/Haixiang Pharmaceutical: Attestation report on the storage and use of raised funds

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Haixiang Pharmaceutical: Attestation report on the storage and use of raised funds

Shenzhen Stock Exchange

2026/04/29

1. Restrictions on report users and purpose of use

This assurance report is only used for the disclosure of Haixiang Pharmaceutical Company's annual report and may not be used for any other purpose. We agree to use this assurance report as a necessary document for the annual report of Haixiang Pharmaceutical Company, and submit it together with other documents and disclose it to the public.

2. Responsibilities of management

The responsibility of the management of Haixiang Pharmaceutical Company is to provide true, legal and complete relevant information in accordance with the "Supervision Rules for Fund Raising by Listed Companies" (China Securities Regulatory Commission Announcement [2025] 10 No. 1) and the "Shenzhen Stock Exchange Self-Regulatory Guidelines for Listed Companies No. 1 - Standardized Operation of Main Board Listed Companies (Revised in 2025)" (Shenzhen Stock Exchange [2025] No. 480) prepare a "Special Report on the Annual Deposit, Management and Use of Raised Funds" and ensure that its content is true, accurate and complete, and does not contain false records, misleading statements or major omissions.

3. Responsibilities of Certified Public Accountants

Our responsibility is to independently provide assurance conclusions on the above-mentioned report prepared by the management of Haixiang Pharmaceutical Company based on the implementation of assurance work.

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4. Work Overview

We performed the assurance business in accordance with the Chinese Professional Standards for Certified Public Accountants. The Practice Standards for Certified Public Accountants in China require us to plan and implement assurance work to obtain reasonable assurance as to whether the information subject to assurance is free of material misstatements. During the attestation process, we implemented procedures we considered necessary, including verification of accounting records. We believe that our assurance work provides a reasonable basis for our opinion.

5. Assurance conclusion

We believe that the 2025 "Special Report on the Annual Deposit, Management and Use of Raised Funds" prepared by the management of Haixiang Pharmaceutical Company complies with the "Supervision Rules for Raised Funds of Listed Companies" (China Securities Regulatory Commission Announcement [2025] No. 10) and the "Shenzhen Stock Exchange Self-Discipline Supervision Guidelines for Listed Companies No. 1" No. - Standardized Operation of Main Board Listed Companies (Revised in 2025)" (Shenzhen Stock Exchange [2025] No. 480) truthfully reflects the actual storage, management and use of funds raised by Haixiang Pharmaceutical Company in 2025.

Tianjian Certified Public Accountants (Special General Partnership) Chinese Certified Public Accountants:

Hangzhou, China Chinese Certified Public Accountant:

April 27, 2026

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Zhejiang Haixiang Pharmaceutical Co., Ltd.

Special report on the annual storage, management and use of raised funds

In accordance with the provisions of the China Securities Regulatory Commission's "Supervisory Rules for Funds Raised by Listed Companies" (CSRC Announcement [2025] No. 10) and the "Shenzhen Stock Exchange Self-Regulatory Guidelines for Listed Companies No. 1 - Standardized Operations of Main Board Listed Companies (Revised in 2025)" issued by the Shenzhen Stock Exchange (SZSE [2025] No. 480), a special description of the storage, management and use of the company's raised funds in 2025 is as follows.

1. Basic situation of raised funds

(1) Actual amount of funds raised and time of fund arrival

According to the approval of the China Securities Regulatory Commission's Securities Regulatory Commission Document No. 765 [2016], the company, through the non-public issuance method of the lead underwriter Guotai Junan Securities Co., Ltd., non-publicly issued 99,890,023 shares of RMB ordinary shares (A shares) to specific targets, with an issue price of RMB per share. RMB 10.28, with a total raised capital of RMB 1,026,869,400. After deducting underwriting and sponsorship fees of RMB 10 million, the raised capital was RMB 1,016,869,400, which was remitted to the company's raised capital supervision account by Guotai Junan Securities Co., Ltd., the lead underwriter, on September 1, 2016. After deducting 12.4658 million yuan of new external expenses directly related to the issuance of equity securities such as underwriting fees and sponsor fees, lawyer fees, accountant fees, registration fees, etc., the company's net raised funds this time was 1.0144036 million yuan. The above-mentioned receipt of funds raised has been verified by Tianjian Accounting Firm (Special General Partnership), which issued a "Capital Verification Report" (Tianjianyan [2016] No. 358).

(2) Use and balance of raised funds

Amount unit: RMB 10,000

Project Serial Number Amount

Net amount of funds raised A 101,440.36

Project investment B1 101,455.13 Cumulative amount incurred as of the beginning of the period

Net interest income B2 6,866.89

Project investment C1 577.02 Amount incurred in this period

Net interest income C2 30.26 Cumulative amount as of the end of the period Project investment D1=B1+C1 102,032.15

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Project Serial Number Amount

Net interest income D2=B2+C2 6,897.15 Balance of raised funds E=A-D1+D2 6,305.36 Actual balance of raised funds F 6,305.36 Difference G=E-F

2. Storage and management of raised funds

(1) Management of raised funds

In order to standardize the management and use of raised funds, improve the efficiency and effectiveness of fund use, and protect the rights and interests of investors, the company complies with the "Company Law of the People's Republic of China", "Securities Law of the People's Republic of China", "Regulations on the Supervision of Funds Raised by Listed Companies" (China Securities Regulatory Commission Announcement [2025] No. 10) and the "Self-discipline of Listed Companies of the Shenzhen Stock Exchange" Regulatory Guidelines No. 1 - Standardized Operations of Main Board Listed Companies (Revised in 2025)" (Shenzhen Stock Exchange [2025] No. 480) and other relevant laws, regulations and normative documents, and based on the actual situation of the company, the "Measures for the Management of Raised Funds of Zhejiang Haixiang Pharmaceutical Co., Ltd." (hereinafter referred to as the "Management Measures"). According to the "Administrative Measures", the Company implements a special account for depositing the raised funds, establishes a special account for the raised funds in the bank, and together with the sponsor Guotai Junan Securities Co., Ltd., in September 2016 In March, the "Tripartite Supervision Agreement on Raised Funds" was signed with the Taizhou Jiaojiang Branch of the Industrial and Commercial Bank of China Co., Ltd., the Taizhou Branch of the Agricultural Bank of China Co., Ltd., and the Taizhou Branch of Ping An Bank Co., Ltd., and together with its wholly-owned subsidiary Taizhou Qian Chemical Co., Ltd. (hereinafter referred to as Taizhou Branch Zhou Qianjin Company) and Bank of China Co., Ltd. Taizhou Jiaojiang Branch, Zhejiang Haixiang Chuannan Pharmaceutical Co., Ltd. (hereinafter referred to as Chuannan Pharmaceutical Company) and Shanghai Pudong Development Bank Co., Ltd. Taizhou Branch signed the "Four-Party Supervision Agreement on Raised Funds", which clarifies the rights and obligations of all parties. In September 2018, the company signed the "Four-Party Supervision Agreement on Raised Funds" with Sichuan Nan Pharmaceutical Company, Guotai Junan Securities Co., Ltd., and Taizhou Jiaojiang Branch of Agricultural Bank of China Co., Ltd., which clarified the rights and obligations of all parties. In June 2023, the company signed the "Four-Party Supervision Agreement on Raised Funds" with Zhejiang Mingxiang Pharmaceutical Co., Ltd. (hereinafter referred to as Mingxiang Pharmaceutical Company), Guotai Junan Securities Co., Ltd. and Agricultural Bank of China Co., Ltd. Taizhou Jiaojiang Branch, which clarified the rights and obligations of all parties. There are no major differences between the supervision agreement and the Shenzhen Stock Exchange supervision agreement template, and the company has strictly complied with it when using the raised funds.

(2) Storage status of raised funds in special account

As of December 31, 2025, the company has 1 special account for raised funds and the deposit status of raised funds is as follows:

Amount unit: RMB 10,000

Bank where the account is opened Bank account number Balance of raised funds Remarks

Agricultural Bank of China has a special account for raised funds 19910101040094273 6,305.36

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Bank where the account is opened Bank account number Balance of raised funds Remarks

Co., Ltd. Taizhou Jiaojiang Branch

Total 6,305.36

3. Actual use of funds raised this year

(1) Comparison table of usage of raised funds

Please see Appendix 1 of this report for a comparison table of the use of raised funds.

(2) Explanation of abnormal situations in investment projects with raised funds

The original implementation location of the "Pharmaceutical Comprehensive R&D Center Project" was the company's Waisha factory in Jiaojiang District. Taking into account the long-term development plan of the park where each subsidiary is located, the functional positioning of the subsidiary was adjusted. According to the "Proposal on Changing the Implementation Subject and Location of Partially Raised Fund Investment Projects" reviewed and approved by the company at the 18th meeting of the fifth board of directors on August 28, 2018, the company changed the implementation subject of the project from the company to its wholly-owned subsidiary Sichuan Nan Pharmaceutical Company, and the implementation location was changed to Linhai City, Zhejiang Province. According to the "Proposal on Changing the Use of Raised Funds" passed by the company at the 2022 Annual General Meeting of Shareholders on May 15, 2023, the company's strategic plan was adjusted accordingly, and the implementation entity of the raised funds of 105.463 million yuan was changed from Sichuan South Pharmaceutical Company to Sun Company Mingxiang Pharmaceutical Company, and the implementation location was changed to Jiaojiang District, Taizhou City. As a result, investment progress has been delayed.

In order to meet the needs of the overall planning of the factory's production capacity, the upgrading of the collaborative reactive dye industry and the construction planning of supporting projects, the investment and implementation plans of the "Environmental Protection Facilities Renovation Project" have been delayed.

Affected by multiple factors such as the external environment, macroeconomic environment, and project approvals, the company has adopted a relatively stable strategy for capital investment in project construction, fixed assets, etc. involved in the "Headquarters Research Institute Project". The overall time for the project to reach the scheduled usable state has been delayed. The company will hold a board of directors meeting on October 27, 2025 to review relevant matters.

(3) Explanation of situations where the benefits of investment projects with raised funds cannot be separately calculated

Since the "Pharmaceutical Comprehensive R&D Center Project", "Pharmaceutical Pilot Workshop Technical Transformation Project", "Environmental Protection Facility Transformation Project" and "Headquarters Research Institute Project" do not directly produce products, their benefits are indirectly reflected in the quality of the products produced by the company, so the benefits cannot be calculated separately. The completion of the comprehensive pharmaceutical R&D center can strengthen the company's R&D strength and provide more technical support and project reserves for the development of the company's pharmaceutical business; the completion of the pharmaceutical pilot plant technical transformation project can enhance the company's R&D capabilities of APIs and API intermediate products, and customize new drug APIs and advanced intermediates. Processing brings strategic customer resources and project reserves; the completion of the environmental protection facility renovation project can strengthen the company's "three wastes" processing capabilities and provide guarantee for the company's dye and pharmaceutical business development; the completion of the headquarters research institute project can effectively improve the company's software and hardware conditions for research and development, and promote the launch of products under development as soon as possible.

There is no situation where the benefits of other raised fund projects cannot be calculated separately.

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