 94.31% 100% Other construction projects 0.00 4 5Shanxi Simai

Le Office 5,200,000 4,649,961 2,561,315 2,088,646

0.00 89.42% 90% Other and warehouse installation .00 .99 .97 .02Repair project

86,200,00 19,775,44 18,839,26 26,198,28 5,594,561 6,821,854Total

0.00 0.21 4.19 7.74 .76 .90 (3) Provision for impairment of projects under construction in the current period

None

(4) Impairment testing of projects under construction

□Applicable Not applicable

(5) Engineering materials

None

Productive biological assets

(1) Productive biological assets using cost measurement model

□Applicable Not applicable

(2) Impairment testing of productive biological assets using the cost measurement model □ Applicable  Not applicable

(3) Productive biological assets using fair value measurement model

□Applicable Not applicable

Oil and gas assets

□Applicable Not applicable

Right-of-use assets

(1) Right-of-use assets

Unit: Yuan Item Rent and Building Total

1. Original book value

Opening balance 429,125,171.64 429,125,171.64
Increased amount in this period 37,933,519.44 37,933,519.44

Full text of the 2026 semi-annual report of Hunan Dajia Weikang Pharmaceutical Industry Co., Ltd.

Lease 36,528,631.98 36,528,631.98 2) Increase due to business combination 1,404,887.46 1,404,887.46 3. Decrease in the current period 23,844,186.50 23,844,186.50 1) Expiration of contract 23,844,186.50 23,844,186.50 4. Closing balance 443,214,504.58 443,214,504.58

2. Accumulated depreciation

Balance at the beginning of the period 196,771,018.30 196,771,018.30 2. Increase in the current period 45,133,292.27 45,133,292.27

(1) Provision 44,405,801.39 44,405,801.39 2) Increase in business combination 727,490.88 727,490.88 3. Decrease amount in this period 19,832,915.24 19,832,915.24

(1) Disposal 5,327,890.40 5,327,890.40 2) Contract expiration 14,505,024.84 14,505,024.84 4. Closing balance 222,071,395.33 222,071,395.33

3. Impairment provision

Opening balance
Increase amount in this period

(1) Provision

Reduction amount in this period

(1) Disposal

Ending balance

4. Book value

Book value at the end of the period 221,143,109.25 221,143,109.25 2. Book value at the beginning of the period 232,354,153.34 232,354,153.34

(2) Impairment testing of right-of-use assets

□Applicable Not applicable

Other instructions: none

Full text of the 2026 semi-annual report of Hunan Dajia Weikang Pharmaceutical Industry Co., Ltd.

Intangible assets

(1) Intangible assets

Unit: Yuan

Project Land use rights Patent rights Non-patented technology Software Total

1. Original book value

Opening balance 109,525,834.18 43,042,703.40 11,496,390.63 164,064,928.21 2. Increase in this period

140,396.04 140,396.04Amount

(1) Purchase

140,396.04 140,396.04

(2) within

Ministry of R&D

(3) Enterprise

Increase in business mergers

Reduction in this period

Amount

(1) place

set

Closing balance 109,525,834.18 43,042,703.40 11,636,786.67 164,205,324.25

2. Accumulated amortization

Opening balance 15,757,383.76 13,574,093.63 6,773,473.76 36,104,951.15 2. Increase in this period

1,435,904.71 1,017,143.46 726,935.72 3,179,983.89 Amount

(1) Count

1,435,904.71 1,017,143.46 726,935.72 3,179,983.89

Reduction in this period

Amount

(1) place

set

Closing balance 17,193,288.47 14,591,237.09 7,500,409.48 39,284,935.04

3. Impairment provision

Full text of the 2026 semi-annual report of Hunan Dajia Weikang Pharmaceutical Industry Co., Ltd.

Opening balance 15,473,922.26 15,473,922.26 2. Increase in this period

Amount

(1) Count

mention

Reduction in this period

Amount

(1) place

set

Closing balance 15,473,922.26 15,473,922.26

4. Book value

Closing accounts

92,332,545.71 12,977,544.05 4,136,377.19 109,446,466.95 value

Opening accounts

93,768,450.42 13,994,687.51 4,722,916.87 112,486,054.80 Value

The proportion of intangible assets formed through the company's internal research and development at the end of the period to the balance of intangible assets is 0.00%

(2) Data resources recognized as intangible assets

None

(3) Land use rights for which property rights certificates have not been obtained

None

(4) Impairment testing of intangible assets

□Applicable Not applicable

Goodwill

(1) Original book value of goodwill

Unit: Yuan

Increase in this period. Decrease in this period. The name or formation of the invested unit.

Opening balance Closing balance Goodwill matters

Disposal resulting from business combination

Ningxia Delixin Pharmaceutical Co., Ltd.

133,507,508.40 133,507,508.40 Ren Company

Hunan Jianpingyuan Pharmacy Chain 16,784,000.00 16,784,000.00

Hunan Dajia Weikang Pharmaceutical Industry Co., Ltd. 2026 Semi-annual Report Full Text Co., Ltd.

Zhuzhou Hanfang Traditional Chinese Medicine 17,550,000.00 17,550,000.00 Xinhua Dajia Weikang Wanli Renyao

3,534,000.00 3,534,000.00 Housing Co., Ltd.

Xinhua Dajia Weikang Tianhua Pharmacy

3,034,500.00 3,034,500.00 Co., Ltd.

Yinchuan Meihetai Pharmaceutical Chain Co., Ltd.

243,746,867.32 243,746,867.32 Co., Ltd.

Hainan Dajia Weikang Hongchuntang Medicine

52,199,551.71 52,199,551.71 Room Chain Co., Ltd.

Xinhua Dajia Weikang Shimao Hongcheng

Tang Pharmacy Co., Ltd. and other 12 entities 7,788,000.00 7,788,000.00

Hunan Tianji Caotang Pharmaceutical Co., Ltd.

239,786,284.00 239,786,284.00 Co., Ltd.

Xinhua Dajia Weikang Tai'an Pharmacy

8,505,000.00 8,505,000.00 Co., Ltd.

Beijing Zhengjitang Pharmaceutical Supermarket

27,136,157.71 27,136,157.71 Municipal limited liability company

Shanxi Simile Pharmaceutical Chain Co., Ltd.

299,920,940.66 299,920,940.66 Co., Ltd.

Shanxi Xinsen United 14,776,172.25 14,776,172.25 Hunan Dajiawei Kangrenkangtai University

61,637,480.89 61,637,480.89 Pharmacy Chain Co., Ltd.

Hunan Yaowangtang 17,615,377.26 17,615,377.26 Hunan Cili Dajia Weikang Medicine

17,727,379.14 17,727,379.14 Room Chain Co., Ltd.

Anhui Dajia Weikang Health Medicine

115,938,126.91 115,938,126.91 Housing Co., Ltd.

Hunan Yikang Pharmacy Retail Store

28,200,000.00 28,200,000.00 Lock Co., Ltd.

Total 1,281,187,346.25 28,200,000.00 1,309,387,346.25

(2) Goodwill impairment provision

Unit: Yuan Increase in this period Decrease in this period

Name of the invested unit or events that formed goodwill. Beginning balance. Closing balance.

Provision Disposal

Ningxia Delixin Pharmaceutical Co., Ltd. 17,427,399.82 17,427,399.82

Full text of the 2026 semi-annual report of Hunan Dajia Weikang Pharmaceutical Industry Co., Ltd.

Hunan Jianpingyuan Pharmacy Chain Co., Ltd. 1,827,177.22 1,827,177.22 Zhuzhou Chinese Medicine

Xinhua Dajia Weikang Wanliren Pharmacy Co., Ltd. 3,534,000.00 3,534,000.00 Xinhua Dajia Weikang Tianhua Pharmacy Co., Ltd. 3,034,500.00 3,034,500.00 Yinchuan Meihetai Pharmaceutical Chain Co., Ltd. 19,728,330.74 19,728,330.74 Hainan Dajia Weikang Hongchuntang Pharmacy Chain Co., Ltd. 7,869,080.11 7,869,080.11 Xinhua Dajia Weikang Shimao Hongchentang Pharmacy Co., Ltd. and other 12 entities 7,788,000.00 7,788,000.00 Hunan Tianji Caotang Pharmaceutical Co., Ltd. 67,269,990.41 67,269,990.41 Xinhua Dajia Weikang Tai'an Pharmacy Co., Ltd. 842,577.24 842,577.24 Beijing Zhengjitang Pharmaceutical Supermarket Chain Co., Ltd. 13,218,563.45 13,218,563.45 Hunan Dajia Weikang Tai'an Pharmacy Chain Co., Ltd. 35,277,488.81 35,277,488.81 Hunan Cili Dajia Weikang Pharmacy Chain Co., Ltd. 14,808,627.21 14,808,627.21 Hunan Dajia Weikang Yaowangtang

Hunan Yikang Pharmacy Retail Chain Co., Ltd.

Total 192,625,735.01 192,625,735.01

(3) Relevant information about the asset group or asset group combination where the goodwill is located

Whether the name is the same as that of previous years. The composition and basis of the asset group or portfolio to which it belongs. The operating segment and basis to which it belongs.

Consistent with Dajia Weikang’s pharmaceutical business in Hunan Province, which can benefit from the synergies of the business combination

Hunan District Retail Business No

Asset Group Asset Group Portfolio

Dajia Weikang Pharmaceutical Business in Ningxia Region Can benefit from the synergies of business mergers

Ningxia District Retail Business Yes

Asset Group Asset Group Portfolio

Dajia Weikang Pharmaceutical Business in Hainan Region Can benefit from the synergies of business mergers

Hainan District Retail Business Yes

Asset Group Asset Group Portfolio

Dajia Weikang Pharmaceutical Business in Beijing Can benefit from the synergies of business mergers

Beijing District Retail Business Yes

Asset Group Asset Group Portfolio

Dajia Weikang Pharmaceutical Business in Shanxi Province Can benefit from the synergies of corporate mergers

Shanxi District Retail Business Yes

Asset Group Asset Group Portfolio

Hunan Tianji Caotang Pharmaceutical Co., Ltd. can benefit from the synergies of the business combination

Hunan District Traditional Chinese Medicine Production Yes

Company Asset Group Portfolio

Changes in asset group or asset group combination

None

Full text of the 2026 semi-annual report of Hunan Dajia Weikang Pharmaceutical Industry Co., Ltd.

(4) Specific determination method of recoverable amount

The recoverable amount is determined as the net amount after fair value minus disposal costs.

□Applicable Not applicable

The recoverable amount is determined based on the present value of expected future cash flows.

Applicable □Not applicable

Unit: Yuan

Impairment Forecast period Forecast period For stable period Key parameters for stable period Book value Recoverable amount

Amount of years Key parameters Key parameters The amount is determined based on Dajia Weikang Hunan Province

District pharmaceutical commercial assets 145,920,000.00 145,920,000.00 5 years 3%-8% 2% 12.44% group

Dajia Weikang Ningxia Land

District pharmaceutical commercial assets 462,300,000.00 462,300,000.00 5 years 2%-6% 2% 11.38% group

Dajia Weikang Hainan

District pharmaceutical commercial assets 45,290,000.00 45,290,000.00 5 years 3%-5% 2% 12.56% group

Dajia Weikang Beijing

District pharmaceutical commercial assets 25,440,000.00 25,440,000.00 5 years 0%-6% 2% 12.10% group

Dajia Weikang Shanxi Land

District pharmaceutical commercial assets 621,695,989.17 729,060,000.00 5 years 3%-10% 2% 12.61% group

Dajia Weikang Anhui

District pharmaceutical commercial assets 184,086,502.75 189,780,000.00 5 years 5%-10% 2% 12.37% group

Hunan Tianji Thatched Cottage System

223,400,000.00 223,400,000.00 5 years 3%-9% 0% 10.48% Pharmaceutical Co., Ltd.

Total 1,708,132,491.92 1,821,190,000.00

Reasons for the obvious inconsistency between the aforementioned information and the information used in impairment testing in previous years or external information

None

Reasons for the discrepancy between the information used in the company's impairment testing in previous years and the actual situation of that year.

None

(5) Completion of performance commitments and corresponding impairment of goodwill

There is a performance commitment when goodwill is formed and the reporting period or the previous period of the reporting period is within the performance commitment period

□Applicable Not applicable

Other instructions: none

Full text of the 2026 semi-annual report of Hunan Dajia Weikang Pharmaceutical Industry Co., Ltd.

Long-term deferred expenses

Unit: Yuan

Item Beginning balance Increase in the current period Amortization amount in the current period Other decreases Ending balance Decoration fee 44,563,414.12 6,384,308.70 9,008,560.06 41,939,162.76 Service fee 6,343,713.11 2,749,416.45 1,163,642.85 7,929,486.71Internet access fee 57,590.53 266,831.66 324,422.19Rent 77,053.60 1,170,468.27 2,400.00 1,245,121.87Total 51,041,771.36 10,571,025.08 10,174,602.91 51,438,193.53Other instructions: None

Deferred income tax assets/deferred income tax liabilities

(1) Deferred income tax assets without offset

Unit: Yuan Ending balance Beginning balance

Project

Deductible temporary differences Deferred income tax assets Deductible temporary differences Deferred income tax assets Asset impairment provision 4,179,992.46 1,045,098.34 116,810,588.09 27,554,100.40 Unrealized profits from internal transactions 4,287,757.44 853,757.42 Deductible losses 117,957,301.93 31,349,065.22 126,843,422.13 27,169,917.40 Difference in tax on lease liabilities 179.44 202,694,495.73 39,549,206.01 Contract liabilities (membership balance

29,980,470.85 8,403,621.02 31,291,639.34 7,672,002.72 points)

Deferred income 15,650,000.00 2,347,500.00 Credit impairment loss 106,758,956.61 26,712,419.93

Total 258,876,721.85 67,510,383.95 497,577,902.73 105,146,483.95

(2) Deferred income tax liabilities without offset

Unit: Yuan Ending balance Beginning balance

Project

Taxable temporary differences Deferred income tax liabilities Taxable temporary differences Deferred income tax liabilities Other equity instruments investment companies

4,421,043.39 663,156.51 Changes in fair value

Difference in tax on right-of-use assets 36,121,498.44 9,030,374.61 232,354,153.34 44,945,650.20

Full text of the 2026 semi-annual report of Hunan Dajia Weikang Pharmaceutical Industry Co., Ltd.

Fairness of trading financial assets

3,273,026.04 818,256.51 16,207,000.00 3,431,350.00 Value changes

Total 39,394,524.48 9,848,631.12 252,982,196.73 49,040,156.71

(3) Deferred income tax assets or liabilities presented on a net basis after offsetting

Unit: Yuan Deferred income tax assets and liabilities Deferred income tax assets after offset Deferred income tax assets and liabilities Deferred income tax items after offset

Offset amount at the end of the debt period Ending balance of assets or liabilities Offsetting amount at the beginning of the debt period Deferred income tax assets 908,503.31 67,510,383.95 39,191,525.59 65,954,958.36 Deferred income tax liabilities 908,503.31 9,848,631.12 39,191,525.59 9,848,631.12

(4) Details of deferred income tax assets not recognized

Unit: Yuan

Item Ending balance Beginning balance

Deductible temporary differences 258,876,721.85 224,590,341.15 Deductible losses 111,135,959.34 117,819,093.94 Total 370,012,681.19 342,409,435.09

(5) Deductible losses that have not been recognized as deferred income tax assets will expire in the following years

Unit: Yuan

Year Ending amount Beginning amount Remarks

2026 6,683,134.60

2027 7,972,099.33 7,972,099.33

2028 13,565,661.48 13,565,661.48

2029 8,521,266.28 8,521,266.28

2030 81,076,932.25

Total 111,135,959.34 36,742,161.69

Other instructions: none

Other non-current assets

Unit: Yuan Ending balance Beginning balance

Project

Book balance Impairment provision Book value Book balance Impairment provision Book value

Full text of the 2026 semi-annual report of Hunan Dajia Weikang Pharmaceutical Industry Co., Ltd.

Prepayment for engineering equipment 131,447.79 131,447.79 3,561,515.77 3,561,515.77

Prepaid equity acquisition deposit 15,040,000.00 15,040,000.00

Prepaid equipment payment 51,999.96 51,999.96

Total 183,447.75 183,447.75 18,601,515.77 18,601,515.77

Other instructions: none

Assets whose ownership or use rights are restricted

Unit: Yuan

End of period Beginning of period

Item Restricted Restricted Restricted

Book Balance Book Value Book Balance Book Value Restricted Situation Type Situation Type

bill

Guarantee bill deposit,

Letter of Credit Guaranteed Currency

179,931,888.19 179,931,888.19 Deposit, 332,141,586.62 332,141,586.62 Deposit, funds

POS

Machine Guarantee Deposit

Already memorized

book

or paste

Already carried Already carried

Receivable is now endorsed or discounted

57,043,714.59 57,043,714.59 books or 99,735,395.66 99,185,648.61 books or

Notes Not yet Derecognized discount Discount

end

stop accurate

recognize

Mortgage

Fixed

240,150,015.00 148,517,387.36 Mortgage loan 240,150,015.00 167,490,862.82 Mortgage Mortgage loan assets

money

Mortgage

invisible

28,718,906.00 21,264,134.94 Mortgage loan 28,718,906.00 22,747,945.29 Mortgage Mortgage loan assets

money

Debt vouchers receivable posted

13,038,613.72 11,841,127.20 Discounted and unfinished accounts in cash

Total until confirmation 505,844,523.78 406,757,125.08 713,784,517.00 633,407,170.54

Other instructions: none

Short-term borrowing

(1) Classification of short-term loans

Unit: Yuan

Item Ending balance Beginning balance

Guaranteed loans 1,820,149,965.68 1,636,438,811.03

Credit borrowings 27,002,550.00 34,280,000.00

Full text of the 2026 semi-annual report of Hunan Dajia Weikang Pharmaceutical Industry Co., Ltd.

Mortgage and guaranteed loans 400,000,000.00 350,000,000.00 Notes receivable that have not been derecognized 47,043,714.59 79,325,169.59 Internal bill discount 320,000,000.00 Advance borrowing interest 1,384,105.92 1,206,242.28 Total 2,295,580,336.19 2,421,250,222.90 Description of short-term loan classification: None

(2) Overdue short-term borrowings that have not been repaid

None

Trading financial liabilities

None

Derivative financial liabilities

None

Notes payable

Unit: Yuan

Category Ending balance Beginning balance

Commercial acceptance bill 41,500,000.00

Bank acceptance bill 228,470,187.30 173,883,659.28 Total 269,970,187.30 173,883,659.28 The total amount of bills payable that has expired but not been paid at the end of this period is 0.00 yuan, and the reason for unpaid due is none.

Accounts payable

(1) Presentation of accounts payable

Unit: Yuan

Item Ending balance Beginning balance

Payment for goods 540,790,133.39 609,719,577.06 Payment for engineering and equipment 29,368,994.65 29,047,986.27 Total 570,159,128.04 638,767,563.33

Full text of the 2026 semi-annual report of Hunan Dajia Weikang Pharmaceutical Industry Co., Ltd. (2) Important accounts payable that are aged more than 1 year or are overdue

None

Other payables

Unit: Yuan

Item Ending balance Beginning balance

Dividends payable 1,424,743.21 1,424,743.21 Other payables 150,679,997.29 103,434,370.71 Total 152,104,740.50 104,859,113.92

(1) Interest payable

None

(2) Dividends payable

Unit: Yuan

Item Ending balance Beginning balance

Dividends from original shareholders of acquired stores 1,424,743.21 1,424,743.21 Total 1,424,743.21 1,424,743.21 Other explanations, including important dividends payable that have not been paid for more than one year, and the reasons for non-payment should be disclosed:

None

(3) Other payables

List other payables according to the nature of the payment

Unit: Yuan

Item Ending balance Beginning balance

Deposit and security deposit 19,624,818.80 17,295,534.47 Current accounts 80,741,309.56 19,005,849.44 Equity acquisition funds 48,882,261.98 63,769,087.98 Others 1,431,606.95 3,363,898.82 Total 150,679,997.29 103,434,370.71

Full text of the 2026 semi-annual report of Hunan Dajia Weikang Pharmaceutical Industry Co., Ltd. 2) Important other payables aged more than 1 year or overdue

None

Advance payments

(1) Presentation of advance receipts

Unit: Yuan

Item Ending balance Beginning balance

Rent 1,766,155.85 696,734.99 Total 1,766,155.85 696,734.99

(2) Important advances from customers aged more than 1 year or overdue

None

Contract liabilities

Unit: Yuan

Item Ending balance Beginning balance

Payment for goods 52,854,227.99 51,142,015.65 Total 52,854,227.99 51,142,015.65 Important contract liabilities aged more than 1 year

None

Amount and reasons for significant changes in book value during the reporting period

None

Employee compensation payable

(1) Presentation of employee benefits payable

Unit: Yuan

Item Opening balance Increase in the current period Decrease in the current period Ending balance

Short-term salary 41,822,551.67 219,895,144.99 227,275,193.53 34,442,503.13

2. Post-employment benefits-settings

884,855.04 8,581,057.82 9,346,196.70 119,716.16 Withdrawal plan

Total 42,707,406.71 228,476,202.81 236,621,390.23 34,562,219.29

Full text of the 2026 semi-annual report of Hunan Dajia Weikang Pharmaceutical Industry Co., Ltd. (2) Short-term compensation presentation

Unit: Yuan

Item Opening balance Increase in the current period Decrease in the current period Ending balance

Salary, bonus, allowance

39,788,434.55 195,854,469.68 203,032,729.52 32,610,174.71 and subsidies

Employee welfare fees 27,596.00 1,758,362.13 1,758,532.13 27,426.00
Social insurance premiums 472,676.59 19,128,644.80 19,486,065.95 115,255.44 including: medical insurance

447,493.70 14,060,783.21 14,395,593.52 112,683.39 fee

Work injury insurance

25,182.89 503,397.39 526,008.23 2,572.05 fee

maternity insurance

4,564,464.20 4,564,464.20

fee

Housing provident fund 1,694,437.00 1,690,936.00 3,501.00
Trade union funds and employee education

1,533,844.53 882,664.75 730,363.30 1,686,145.98 Education funds

Others 576,566.63 576,566.63

Total 41,822,551.67 219,895,144.99 227,275,193.53 34,442,503.13

(3) Display of defined contribution plan

Unit: Yuan

Item Opening balance Increase in the current period Decrease in the current period Ending balance

Basic pension insurance 858,969.68 8,291,746.56 9,033,359.36 117,356.88
Unemployment insurance premium 25,885.36 289,311.26 312,837.34 2,359.28Total 884,855.04 8,581,057.82 9,346,196.70 119,716.16Other instructions: None
Taxes payable

Unit: Yuan

Item Ending balance Beginning balance

Value-added tax 9,697,978.48 8,774,420.05 Corporate income tax 5,915,278.48 10,701,753.40 Urban maintenance and construction tax 1,287,450.58 1,380,583.89 Property tax 7,413,092.04 8,030,424.38

Full text of the 2026 semi-annual report of Hunan Dajia Weikang Pharmaceutical Industry Co., Ltd.

Education surcharge 999,606.49 942,716.12 Personal income tax withheld and paid 61,412.51 915,583.01 Stamp tax 506,936.12 757,759.41 Land use tax 91,992.25 122,622.81 Others 154,407.70 416,349.25Total 26,128,154.65 32,042,212.32Other instructions: None

Liabilities held for sale

None

Non-current liabilities due within one year

Unit: Yuan

Item Ending balance Beginning balance

Long-term borrowings due within one year 364,140,000.00 442,994,761.67 Lease liabilities due within one year 74,702,603.00 85,255,303.02 Total 438,842,603.00 528,250,064.69 Other notes: None

Other current liabilities

Unit: Yuan

Item Ending balance Beginning balance

Output tax to be transferred 2,639,184.65 2,508,591.09 Total 2,639,184.65 2,508,591.09 Increase or decrease in short-term bonds payable: None

Other instructions: none

Long-term borrowing

(1) Classification of long-term loans

Unit: Yuan

Item Ending balance Beginning balance

Guaranteed loans 356,380,000.00 291,468,248.77 Pledge and guaranteed loans 362,508,248.77 313,000,000.00

Full text of the 2026 semi-annual report of Hunan Dajia Weikang Pharmaceutical Industry Co., Ltd. Withdrawal of long-term loan interest 593,790.94 484,704.72 Total 719,482,039.71 604,952,953.49 Explanation of long-term loan classification: None

Other instructions, including interest rate range: None

Bonds payable

(1) Bonds payable

None

(2) Increases and decreases in bonds payable (excluding preference shares, perpetual bonds and other financial instruments classified as financial liabilities) None

(3) Description of convertible corporate bonds

None

(4) Description of other financial instruments classified as financial liabilities

None

Lease liabilities

Unit: Yuan

Item Closing balance Opening balance Unpaid lease payments 125,551,244.64 123,987,954.59 Less: Unrecognized financing costs -5,997,733.41 -6,548,761.88 Total 119,553,511.23 117,439,192.71 Other notes: None

Long-term payables

None

Long-term employee benefits payable

None

Estimated liabilities

None

Full text of the 2026 semi-annual report of Hunan Dajia Weikang Pharmaceutical Industry Co., Ltd.

Deferred income

Unit: Yuan Item Beginning balance Increase in the current period Decrease in the current period Closing balance Reasons for receipt of asset-related government subsidies 15,650,000.00 1,200,000.00 16,850,000.00

government subsidies

Total 15,650,000.00 1,200,000.00 16,850,000.00

Other instructions: none

Other non-current liabilities

None

Share capital

Unit: Yuan Increase or decrease in this change (+, -)

Balance at the beginning of the period Balance at the end of the period Issuance of new shares Bonus shares Conversion of public reserve funds Others Subtotal

Total number of shares 205,403,200.00 205,403,200.00 Other instructions: None

Other equity instruments

(1) Basic information on preferred shares, perpetual bonds and other financial instruments outstanding at the end of the period

None

(2) Statement of changes in outstanding preferred stocks, perpetual bonds and other financial instruments at the end of the period

Unit: Beginning of the current period Increase in the current period Decrease in the current period End of the period

financial instruments outstanding

Quantity Book value Quantity Book value Quantity Book value Quantity Book value Minority shareholder equity compensation -6,384,500.00 -6,384,500.00Total -6,384,500.00 -6,384,500.00 Changes in other equity instruments during the current period, explanation of reasons for changes, and the basis for relevant accounting treatments: None

Other instructions: none

Capital reserve

Unit: Yuan Item Beginning balance Increase in the current period Decrease in the current period Ending balance

Full text of the 2026 semi-annual report of Hunan Dajia Weikang Pharmaceutical Industry Co., Ltd.

capital premium (equity premium

980,940,204.77 980,940,204.77 price)

Total 980,940,204.77 980,940,204.77 Other explanations, including changes in increases and decreases in the current period and explanation of reasons for changes: None

Treasury stocks

None

Other comprehensive income

Unit: Yuan Amount incurred in the current period

Less: Included in the previous period after tax

Less for the current period: Included in the previous period Less: All return after tax

Item Opening balance Other comprehensive income Attribution Closing balance other comprehensive income before tax Other comprehensive income Attributable to less

Transferred and retained in the current period to the mother

The amount incurred is transferred to profit and loss for the current period.

earnings company

1. Cannot be re-divided

Other comprehensive income classified into profit and loss 3,757,505.79 3,757,505.79

Other rights and interests

Fair investment in instruments 3,757,505.79 3,757,505.79 Value change

other comprehensive income

3,757,505.79 3,757,505.79 Total

Other explanations, including adjustments to the initial recognition amount of the effective portion of cash flow hedging gains and losses converted into hedged items: None

Special reserves

Unit: Yuan

Item Beginning balance Increase in the current period Decrease in the current period Other explanations of the closing balance, including changes in increases and decreases in the current period and explanation of reasons for changes:

Surplus reserve

Unit: Yuan

Item Opening balance Increase in the current period Decrease in the current period Ending balance Statutory surplus reserve 7,567,911.15 7,567,911.15 Total 7,567,911.15 7,567,911.15 Description of surplus reserve, including changes in increases and decreases in the current period and explanation of reasons for changes: None

Undistributed profits

Unit: Yuan

Full text of the 2026 semi-annual report of Hunan Dajia Weikang Pharmaceutical Industry Co., Ltd.

Projects in this issue Previous issue

Undistributed profit at the end of the previous period before adjustment 296,579,805.67 561,184,256.91 Undistributed profit at the beginning of the period after adjustment 296,579,805.67 561,184,256.91 Add: Net profit attributable to owners of the parent company for the current period

7,256,514.92 -242,458,514.29 profit

Less: Withdrawal of statutory surplus reserve 854,069.72

Dividends payable on ordinary shares 21,291,867.33 Undistributed profits at the end of the period 303,836,320.59 296,579,805.67 Details of adjustments to undistributed profits at the beginning of the period:

1). Due to the retrospective adjustment of the Accounting Standards for Business Enterprises and its related new regulations, the undistributed profit at the beginning of the period was affected by RMB 0.00.

Due to changes in accounting policies, the undistributed profit at the beginning of the period was affected by RMB 0.00.
Due to the correction of major accounting errors, the undistributed profit at the beginning of the period was affected by RMB 0.00.

4). Changes in the scope of consolidation due to the same control affect the undistributed profit at the beginning of the period by RMB 0.00.

The total impact of other adjustments on the undistributed profit at the beginning of the period is RMB 0.00.

Detailed instructions on using capital reserves to cover losses:

None

Operating income and operating costs

Unit: Yuan Amount of current period Amount of previous period

Project

revenue cost revenue cost

Main business 2,684,317,092.47 2,204,456,597.43 2,689,547,270.10 2,258,031,213.02 Other businesses 17,330,489.48 2,718,488.13 18,790,164.68 2,200,891.70 Total 2,701,647,581.95 2,207,175,085.56 2,708,337,434.78 2,260,232,104.72 Decomposition information of operating income and operating costs:

Unit: Yuan Division 1 Division 2 Number of current period Total

camp camp camp camp

Contract classification

industry industry industry industry

Operating Income Operating Cost Operating Income Operating Cost Revenue Harvest Harvest

Enter the book Enter the book

Business type 2,701,647,581.95 2,207,175,085.56 2,701,647,581.95 2,207,175,085.56 Of which:

Pharmaceutical distribution 1,043,571,476.15 932,771,715.91 1,043,571,476.15 932,771,715.91 Pharmacy retail 1,572,885,227.60 1,230,052,137.62 1,572,885,227.60 1,230,052,137.62

Full text of the 2026 semi-annual report of Hunan Dajia Weikang Pharmaceutical Industry Co., Ltd.

Hospital income 3,380,703.73 3,168,309.64 3,380,703.73 3,168,309.64Drug production

64,262,150.28 35,832,733.82 64,262,150.28 35,832,733.82Income

Other income 17,548,024.19 5,350,188.57 17,548,024.19 5,350,188.57 According to business location

Distinguish classification

Among them:

market or customer

Household type

Among them:

Contract type

Among them:

Transfer by product

Time to let 2,701,647,581.95 2,701,647,581.95 classification

Among them:

at a certain time

Click to confirm receipt 2,699,082,026.66 2,699,082,026.66

at a certain time

Confirmed within the period 2,565,555.29 2,565,555.29 Revenue

According to contract period

Limited classification

Among them:

According to sales channel

Road classification

Among them:

Total 2,701,647,581.95 2,207,175,085.56 2,701,647,581.95 2,207,175,085.56 Information related to performance obligations: None Other instructions: None

The full text of the 2026 semi-annual report of Hunan Dajia Weikang Pharmaceutical Industry Co., Ltd. and information related to the transaction price allocated to the remaining performance obligations:

At the end of the reporting period, the amount of revenue corresponding to the performance obligations that have been signed but have not been performed or have not been completed is RMB 0.00, of which RMB 0.00 is expected to be recognized in year 0, RMB 0.00 is expected to be recognized in year 0, and RMB 0.00 is expected to be recognized in year 0.

Information related to variable consideration in the contract: None

Major contract changes or major transaction price adjustments

None

Other instructions: none

Taxes and surcharges

Unit: Yuan

Item Amount for the current period Amount for the previous period

Urban maintenance and construction tax 2,900,188.95 2,829,165.61 Education surcharge 2,151,311.71 2,101,463.45 Property tax 1,945,695.00 2,355,766.14 Land use tax 688,929.92 752,444.76 Vehicle and vessel use tax 19,987.64 372.12 Stamp duty 1,536,457.12 1,436,338.48 Others 543,187.01 378,278.09 Total 9,785,757.35 9,853,828.65 Other notes: None

Management expenses

Unit: Yuan

Item Amount for the current period Amount for the previous period

Salaries and benefits 47,119,693.70 42,209,531.59 Office expenses 4,644,792.57 4,505,069.93 Business entertainment expenses 2,118,792.36 1,513,295.99 Travel expenses 2,701,849.26 1,804,818.20 Depreciation and amortization 17,741,182.23 18,001,210.08 Vehicle usage fee 553,374.00 204,901.66 Decoration fee and maintenance fee 1,425,425.65 1,832,283.54 Others 5,460,198.01 4,107,551.06 Inventory loss report 1,118,951.18 1,147,858.07 Consulting service fees 3,399,581.63 3,718,932.88

Full text of the 2026 semi-annual report of Hunan Dajia Weikang Pharmaceutical Industry Co., Ltd.

Total 86,283,840.59 79,045,453.00Other instructions: None

Sales expenses

Unit: Yuan

Item Amount for the current period Amount for the previous period

Salaries and benefits 173,268,059.18 152,477,152.26 Office and water and electricity expenses 11,082,505.93 11,441,302.57 Travel expenses 3,277,892.52 3,214,312.25 Promotional service fees 34,918,911.85 29,060,003.46 Business entertainment fee 2,677,879.14 3,137,394.50 Lease fee 4,503,232.30 3,997,556.15 Consulting service fee 13,169,980.48 18,008,616.71 Depreciation and amortization fee 61,125,709.43 61,636,103.69 Others 6,724,376.45 5,364,437.54 Total 310,748,547.28 288,336,879.13 Other notes: None

Research and development expenses

Unit: Yuan

Item Amount for the current period Amount for the previous period

Salaries 1,005,419.63 804,887.79 Direct materials 304,498.68 1,774,953.25 Depreciation and amortization expenses 187,512.63 427,661.74 Entrusted research and development expenses 70,330.18 4,848,867.92 Consulting service fees 0.00 59,405.94 Others 3,695,590.30 95,885.73 Total 5,263,351.42 8,011,662.37 Other notes: None

Financial expenses

Unit: Yuan

Item Amount for the current period Amount for the previous period

Full text of the 2026 semi-annual report of Hunan Dajia Weikang Pharmaceutical Industry Co., Ltd.

Interest expense 47,185,238.46 48,839,748.72 Less: Interest income 1,763,928.94 3,119,041.13 Handling fee 5,388,239.44 3,711,775.68 Unrecognized financing expenses for lease 3,544,829.99 4,057,320.10Total 54,354,378.95 53,489,803.37Other instructions: None

Other income

Unit: Yuan

Sources of other income Amount incurred in the current period Amount incurred in the previous period

Government subsidies related to income 2,026,453.86 4,070,467.05 Refund of personal income tax withholding fees 275,872.64 1,365,672.20 Value-added tax exemption 12,748,966.98 12,744,353.68 Total 15,051,293.48 18,180,492.93

Net exposure hedging income

None

Gains from changes in fair value

None

Investment income

Unit: Yuan

Item Amount for the current period Amount for the previous period

Others 177,320.31 160,278.00Total 177,320.31 160,278.00Other instructions: None

Credit impairment losses

Unit: Yuan

Item Amount for the current period Amount for the previous period

Bad debt losses on notes receivable 313,905.54 607,085.89 Bad debt losses on accounts receivable -10,004,739.14 -9,318,050.61

Full text of the 2026 semi-annual report of Hunan Dajia Weikang Pharmaceutical Industry Co., Ltd.

Bad debt losses on other receivables -2,195,582.58 -4,823,640.25Total -11,886,416.18 -13,534,604.97Other notes: None

Asset impairment losses

Unit: Yuan

Item Amount for the current period Amount for the previous period

1. Inventory depreciation losses and contract performance cost deductions

347,376.90 -77,783.92 value loss

Total 347,376.90 -77,783.92Other instructions: None

Income from asset disposal

Unit: Yuan

Source of asset disposal income Amount incurred in the current period Amount incurred in the previous period

Income from disposal of fixed assets -1,630.81 3,737.61 Income from disposal of right-of-use assets -229,338.79 1,598,310.38

Non-operating income

Unit: Yuan Financial items included in non-recurring gains and losses for the current period Amount incurred in the current period Amount incurred in the previous period

Government subsidies 1,500.00 1,500.00Others 69,720.66 542,585.13 69,720.66Profits from fixed asset disposal 350.00 350.00Total 71,570.66 542,585.13 71,570.66Other notes: None

Non-operating expenses

Unit: Yuan Financial items included in non-recurring gains and losses for the current period Amount incurred in the current period Amount incurred in the previous period

Non-monetary asset exchange losses 819,613.97

External donations 505,440.00 1,048,454.00 505,440.00

Full text of the 2026 semi-annual report of Hunan Dajia Weikang Pharmaceutical Industry Co., Ltd.

Penalty and confiscation expenses 1,673,822.96 412,410.10 1,673,822.96 Others 155,386.92 69,512.09 155,386.92 Total 2,334,649.88 2,349,990.16 2,334,649.88Other instructions: None

Income tax expenses

(1) Income tax expense schedule

Unit: Yuan

Item Amount for the current period Amount for the previous period

Current income tax expense 6,171,686.90 10,972,692.15 Deferred income tax expense 612,406.90 -11,846,337.71 Total 6,784,093.80 -873,645.56

(2) Adjustment process of accounting profits and income tax expenses

Unit: Yuan

Item Amount incurred in this period

Total profit 29,232,146.49 Income tax expense calculated according to statutory/applicable tax rates 7,308,036.62 Impact of different tax rates applicable to subsidiaries 19,988,391.20 Impact of adjusting income tax in previous periods 471,706.68 Impact of non-deductible costs, expenses and losses 1,179,024.84 No deductible temporary differences or deductible deferred income tax assets have been recognized in the current period.

-The impact of loss of 6,499,106.50

Income tax expense 6,784,093.80 Other instructions: None

Other comprehensive income

For details, please refer to the explanation in Note Section 8-7-57

Cash flow statement items

(1) Cash related to operating activities

Other cash received related to operating activities

Unit: Yuan

Full text of the 2026 semi-annual report of Hunan Dajia Weikang Pharmaceutical Industry Co., Ltd.

Item Amount for the current period Amount for the previous period

Government subsidies 2,027,953.86 4,070,467.05Interest income 1,763,928.94 3,119,041.13Others 142,893,163.65 12,183,751.35Total 146,685,046.45 19,373,259.53 Description of other cash received related to operating activities: None

Other cash paid related to operating activities

Unit: Yuan

Item Amount for the current period Amount for the previous period

Cash management expenses, sales expenses and research and development expenses

105,530,528.81 90,873,764.00

Deposit and security deposit 130,864,557.12 108,014,073.30 Others 145,271,877.15 43,317,866.75 Total 381,666,963.08 242,205,704.05 Description of other cash paid related to operating activities: None

(2) Cash related to investing activities

Other cash received related to investing activities: None

Significant cash received related to investing activities: None

Description of other cash received related to investing activities: None

Other cash paid related to investing activities

Unit: Yuan

Item Amount for the current period Amount for the previous period

Others 0.00 8,566.25 Total 8,566.25 Important cash paid related to investing activities: None

Description of other cash paid related to investment activities: None

(3) Cash related to financing activities

Other cash received related to financing activities

Unit: Yuan

Item Amount for the current period Amount for the previous period

Discounted bills 212,364,908.97 175,577,855.56 Total 212,364,908.97 175,577,855.56 Description of other cash received related to financing activities: None

Hunan Dajia Weikang Pharmaceutical Industry Co., Ltd. 2026 Semi-annual Report Full Text Other cash paid related to financing activities

Unit: Yuan

Item Amount for the current period Amount for the previous period

Long-term lease fees 27,171,651.80 36,385,455.52 Repayment of due discount notes 240,946,202.80 303,770,775.00 Total 268,117,854.60 340,156,230.52 Description of other cash paid related to financing activities: None

Changes in various liabilities arising from financing activities

□Applicable Not applicable

(4) Explanation on presenting cash flow in net amount

None

(5) Major activities and financial impacts that do not involve current cash receipts and payments but affect the company's financial status or may affect the company's cash flow in the future

None

Supplementary information for cash flow statement

(1) Supplementary information for cash flow statement

Unit: Yuan

Supplementary information Amount for the current period Amount for the previous period

1． Adjust net profit to cash flow from operating activities

Quantity:

Net profit 22,448,052.69 14,764,374.10 plus: asset impairment provision 11,539,039.28 13,534,604.97 Depreciation of fixed assets, depreciation of oil and gas assets

26,149,423.86 16,935,277.40 Depreciation of consumption and productive biological assets

Depreciation of right-of-use assets 44,405,801.39 51,590,833.39 Amortization of intangible assets 3,179,983.89 1,827,425.53 Amortization of long-term prepaid expenses 10,174,602.91 7,859,147.95

Disposal of fixed assets, intangible assets and other

Loss of other long-term assets (income is listed with "-" number 230,969.60 -1,602,047.99)

Loss on scrapping of fixed assets (income based on

1,569.17 3,737.61 (Fill in “-”)

Loss from change in fair value (gain expressed as 0.00

The full text of the 2026 semi-annual report of Hunan Dajia Weikang Pharmaceutical Industry Co., Ltd. (please fill in the "-" number)

Financial expenses (revenues are filled in with "-"

47,350,625.65 48,839,748.72 columns)

Investment losses (income is filled in with "-"

-177,320.31

column)

Deferred tax assets decreased (increased by

-1,555,425.59 -11,537,989.45 (Fill in “-”)

Deferred tax liabilities increased (decreased by

0.00 117,497.90 (Fill in “-”)

Decrease in inventory (increase marked with "-"

32,324,835.67 35,350,261.44 fill in the column)

Decrease in operating receivables (increase in

-219,334,482.94 -386,790,260.19 (please fill in the list with "-")

Increase (decrease) in operating payables

34,735,061.64 53,670,079.35 (please fill in with "-")

Others

Net cash flow generated from operating activities 11,472,736.91 -155,437,309.27 2. Major investments and financing that do not involve cash receipts or payments

Activities:

debt to capital

Convertible corporate bonds due within one year

Financing leased fixed assets

Net changes in cash and cash equivalents:

Closing balance of cash 401,615,358.20 499,269,569.20 Less: Opening balance of cash 255,252,367.00 520,562,978.06 Add: Closing balance of cash equivalents

Less: Opening balance of cash equivalents

Net increase in cash and cash equivalents 146,362,991.20 -21,293,408.86

(2) Net cash paid in the current period to acquire subsidiaries

Unit: Yuan

Amount

Cash or cash equivalents paid in the current period for business mergers occurred 3,000,000.00, of which:

Hunan Yikang Pharmacy Retail Chain Co., Ltd. 3,000,000.00

Full text of the 2026 semi-annual report of Hunan Dajia Weikang Pharmaceutical Industry Co., Ltd.

Among them:

Add: cash or cash paid in the current period for business combinations that occurred in previous periods

8,643,874.18 value items

Among them:

Hunan Yilin Pharmacy Pharmaceutical Chain Co., Ltd. 4,433,048.18 Xinhua Dajia Weikang Tai'an Pharmacy Co., Ltd. 4,210,826.00 Net cash paid by subsidiaries 11,643,874.18 Other notes: None

(3) Net cash received from disposal of subsidiaries in the current period

None

(4) Composition of cash and cash equivalents

Unit: Yuan

Item Ending balance Beginning balance

Cash 401,615,358.20 255,252,367.00 Including: Cash on hand 2,177,573.15 909,722.25 Bank deposits that can be used for payment at any time 393,878,899.99 247,158,312.91 Other monetary resources that can be used for payment at any time

183,687,263.99 7,184,331.84 gold

Balance of cash and cash equivalents at the end of the period 401,615,358.20 255,252,367.00

(5) Situations where the scope of use is limited but still represents cash and cash equivalents

Unit: Yuan Items that are still cash and cash equivalents Amount for the current period Amount for the previous period

Reason

It is only used for limited purposes and has not been frozen to raise funds. 0.00 7,358,467.48 Settle, pledge or set up other rights.

profit

Total 0.00 7,358,467.48

(6) Monetary funds that are not cash and cash equivalents

Unit: Yuan Items that are not cash and cash equivalents Amount for the current period Amount for the previous period

Reason

Full text of the 2026 semi-annual report of Hunan Dajia Weikang Pharmaceutical Industry Co., Ltd.

Other monetary funds 179,931,888.19 137,750,000.00 Bank acceptance bill deposit Other monetary funds 4,000.00 POS machine deposit

Total 179,931,888.19 137,754,000.00

Other instructions: none

(7) Description of other major activities

Amount of endorsement and transfer of commercial bills not involving cash receipts and disbursements

Unit: Yuan

Item Number of current period Number of commercial bills endorsed and transferred in the same period last year 31114744.76 242,152,732.15 Including: payment for goods 31114744.76 242,152,732.15

Notes on items in the statement of changes in owners’ equity

Indicate the name and adjustment amount of "other" items that were adjusted to the year-end balance of the previous year: None

Foreign currency monetary items

(1) Foreign currency monetary items

Unit: Yuan

Item Foreign currency balance at the end of the period Conversion exchange rate Monetary funds converted into RMB at the end of the period 48.82 Including: US dollars 7.01 6.96 48.82 Euros

Hong Kong dollar

Accounts receivable

Of which: US dollars

Euro

Hong Kong dollar

long term borrowing

Of which: US dollars

Euro

Full text of the 2026 semi-annual report of Hunan Dajia Weikang Pharmaceutical Industry Co., Ltd.

Hong Kong dollar

Other instructions: none

(2) The nature of the lack of currency convertibility and its financial impact, the spot exchange rate used and its estimation process, and the risks faced by the enterprise due to the lack of currency convertibility

Applicable □Not applicable

(3) Description of overseas operating entities, including for important overseas operating entities, their main overseas business location, accounting standard currency and basis for selection should be disclosed. If the accounting standard currency changes, the reasons should also be disclosed.

□Applicable Not applicable

(4) Lack of convertibility between the accounting standard currency of overseas operations and the enterprise’s presentation currency

□Applicable Not applicable

Leasing

(1) The company serves as the lessee

Applicable □Not applicable

Variable lease payments not included in the measurement of lease liabilities

□Applicable Not applicable

Simplified treatment of short-term leases or lease payments for low-value assets

Applicable □Not applicable

Unit: Yuan

Item number in this period

Short-term lease expenses 4,885,444.81 Total 4,885,444.81 Current profits and losses and cash flows related to leasing:

Unit: Yuan

Item number in this period

Interest expense on lease liabilities 3,544,829.99 Total cash outflows related to leases 60,453,851.69 Total 63,998,681.68 Involving sale and leaseback transactions

None

(2) The company as the lessor

Operating lease as lessor

Full text of the 2026 semi-annual report of Hunan Dajia Weikang Pharmaceutical Industry Co., Ltd. Applicable □Not applicable

Unit: Yuan Including: Variable lease items not included in lease receipts Lease income

Payment related revenue

Lease income 2,565,555.29

Total 2,565,555.29

Finance lease as lessor

□Applicable Not applicable

Undiscounted lease payments for each of the next five years

□Applicable Not applicable

Reconciliation of undiscounted lease receipts and net lease investment

None

(3) Recognizing financial lease sales profits and losses as a manufacturer or distributor

□Applicable Not applicable

Data resources

None

Others

8. R&D expenditures

Unit: Yuan

Item Amount for the current period Amount for the previous period

R&D projects that meet capitalization conditions

None

Full text of the 2026 semi-annual report of Hunan Dajia Weikang Pharmaceutical Industry Co., Ltd.

Important outsourced research projects

None

9. Changes in consolidation scope

Business merger not under common control

(1) Business mergers not under common control that occurred during the current period

Unit: Yuan shares

right

Purchased equity Purchase date Purchase date to period Purchase date to period end

Equity acquisition Purchased from the purchase date to the end of the period

The buyer acquires the equity acquisition cost and determines the current amount of the purchased party.

Acquisition Ratio Acquisition Day Purchaser’s Income

Name Time Point Net Profit Cash Flow Square Based on

formula

Hunan

Yikang, get your finances done

Big Pharma 2026 Capital 2026 Production Handover

House Zero Year 01 Production Year 01 Procedure,

30,080,000.00 100.00% 15,473,348.01 748,999.52 1,711,125.26 Sales in consecutive months 01 Closed in month 01 and substantial

The lock has the purchase date and the control is

Limited public purchaser

Division

Other instructions: none

(2) Merger costs and goodwill

Unit: Yuan

Merger costs Hunan Yikang Pharmacy Retail Chain Co., Ltd.

--Cash 30,080,000.00 --Fair value of non-cash assets

--Fair value of debt issued or assumed

--Fair value of equity securities issued

--Fair value of contingent consideration

--The fair value of the equity held before the purchase date on the purchase date

--Others

Total merger cost 30,080,000.00 Less: The fair value share of identifiable net assets acquired 1,880,000.00 Goodwill/the amount by which the merger cost is less than the fair value share of identifiable net assets acquired

28,200,000.00 amount

Full text of the 2026 semi-annual report of Hunan Dajia Weikang Pharmaceutical Industry Co., Ltd. Method for determining the fair value of the merger cost: None

Description of contingent consideration and changes: None

Main reasons for the formation of large amounts of goodwill: None

Other instructions: none

(3) The identifiable assets and liabilities of the purchased party on the purchase date

Unit: Yuan Hunan Yikang Pharmacy Retail Chain Co., Ltd.

Fair value on the date of purchase Book value on the date of purchase

Assets:

Monetary funds 663,289.35 663,289.35 Accounts receivable 1,274,181.66 1,274,181.66 Inventory 5,679,177.00 5,679,177.00 Fixed assets 273,666.52 273,666.52 Intangible assets

Prepayments 113,019.00 113,019.00 Other receivables 115,000.00 115,000.00 Right-of-use assets 2,458,320.45 2,458,320.45 Long-term prepaid expenses 67,538.17 67,538.17 Liabilities:

borrow money

Accounts payable 4,899,503.84 4,899,503.84 Deferred income tax liabilities

Employee benefits payable 607,518.79 607,518.79 Taxes payable 39,135.25 39,135.25 Other payables 798,424.87 798,424.87 Lease liabilities 2,419,609.40 2,419,609.40 Net assets 1,880,000.00 1,880,000.00 less: minority shareholders’ equity

Net assets acquired 1,880,000.00 1,880,000.00 Method for determining the fair value of identifiable assets and liabilities: None

Contingent liabilities of the acquiree assumed in business combination: None

Full text of the 2026 semi-annual report of Hunan Dajia Weikang Pharmaceutical Industry Co., Ltd. Other notes: None

(4) Is there any gain or loss arising from the re-measurement of the equity held before the acquisition date at fair value? There are transactions in which the enterprise merger is realized step by step through multiple transactions and control is obtained during the reporting period Yes  No

(5) Relevant explanation that the merger consideration or the fair value of the identifiable assets and liabilities of the acquiree cannot be reasonably determined on the acquisition date or at the end of the current period of merger.

None

(6) Other instructions

None

Merger of enterprises under common control

(1) Business mergers under the same control that occurred in the current period

None

(2) Merger cost

None

(3) The book value of the assets and liabilities of the merged party on the merger date is nil.

Reverse purchase

Basic information of the transaction, the basis for the transaction constituting a reverse purchase, whether the assets and liabilities retained by the listed company constitute business and the basis for it, the determination of the merger cost, the amount of equity adjustment when dealing with equity transactions and its calculation: None

Disposal of subsidiaries

Are there any transactions or events that result in the loss of control of subsidiaries during this period?

□Yes No

Is there any situation where investments in subsidiaries are disposed of step by step through multiple transactions and control is lost in the current period Yes  No

Changes in the scope of consolidation due to other reasons

Describe changes in the scope of consolidation caused by other reasons (such as the establishment of new subsidiaries, liquidation of subsidiaries, etc.) and their related circumstances: None

Full text of the 2026 semi-annual report of Hunan Dajia Weikang Pharmaceutical Industry Co., Ltd.

Others

None

10. Interests in other entities

Interests in subsidiaries

(1) Composition of enterprise groups

Unit: yuan shareholding ratio

Business

Name of subsidiary company Registered capital Main place of business Registration place Mode of acquisition Qualitative

direct

pick up

Hunan Dajia Weikang Pharmaceutical Co., Ltd.

330,200,005.00 Hunan Province Changsha City, Hunan Province Commercial 100.00% Company under common control

Ningxia Delixin Pharmaceutical Co., Ltd. Ningxia Hui Autonomous Region Ningxia Hui Autonomous Region Enterprises not under common control

8,000,000.00 Commercial 51.00%

The company's administrative area is Guyuan City. The company merged with Hunan Tianji Caotang Pharmaceutical Co., Ltd. Enterprises not under common control

70,000,000.00 Hunan Province Changsha City, Hunan Province Manufacturing 99.99%

Explanation on the difference between the shareholding ratio of the subsidiary in the merger of limited companies and the voting rights ratio: None

Basis for holding half or less of the voting rights but still controlling the invested unit, and holding more than half of the voting rights but not controlling the invested unit: None

For important structured entities included in the scope of consolidation, the basis for control: None

Basis for determining whether a company is agent or principal: None

Other notes:

The company will include Hunan Dajia Weikang Pharmaceutical Co., Ltd., Hunan Dajia Weikang Property Co., Ltd., Ningxia Delixin Pharmaceutical Co., Ltd., Dajia Weikang Biopharmaceutical Co., Ltd., Hunan Jianpingyuan Pharmacy Chain Co., Ltd., Loudi Dajia Weikang Pharmacy Co., Ltd., Hainan Dajia Weikang Pharmacy Chain Co., Ltd., Hunan Changsha City Furong District Dajia Tongjian Medical Management Co., Ltd., Hainan Dajia Weikang Pharmacy Chain Co., Ltd. Chun Tang Pharmacy Chain Co., Ltd., Hunan Tianji Caotang Pharmaceutical Co., Ltd., Shanxi Simile Pharmaceutical Chain Co., Ltd., Beijing Zhengjitang Pharmaceutical Supermarket Chain Co., Ltd., Hunan Dajia Weikang Renkangtai Pharmacy Chain Co., Ltd., Hunan Cili Dajia Weikang Pharmacy Chain Co., Ltd., Hunan Dajia Weikang Regenerative Medicine Research Institute Co., Ltd., and Anhui Dajia Weikang Health Pharmacy Co., Ltd., a total of 16 All first-level subsidiaries are included in the consolidated financial statements of this period.

(2) Important non-wholly owned subsidiaries

Unit: Yuan Attributed to minority shareholders in the current period Announcement to minority shareholders in this period Remaining equity of minority shareholders at the end of the period Name of the company Shareholding ratio of minority shareholders

Profit and loss Amount of dividends distributed

Ningxia Delixin Pharmaceutical Co., Ltd.

49.00% 4,643,104.66 0.00 32,709,348.25 Responsible company

Shanxi Simile Pharmaceutical Chain

49.00% 10,569,477.65 0.00 68,247,766.98 Co., Ltd.

Hunan Tianji Caotang Pharmaceutical Stock 0.01% 89,382.56 0.00 111,108.37

Full text of the 2026 semi-annual report of Hunan Dajia Weikang Pharmaceutical Industry Co., Ltd.

Explanation that the shareholding ratio of minority shareholders of subsidiaries is different from the voting rights ratio: None Other explanation: None

Full text of the 2026 semi-annual report of Hunan Dajia Weikang Pharmaceutical Industry Co., Ltd.

(3) Main financial information of important non-wholly owned subsidiaries

Unit: Yuan Company name Ending balance Beginning balance

Current assets Non-current assets Total assets Current liabilities Non-current liabilities Total liabilities Current assets Non-current assets Total assets Current liabilities Non-current liabilities Total liabilities Ningxia Deli

Xin Medical has

191,968,017.80 289,040,461.82 481,008,402.09 349,326,209.13 64,928,421.03 414,254,630.16 193,074,949.76 301,011,289.93 494,086,239.69 381,426,387.91 55,381,803.64 436,808,191.55 Limited liability company

Division

Shanxi Simai

Le Pharmaceutical Company

276,404,895.69 122,495,819.90 398,900,715.59 223,112,577.81 36,506,980.69 259,619,558.50 297,861,121.66 109,047,421.94 406,908,543.60 257,717,792.18 31,479,956.88 289,197,749.06 Lock Co., Ltd.

Division

Hunan Tianji

Caotang Pharmaceutical

290,718,798.28 60,705,796.41 351,424,594.69 76,321,232.13 28,553,962.01 104,875,194.14 560,800,534.65 62,822,960.90 623,623,495.55 356,875,492.61 29,136,857.90 386,012,350.51 Co., Ltd.

company

Unit: Yuan

Amount for the current period Amount for the previous period

Subsidiary name Cash flow from operating activities Cash flow from operating activities Operating income Net profit Total comprehensive income Operating income Net profit Total comprehensive income

Quantity Ningxia Delixin Pharmaceutical

218,991,830.75 9,475,723.79 7,247,694.02 226,700,271.08 9,997,354.92 11,226,014.58 Limited liability company

Shanxi Simile Pharmaceutical

475,974,201.48 21,570,362.55 27,560,500.13 411,025,369.26 23,109,383.08 55,681,130.05 Chain Co., Ltd.

Hunan Tianji Thatched Cottage System

35,467,194.96 8,938,255.51 -28,544,948.75 51,310,938.92 11,102,124.25 6,942,845.80 Pharmaceutical Co., Ltd.

Other instructions: none

(4) Significant restrictions on the use of enterprise group assets and repayment of enterprise group debts

None

Full text of the 2026 semi-annual report of Hunan Dajia Weikang Pharmaceutical Industry Co., Ltd. (5) Financial support or other support provided to structured entities included in the scope of consolidated financial statements None

Transactions in which the owner’s equity share of a subsidiary changes and the subsidiary is still controlled (1) Description of changes in the owner’s equity share of the subsidiary None

(2) The transaction has no impact on minority shareholders’ equity and owner’s equity attributable to the parent company.

Interests in joint ventures or associated enterprises

(1) Important joint ventures or associates

Explanation that the shareholding ratio in joint ventures or associates is different from the voting rights ratio: No basis for holding less than 20% of the voting rights but having significant influence, or holding 20% or more of the voting rights but not having significant influence: None (2) Main financial information of important joint ventures

None

(3) Main financial information of important associates

None

(4) There is no summary financial information for unimportant joint ventures and associates.

(5) No explanation of significant restrictions on the ability of joint ventures or associates to transfer funds to the company.

(6) Excess losses incurred by joint ventures or associates

None

(7) Unconfirmed commitments related to investment in joint ventures

None

Full text of the 2026 semi-annual report of Hunan Dajia Weikang Pharmaceutical Industry Co., Ltd. (8) Contingent liabilities related to investments in joint ventures or associates

None

Important joint operations

None

Equity in structured entities not included in the scope of consolidated financial statements

Relevant instructions for structured entities not included in the scope of consolidated financial statements: None

Others

None

11. Government subsidies

Government subsidies recognized according to the amount receivable at the end of the reporting period

□Applicable Not applicable

Reasons for failure to receive the estimated amount of government subsidy at the estimated time

□Applicable Not applicable

Liability items involving government subsidies

Applicable □Not applicable

Unit: Yuan Accounting The new subsidy in this period is included in the business in this period and transferred to it in this period. It is related to assets/income in this period.

Beginning balance Closing balance

Item Amount of additional income Amount of other income Other changes related to deferred receipts related to assets

15,650,000.00 1,200,000.00 16,850,000.00

Income related government subsidies

Government subsidies included in current profits and losses

Applicable □Not applicable

Unit: Yuan

Accounting accounts Amount for the current period Amount for the previous period

Amount of government subsidies included in other income 2,026,453.86 4,070,467.05 Other notes: None

Full text of the 2026 semi-annual report of Hunan Dajia Weikang Pharmaceutical Industry Co., Ltd.

12. Risks related to financial instruments

Various risks arising from financial instruments

The Company's goal in risk management is to strike a balance between risks and returns, minimize the negative impact of risks on the Company's operating performance, and maximize the interests of shareholders and other equity investors. Based on this risk management objective, the company's basic risk management strategy is to confirm and analyze the various risks faced by the company, establish an appropriate risk tolerance bottom line and conduct risk management, and supervise various risks in a timely and reliable manner to control risks within a limited range. The Company faces various risks related to financial instruments in daily activities, mainly including credit risk, liquidity risk and market risk. Management has reviewed and approved policies for managing these risks, which are summarized below.

(1) Credit risk

Credit risk refers to the risk that one party to a financial instrument cannot fulfill its obligations, causing financial losses to the other party.

Credit risk management practices

①Evaluation method of credit risk

The Company assesses at each balance sheet date whether the credit risk of relevant financial instruments has increased significantly since initial recognition. When determining whether credit risk has increased significantly since initial recognition, the Company considers reasonable and evidence-based information that is available without unnecessary additional cost or effort, including qualitative and quantitative analysis based on historical data, external credit risk ratings, and forward-looking information. Based on a single financial instrument or a combination of financial instruments with similar credit risk characteristics, the company determines the changes in default risk during the expected duration of the financial instrument by comparing the risk of default of the financial instrument on the balance sheet date with the risk of default on the initial recognition date.

When one or more of the following quantitative and qualitative criteria are triggered, the company believes that the credit risk of financial instruments has increased significantly:

a. The quantitative standard is mainly that the default probability of the remaining duration on the balance sheet date has increased by more than a certain percentage compared with the initial recognition;

b. Qualitative criteria mainly include major adverse changes in the debtor's operating or financial conditions, existing or expected changes in technology, market, economic or legal environment that will have a major adverse impact on the debtor's ability to repay the company, etc.

②Definition of default and credit-impaired assets

When a financial instrument meets one or more of the following conditions, the company defines the financial asset as having defaulted, and its standards are consistent with the definition of credit impairment:

a. The debtor encounters major financial difficulties;

b. The debtor violates the binding terms on the debtor in the contract;

c. The debtor is likely to go bankrupt or undergo other financial reorganization;

d. The creditor grants the debtor concessions that the debtor would not have made under any other circumstances due to economic or contractual considerations related to the debtor's financial difficulty.

Measurement of expected credit losses

Key parameters for measuring expected credit losses include probability of default, loss given default rate and exposure to default risk. The company considers quantitative analysis and forward-looking information of historical statistical data (such as counterparty ratings, guarantee methods and collateral types, repayment methods, etc.) to establish default probability, default loss rate and default risk exposure models.

For details of the reconciliation statement between the opening balance and the closing balance of financial instrument loss provisions, please refer to the explanations in "Section 8.7.4(2) Bad debt provision accrual, recovery or transfer during the current period", "Section 10.7.5(2) Bad debt provision accrual, recovery or transfer back during the current period" and "Section 10.7.8(3) 2) Bad debt provision accrual" of this report. 4) Credit risk exposure and credit risk concentration

The company's credit risk mainly comes from monetary funds and accounts receivable. In order to control the above-mentioned related risks, the Company has taken the following measures.

① Monetary funds

Full text of the 2026 semi-annual report of Hunan Dajia Weikang Pharmaceutical Industry Co., Ltd.

The Company places bank deposits and other monetary funds in financial institutions with higher credit ratings, so its credit risk is lower.

②Accounts receivable

The company continues to conduct credit assessments on customers who trade on credit. Based on the credit assessment results, the Company chooses to conduct transactions with approved customers with good credit and monitors their receivable balances to ensure that the Company does not face significant bad debt risks.

Since the company's accounts receivable risk points are distributed among multiple partners and customers, as of June 30, 2026, 13.99% of the company's accounts receivable (December 31, 2025: 12.94%) originated from the top five customers with balances, and the company does not have significant credit concentration risk.

The Company's maximum exposure to credit risk is the carrying value of each financial asset on the balance sheet.

(2) Liquidity risk

Liquidity risk refers to the risk of a shortage of funds when the company fulfills its obligations to settle by delivering cash or other financial assets. Liquidity risk may arise from the inability to sell financial assets at fair value as quickly as possible; or from the counterparty's inability to repay its contractual debts; or from debts that mature prematurely; or from the inability to generate expected cash flows.

In order to control this risk, the Company comprehensively uses various financing methods such as bill settlement and bank borrowing, and adopts an appropriate combination of long-term and short-term financing methods to optimize the financing structure and maintain a balance between financing continuity and flexibility. The Company has obtained bank credit lines from a number of commercial banks to meet its working capital requirements and capital expenditures.

Financial liabilities are classified by remaining maturity

Unit: Yuan

Closing amount

Project

Book value Undiscounted contract amount Within 1 year 1-3 years Short-term borrowings over 3 years 2,295,580,336.19 2,334,299,847.50 2,334,299,847.50 - - Notes payable 269,970,187.30 269,970,187.30 269,970,187.30 - - Accounts payable 570,159,128.04 570,159,128.04 570,159,128.04 - - Other payables

152,104,740.50 152,104,740.50 152,104,740.50 - -

Arrive within a year

Non-current liabilities for the period 438,842,603.00 443,301,711.74 443,301,711.74 - - Moving liabilities

Long-term borrowings 719,482,039.71 829,159,247.85 25,208,890.46 576,126,543.69 227,823,813.70 Lease liabilities 119,553,511.23 125,551,244.64 90,396,896.14 35,154,348.50 Subtotal 4,537,667,566.94 4,696,521,128.54 3,767,019,526.51 666,523,439.83 262,978,162.20

Beginning balance

Project

Book value Undiscounted contract amount Within 1 year 1-3 years Short-term borrowings over 3 years 2,421,250,222.90 2,446,382,025.09 2,446,382,025.09

Notes payable 173,883,659.28 173,883,659.28 173,883,659.28

Accounts payable 638,767,563.33 638,767,563.33 638,767,563.33

Full text of the 2026 semi-annual report of Hunan Dajia Weikang Pharmaceutical Industry Co., Ltd.

Other expenses

104,859,113.92 104,859,113.92 104,859,113.92

money

Arrive within a year

Current non-current period 528,250,064.69 546,761,482.54 546,761,482.54

Liquid liabilities

Long-term borrowings 604,952,953.49 651,938,849.06 21,341,875.18 508,760,044.02 121,836,929.86 Lease liabilities 117,439,192.71 123,987,954.59 90,947,914.90 33,040,039.69 Subtotal 4,589,402,770.32 4,686,580,647.81 3,931,995,719.34 599,707,958.92 154,876,969.55

(3) Market risk

Market risk refers to the risk that the fair value or future cash flows of financial instruments will fluctuate due to changes in market prices. Market risks mainly include interest rate risk and foreign exchange risk.

Interest rate risk

Interest rate risk refers to the risk that the fair value or future cash flows of financial instruments will fluctuate due to changes in market interest rates. Fixed-rate interest-bearing financial instruments expose the Company to fair value interest rate risk, while floating-rate interest-bearing financial instruments expose the Company to cash flow interest rate risk. The Company determines the proportion of fixed-rate and floating-rate financial instruments based on market conditions, and maintains an appropriate portfolio of financial instruments through regular review and monitoring.

As of June 30, 2026, the company's bank borrowings with floating interest rates were RMB 618,888,248.77 (December 31, 2025: RMB 586,490,000.00). Under the assumption that other variables remain unchanged, assuming that the interest rate changes by 50 basis points, it will not have a significant impact on the company's total profit and shareholders' equity.

Foreign exchange risk

Foreign exchange risk refers to the risk that the fair value or future cash flows of financial instruments will fluctuate due to changes in foreign exchange rates. The Company operates in Mainland China and its main activities are denominated in RMB. Therefore, the market risk of foreign exchange changes borne by the Company is not significant.

Hedging

(1) The company carries out hedging business for risk management

□Applicable Not applicable

(2) The company carries out qualified hedging business and applies hedging accounting

None

(3) The company carries out hedging business for risk management and expects to achieve risk management objectives but does not apply hedging accounting

□Applicable Not applicable

Financial assets

(1) Classification of transfer methods

□Applicable Not applicable

Full text of the 2026 semi-annual report of Hunan Dajia Weikang Pharmaceutical Industry Co., Ltd. (2) Financial assets derecognized due to transfer

□Applicable Not applicable

(3) Asset transfer financial assets that continue to be involved

□Applicable Not applicable

Other instructions: none

13. Disclosure of fair value

Closing fair value of assets and liabilities measured at fair value

Unit: Yuan Ending Fair Value

Project

Level 1 fair value measurement Second level fair value measurement Third level fair value measurement

total

quantity quantity quantity

1. Sustained fair value

Measurement

Accounts receivable financing 12,461,785.38 12,461,785.38

(1) Other equity instruments

16,921,043.40 16,921,043.40 Investment

Measured at fair value on an ongoing basis

Total assets of 29,382,828.78 29,382,828.78

2. Non-sustainable fair price

value measurement

Basis for determining the market price of continuous and non-continuous first-level fair value measurement items

None

For continuous and non-continuous second-level fair value measurement projects, there is no qualitative and quantitative information on the valuation techniques and important parameters used.
Continuous and non-continuous third-level fair value measurement items, valuation techniques used and qualitative and quantitative information on important parameters (1) For held receivable financing, the par amount is used to determine its fair value.

(2) For equity investments for which financial data is available and no other available market information is available, the fair value is determined by multiplying the net assets disclosed in the statement or relevant information by the shareholding ratio. For equity investments for which no financial data or other available market information is available, the fair value is recognized based on the investment cost.

Continuous third-level fair value measurement items, reconciliation information between the opening and closing book values and sensitivity analysis of unobservable parameters None

Full text of the 2026 semi-annual report of Hunan Dajia Weikang Pharmaceutical Industry Co., Ltd.

For ongoing fair value measurement items, if there is a conversion between levels during the current period, the reasons for the conversion and the policy for determining the time of conversion are not available.
Valuation technology changes that occurred during the current period and reasons for the changes

None

Fair value of financial assets and financial liabilities not measured at fair value

None

Others

None

14. Related parties and related transactions

Information about the parent company of this enterprise

Description of the parent company of this enterprise

At the end of the period, Wang Yiqing held 70.144219 shares of the company, with a shareholding ratio of 34.3087%, and indirectly controlled 4.7711% of the company's shares through Changsha Tongjia Investment Management Partnership (Limited Partnership); Wang Yiqing's spouse Minghui directly held 1.40000 shares of the company, with a shareholding ratio of 0.6816%. The total proportion of voting rights that Wang Yiqing and Minghui can actually control in the company is 39.7614%.

The ultimate controller of the company is Wang Yiqing and Minghui.

Other instructions: none

Information about the company’s subsidiaries

For details of the company's subsidiaries, please refer to Note 7.

Information on joint ventures and associated enterprises of the enterprise

Please refer to Note 10-3 for details of the company's important joint ventures or associates.

Other instructions: none

Other related parties

Names of other related parties Relationship between other related parties and the company Hunan Zhongjia Biopharmaceutical Co., Ltd. Controlled by the same actual controller Zou Pinyong Duan Junzhang, a minority shareholder of the subsidiary Maanshan Health Pharmacy Co., Ltd., a minority shareholder of the subsidiary Controlled by the minority shareholders of the subsidiary Hunan Dajia Weikang Pharmaceutical Industry Co., Ltd. Full text of the 2026 semi-annual report Other notes: None

Related transactions

(1) Related transactions related to the purchase and sale of goods, provision and receipt of services

Procurement of goods/service acceptance form

Unit: Yuan Whether it exceeds the transaction amount

Related parties Related party transaction content Amount incurred in the current period Approved transaction quota Amount incurred in the previous period

Hunan Zhongjia Biomedical

R&D Services 943,396.23 Pharmaceutical Co., Ltd.

List of goods sold/services provided

Unit: Yuan Related party Contents of related transactions Amount incurred in the current period Amount incurred in the previous period Maanshan Healthy Pharmacy Co., Ltd. Drugs 322,191.00 Description of related transactions for purchasing and selling goods, providing and receiving services

None

(2) Related entrusted management/contracting and entrusted management/outsourcing situation

The company’s entrusted management/contracting status table: None

Description of associated hosting/contracting status: None

The company’s entrusted management/outsourcing status table: None

Description of associated management/outsourcing: None

(3) Related leasing situation

None

(4) Related guarantees

The company acts as a guarantor

None

The company as the guaranteed party

Unit: Yuan guarantee has been fulfilled by the guarantor. Guarantee amount. Guarantee starting date. Guarantee expiry date.

Bi Wang Yiqing 4,500,000.00 March 31, 2026 March 30, 2027 No

Wang Yiqing 5,000,000.00 February 5, 2026 January 27, 2027 No

Full text of the 2026 semi-annual report of Hunan Dajia Weikang Pharmaceutical Industry Co., Ltd.

Wang Yiqing 5,000,000.00 December 30, 2025 July 30, 2026 No Wang Yiqing 10,000,000.00 December 30, 2025 July 30, 2026 No Wang Yiqing 25,000,000.00 December 24, 2025 July 24, 2026 No Wang Yiqing 20,000,000.00 September 15, 2025 August 25, 2026 No Wang Yiqing 20,000,000.00 September 11, 2025 September 11, 2026 No Wang Yiqing 10,000,000.00 September 8, 2025 September 8, 2026 No Wang Yiqing 10,000,000.00 August 25, 2025 August 24, 2026 No Wang Yiqing 10,000,000.00 August 22, 2025 August 21, 2026 No Wang Yiqing 20,000,000.00 January 9, 2026 August 9, 2026 No Wang Yiqing 30,000,000.00 January 13, 2026 August 13, 2026 No Wang Yiqing 30,000,000.00 January 28, 2026 January 28, 2027 No Wang Yiqing 20,000,000.00 February 26, 2026 February 26, 2027 No Wang Yiqing 30,000,000.00 April 13, 2026 April 13, 2027 No Wang Yiqing 2,000,000.00 June 18, 2026 June 18, 2027 No Wang Yiqing 8,000,000.00 June 23, 2026 June 18, 2027 No Wang Yiqing, Minghui 30,000,000.00 April 27, 2025 April 27, 2026 No Wang Yiqing, Minghui 90,000,000.00 June 29, 2026 June 29, 2027 No Wang Yiqing 40,000,000.00 October 21, 2025 October 21, 2026 No Wang Yiqing 40,000,000.00 October 29, 2025 October 29, 2026 No Wang Yiqing 20,000,000.00 January 7, 2026 January 7, 2027 No Wang Yiqing 13,600,000.00 March 31, 2026 March 31, 2027 No Wang Yiqing 30,000,000.00 October 31, 2025 October 21, 2026 No Wang Yiqing 1,211,200.00 April 1, 2026 September 28, 2026 No Wang Yiqing 5,000,000.00 April 3, 2026 September 30, 2026 No Wang Yiqing 3,788,800.00 April 13, 2026 October 10, 2026 No Wang Yiqing 83,739,965.68 April 9, 2026 April 9, 2027 No Wang Yiqing 30,000,000.00 June 2, 2026 June 2, 2027 No

100,000,000.00 June 26, 2026 August 26, 2027 No Wang Yiqing 50,000,000.00 January 16, 2026 January 11, 2027 No Wang Yiqing 40,000,000.00 March 9, 2026 March 1, 2027 No Wang Yiqing 29,750,000.00 September 4, 2023 September 3, 2026 No

Full text of the 2026 semi-annual report of Hunan Dajia Weikang Pharmaceutical Industry Co., Ltd.

Wang Yiqing 10,000,000.00 May 11, 2026 May 10, 2027 No Wang Yiqing 15,000,000.00 May 22, 2026 May 21, 2027 No Wang Yiqing 10,000,000.00 June 18, 2026 June 17, 2027 No Wang Yiqing 20,000,000.00 June 30, 2026 June 29, 2027 No Wang Yiqing and Minghui 40,000,000.00 March 20, 2023 March 20, 2028 No Wang Yiqing and Minghui 70,000,000.00 June 8, 2026 June 8, 2027 No Wang Yiqing, Minghui 40,000,000.00 June 3, 2024 March 20, 2028 No Wang Yiqing, Minghui 56,000,000.00 October 12, 2023 March 20, 2028 No Wang Yiqing 85,500,000.00 February 14, 2025 February 13, 2030 No Wang Yiqing 160,000,000.00 February 29, 2024 February 28, 2027 No Wang Yiqing 31,000,000.00 March 26, 2026 March 25, 2027 No Wang Yiqing 30,000,000.00 December 05, 2025 December 04, 2026 No Wang Yiqing 40,000,000.00 February 11, 2026 February 10, 2027 No Wang Yiqing 38,000,000.00 February 3, 2026 February 3, 2027 No Wang Yiqing 10,000,000.00 February 27, 2026 February 27, 2027 No Wang Yiqing 10,000,000.00 March 13, 2026 March 13, 2027 No Wang Yiqing 10,000,000.00 April 15, 2026 April 15, 2027 No Wang Yiqing 15,000,000.00 January 15, 2026 October 8, 2026 No Wang Yiqing 45,000,000.00 April 23, 2026 April 19, 2027 No Wang Yiqing 10,000,000.00 April 24, 2026 April 23, 2027 No Wang Yiqing 30,000,000.00 April 28, 2026 April 26, 2027 No Wang Yiqing 50,000,000.00 May 27, 2026 May 24, 2027 No Wang Yiqing 5,000,000.00 January 30, 2026 January 27, 2027 No Wang Yiqing 3,000,000.00 January 30, 2026 January 27, 2027 No Wang Yiqing 3,000,000.00 January 30, 2026 January 27, 2027 No Wang Yiqing 50,000,000.00 May 27, 2026 May 24, 2027 No Wang Yiqing 10,000,000.00 July 30, 2025 July 31, 2026 No Wang Yiqing 20,000,000.00 August 4, 2025 August 5, 2026 No Wang Yiqing 40,000,000.00 March 20, 2026 March 20, 2027 No Wang Yiqing 30,000,000.00 March 23, 2026 March 19, 2027 No Wang Yiqing 20,000,000.00 March 28, 2026 March 15, 2027 No

Full text of the 2026 semi-annual report of Hunan Dajia Weikang Pharmaceutical Industry Co., Ltd.

Wang Yiqing 10,000,000.00 March 28, 2026 March 28, 2027 No Wang Yiqing 5,000,000.00 May 19, 2026 May 19, 2027 No Wang Yiqing 25,000,000.00 May 18, 2026 May 4, 2027 No Wang Yiqing 30,000,000.00 May 29, 2026 May 29, 2027 No Wang Yiqing 70,000,000.00 August 18, 2025 December 11, 2026 No Wang Yiqing 30,000,000.00 September 25, 2025 September 21, 2026 No Duan Military Medal 29,000,000.00 September 22, 2023 September 22, 2026 No Duan Military Medal 23,000,000.00 December 20, 2023 December 20, 2026 No Duan Military Medal 14,000,000.00 January 16, 2024 December 20, 2026 No Duan Jun Medal 50,000,000.00 February 23, 2024 December 20, 2026 No Duan Jun Medal 30,000,000.00 March 25, 2024 December 20, 2026 No Duan Junzhang, Zhao Pengxu 10,000,000.00 January 9, 2026 No Duan Junzhang 6,000,000.00 January 9, 2027 No Duan Junzhang 6,000,000.00 June 26, 2026 June 9, 2027 No Duan Junzhang 4,000,000.00 June 30, 2026 June 9, 2027 No Duan Jun Medal 14,000,000.00 August 1, 2025 July 2, 2026 No Duan Jun Medal 6,202,889.86 April 29, 2025 March 28, 2028 No Duan Junzhang 10,433,314.62 March 29, 2025 March 28, 2028 No Duan Junzhang 5,882,044.29 June 30, 2025 March 28, 2028 No Zou Pinyong 10,000,000.00 February 12, 2026 February 11, 2027 No Gao Yuanbin, Hao Li 10,000,000.00 June 29, 2026 June 10, 2028 No Description of related guarantee: None

(5) Fund lending from related parties

None

(6) Asset transfer and debt restructuring of related parties

None

(7) Remuneration of key management personnel

Unit: Yuan

Item Amount for the current period Amount for the previous period

Full text of the 2026 semi-annual report of Hunan Dajia Weikang Pharmaceutical Industry Co., Ltd. Remuneration of key management personnel 1,737,681.90 2,021,964.53 (8) Other related transactions

None

Accounts receivable and payable from related parties

(1) Items receivable

Unit: Yuan Ending balance Beginning balance

Project name Related parties

Book balance Provision for bad debts Book balance Provision for bad debts

Ma'anshan Health Center

Accounts receivable 52,140.00 9,674.25 514,247.30 70,630.36 Pharmacy Co., Ltd.

Ma'anshan Health Center

Other receivables 32,965.63 1,648.28

Pharmacy Ltd.

(2) Items payable

Unit: Yuan

Project name Related party Book balance at the end of the period Book balance at the beginning of the period Accounts payable Hunan Zhongjia Biopharmaceutical Co., Ltd. 320,000.00

Related party commitments

None

Others

None

15. Share-based payment

Overall situation of share-based payment

□Applicable Not applicable

Equity-settled share-based payment

□Applicable Not applicable

Full text of the 2026 semi-annual report of Hunan Dajia Weikang Pharmaceutical Industry Co., Ltd.

Cash-settled share-based payment □Applicable Not applicable
Share-based payment expenses for this period

□Applicable Not applicable

No modification or termination of share-based payment
Others

None

16. Commitments and contingencies

Important commitments

Important commitments existing at the balance sheet date

None

Contingent matters

(1) There are no important contingencies existing on the balance sheet date

(2) If the company has no important contingencies that need to be disclosed, it should also be stated that the company has no important contingencies that need to be disclosed.

Others

None

Events after the balance sheet date
Important non-adjustment matters

None

Profit distribution

None

Full text of the 2026 semi-annual report of Hunan Dajia Weikang Pharmaceutical Industry Co., Ltd.

Sales return

None

Description of other post-balance sheet events None
Other important matters
Correction of accounting errors in the previous period (1) Retrospective restatement method is not available

(2) No law applicable in the future

Debt restructuring

None

Asset replacement

(1) Non-monetary asset exchange None

(2) Other asset replacements None

Annuity plan

None

Termination of operations

None

Full text of the 2026 semi-annual report of Hunan Dajia Weikang Pharmaceutical Industry Co., Ltd.

Branch information

(1) Determination basis and accounting policies of reporting segments

The company's main business is the production and sales of products. The company regards this business as a whole to implement management and evaluate operating results. Therefore, the Company is not required to disclose segment information. For details of the Company's operating income and operating costs by product classification, please refer to the description in "Section 8.7.61. Operating Income and Operating Costs" of this report. (2) Financial information of reporting segments

None

(3) If the company has no reportable segments, or cannot disclose the total assets and total liabilities of each reportable segment, the reasons should be explained.

None

(4) Other instructions

None

Other important transactions and matters that have an impact on investors’ decision-making

None

Others

None

19. Notes on main items of the parent company’s financial statements

Accounts receivable

(1) Disclosure based on aging

Unit: Yuan

Aging Book balance at the end of the period Book balance at the beginning of the period

Within 1 year (including 1 year) 183,646,027.33 176,617,573.60 Within 6 months 183,340,124.05 176,053,750.96 6 months to 1 year (including 1 year) 305,903.28 563,822.64 1 to 2 years 284,185.53 131,432.06 2 to 3 years 3,625.99 38,459.85 More than 3 years 280,389.48 271,160.68

3 to 4 years 149,182.28 139,953.48

Full text of the 2026 semi-annual report of Hunan Dajia Weikang Pharmaceutical Industry Co., Ltd.

More than 5 years 131,207.20 131,207.20 Total 184,214,228.33 177,058,626.19

(2) Classified disclosure according to bad debt accrual method

Unit: Yuan Ending balance Beginning balance

Category Book balance Bad debt provision Book balance Bad debt provision

Book value Book value amount Proportion Amount Provision proportion Amount Proportion Amount Provision proportion

Among them:

Provision based on combination

184,214,22 183,574,52 177,058,62 176,424,14 Bad debt provision 100.00% 639,703.91 0.35% 100.00% 634,476.98 0.36%

8.33 4.42 6.19 9.21Accounts receivable

Among them:

Accounts receivable consolidation scope

21,586,170 16,748,915

Related parties within the scope 0.00 0.00

.89 .97

Current portfolio

162,628,05 161,988,35 160,309,71

Aging combination 88.28% 639,703.91 0.39% 634,476.98 0.40%

7.44 3.54 0.22

184,214,22 183,574,52 177,058,62 176,424,14Total 100.00% 639,703.91 0.35% 100.00% 634,476.98 0.36%

8.33 4.42 6.19 9.21 Category name of bad debt provision based on combination: Accounts receivable with bad debt provision based on aging combination

Unit: Yuan ending balance

Name

Book balance Bad debt provision Provision ratio

Within 6 months 161,753,953.16 404,384.88 0.25% 6 months to 1 year (including 1 year) 305,903.28 15,295.16 5.00% 1 to 2 years 284,185.53 28,418.55 10.00% 2 to 3 years 3,625.99 725.20 20.00% 3 to 4 years 149,182.28 59,672.91 40.00% 4 to 5 years

More than 5 years 131,207.20 131,207.20 100.00% Total 162,628,057.44 639,703.91

Description of what this combination is based on:

If bad debt provisions for accounts receivable are made according to the general expected credit loss model:

□Applicable Not applicable

Full text of the 2026 semi-annual report of Hunan Dajia Weikang Pharmaceutical Industry Co., Ltd. (3) Bad debt provisions accrued, recovered or reversed in the current period

Bad debt provisions for the current period:

Unit: Yuan Amount of changes in the current period

Category Beginning Balance Ending Balance

Provision Recovery or transfer Write-off Others

Bad provision based on combination

634,476.98 5,226.93 639,703.91 Account preparation

Total 634,476.98 5,226.93 639,703.91

Among them, the amount of bad debt provision recovery or reversal in the current period is important: None

(4) Accounts receivable actually written off in the current period

None

(5) Accounts receivable and contract assets with the top five closing balances collected by debtors

Unit: Yuan accounts receivable and combined accounts receivable, bad debts, quasi-accounts receivable, ending balance, contract assets, ending balance, accounts receivable and contracts

Unit name Closing balance of same assets Provision and contract asset reduction amount Closing balance of assets

Proportion of total value preparation closing balance Customer one 68,022,616.07 68,022,616.07 36.93% 170,056.54 Customer two 13,331,552.12 13,331,552.12 7.24% 33,328.88 Customer three 6,542,953.25 6,542,953.25 3.55% 16,357.38Customer Four 6,383,083.15 6,383,083.15 3.47% 15,957.71Customer Five 5,721,788.66 5,721,788.66 3.11% 14,304.47 Total 100,001,993.25 100,001,993.25 54.30% 250,004.98

Other receivables

Unit: Yuan

Item Ending balance Beginning balance

Other receivables 493,667,920.08 1,226,367,410.78 Total 493,667,920.08 1,226,367,410.78

Full text of the 2026 semi-annual report of Hunan Dajia Weikang Pharmaceutical Industry Co., Ltd. (1) Interest receivable

Classification of interest receivable

None

Important overdue interest

None

Classified disclosure according to bad debt accrual method □Applicable Not applicable
There are no bad debt provisions accrued, recovered or reversed in the current period.
There is no actual write-off of interest receivable in this period

(2) Dividends receivable

Classification of dividends receivable

None

There are no important dividends receivable aged more than 1 year.
Classified disclosure according to bad debt accrual method □Applicable Not applicable
There are no bad debt provisions accrued, recovered or reversed in the current period.
There is no actual write-off of dividends receivable in this period

Full text of the 2026 semi-annual report of Hunan Dajia Weikang Pharmaceutical Industry Co., Ltd. (3) Other receivables

Classification of other receivables according to nature of payment

Unit: Yuan

Nature of payment Book balance at the end of the period Book balance at the beginning of the period

Internal transactions 482,381,245.64 1,216,751,986.43 Deposit and security deposit 5,463,840.51 4,729,513.59 Other transactions 14,860,758.11 13,304,918.50 Total 502,705,844.26 1,234,786,418.52

Disclosure based on aging

Unit: Yuan

Aging Book balance at the end of the period Book balance at the beginning of the period

Within 1 year (including 1 year) 408,343,638.26 1,164,254,461.67 1 to 2 years 33,628,242.26 41,619,428.52 2 to 3 years 46,797,723.19 9,458,813.90 More than 3 years 13,936,240.55 19,453,714.43 3 to 4 years 11,752,336.19 14,550,074.04 4 to 5 years 685,802.04 3,415,011.11

More than 5 years 1,498,102.32 1,488,629.28 Total 502,705,844.26 1,234,786,418.52

Classified disclosure according to bad debt accrual method

Unit: Yuan

Ending balance Beginning balance

Category Book balance Bad debt provision Book balance Bad debt provision

book value book value

Amount Proportion Amount Provision proportion Amount Proportion Amount Provision proportion

Provision for bad debts on an individual basis 7,883,170. 7,883,170. 7,750,000. 7,750,000.

1.57% 100.00% 0.00 0.63% 100.00% 0.00 28 28 00 00

Among them:

Provision for bad debts on a group basis 494,822,67 1,154,753. 493,667,92 1,227,036, 1,226,367,410

98.43% 0.23% 99.37% 669,007.74 0.05%

Preparation 3.98 90 0.08 418.52 .78 Among them:

Full text of the 2026 semi-annual report of Hunan Dajia Weikang Pharmaceutical Industry Co., Ltd.

502,705,84 9,037,924. 493,667,92 1,234,786, 8,419,007. 1,226,367,410Total 100.00% 1.80% 100.00% 0.68%

4.26 18 0.08 418.52 74 .78 Category name of bad debt provision for individual items:

Unit: Yuan Beginning balance Ending balance

Name

Book balance Bad debt provision Book balance Bad debt provision Provision ratio Reason for provision Shaanxi Xi'an Guangji

Large pharmacy chain has 7,000,000.00 7,000,000.00 100.00% expected to be unrecoverable Co., Ltd.

Category names of bad debt provisions accrued by portfolio:

Unit: Yuan ending balance

Name

Book balance Bad debt provision Provision ratio

Related party transactions within the scope of receivables consolidation

482,514,416.60 0.00

combination

Deposit receivable and margin portfolio 5,667,940.80 283,397.04 5.00% Aging portfolio 14,523,486.86 8,754,527.14 60.27% of which: within 1 year 1,225,744.03 61,287.20 5.00% 1-2 years 2,851,149.62 285,114.96 10.00% 2-3 years 2,305,308.42 461,061.88 20.00% 3-4 years 256,120.83 102,448.33 40.00% 4-5 years 135,163.96 94,614.77 70.00% More than 5 years 7,750,000.00 7,750,000.00 100.00% Total 502,705,844.26 9,037,924.18

Description of basis for determining this combination: None

Provision for bad debts is made based on the general expected credit loss model:

Unit: Yuan Phase 1 Phase 2 Phase 3

Bad debt provision Expected credit throughout the entire duration Expected credit throughout the duration Total

Expected credit over the next 12 months

Loss (no credit deduction has occurred Loss (credit deduction has occurred)

loss

value) value)

Balance on January 1, 2026 441,028.42 106,153.91 7,871,825.41 8,419,007.74 Balance on January 1, 2026

In this issue

Provision for the current period 618,916.44 618,916.44

Full text of the 2026 semi-annual report of Hunan Dajia Weikang Pharmaceutical Industry Co., Ltd.

June 30, 2026

1,059,944.86 106,153.91 7,871,825.41 9,037,924.18 amount

Basis for dividing each stage and provision ratio for bad debt provisions: None

Changes in book balances with significant changes in loss provision during the period

□Applicable Not applicable

Bad debt provisions accrued, recovered or reversed in the current period

Bad debt provisions for the current period:

Unit: Yuan

Amount of changes in the current period

Category Beginning Balance Ending Balance

Provision Recovery or transfer Write-off or write-off Others

Single provision for bad debts

7,750,000.00 0.00 7,750,000.00 Prepare

Bad provision based on combination

669,007.74 618,916.44 1,287,924.18 Account preparation

Total 8,419,007.74 618,916.44 9,037,924.18

Among them, the amount of bad debt provision for the current period that is reversed or recovered is important: None

Other receivables actually written off in the current period

Important write-offs of other receivables: None

Instructions for writing off other receivables: None

Other receivables with the top five closing balances based on debtors

Unit: Yuan accounts account for the closing balance of other receivables Name of the unit during the bad debt provision period Closing balance Account age

Nature Proportion of total Ending balance Hunan Dajia Weikang Pharmaceutical Co., Ltd. Related parties

368,042,232.71 Within 1 year 73.21% 0.00 Company transactions

Ningxia Delixin Pharmaceutical Co., Ltd. Related party 19.534 million within 1 year, 1-2

51,350,420.21 10.21% 0.00 Ren Company Current Year 31.8164 million

Loudi Dajia Weikang Pharmacy has related parties 5.71 million within 1 year, 1-2 years

23,421,000.00 4.66% 0.00 Limited liability company Current transactions 17.711 million

Hainan Dajia Weikang Pharmacy Co., Ltd. Related party 4.4791 million within 1 year, 1-2

11,837,985.48 2.35% 0.00 Lock Co., Ltd. Current Annual 7.3588 million

Beijing Zhengjitang Drug Supermarket Chain Related Party

8,734,504.19 Within 1 year 1.74% 0.00 Municipal limited liability company Current transactions

Total 463,386,142.59 92.17% 0.00

Full text of the 2026 semi-annual report of Hunan Dajia Weikang Pharmaceutical Industry Co., Ltd.

Presented in other receivables due to centralized management of funds

None

Long-term equity investment

Unit: Yuan

Ending balance Beginning balance

Project

Book balance Impairment provision Book value Book balance Impairment provision Book value

Investment in subsidiaries 2,082,996,569.19 2,082,996,569.19 2,082,996,569.19 2,082,996,569.19

Total 2,082,996,569.19 2,082,996,569.19 2,082,996,569.19 2,082,996,569.19

(1) Investment in subsidiaries

Unit: Yuan

Increases and decreases in the current period

Balance at the beginning of the period (book price, impairment provision, balance at the end of the period (book price, impairment provision), invested unit, additional reduction, provision minus other

value) opening balance value) ending balance

investment investment worth prepared him

Hunan Dajia Weikang Pharmaceutical

548,911,155.32 548,911,155.32 Co., Ltd.

Hunan Dajia Weikang Property

147,185,572.90 147,185,572.90 Co., Ltd.

Ningxia Delixin Pharmaceutical Co., Ltd.

144,119,979.62 144,119,979.62 Limited liability company

Hunan Jianpingyuan Pharmacy

19,290,000.00 19,290,000.00Chain Chain Co., Ltd.

Dajia Weikang Biopharmaceuticals

213,150,000.00 213,150,000.00 Co., Ltd.

Hainan Dajia Weikang Hongchun

Tang Pharmacy Chain Co., Ltd. 49,280,000.00 49,280,000.00 Company

Hunan Tianji Caotang Pharmaceutical

398,007,374.31 398,007,374.31 Co., Ltd.

Beijing Zhengjitang Pharmaceutical Company

Lock Supermarket Co., Ltd. 30,240,000.00 30,240,000.00 Company

Hunan Dajiaweikangrenkang

Taida Pharmacy Chain Co., Ltd. 64,929,465.04 64,929,465.04 Company

Shanxi Simile Pharmaceutical Co., Ltd.

326,001,022.00 326,001,022.00 Lock Co., Ltd.

Hunan Dajia Weikang Regeneration

Medical Research Institute Co., Ltd. 150,000.00 150,000.00

Hunan Cilida Jiaweikang

Pharmacy Chain Co., Ltd. 18,232,000.00 18,232,000.00 Company

Anhui Dajia Weikang Health

123,500,000.00 123,500,000.00Da Pharmacy Co., Ltd.

Total 2,082,996,569.19 2,082,996,569.19

Full text of the 2026 semi-annual report of Hunan Dajia Weikang Pharmaceutical Industry Co., Ltd. (2) Investment in associates and joint ventures

The recoverable amount is determined as the net amount after fair value minus disposal costs.

□Applicable Not applicable

The recoverable amount is determined based on the present value of expected future cash flows.

□Applicable Not applicable

Reasons for the obvious inconsistency between the aforementioned information and the information used for impairment testing in previous years or external information: None

Reasons for the significant inconsistency between the information used for impairment testing of the company in previous years and the actual situation of that year: None

(3) Other instructions

None

Operating income and operating costs

Unit: Yuan Amount of the current period Amount of the previous period Items

Revenue Cost Revenue Cost Main business 643,717,096.67 579,036,879.37 561,082,680.29 526,157,888.29 Other businesses 430,820.99 44,550.00 380,256.88

Total 644,147,917.66 579,081,429.37 561,462,937.17 526,157,888.29 Breakdown information of operating income and operating costs:

Unit: Yuan Division 1 Division 2 Number of current period Total contract classification

business business business business

Operating income Operating costs Operating income Operating costs

revenue cost revenue cost

Business type

Among them:

By business area

Classification

Among them:

market or customer

Type

Among them:

Full text of the 2026 semi-annual report of Hunan Dajia Weikang Pharmaceutical Industry Co., Ltd.

Contract type

Among them:

Transfer by product

Time classification of 644,147,917.66 579,081,429.37 644,147,917.66 579,081,429.37

Among them:

at a certain point in time

643,717,096.67 579,036,879.37 643,717,096.67 579,036,879.37 Recognized income

at a certain time

Revenue will be recognized within 430,820.99 44,550.00 430,820.99 44,550.00

According to contract period

Classification

Among them:

By sales channel

644,147,917.66 579,081,429.37 644,147,917.66 579,081,429.37 Classification

Among them:

Pharmacy retail 643,717,096.67 579,036,879.37 643,717,096.67 579,036,879.37 Others 430,820.99 44,550.00 430,820.99 44,550.00Total 644,147,917.66 579,081,429.37 644,147,917.66 579,081,429.37 Information related to performance obligations: None

Other instructions: none

Information related to the transaction price allocated to the remaining performance obligations:

Major contract changes or major transaction price adjustments

None

Investment income

Unit: Yuan

Item Amount for the current period Amount for the previous period

Long-term equity investment income calculated using the equity method 3,104,023.11 Total 3,104,023.11

Full text of the 2026 semi-annual report of Hunan Dajia Weikang Pharmaceutical Industry Co., Ltd.

Others

None

20. Supplementary information

Detailed statement of non-recurring profits and losses for the current period

Applicable □Not applicable

Unit: Yuan

Item Amount Explanation of gains and losses from disposal of non-current assets -232,888.77 Government subsidies included in current profits and losses (related to the company’s regular

Closely related to regular business operations and in compliance with national policies

200,772.22, enjoy according to determined standards, and benefit the company

Except for government subsidies that have a lasting impact on profits and losses)

Gains and losses from entrusting others to invest or manage assets 177,320.31 Other non-operating income and

-2,261,160.05 expenses

Less: Income tax impact -477,653.81

Amount of impact on minority shareholders' equity (after tax) -425,732.82 Total -1,212,569.66 --Details of other profit and loss items that meet the definition of non-recurring gains and losses:

□Applicable Not applicable

The company has no other specific circumstances of profit and loss items that meet the definition of non-recurring profits and losses.

□Applicable Not applicable

Return on net assets and earnings per share

Earnings per share Profit for the reporting period Weighted average return on equity

Basic earnings per share (yuan/share) Diluted earnings per share (yuan/share) Net income attributable to the company’s ordinary shareholders

0.49% 0.04 0.04Profit

After deducting non-recurring gains and losses, attributable to

0.57% 0.04 0.04 Net profit of the company’s ordinary shareholders

Full text of the 2026 semi-annual report of Hunan Dajia Weikang Pharmaceutical Industry Co., Ltd.

Differences in accounting data under domestic and foreign accounting standards

(1) Differences in net profit and net assets in financial reports disclosed in accordance with both international accounting standards and Chinese accounting standards □ Applicable  Not applicable

(2) Differences in net profit and net assets in financial reports disclosed in accordance with both foreign accounting standards and Chinese accounting standards □Applicable Not applicable

(3) Explanation of the reasons for the differences in accounting data under domestic and foreign accounting standards. If differences are adjusted for data that have been audited by an overseas audit institution, the name of the overseas institution should be indicated.

□Applicable Not applicable

Others

None