/Baheal Pharmaceutical: 2025 Semi-annual Report

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Baheal Pharmaceutical: 2025 Semi-annual Report

Shenzhen Stock Exchange

2025/08/29

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd.'s 2025 Semi-Annual Report Qingdao Baiyang Pharmaceutical Co., Ltd.'s 2025 Semi-Annual Report

August 2025

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd.'s 2025 semi-annual report

Section 1 Important Tips, Table of Contents and Definitions

The company's board of directors, board of supervisors and directors, supervisors 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.

Fu Gang, the person in charge of the company, Li Zhen, the person in charge of accounting work, and Liu Feng, 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.

If there are forward-looking statements such as future plans in this report, they 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.

During its operations, the company faces concentration risks in brand operation business, drug quality risks, policy risks, risks of intensified market competition, etc. For details, please see "10. Risks faced by the company and countermeasures" in "Section 3 Management Discussion and Analysis" of this report. Investors are kindly requested to pay attention and be aware of investment risks.

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

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd.'s 2025 semi-annual report

1. Company Profile

Stock abbreviation: Baiyang Pharmaceutical Stock Code 301015 Stock Exchange Shenzhen Stock Exchange

The Chinese name of the company: Qingdao Baiyang Pharmaceutical Co., Ltd.

Company’s Chinese abbreviation (if any) Baheal Pharmaceuticals

The company’s foreign name (if any) Qingdao Baheal Medical INC.

The abbreviation of the company’s foreign name (such as

Baheal Medical

Yes)

The legal representative of the company Fu Gang

2. Contact person and contact information

Secretary of the Board of Directors Name of Securities Affairs Representative Li Zhen Liu Nina

No. 1, No. 88 Tongbai Road, Shibei District, Qingdao City, Shandong Province No. 1, No. 88 Tongbai Road, Shibei District, Qingdao City, Shandong Province Contact address

Floor Tel: 0532-66756688 0532-66756688 Fax: 0532-67773768 0532-67773768 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 2024 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 company's semi-annual report preparation location did not change during the reporting period. For details, please refer to the 2024 annual report.

Registration changes

Whether the registration status has changed during the reporting period

□Applicable Not applicable

The company's registration status did not change during the reporting period. For details, please refer to the 2024 annual report.

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd.'s 2025 semi-annual report

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 Increase or decrease in operating income (yuan) compared with the same period last year 3,751,291,789.24 3,991,559,961.77 -6.02% Net profit attributable to shareholders of listed companies

163,135,677.61 402,629,193.14 -59.48% profit (yuan)

Deductions attributable to shareholders of listed companies

Net profit from non-recurring gains and losses 177,374,302.56 370,758,786.33 -52.16% (yuan)

Net cash flow from operating activities

391,764,657.40 471,622,531.68 -16.93% (yuan)

Basic earnings per share (yuan/share) 0.31 0.77 -59.74% Diluted earnings per share (yuan/share) 0.31 0.74 -58.11% Weighted average return on equity 7.07% 13.51% -6.44%

End of the reporting period End of the previous year Increase or decrease in total assets at the end of the reporting period compared with the end of the previous year (yuan) 7,159,889,636.92 7,112,584,251.13 0.67% Net assets attributable to shareholders of listed companies

2,169,932,617.41 2,374,910,404.59 -8.63% output (yuan)

Whether the company's share capital has changed from the end of the reporting period to the date of disclosure of the semi-annual report due to the issuance of new shares, additional issuance, rights issue, equity incentive exercise, repurchase, etc., and whether the amount of owner's equity has been affected

Yes □No

Preferred stock dividends paid 0.00 Perpetual bond interest paid (yuan) 0.00 Fully diluted earnings per share calculated using the latest share capital (yuan/share) 0.3104

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.

6. Non-recurring profit and loss items and amounts

Applicable □Not applicable

Unit: Yuan

Item Amount Description

Profit and loss from disposal of non-current assets (including provision 624,174.46

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd.'s 2025 semi-annual report

Offset portion of asset impairment provision)

Government subsidies included in current profits and losses (related to the company’s regular

Mainly for the investment promotion incentives received by subsidiaries to support their regular business operations and are closely related to national policies.

19,334,398.98 special funds to support and promote social and economic development, production regulations, enjoyment according to determined standards, and benefit to the company

Except for government subsidies that have a lasting impact on financial gains and losses due to high-quality development policies in the pharmaceutical and pharmaceutical industry)

Except for effective transactions related to the company’s normal business operations,

In addition to futures hedging business, non-financial enterprises hold financial

Mainly due to changes in the fair value of Zhongkang Holdings' stocks and Huahao Zhongtian Pharmaceutical's assets and financial liabilities -25,267,059.97 Gains and losses from changes in fair value of stocks and the disposal of financial assets and financial liabilities

profit and loss

Charges levied on non-financial enterprises included in current profits and losses

1,122,027.77Fund occupation fee

Other non-operating income other than the above items and

-5,729,897.84 Mainly expenses for donations

Other profit and loss items that meet the definition of non-recurring profits and losses

437,698.92 items

Less: Impact on income tax -1,812,430.84 Impact on minority shareholders' equity (after tax) 6,572,398.11 Total -14,238,624.95 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 that Offer Securities to the Public - 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 Qingdao Baiyang Pharmaceutical Co., Ltd.'s 2025 semi-annual report

Section 3 Management Discussion and Analysis

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

(1) Industry conditions of the company

As an important pillar industry of the national economy, the pharmaceutical industry has long shouldered the multiple tasks of ensuring people's livelihood, promoting technological innovation, and driving industrial upgrading. In the first half of 2025, my country's pharmaceutical industry has developed steadily driven by multiple factors such as policy deepening, technological innovation and capital empowerment. The continued deepening of medical insurance cost control and volume-based procurement policies have accelerated the reshaping of the industry structure.

At the beginning of 2025, the General Office of the State Council comprehensively deepened the reform of the review and approval system for drugs and medical devices, significantly shortened the review and approval cycle through systemic reforms, and accelerated innovation in the pharmaceutical industry. In the first half of 2025, the National Medical Products Administration approved 43 innovative drugs, a year-on-year increase of 59% and close to the total in 2024. At the same time, the 2025 national medical insurance policy reform will focus on "guaranteing the basics, promoting innovation, and improving efficiency", focusing on optimizing the access and payment mechanism for innovative drugs, giving priority to innovative drugs with significant clinical value into the medical insurance payment system, synchronously optimizing centralized procurement rules, balancing price competition and quality assurance, avoiding the "low price only" orientation, and guiding enterprises to focus on value competition.

From a market perspective, driven by the acceleration of population aging, deepening of policy reforms and technological innovation breakthroughs, the industry has shown strong development resilience. According to data from Guangkai Chief Industry Research Institute, China's pharmaceutical market size has reached 3.39 trillion yuan in 2024, with an average annual compound growth rate of approximately 5.5% from 2018 to 2023. The market size is expected to exceed 3.5 trillion yuan in 2025. This sustained growth trend fully demonstrates the vigorous endogenous power of China's pharmaceutical industry. With the rapid development of cutting-edge fields such as biotechnology, the industry is accelerating the strategic transformation from "imitation and following" to "parallel and leading" and even "original innovation", and the level of specialization and international competitiveness have been significantly improved. As the bubble in the Biotech industry clears and asset prices return to rationality, the company is seizing the window of strategic opportunities to accelerate the layout of its innovative pipeline and promote the transformation and upgrading from a "commercial platform" to an "innovative pharmaceutical company".

(2) Corporate strategic innovation and upgrading

2025 coincides with the company entering its third decade of development and a new starting point. The company's first ten years were brand-driven. Relying on a professional brand management system, the company successfully incubated leading brands in categories such as Diqiao, Fuzhenghuayu, and Mite through in-depth insights into patient needs and clinical scenarios, and accumulated professional and efficient brand operation capabilities and a nationwide marketing network. The second decade was platform-driven. The company built a commercialization platform and reached cooperation with many leading domestic and foreign pharmaceutical companies to create a "brand highway" to help make high-quality products accessible and release brand value. As the company is about to usher in its third decade, the company has launched an ecological innovation strategy, continues to promote the two-wheel drive of "investment incubation + commercialization", focuses on First-in-Class and the transformation of source innovation results, and invests in innovative projects that can truly optimize clinical scenarios.

In 2024, the company strategically acquired Baheal Pharmaceutical, extending the industrial chain to the production end, building a R&D and production platform for Chinese and Western medicines, using industrialization capabilities to empower the innovation and transformation of pharmaceutical sources, accelerating the application of medical innovation results in clinical practice, and injecting strong impetus into the company's long-term development. In the field of modern traditional Chinese medicine R&D and production, based on the concepts of diagnosable disease, controllable quality, and proven efficacy, Baheal Pharmaceutical has built a complete industrial chain of modern traditional Chinese medicine from medicinal planting, processing, extraction to finished preparations and commercialization, and has created a modern compound traditional Chinese medicine production platform that meets international standards. Its core product, Fuzheng Huayu Tablets (capsules), is a national medical insurance and essential drug variety. It is also the only Chinese patent medicine approved by the FDA in the field of liver disease that has completed Phase II clinical trials in the United States, and occupies a leading position in the field of anti-liver fibrosis. In the field of chemical drug R&D and production, the company focuses on high-barrier high-end formulation technologies such as the R&D and production of osmotic pump controlled-release dosage forms. Qingdao Baiyang Pharmaceutical Co., Ltd. has passed the cGMP on-site inspection of the US FDA with "zero defects" many times, and multiple products have been produced on the same line in China and the United States, with the same reimbursement and sales. In 2024, the first new anti-tuberculosis drug NTB-3119M tablets held by Qingdao Baiyang Pharmaceutical Co., Ltd. has successfully obtained drug clinical trial approval and is currently conducting Phase I clinical research.

In the field of innovative layout, the company has continuously increased the introduction of innovative products in recent years. In the field of innovative devices, the company invested in Zap Medical System, Ltd., the parent company of ZAP Surgical Systems, Inc., a global leader in radiotherapy technology. Not only did it become a shareholder of Zap Medical System, Ltd., it also obtained the commercialization rights in China for ZAP Surgical Systems, Inc.'s core product, the ZAP-X Mars Socket radiosurgery robot, and promoted the establishment of a global production base for radiotherapy equipment in China. In the field of innovative drugs, the company has obtained the commercialization rights in mainland China for Utidelon, a new generation of microtubule inhibitor chemotherapy drug from Beijing Huahao Zhongtian Biopharmaceutical Co., Ltd. In addition, the company has also locked in the commercialization rights in mainland China of Technetium [99mTc] Hydrazyl Nicotinamide Polyethylene Glycol Bicyclic RGD Peptide Injection (referred to as "99mTc-3PRGD2"), China's first independently developed innovative nuclear medicine drug, as well as the commercialization rights in mainland China of RAB001, a world-first (First-in-Class) innovative drug for the treatment of osteonecrosis from Zhongshan Lebo Ruichen Biopharmaceutical Co., Ltd.

In the third decade of development, adhering to the corporate mission of "optimizing medical scenarios through technological innovation", the company firmly promotes the strategic goals of "brand, innovation, and internationalization". Relying on our deep commercial accumulation, we are accelerating the construction of a development model driven by technological innovation: on the one hand, we continue to strengthen the market position of our core brands and build a solid foundation for development; on the other hand, we promote the introduction of innovative products into clinical practice and efficient transformation of our reserve pipeline through strategic innovation investments. Despite new product introduction and innovation investment

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd.'s 2025 semi-annual report

In the short term, the company will face pressure to invest resources, but as innovative results gradually enter clinical application, the company will achieve dual breakthroughs in medical scenario optimization and commercial value creation, creating greater value for patients and society.

(3) The company’s main business

As an innovative brand commercialization platform, the company's core business focuses on product development, manufacturing and commercial operations of medical innovation results. In order to promote the company's sustainable and high-quality development, under the guidance of its innovative development strategy, the company has firmly promoted its transformation and upgrading into an innovative pharmaceutical company.

Brand operation business is the core business of the company. It is not only the foundation of the company, but also the moat that ensures the company's steady development. It is also a powerful engine that drives the company's future value growth. Since its establishment, the company has always implemented an omni-channel commercial operation strategy: in OTC On the retail side, we have set an industry example with benchmark-level market performance. The company's flagship brand Diqiao has continuously consolidated its leadership position through category innovation and marketing innovation, ranking first in imported calcium. In recent years, it has launched a number of new liquid calcium products such as small yellow strips and small vermicelli, which have quickly captured the minds of consumers. At the same time, the company's emerging brand Newtsuma has won market recognition with the professional quality of medical-grade protein supplements, entered a period of rapid growth, and became the number one brand of imported pure whey protein sales. In the hospital channel, the success of core products such as Fuzhenghuayu and Mite has verified the company's professional academic promotion capabilities. Taking Fuzheng Huayu as an example, relying on complete evidence-based medical evidence and significant efficacy, and with the continuous promotion of the "dual-antibody concept" of hepatitis B anti-viral and anti-fibrosis, Fuzheng Huayu products have always maintained a leading market share. With the continuous deepening of the "dual-antibody" concept, it is expected to open up a broader market space. As a company that specializes in marketing, the company keenly seizes the opportunities of every era - in the face of Generation Z and the wave of digitalization, the company actively deploys emerging online channels, forming a comprehensive layout on traditional e-commerce platforms such as Taobao, JD.com, and Pinduoduo, as well as interest-based e-commerce platforms such as Xiaohongshu and Douyin, and even instant e-commerce platforms such as Meituan, to promote continued brand growth.

While consolidating its own brand operations, the company is also accelerating the introduction of innovative products with high added value to create a second growth curve. Based on long-term accumulation of industrial resources, the company has formed a forward-looking layout in fields such as tumors and bone health. In the field of brain tumors, a new generation of microtubule inhibitor chemotherapy drug, Eutideron, has established a differentiated clinical advantage in the treatment of brain metastases from HER2-negative breast cancer by virtue of its unique blood-brain barrier penetration ability; precision radiotherapy equipment for brain tumors - ZAP-X The Mars Ark radiosurgery robot has made a breakthrough in solving the pain points of edema caused by surgical treatment of brain tumors and the inability of drugs to pass through the blood-brain barrier, and has overcome the global problem of precise treatment of brain metastases. It has been approved for marketing in 24 countries and regions around the world, and has now participated in the "China Intracranial Metastases Collaborative Group" to promote the standardized diagnosis and treatment of brain metastases in my country. In terms of cooperation on innovative drugs for oncology and bone health, the company has obtained the commercialization rights in mainland China for 99mTc-3PRGD2, China’s first independently developed innovative nuclear medicine drug, which is also the world’s first for SPECT. Imaging broad-spectrum tumor imaging drugs have now entered the priority review channel for marketing applications; in the field of bone health, the company has obtained the rights to commercialize RAB001, a world-first (First-in-Class) innovative drug for the treatment of osteonecrosis from Zhongshan Lebo Ruichen Biopharmaceutical Co., Ltd. in mainland China. This product is currently undergoing Phase II clinical research.

Under the guidance of the innovative development strategy, the company has always been oriented towards optimizing medical scenarios, focusing on unmet clinical needs, and through the "investment incubation + commercialization" operating model, continues to build an innovative pharmaceutical and device product pipeline with clinical differentiation and market potential, injecting a steady stream of power into the company's performance growth and high-quality sustainable development.

R&D progress of major cooperation projects during the reporting period (January 1, 2025 to June 30, 2025)

IND approved Ⅰ Ⅱ Ⅲ Progress during the reporting period Drug name/code number Target/mechanism Preclinical research NDA approval Phase Phase Phase Launched Gileontide-99mTc-

NDA accepted for αvβ3 broad-spectrum tumor-specific imaging, such as lung cancer, breast cancer

3PRGD2

Phase II clinical trial of RAB001 bone modulator for the treatment of osteonecrosis and osteoporosis

Baiyang Pharmaceutical-NTB-

Phase I clinical trial of DprE1 in the treatment of refractory tuberculosis

3119M

Gilentan-99mTc-HP- Screens patients with HER2-positive tumors and guides treatment

IND approved for HER2

Ark2 therapy

Gilentan-99mTc- Broad spectrum tumor imaging diagnosis, such as

Preclinical research FAPI

POFAP liver and bowel cancer

Progress during the marketing reporting period Product name/code name Target/mechanism Type testing Clinical research

Submit application for registration Gilentai - SPECT/CT - Tumor Imaging Diagnosis

(4) Company operations during the reporting period

During the reporting period, the brand operation of the company's core business segment maintained steady growth. The main brands were in the growth stage and had formed a brand matrix, and the growth momentum continued to increase. The wholesale distribution business segment continued to be compressed. The company actively responded to the dual adjustments of weak market demand and policy regulation, from the traditional wholesale distribution business to the regional brand industry.

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd.'s 2025 semi-annual report

The business has been optimized and upgraded, and the quality of operations has been steadily improved; the retail business segment has remained stable. In response to industry changes, the company firmly promotes its innovation and transformation strategy, and develops and upgrades from an innovative brand commercialization platform to an innovative pharmaceutical company.

From January to June 2025, the company achieved operating income of 3.751 billion yuan; if the two-invoice business is restored, the company achieved operating income of 4.374 billion yuan. The company achieved a net profit of 163 million yuan attributable to shareholders of listed companies, and a net profit of 177 million yuan after deducting non-recurring gains and losses attributable to shareholders of listed companies. The company further focuses on the commercialization of innovative drugs and high-value devices, and continues to increase resource investment in the fields of oncology and radiotherapy.

Brand operation business

During the reporting period, the company's core business, brand operation business, achieved operating income of 2.716 billion yuan, a year-on-year increase of 1.36%, of which operating income in the second quarter was 1.421 billion yuan, an increase of 9.75% from the first quarter. If calculated after restoring the two-invoice business, the brand operation business achieved operating income of 3.339 billion yuan during the reporting period, a year-on-year increase of 14.91%, of which operating income in the second quarter was 1.736 billion yuan, maintaining a good growth trend. The gross profit margin of the brand operation business was 47.34%, the gross profit amount reached 1.286 billion yuan, and the gross profit accounted for 93.99%, which is the company's main source of profit.

The company's core brand Diqiao series achieved operating income of 905 million yuan. If the two-invoice business is restored, the operating income would be 950 million yuan. As the company's core brand, Diqiao will continue to focus on the field of calcium supplementation in 2025, continue to consolidate its market position as a "global calcium supplement expert", and continue to strengthen product life cycle management and digital marketing capabilities. With its ultimate pursuit of product quality and deep insight into consumer demand, in terms of product innovation, Diqiao continues to innovate in categories according to the calcium supplement needs of different groups. In the first half of the year, Diqiao launched the small vermicelli liquid calcium health product product to meet the personalized calcium supplement needs of women in offline retail drugstore shopping scenarios. At this point, Diqiao has achieved a comprehensive layout of different dosage forms from chewable tablets, granules, swallowable tablets to liquid calcium bars. In terms of brand building, Diqiao continues to deliver product value, enhance user awareness, and consolidate its leading position in the brand industry through cross-border cooperation with celebrities, and a series of brand education and academic activities such as the "China Children's Height Promotion Program" and the obstetric critical and severe case exchange competition project with the China Children and Teenagers' Foundation. With consistent professional accumulation and continuous innovation capabilities, Diqiao has ranked first in the imported calcium market for 9 consecutive years.

Hailu achieved operating income of 376 million yuan, a year-on-year increase of 14.86%. The company actively cooperates with upstream manufacturers and actively promotes the brand promotion of Hailu in the retail market as "gentle eye protection, frequent drops of Hailu" through promotional activities such as CCTV advertisements, escalator advertisements, O2O marketing publicity, and store clerks' science publicity. Targeting different groups and scenarios such as students, young people, and the elderly, we actively disseminate knowledge about healthy eyesight and strengthen the position of the Hailu brand. Through precise retail layout and digital marketing capabilities, the company protects the healthy and lasting growth of the Nau Lu brand.

Fuzheng Huayu achieved operating income of 371 million yuan, a year-on-year increase of 37.42%. As the "No. 1 brand in the anti-hepatic fibrosis category", Fuzheng Huayu has always insisted on "using evidence to demonstrate the power of traditional Chinese medicine" and continues to promote the "dual-antibody" concept of anti-viral and anti-fibrosis combined therapy for hepatitis B. At the same time, it continues to accumulate clinical evidence by conducting various clinical studies and establish brand differentiation advantages. In the first half of 2025, relying on the clear evidence-based evidence of strengthening the body and removing blood stasis, the company joined hands with experts and academic organizations in the field of liver disease to carry out a series of academic activities to strengthen doctors' understanding and clinical practice of "dual-antibody" treatment, and actively improve the understanding of standard diagnosis and treatment of liver cirrhosis in grassroots hospitals. Through the above series of actions, the influence and brand value of Fuzheng Huayu products have been effectively enhanced, and the leading position in the anti-fiber field has been stabilized. At present, anti-fibrosis treatment accounts for only 7% of anti-viral treatment in hepatitis B treatment. With the continuous deepening of the "double-antibody" concept in clinical application, there is a broad market space for strengthening the body and removing blood stasis.

The NutSuma series products achieved operating income of 78 million yuan, a year-on-year increase of 34.83%. In the first half of 2025, the NutSuma brand maintained rapid growth, and the company continued to consolidate the brand positioning of NutShuMa as the "leader in imported pure whey". In the hospital channel, the company participates in large-scale national academic conferences to increase brand exposure, insists on carrying out professional academic promotions such as department meetings, and promotes the improvement of nutritional concepts of front-line clinicians and the popularization of nutritional diagnosis and treatment. In online channels, through intensive cultivation and scenario-based content marketing, Newtsuma's sales scale has continued to expand, brand membership assets have continued to accumulate, and the volume has grown steadily. At the same time, the company continues to enrich its product matrix, and will officially launch Nutsuma Probiotic Isolated Whey Protein Powder in June 2025 to better meet the supplementary needs of different groups of people for high-quality protein.

At the same time, the company is actively promoting the clinical introduction of Utideron and Zap-X Mars Ark products, laying the foundation for subsequent market development. Utilideron officially launched its promotion work in January 2025. It has now covered more than 500 hospitals across the country, conducted more than 30 researcher-initiated studies, and has published multiple research results in top academic journals (such as JAMA Oncology) and domestic and foreign academic conferences (ASCO, ESMO, CSCO, etc.).

Judging from the overall operating results, Baheal Pharmaceutical has achieved remarkable results in optimizing its product structure. The proportion of revenue from exclusive patented products continues to increase. The rapid growth of high-margin products has led to an improvement in the overall gross profit margin. The company continues to strengthen the construction of its marketing system by establishing a professional promotion team and carrying out a large number of academic activities.

Wholesale distribution business

During the reporting period, the company's wholesale distribution business achieved operating income of 833 million yuan, a year-on-year decrease of 24.73%. The main reason was that the company focused on its core brand operation business and reduced the scale of its wholesale distribution business.

Retail business

During the reporting period, the company's retail business achieved operating income of 191 million yuan, a year-on-year increase of 0.08%.

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd.'s 2025 semi-annual report

(5) The company’s main business model

The company has established a complete organizational structure and has systems for research and development, production, procurement, and sales. The company's main operating income comes from the commercialization of medical and health products. Our main business models are as follows:

Investment incubation model

Based on insights into clinical scenarios and judgments on scientific research trends, on the one hand, the company selects high-quality innovative projects through market-based mechanisms and locks in intellectual property rights or commercialization rights with strategic investments. On the other hand, the company promotes the incubation of medical innovation results by working together with national-level scientific research institutions. Both parties give full play to their respective advantages in scientific research innovation, industrial incubation and market promotion, form a strong synergy, and produce medical innovation results with significant impact.

Production mode

The company has a modern production platform for traditional Chinese medicine and high-end sustained and controlled release preparations, and adheres to the core concept of "quality first". The company's chemical drug production base has passed the FDA's cGMP certification with "zero defects" many times, and is fully aligned with the FDA's full life cycle management regulations. Equipped with world-leading production equipment and standardized workshops to ensure that drugs meet global registration standards and end-clinical needs. The company's traditional Chinese medicine production base adheres to the modern traditional Chinese medicine R&D and production concept of "diagnosable diseases, controllable quality, and proven efficacy" and in accordance with FDA quality control standards to establish a modern digital compound production workshop for traditional Chinese medicine facing the international market. The company has a professional quality control team and has established a GMP management system covering raw material procurement, production process, product release, warehousing and logistics.

Procurement model

The company has a dedicated procurement department, which is fully responsible for the procurement of goods and materials required for the company's R&D, production, and operations. Based on the company's business development strategy and sales operation plan, the procurement department formulates scientific and reasonable procurement portfolio strategies, prepares procurement plans, and implements procurement on time to improve procurement efficiency and quality while reducing procurement costs. At the same time, the company has established stable cooperative relationships with suppliers by improving the "Supplier Management System", "Supply Chain Risk Response Mechanism" and other systems, using the digital procurement and sales linkage system, and adopting diversified communication mechanisms and preventive measures to provide a strong guarantee for the company's sustainable development.

Sales model

The company adheres to the concept of "optimizing medical scenarios through technological innovation" and is committed to providing better medical and health products and services to the whole society. Promote products into clinical application scenarios with high operational efficiency, compliant promotion system, and professional academic research.

The company has built an omni-channel marketing network covering hospital terminals, retail pharmacies, e-commerce platforms, etc., relying on professional and sound marketing teams such as the marketing department, sales department, and medical department to form a marketing closed loop of "academic drive + digital empowerment". Through professional academic promotion, precise patient education, rich marketing activities, and digital promotion tools, we achieve rapid product market penetration and brand building. In terms of sales channels, the company attaches great importance to cooperation with mainstream business partners, chain pharmacies, and online platforms. By examining the partners' local and industry popularity, influence, terminal coverage capabilities, payment collection capabilities and other factors, the company uses a hierarchical management system and dynamic assessment mechanism to sign strategic supply agreements to ensure efficient channel operations and controllable risks.

2. Analysis of core competitiveness

Clinical insight and innovation trend research and judgment capabilities

Relying on the founding team's profound medical background and rich clinical experience, the company has built a unique pharmaceutical industry insight system. The company has established a market research team since its establishment, and continues to conduct in-depth research on various sub-sectors of the pharmaceutical industry through cooperation with the clinical team. At the same time, the company has established cooperation with scientific research institutions and clinical institutions to build a three-in-one project evaluation mechanism of "scientific research-clinical-market". Based on three major systematic evaluation models (optimization of medical scenarios, height of technical barriers, and business synergy), the company has completed the screening of nearly a thousand products and projects and established an efficient project value discovery system. This screening capability, which combines medical professional insights and rigorous verification processes, has become the company's core competitive advantage in continuing to obtain high-quality products and innovative pipelines.

Professional brand commercialization capabilities

Based on many years of brand operation experience, the company has built a brand management system based on category research. Through a mature brand management model, clear category segmentation and precise brand positioning, it creates a brand that is rooted in the minds of consumers. At the same time, the company follows life cycle rules and allocates element resources according to the different life cycles of each product. And through the digital system, we can achieve precise marketing navigation, optimize operational strategies, improve operational efficiency, achieve rapid introduction of products and release value, and ensure maximum resource input and output. Currently, the company has formed a multi-brand matrix in four major categories: OTC and general health, OTX and other prescription drugs, oncology and other critical care drugs, and high-end medical devices, and its products in related fields are also increasing.

Complete ecological organization construction

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd.'s 2025 semi-annual report

Most of the company's management team come from large professional pharmaceutical companies, have many years of experience, and have unique insights into the current situation and future of the pharmaceutical industry. The company has established a professional commercial operation team: the first is the innovative drug team, which focuses on the brand marketing of serious diseases such as tumors, and uses professional academic promotion of innovative drugs to promote the introduction of products into clinical scenarios and provides disease treatment solutions; the second is the brand drug team, which focuses on the brand marketing of brand products, chronic diseases and common diseases such as digestive and metabolic diseases; the third is the innovative retail team, which focuses on online e-commerce, Douyin, Xiaohongshu and O2O and other new channels for brand marketing; in addition, the company also has an innovative equipment team that focuses on the clinical introduction of large-scale radiotherapy equipment, medical imaging equipment and other equipment products. Professional practitioners enable the company to leverage its strengths in various fields and lay a solid foundation for the company's innovative development.

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 3,751,291,789.24 3,991,559,961.77 -6.02%

Operating costs 2,383,156,639.69 2,586,119,493.94 -7.85%

Selling expenses 807,361,915.86 656,726,781.55 22.94%

Management expenses 141,441,987.15 117,995,749.13 19.87%

The main reason is that the company reported financial expenses 49,512,783.07 29,825,666.94 66.01% The increase in long-term and short-term borrowings corresponds to the increase in interest expenses

Mainly due to the decrease in the company's total profit during the reporting period corresponding to the decrease in income tax expenses for the period and income tax expenses 48,563,366.61 138,519,620.58 -64.94%

Increase in deductible temporary differences and decrease in deferred income tax expense

Mainly due to the company’s investment in research and development during the reporting period 17,916,778.63 11,859,847.53 51.07% The increase in test and laboratory processing fees for development projects

Cash generated from operating activities

391,764,657.40 471,622,531.68 -16.93%

Net flow

The main reason is that the company’s new investment in Baiyang Pharmaceutical Industry in Mentougou District, Beijing during the reporting period was cash capital fund (limited partnership) -280,703,130.38 -165,873,245.44 -69.23%

Net flow and investment from Langfang Linkong Baiyang Huixin Equity Investment Fund Partnership (Limited Partnership)

The main reason is the cash generated by the company's current financing activities due to supplementary operating activities during the reporting period.

477,324,481.28 346,377,790.61 37.80% Cash flow and payment net flow from the acquisition of Baiyang

The borrowings obtained from banks for pharmaceutical equity transfer funds increased net cash and cash equivalents.

585,177,325.13 652,768,379.88 -10.35%

increase

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

□Applicable Not applicable

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd.'s 2025 semi-annual report

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 cost compared to the previous year Gross profit margin compared to the previous year’s operating income Operating cost Gross profit margin

Increase/decrease in the same period of the year Increase/decrease in the same period of the year Increase/decrease in the same period of the year by business model

2,716,167,01 1,430,310,84

Brand operation business 47.34% 1.36% 2.07% -0.37%

1.66 4.70

Among them: Diqiao series 904,965,810. 305,306,968.

66.26% -14.22% -12.87% -0.52% Column 80 22

833,214,699. 765,904,970.

Wholesale distribution business 8.08% -24.73% -23.35% -1.65%

26 27

By region

1,108,099,18 835,002,497.

Shandong Province 24.65% -20.11% -21.83% 1.66% 8.04 83

373,457,744. 248,228,244.

North China 33.53% -9.40% -2.29% -4.84%

21 18

East China (except Shandong 693,742,665. 411,203,789.

40.73% 5.62% -2.45% 4.91%Outside the province) 56 94

369,874,812. 222,318,164.

South China 39.89% -9.81% -5.99% -2.45%

71 23

4. Analysis of non-main business

□Applicable Not applicable

5. Analysis of assets and liabilities

Major changes in asset composition

Unit: Yuan End of the reporting period End of the previous year

Major changes mean increase or decrease in the proportion of total assets to total assets

Amount Amount Ming

Proportion Proportion

Monetary funds 1,875,026,690.92 26.19% 1,467,403,220.46 20.63% 5.56%

Accounts receivable 1,625,961,253.32 22.71% 1,884,537,311.49 26.50% -3.79%

Contract assets 0.00% 0.00% 0.00%

Inventory 786,936,914.52 10.99% 927,753,115.69 13.04% -2.05%

Investment real estate 1,278,452.50 0.02% 1,327,708.18 0.02% 0.00%

Long-term equity investment 834,538,762.04 11.66% 727,624,417.04 10.23% 1.43%

Fixed assets 536,241,043.55 7.49% 535,910,126.42 7.53% -0.04%

Construction in progress 173,533,188.17 2.42% 152,262,124.97 2.14% 0.28%

Right-of-use assets 120,412,302.55 1.68% 122,481,520.03 1.72% -0.04%

The main reason is short-term borrowings 1,796,581,678.79 25.09% 1,098,574,415.39 15.45% 9.64% Company reporting period

Due to supplementary flow, the full text of Qingdao Baiyang Pharmaceutical Co., Ltd.'s 2025 semi-annual report

Funds borrowed from banks increase contract liabilities 92,259,987.62 1.29% 118,522,639.79 1.67% -0.38%

The main reason is that the company used long-term borrowings to pay for the acquisition of Baheal Pharmaceutical during the reporting period 495,422,848.84 6.92% 357,772,882.84 5.03% 1.89%

Equity transfer progress payment obtained merger and acquisition loan from bank

Lease liabilities 105,196,496.08 1.47% 102,562,856.59 1.44% 0.03%

The main reason is transactional financing. The company’s reporting period 119,388,157.31 1.67% 44,989,893.93 0.63% 1.04%

The main reason for the new investment in financial products is that the company's receivables held at the end of the reporting period were reclassified into fair value financing 119,480,805.05 1.67% 215,387,955.19 3.03% -1.36%

The amount of bank acceptance bills with changes included in other comprehensive income decreased compared with the same period last year.

The main reason is the company’s prepayments during the reporting period 277,434,287.59 3.87% 211,416,570.55 2.97% 0.90% Prepayments for newly purchased medical devices

The main reason is that the company received other receivables from Qingdao Bai during the reporting period 36,789,569.91 0.51% 161,577,496.67 2.27% -1.76%

The main reason for the current accounts of Yangshenghui Medical Equipment Co., Ltd. is the deductible deferred income tax temporary difference at the end of the company’s reporting period 84,139,079.93 1.18% 58,098,495.88 0.82% 0.36%

The main reason for the increase in deferred income tax assets corresponding to the increase in recoverable losses in production was the company's other non-current assets during the reporting period.

4,146,315.01 0.06% 8,099,278.04 0.11% -0.05% Prepaid long-term assets

The main reason for the decrease in property purchase price compared with the beginning of the period was that the company used bank acceptance notes payable during the reporting period 95,719,281.35 1.34% 397,938,509.16 5.59% -4.25%

Decrease in payments made by bills

Other payables 294,337,980.37 4.11% 560,404,147.45 7.88% -3.77% Mainly due to the full text of the 2025 semi-annual report of Qingdao Baiyang Pharmaceutical Co., Ltd.

During the reporting period, the company paid the equity transfer payment for the acquisition of Baiyang Pharmaceutical according to the progress. The main reason was that the company's estimated liabilities with Zhilan Yushu during the reporting period were 0.00% 5,000,000.00 0.07% -0.07%. The main reason for the transfer of litigation funds from (Beijing) Technology Co., Ltd. was that the company's deferred income tax liability was offset at the end of the period 6,629,311.62 0.09% 18,387,469.29 0.26% -0.17%

The deferred income tax liabilities after the debt decreased compared with the beginning of the period

Major overseas assets

Applicable □Not applicable

overseas assets

Protect assets. Is there any asset that accounts for the company’s net worth?

Reasons for formation Asset size Location Operation model Safety income status Contents of significant impairments Ratio of assets

Control measures High risk

Baiyang Health

Designator

Industrial International 101,225.3 12,677.96

members, strengthen

Trading Co., Ltd. Investment and establishment RMB 10,000 Hong Kong Independent operation RMB 10,000 41.44% No

management etc.

The company's stock currency

formula

right

Baiyang Group Designator

22,651.98

Co., Ltd. members, strengthening 8.8581 million

Investment and establishment RMB 10,000 Hong Kong Independent operation 9.27% No

(HK)’s stock management, etc. RMB

coins

right form

Newt Shuma Designated

10,480.1

International health workers, strengthening -2.2419 million

Equity acquisition RMB 10,000 Hong Kong Independent operation 4.29% No

Co., Ltd. Management etc. Yuan RMB

coins

equity formula

Designator

Nutrasumm 4,285.47

Members, strengthening -670,200

Equity acquisition of a, Inc. RMB 10,000 US Independent operation 1.75% No

Management, etc. RMB

Equity Coin

formula

ZAP Designator

37,034.55

MEDICAL member, strengthen -2,375.85

Equity investment RMB 10,000 Cayman Independent operation 15.16% No

SYSTEM management, etc. RMB 10,000

coins

LTD type

Assets and liabilities measured at fair value

Applicable □Not applicable

Unit: Yuan

Fairly included in equity in this period Provision in this period Purchase in this period Sold in this period

Item Opening amount Other changes Accumulated impairment amount of change in value of closing amount Amount

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd.'s 2025 semi-annual report

Profit and loss Fair value change

move

financial assets

transactional money

Financing assets -

44,989,89 230,000,0 130,000,0 119,388,1 (excluding derivatives 25,601,73

3.93 00.00 00.00 57.31 Financing 6.62

production)

Other non-streaming -

15,000,00 14,854,52 Dongfang Financing 145,470.4

0.00 9.53 produced 7

Accounts receivable 215,387,9 119,480,8

95,907,15

Financing 55.19 05.05 0.14

Financial assets 275,377,8 230,000,0 130,000,0 253,723,4

25,747,20 0.00 0.00 95,907,15

Subtotal 49.12 00.00 00.00 91.89 7.09 0.14

275,377,8 230,000,0 130,000,0 253,723,4 Total of the above 25,747,20 0.00 0.00 95,907,15

49.12 00.00 00.00 91.89

7.09 0.14

Financial liabilities 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00Other changes

Changes in receivables financing: Changes in receivables financing held by the company at the end of the reporting period compared with the beginning of the period.

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

Item Book balance (yuan) Book value (yuan) Restricted type

Monetary funds

76,927,410.44 76,927,410.44 Bank acceptance bill deposit, guarantee deposit for issuance of letter of guarantee, and letter of credit deposit

Notes receivable 40,687,319.05 40,687,319.05 Endorsed, discounted but not due

Fixed assets 65,248,175.45 45,619,345.43 Loans and mortgages

Intangible assets 26,693,745.93 20,441,607.74 Loan mortgage

Accounts receivable 17,078.60 16,993.21 Loan pledge

Total 209,573,729.47 183,692,675.87

6. Investment status analysis

Overall situation

Applicable □Not applicable

Investment amount during the reporting period (yuan) Investment amount during the same period last year (yuan) Change range

375,241,545.77 320,864,198.37 16.95%

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd.'s 2025 semi-annual report

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

Unit: Yuan included in equity

Fair in this period

Cumulative disclosure of initial investment during the reporting period Cumulative investment during the reporting period

Asset category Change in value Other changes Closing amount Fund source cost Change in fair value Purchase amount Sold amount Income

Profit and loss

move

39,264,8 19,388,1 stocks 25,601,7 own funds 60.80 57.31 36.62

15,000,0 14,854,5 Fund 145,470. Own funds 00.00 29.53 -

215,387, 119,480, Others 95,907,1 Own funds 955.19 805.05 50.14

269,652, 153,723, total 25,747,2 0.00 0.00 0.00 0.00 95,907,1 -- 815.99 491.89

07.09 50.14

Usage of raised funds

Applicable □Not applicable

(1) Overall use of raised funds

Applicable □Not applicable

Unit: Report in 10,000 yuan

End of term

Report Cumulative

Cumulative raised funds have not been changed in the current period. Changes in idle funds have not yet been used. Raised funds have been used for two years.

Securities Raising Use Raising Purpose Use Raising Raising Raising Funds Raising Purpose Above

Listing Fund Raising Ratio Raised Fund Year Method Net Amount Raised Fund Raising Date Total Fund Total (3) Fund Raising Fund Purpose (1) Total Fund Total Fund Raised Fund Amount = Total Fund Raised and Removal Total Fund Raised Ratio Amount (2) (2) Amount To Amount Example

(1)

2021 136.0

first time

2021 06 40,18 34,26 29,28 85.47 14.59 5,136 70,000

Public 0 0 5,000 5,000 Year Month 30 6.4 2.05 2.37 % .07 Yuan deposit issuance

put on

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd.'s 2025 semi-annual report

company

Recruit

funds

Special account

inside,

5,000

Ten thousand yuan

used for

temporarily

supplement

flow

capital

gold.

1,510

.87

Ten thousand yuan

store

Yu Gong

Xiangbu Siji

specific fundraising

Object 2023 Gold Specialist

2023 Issue Year 05 86,00 85,22 585.5 31,75 37.26 53,51 households 50,00

0 0 0.00%

Year can be transferred Month 05 0 1.15 4 2.58 % 0.87, 0 can be converted into public day 5.2

Corporate debt 100 million yuan

Voucher for

temporarily

supplement

flow

capital

gold.

126,1 119,4 585.5 61,03 51.08 58,64 55,00Total -- -- 0 5,000 4.18% --

86.4 83.2 4 4.95% 6.94 0

Description of the overall use of raised funds

Fund raising through initial public offering of shares

From 2021 to 2024, the company has used a total of 292.8237 million yuan of raised funds, of which 272.6205 million yuan was used to supplement working capital, 20.1989 million yuan was used for the e-commerce operation center construction project (including interest), and the net interest income from the special account for raised funds after the e-commerce operation center construction project was completed was 4,315.62 yuan. Yuan is used to permanently replenish working capital; the company’s accumulated bank deposit interest, net of bank fees, etc., is 1.5614 million yuan.

From January to June 2025, the company did not use the funds raised from the initial public offering of stocks; the net amount of bank deposit interest received by the company minus bank fees, etc. was 2,500 yuan; as of June 30, 2025, the balance of the company's raised funds was 51,360,700 yuan.

Raise funds by issuing convertible bonds to unspecified objects

In 2023-2024, the company has used a total of 311.6704 million yuan of raised funds, of which 64.4311 million yuan was used for the Baiyang cloud system upgrade project, 247.2115 million yuan was used to supplement working capital, and the net remaining interest income from the special account for supplementing working capital was 27,737.60 Yuan is used to permanently replenish working capital; the company’s accumulated bank deposit interest, net of bank fees, etc., is 414,200 yuan.

From January to June 2025, the company used raised funds of 5.8554 million yuan, all of which were used for the Baiyang cloud system upgrade project; the net amount of bank deposit interest received by the company, deducting bank fees, etc., was 8,800 yuan; as of June 30, 2025, the balance of the company's raised funds was 535.1087 million yuan.

(2) Project status of fund-raising commitments

Applicable □Not applicable

Unit: 10,000 yuan

Financing Securities Commitment Whether Raising Raising Adjustment This newspaper As of As of project This newspaper As of project Whether

Project

Project Listed Investment Changed Funds Funds Post-investment Reporting period Period-end Period-end Reached Reporting period Reported Reached Feasible

nature

Name Date Project Update Net Amount Commitment Total Capital Investment Cumulative Investment Scheduled Realization End of Period Estimated Properties

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd.'s 2025 semi-annual report

Hechao project investment amount, investment progress, cumulative benefit, whether to raise funds (including total amount (1), amount (3), use state benefits to realize heavy investment, part (2) = significant change in status, direction change (2)/period benefit

more) (1)

Commitment to investment projects

2021 2021 Hyundai

First of the Year Logistics

30,3

Second Public 06 Distribution Production 5,00 Discomfort

Yes 20.4 0 - - - - - - Yes Development Month Center Construction 0 User Bank 30 Construction

Ticket Day Item

2021 2021 Electronics 2023

first year business year

Subcompany 06 Operation Operation 2,00 4,89 2,00 2,01 100. 05 1,38 3,68

No 0 Yes No Development Month Center Management 0 6.35 0 9.89 99% Month 8.39 6.11 Bank 30 Construction 31

Ticket Day Project Day

2021 2021

first year year

Supplement 27,2 27,2 27,2

Cigong 06 35,0 100. Discomfort Discomfort Discomfort Discomfort

Flow Supplementary flow No 62.0 62.0 0 62.4 No Development Month 00 00% Use Use Use Use

Funding 5 5 8

Stocks 30

ticket day

2023

year direction

2023 Baiyang

Not special

year brand

Definitely right

05 Operation Production 50,0 50,0 55,0 0.00 Discomfort Discomfort Discomfort Discomfort No 0 0 No

Month Center Construction 00 00 001 % Use Use Use Use OK

05 Construction

Convert

day items

company

bond

2023

year direction

2023 2025

Bu Te Baiyang

year year

Determined cloudification

05 Operation 10,5 10,5 10,5 585. 7,02 66.9 12 Discomfort Discomfort Discomfort System No No

Monthly Management 00 00 00 54 8.66 4% Monthly Use Use Can be upgraded with the line

05 31

Convert items

day day

company

bond

2023

year direction

2023

Not special

year

Definite pair Supplementary 24,7 24,7 24,7

05 25,5 100. Discomfort Discomfort Discomfort Discomfort Flow Replenish flow No 21.1 21.1 0 23.9 No

Month 00 01% Use Use Use Bank of Finance 5 5 2

Convert

day

company

bond

119, 156, 119, 61,0

1,38 3,68 Subtotal of committed investment projects -- 483. 216. 483. 34.9 -- -- -- -- 54 8.39 6.11

2 82 2 5

Investment direction of super-raised funds

Discomfort Discomfort Discomfort None None No No

use use use

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd.'s 2025 semi-annual report

119, 156, 119, 61,0

1,38 3,68

Total -- 483. 216. 483. 34.9 -- -- -- -- 54 8.39 6.11

2 82 2 5

The "Baiyang Brand Operation Center Construction Project" does not directly add new production equipment, and the project construction does not produce direct economic benefits.

The company held the 25th meeting of the third board of directors and the 21st meeting of the third board of supervisors on October 25, 2024, and reviewed and approved the "Proposal on Suspending the Implementation of Some Fund-raising Projects" and decided to suspend the implementation of the "Baheang Brand Operation Center Construction Project." Description of project based on market variation

ation, the company's development strategy and the implementation of the "Baheang Pharmaceutical Brand Commercialization Northern Logistics Base", the company's adjustment of the existing logistics system has not reached the plan.

City layout. In the past two years, the company has successively built business branches in Beijing, Langfang and other places, and continues to promote the company's multi-center development strategy. Based on this progress and estimate

As a result, the construction progress of Qingdao regional brand operation center has slowed down. In view of the changes in the urban layout of the company's existing logistics system, in order to avoid resource gains

Waste and duplication of investment, reduce enterprise production and operation costs, improve the efficiency of use of raised funds, safeguard the long-term interests of the company and shareholders, after review and reasons (including

After careful analysis, the company decided to postpone the implementation of the "Baheang Brand Operation Center Construction Project." For details, please refer to the company’s “Whether it has reached

(www.cninfo.com.cn) disclosed the "Announcement on the Suspended Implementation of Some Fund-raising Projects".

"Estimated benefits"

"Baiyang Cloud System Upgrade Project" is an information project and does not directly generate project income; however, this project will effectively improve the company's overall operation options.

improve operating capabilities and work efficiency, and reduce operating costs, thus indirectly improving the company's profitability.

The original meaning of "use"

The company held the 25th meeting of the third board of directors and the 21st meeting of the third board of supervisors on October 25, 2024, which were reviewed and approved (due to)

The company passed the "Proposal on the Extension of Some Fund-raising Projects" and decided to extend the time for the "Baiyang Cloud System Upgrade Project" to reach the scheduled usable state until December 31, 2025. For details, please refer to the "Announcement on the Delay of Some Fund-raising Projects" disclosed by the company on the cninfo.com (www.cninfo.com.cn).

Project feasibility The company's core business is brand operation business, and brand operation business revenue is the company's main source of profit. Wholesale distribution business is not the company's key development direction for major changes in the future. The brand operation industry has broad development prospects, and the company has competitive advantages such as leading brand operation capabilities. According to the situation of publicization, the company's change of "modern logistics distribution center construction project" is a prudent decision based on changes in factors such as the market environment and the company's business development needs. It is closely related to the company's development strategy and existing main business, and is conducive to the company's further improvement of profitability.

over-funded

Amount, purpose

Not applicable

and usage progress

situation

There is unauthorized modification

Change raised funds

Purpose, violation Not applicable

Taking up the raised funds

gold situation

Raise funds to invest

capital project implementation

Not applicable

Change of location

situation

Raise funds to invest

capital project implementation

Not applicable

way to adjust

situation

Applicable

Investment of raised funds As of April 20, 2023, the company has pre-invested in the raised investment project "Baiyang Cloud System Upgrade Project" with self-raised funds, totaling RMB 22,197,667.70 in advance. On June 20, 2023, the company held the eighth meeting of the third board of directors and the seventh meeting of the third board of supervisors. Investment and replacement reviewed and approved the "Proposal on the Use of Raised Funds to Replace Self-raised Funds for Early Investment Projects", and agreed that the company would use convertible bonds to raise RMB 22,197,667.70 yuan to replace self-raised funds for early investment projects. Lixin Accounting Firm (Special General Partnership) issued the "Special Assurance Report on the Replacement of Funds Raised by Qingdao Baiyang Pharmaceutical Co., Ltd." (Xin Huishi Bao Zi [2023] No. ZG11752). Applicable

On June 20, 2023, the company held the eighth meeting of the third board of directors and the seventh meeting of the third board of supervisors, and reviewed and approved the "Proposal on Using Part of Idle Raised Funds to Temporarily Supplement Working Capital" and agreed to use no more than RMB 600 million in idle raised funds to temporarily supplement working capital, including RMB 50 million from the company's initial public offering of stocks and the idle proceeds from the issuance of convertible bonds to unspecified objects.

The capital is 550 million yuan, and the period of use shall not exceed 12 months from the date of review and approval at the eighth meeting of the company’s third board of directors. Funding will be temporarily replenished until 2024

On June 18, the company has returned all 600 million yuan of idle raised funds used to temporarily supplement working capital to the company’s special account for raised funds to replenish working capital.

The period of use does not exceed 12 months.

situation

On July 5, 2024, the company held the 21st meeting of the third board of directors and the 18th meeting of the third board of supervisors, and reviewed and approved the "Proposal on Using Part of Idle Raised Funds to Temporarily Supplement Working Capital" and agreed to use no more than RMB 570 million of idle raised funds to temporarily supplement working capital, including RMB 5,000 of the company's initial public offering of stock funds. Ten thousand yuan and 520 million yuan of funds raised from the issuance of convertible bonds to unspecified objects, the use period shall not exceed 12 months from the date of review and approval at the 21st meeting of the third session of the board of directors of the company.

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd.'s 2025 semi-annual report

As of July 2, 2025, the company has returned all 570 million yuan of idle raised funds used to temporarily supplement working capital to the company's special account for raised funds, and the use period does not exceed 12 months.

Applicable

Project implementation

In May 2023, after the "E-commerce Operation Center Construction Project" was completed, the special account for raised funds generated interest income of 4,315.62 yuan and used the current raised funds.

To permanently replenish working capital; in July 2023, after the completion of the "Supplementary working capital (convertible bond investment project)" project, the amount of the balance of the special account for the raised funds

Interest income of RMB 27,737.60 will be used to permanently replenish working capital; according to relevant rules, the above-mentioned use of surplus raised funds to permanently replenish working capital and the reasons

Capital matters do not need to be reviewed by the board of directors or shareholders' meeting.

As of June 30, 2025, the company's unused funds raised from the initial public offering were 51.3607 million yuan, of which 50 million yuan was used for unused funds.

To temporarily replenish working capital, the remaining 1.3607 million yuan is deposited in the company's special account for raised funds; the company's unused convertible bond raised funds are used for raising funds.

531.5087 million yuan, of which 520 million yuan was used to temporarily supplement working capital, and the remaining 15.1087 million yuan was deposited in the company's special account for raised funds.

within. The unused raised funds will continue to be used for investment project expenses in the future.

Raise funds to make

In use and disclosed

None

Problems

or other situations

Note: 1 RMB 50 million of which was changed from the company’s initial public offering investment project “Modern Logistics Distribution Center Construction Project” to be used for “Bayang Brand Operation Center Construction Project”

"Design project"

(3) Project changes with raised funds

Applicable □Not applicable

Unit: 10,000 yuan

After change Deadline after change Deadline Project reaches

Project Proposal The project in this report corresponds to the actual final investment and whether the planned investment in this report is achieved.

Financing item Raiser After change, the actual feasibility of the investment during the fundraising period, the original commitment, the cumulative investment progress, the usable period, and the expected realization

The project name of the project is raised. Input money. Whether to issue the project? Input amount (3)=(2) Benefits on status day

Total Amount Student Major

(2) )/(1) issue

(1) Changes in 2021 Baiyangpin Modern Things

First public announcement First public brand operation Logistics distribution

5,000 0 0 0.00% Not applicable 0 Not applicable No development bank Development bank Central construction Central construction

Stock Setup Project Setup Project

Total -- -- -- 5,000 0 0 -- -- 0 -- -- On January 7, 2022, the company held the 24th meeting of the second board of directors and the 16th meeting of the second board of supervisors, and held the first extraordinary shareholders meeting of 2022 on January 24, 2022. They reviewed and approved the "Proposal on Changing the Use of Funds Raised by Some Initial Public Offerings of Stocks" respectively, and agreed that the company would change the use of some funds raised by the initial public offering of stocks. According to market changes and the company's operating needs, in order to improve the efficiency of the use of raised funds, the company terminated the first change of reasons, decision-making procedures and information. The public issuance of stock investment project "Modern Logistics Distribution Center Construction Project" will no longer be implemented, and the balance of funds raised for the purpose of disclosure of the above items (divided into specific projects) of 50 million yuan (including accumulated bank interest income and deduction of handling fees, etc., the specific amount shall be based on the actual remaining amount of raised funds at the time of implementation) will be used for the new project "Baiyang Brand Operation Center Construction Project". The company's independent directors and board of supervisors all expressed agreement on the above-mentioned changes to the investment project, and the sponsor Dongxing Securities Co., Ltd. issued a special verification opinion. For details, please refer to the relevant announcements disclosed by the company on the Juchao Information Network (www.cninfo.com.cn).

The "Baiyang Brand Operation Center Construction Project" does not directly add new production equipment, and the project construction does not produce direct economic benefits. The company held the 25th meeting of the third board of directors and the 21st meeting of the third board of supervisors on October 25, 2024, and reviewed and approved the "Proposal on Suspending the Implementation of Some Fund-raising Projects" and decided to suspend the implementation of the "Baheang Brand Operation Center Construction Project." Based on market changes, the company's development strategy and the fact that "the commercialization of the Baheal Pharmaceutical brand in the northern logistics base has not reached the planned progress or the expected revenue location", the company adjusted the urban layout of the existing logistics system. In the past two years, the company has successively built business branches in Beijing, Langfang and other places (divided into specific projects), and continues to promote the company's multi-center development strategy. On this basis, the construction progress of Qingdao regional brand operation center has slowed down. In view of the changes in the urban layout of the company's existing logistics system, in order to avoid resource waste and duplication of investment, reduce corporate production and operation costs, improve the efficiency of the use of raised funds, and safeguard the long-term interests of the company and shareholders, after careful review, the company decided to postpone the implementation of the "Baheang Brand Operation Center Construction Project." For details, please refer to the "Announcement on the Suspension of the Implementation of Some Fund-raising Projects" disclosed by the company on the cninfo.com (www.cninfo.com.cn). The feasibility of the project after the change is seriously affected Not applicable

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd.'s 2025 semi-annual report

Description of big changes

Entrusted financial management, derivatives investment and entrusted loans

(1) Entrusted financial management situation

Applicable □Not applicable

Overview of entrusted financial management during the reporting period

Unit: 10,000 yuan of funds for entrusted financial management. Overdue funds that have not been recovered. Specific types of overdue financial management. Amount of entrusted financial management. Unexpired balance.

Source Amount Impaired amount Bank financial products Self-owned funds 23,000 10,000 0 0Total 23,000 10,000 0 0Details of high-risk entrusted financial products with significant individual amounts or low safety and poor liquidity

□Applicable Not applicable

The entrusted financial management is expected to be unable to recover the principal or there are other situations that may lead to impairment

□Applicable Not applicable

(2) Derivatives investment situation

□Applicable Not applicable

The company had no derivative investments during the reporting period.

(3) Entrusted loans

□Applicable Not applicable

The company had no entrusted loans 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 Baiyang Health Subsidiaries Brand services 118.45 million 1,124,508 830,481,6 591,857,4 161,700,0 131,178,1

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd.'s 2025 semi-annual report

Industrial international and cross-border e-commerce Hong Kong dollar,721.35 63.69 97.25 66.81 99.49 Trading Co., Ltd.

company (together

and)

Beijing Baiyang

Zhihe Medical Brand Services

50,000,00 388,213,9 253,864,7 279,093,6 98,450,26 74,255,28 Results transformation subsidiaries and marketing strategies

0.00 19.12 80.62 37.28 5.57 5.19 Limited service plan

company

Shanghai Baiyang

Pharmaceutical shares Pharmaceutical production 114,025,8 1,205,669 727,692,9 538,219,7 127,803,4 106,644,9

Subsidiaries

Co., Ltd. and sales 00.00,790.98 63.71 19.67 80.75 09.79 (consolidated)

ZAP

- MEDICAL Device production 135,000 US dollars 525,540,9 278,989,5 80,374,81

Joint-stock companies 99,349,68 134,324,4 SYSTEM and sales Yuan 12.78 52.49 0.81

9.11 65.47 LTD

Acquisition and disposal of subsidiaries during the reporting period

Applicable □Not applicable

Company name How to acquire and dispose of subsidiaries during the reporting period Impact on overall production operations and performance

Adjusted the company's equipment sales layout, and newly established the company Beijing Baixin Kangda Medical Equipment Co., Ltd.

No significant impact on performance

Adjust the company's drug sales layout and evaluate the company's performance Qingdao Baiyang Wanglian Pharmacy Co., Ltd. Cancel

no significant impact

Description of major holding and joint-stock companies

The operating performance of a single subsidiary of the company has not fluctuated significantly. For details, please refer to "Section 3 Management Discussion and Analysis" of this annual report.

9. Structured entities controlled by the company

□Applicable Not applicable

10. Risks faced by the company and countermeasures

Concentration risk of brand operation business

Diqiao series products are one of the important brand products operated by the company and have an important impact on the company's brand operation business and overall performance. Once there are major changes in the market competition pattern of the Diqiao series products, major changes in consumer preferences, fluctuations in the production of the Diqiao series products, or other adverse factors that may affect the business of the Diqiao series products, it may lead to major fluctuations in the company's brand operation business, which in turn will affect the company's overall performance.

Risk response measures: In recent years, the number of brands operated by the company has grown significantly. The company will continue to deeply explore the needs of downstream consumers, give full play to the core competitiveness of the "brand highway", use the sales channels and customer resources accumulated over the years to attract upstream brand cooperation, continuously enrich the brand matrix operated by the company, and reduce the risk of concentration of brand operation business.

Drug quality risks

Drug quality and safety involves all aspects of drug production, packaging, circulation, use, etc. Problems in any link may lead to drug safety problems. Although the company has established a strict quality management system in accordance with relevant requirements, it has full-process quality management measures from procurement, acceptance, storage, transportation to sales. However, since the company is not a pharmaceutical manufacturer, it cannot fully control the production quality of the products it operates. Although the company has stipulated in the relevant cooperation agreement that when product quality problems occur, the company can return all products with quality problems to the suppliers. However, once drug quality problems occur, it will still have a large negative impact on the company's business operations and market image, so the company faces drug quality risks.

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd.'s 2025 semi-annual report

Risk response measures: The company continues to thoroughly and strictly implement quality management measures to control drug quality throughout the entire process from procurement, acceptance, storage, transportation to sales, etc., making quality management the top priority; at the same time, it strictly assesses and screens cooperative suppliers, selects high-quality cooperative brands or products, and comprehensively prevents drug quality risks.

Policy risks

The medical industry is significantly affected by regulatory policies. The implementation of relevant policies has an important impact on the development of the pharmaceutical industry and will lead to changes in the competition and interest patterns of the upstream and downstream industries. If national policies are unfavorable to the company's business operations, or the company cannot make timely business adjustments in accordance with relevant policies or adapt to new industry competition conditions, it will have an adverse impact on the company's operating performance.

Risk response measures: The company attaches great importance to policy changes, effectively captures policy dynamics, implements forward-looking layout and adjustments, and proactively responds to possible policy risks; at the same time, the company will continue to improve its operational management level, strengthen management team building, optimize internal business controls, management processes and operating mechanisms, continue to explore opportunities in areas related to its main business, and reduce operating risks caused by policy changes.

Risks of intensifying market competition

With the reform of the pharmaceutical system, the division of labor in the pharmaceutical industry continues to be refined, and the role of brand operation business in the industry chain has become increasingly obvious. Industry manufacturers are paying more and more attention to the layout of brand operation business. Existing brand operating companies are constantly increasing investment in operations, and market competition is intensifying. At the same time, the company will also face competition from enterprises whose main businesses are wholesale and retail. Traditional pharmaceutical wholesale and retail companies have certain advantages in channel control and have a certain understanding of the business operation rules of different regional markets. This determines that pharmaceutical wholesale and retail companies can participate in the promotion and sales of pharmaceutical products. Although the core operating mechanisms and organizational structures of traditional pharmaceutical wholesale and retail companies focus on their core businesses, and the brand operation business of pharmaceutical products accounts for a relatively small proportion, it will still have a certain impact on the brand operation industry.

Risk response measures: The company will continue to focus on the development of its main business, deepen the cooperation model with existing customers, actively explore new customers and new markets, take effective measures to expand the brand matrix and sales network, increase the coverage of existing sales channels, improve the comprehensive service capabilities of brand operations, and continuously enhance its market competitiveness.

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

Applicable □Not applicable

The main topic of discussion

Basic information of the survey: reception time, reception location, reception method, type of reception objects, reception objects, content and information provided.

condition index information

For details, see the company's participation in the company 2025

Chao Information Network Panorama Network "Investment Company in Qingdao District in 2024"

(www.cninfo.

Level of investor relationship interaction Level of investors in listed companies and 2025

May 2025 Network platform online (com.cn) disclosed

"Taiwan" Others Online collective reception First quarter results

On the 12th, we exchanged information on May 2025 (https://ir and 2024) and company operations.

Investment.p5w.net (Month 12th) Performance briefing meeting Product status

investor relations activities

Record form》

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 market value management behaviors, and safeguard the legitimate rights and interests of the company, investors and other stakeholders, the company formulated the "Market Value Management System" in accordance with relevant regulations and combined with the actual situation. This system was reviewed and approved at the 31st meeting of the company's third board of directors on April 22, 2025.

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd.'s 2025 semi-annual report

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

Has the company disclosed an announcement on the “Dual Improvement of Quality and Return” action plan?

Yes □No

In order to implement the guiding ideology of “activating the capital market and boosting investor confidence” proposed by the Political Bureau of the Central Committee and “vigorously improve the quality and investment value of listed companies, and take more effective and effective measures to stabilize the market and stabilize confidence” proposed by the Executive Meeting of the State Council, promote the company’s long-term and healthy development, effectively protect the interests of all shareholders, and enhance investment Based on the confidence of investors and combined with the company's development strategy and operating conditions, the company formulated an action plan of "double improvement of quality and returns". The specific measures are as follows: 1. Focus on the main pharmaceutical business and consolidate the layout of the pharmaceutical industry; 2. Adhere to standardized operations and improve corporate governance levels; 3. Improve the quality of disclosures and enhance investor recognition; 4. Pay attention to investment returns and share development results. For details, please refer to the "Announcement on the "Double Improvement of Quality and Return" Action Plan" disclosed by the company on the cninfo.com (www.cninfo.com.cn) on August 28, 2024.

During the reporting period, the company actively promoted the “double improvement of quality and return” action plan. The details are as follows:

In terms of operations, the company has always adhered to the organizational goal of "optimizing medical scenarios through technological innovation." The company's development pace is highly consistent with the national guiding ideology. It is always oriented to optimizing medical scenarios and meeting customer needs, continuing to provide better medical and health products and services to the whole society, and promoting medical technology innovation. In the first half of 2025, the company achieved operating income of 3.751 billion yuan; if the two-invoice business is restored, the company achieved operating income of 4.374 billion yuan. The company achieved a net profit of 163 million yuan attributable to shareholders of listed companies, and a net profit of 177 million yuan after deducting non-recurring gains and losses attributable to shareholders of listed companies. The core business, brand operation business, achieved operating income of 2.716 billion yuan, a year-on-year increase of 1.36%. If calculated after restoring the two-invoice business, the brand operation business achieved operating income of 3.339 billion yuan.

In terms of corporate governance, the company strictly follows the requirements of relevant laws, regulations and normative documents to promote corporate governance and internal control. In order to strengthen the company's internal control and improve the company's risk prevention capabilities, the company held a board meeting in January 2025 to review and disclose the "Internal Control Management System" to further improve the company's governance system.

In terms of information disclosure and investor relations management, the company attaches great importance to information disclosure, strictly fulfills its information disclosure obligations in accordance with regulatory requirements, continues to improve the quality of information disclosure, and presents investors with a comprehensive and clear picture of the company's status. While insisting on improving the quality of information disclosures, the company strengthens investor relations management and carefully listens to the suggestions from investors on the company's business development. In May 2025, the company participated in the 2025 Online Collective Reception Day for Investors of Listed Companies in Qingdao and the 2024 Annual Performance Briefing Event, to communicate and exchange with investors on issues of concern to investors such as operating conditions, development strategies, and sustainable development, to further enhance investors' comprehensive and in-depth understanding of the company. The company actively practices the ESG concept, promotes and improves the construction of the ESG system, and provides direction and guidance for the company's sustainable development. The company prepared and disclosed the "2024 Environmental, Social and Governance (ESG) Report", integrating ESG concepts into all aspects of the company's production, operations and development goals.

In terms of investor returns, the company attaches great importance to shareholder returns, always puts shareholders' interests in an important position, and shares development results with investors. In May 2025, the company implemented the 2024 equity distribution plan and distributed a cash of 7.619998 yuan (tax included) to all shareholders for every 10 shares based on 525,619,398 shares. In the future, the company will continue to strictly implement the profit distribution policy, coordinate the dynamic balance of business development, performance growth and shareholder returns, ensure reasonable returns to shareholders, and share the company's development results.

In the future, the company will focus on its main business, enhance the company's core competitiveness, strengthen standardized operations, consolidate corporate governance, continue to improve the quality of information disclosure, strengthen investor communication, effectively convey the company's value, actively reward investors, effectively enhance investors' sense of gain, and achieve the company's sustained high-quality development.

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd.'s 2025 semi-annual report

Section 4 Corporate Governance, Environment and Society

1. Changes in directors, supervisors and senior managers of the company

□Applicable Not applicable

There were no changes in the company’s directors, supervisors and senior managers during the reporting period. For details, please refer to the 2024 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

The company has no equity incentive plan, employee stock ownership plan or other employee incentive measures and their implementation during the reporting period.

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

5. Social Responsibility

As a public listed company, while operating steadily and creating profits, the company attaches great importance to fulfilling social responsibilities, adheres to standardized operations and scientific management, and achieves the common development of the company, shareholders, employees, customers and suppliers through continuous development.

The company has established a complete corporate governance structure and internal control system, strictly fulfills its information disclosure obligations in accordance with relevant regulations, and at the same time fully guarantees the investors' right to know and safeguards the legitimate rights and interests of all shareholders through diversified investor communication channels; the company fully implements the provisions of the Labor Contract Law and other relevant laws and regulations, provides a good working environment for employees, establishes a relatively complete performance appraisal system, and attaches great importance to people. Talent cultivation, respecting and safeguarding the personal interests of employees, and realizing the common growth of employees and the company; as an innovative brand commercialization platform, the company focuses on complementary advantages and synergy with upstream suppliers and downstream customers. The company performs well in its contracts with suppliers and customers, and the rights and interests of all parties are duly protected. It has established a long-term and continuous good cooperative relationship, and has effectively fulfilled its social responsibilities to suppliers, customers and consumers.

At the same time, the company actively fulfills its corporate social responsibilities, actively participates in various public welfare activities, and uses actions to give back to the society. During the reporting period, the company donated 230,000 yuan and 190,000 boxes of Diqiao Children's Calcium to Beijing Chengying Charity Fund for the "Rural Revitalization - Diqiao Children's Calcium Charity Donation" project; the company donated to Jiangsu Renyi Foundation 1 million yuan was used for major disease medical assistance projects for needy people; the company donated 450,000 yuan to the Hubei Provincial Charity Federation Compassion Fund to support the work of rescuing difficult heart disease patients; the company donated 400,000 yuan to the China Organ Transplantation Development Foundation to support its related work; the subsidiary Baiyang Zhihe donated 800,000 yuan to the China Medical Foundation, mainly for its public welfare project to improve the comprehensive capacity of key specialties in county medical institutions. Subsidiary Shanghai Baiyang Pharmaceutical Technology Co., Ltd. donated 250,000 yuan to the China Hepatitis Prevention and Control Fund to hold academic conferences on liver disease prevention and treatment; subsidiaries Shanghai Baiyang Pharmaceutical Technology Co., Ltd. and Qingdao Newtsuma Health Technology Co., Ltd. donated 170,000 yuan to the Shanghai Charity Foundation to support the Weiai Angel Fund; Qingdao Baiyang Pharmaceutical Co., Ltd. donated 20,000 yuan to Jinjiamen Village, Guiqingshan Town, Zhang County, Dingxi for counterpart assistance, etc.

The company strives to fulfill its corporate social responsibilities. In the future, the company will continue to fulfill its social responsibilities, respond to and implement relevant policy calls, and effectively coordinate economic and social benefits, its own development and social development, and achieve healthy and harmonious development of the enterprise and society.

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd.'s 2025 semi-annual report

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, the Board of Supervisors and the Audit Committee on the “non-standard audit report” of the accounting firm 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

During the reporting period, the Company had no major litigation or arbitration matters.

Other litigation matters

Applicable □Not applicable

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd.'s 2025 semi-annual report

Litigation (Arbitration) Litigation (Arbitration)

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

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

Influence situation

Some cases are executed

Trial of some cases

Major litigation has not been reached (the final version of Zhongxing; part

reason; part

Litigation (arbitration) arbitration) matter collection and case execution

5,072.41 No The case has been adjudicated Not applicable The disclosure standard does not apply Totally nil to the company Medium; some cases

decision; partial case

Summary of matters Significant impact The case has been adjudicated,

The file is being executed

Not yet executed

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

approved

Related sharing can be obtained

Is the related intersection related?

Related, related, related, related, transaction, quasi-transaction

Related party transaction amount exceeds transaction disclosure disclosed transaction transaction transaction transaction amount Yijin similar

Relationship Pricing Approval Settlement Date Indexer Type Content Price (10,000 Amount Transaction

Principle (10,000 amount method

Yuan) Ratio Market Price

Yuan)

Anshi Company Pharmaceutical Director Xiang Guan Zaiju

turn

(Chinese Served as Joint Procurement Market Market 13,32 50,80 Market Trend Information

6.43% No Account,

Shan) Director Procurement Goods Price Price 8.79 0 Price News Network

bill

Limited enterprise products (www company .cnin anshi company fo.co pharmaceutical director Xiang Guan m.cn) (China serves as joint party brand market market 7,860 26.44 19,58 market disclosure

No transfer

Shan) Director provides limited corporate services at price .38 % 4 price 2025 "202 Company Business Year 01 4 Sales Month 24 Duguan Holdings

Sale, sale, Japanese joint shareholders

Procurement Procurement Easy to control

Product/ Product/ Recognition

system,

Other mentioned brands 2025

director

Non-heavy supply and service market Market 3,963 27,27 Market Year

Responsible - No Transfer

Ozeki accepts service, price price .55 6 price daily

director

Joint labor services/consulting relations, etc.

Out services/transactions

Rent and rent are expected to be related

Lease, rent, public system

House Lease Notice》

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd.'s 2025 semi-annual report

etc. houses

Wait

25,15 97,66

Total -- -- -- -- -- -- -- --

2.72 0

Details of large sales returns None

Daily correlations that will occur in this period by category

If the total amount of transactions is estimated, the actual daily related transactions of the reporting company during the reporting period do not exceed the total estimated amount. Actual performance during the period (if any)

The difference between the transaction price and the market reference price is relatively

Not applicable

Big reason (if applicable)

Related transactions arising from asset or equity acquisition and sale

□Applicable Not applicable

The company had no related transactions involving acquisition or sale of assets or equity during the reporting period.

Related transactions related to joint external investment

□Applicable Not applicable

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

Related credit and debt transactions

Applicable □Not applicable

Whether there are non-operating related creditor's rights and debt transactions

Yes □No

Claims receivable from related parties:

Does it exist? New in this period. Recovered in this period.

Balance at the beginning of the period Interest for the period Ending balance Related parties Related relationship Reason for formation Non-operating Amount (10,000) Interest rate (10,000 yuan) (10,000 yuan) (10,000 yuan)

Fund occupation Yuan) Yuan) Qingdao Baiyang

Atomic Public

Shenghui Medical 12,717.2 12,836.1

The company has issued current accounts of 3.29% 118.93 0 Equipment Limited 1 4

for sale

company

Related claims on company operations

As of April 17, 2025, the company has recovered its claims against Qingdao Baiyang Shenghui Medical Equipment Co., Ltd. The impact of this related claim on corporate results and financial status

There is no significant impact on the company's operations.

ring

Debts payable to related parties:

New additions in this period Return of opening balance in this period Interest in this period Closing balance Related party Related relationship Reason for formation Amount (ten thousand) Amount (ten thousand) Interest rate (ten thousand yuan) (ten thousand yuan) (ten thousand yuan)

Yuan) Yuan)

BAHEAL PHARMACEUTICALS BAHEAL PHARMACEUTICALS

Group Co., Ltd. Controlling shareholder Equity transfer 32,106.52 19,948.89 12,157.63 Company funds

Qingdao Huizhu

Baheal Health Controlling shareholder Baheal Pharmaceuticals

Industrial investment Significant impact Equity transfer 9,519.56 5,711.74 3,807.83 Funds (enterprises with

limited partnership)

Qingdao Bodhi Controlling shareholder Baheal Pharmaceutical

1,234.08 740.45 493.63 Enterprises controlled by Yonghe Investment Equity transfer

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd.'s 2025 semi-annual report

Management Center Business Payment

(Limited

Guy)

Related debts have no significant impact on the company's operating results, financial results and financial status. The company formed related debt transactions with the above related parties due to the acquisition of Baheal Pharmaceuticals and other companies.

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.

Other major related transactions

Applicable □Not applicable

In order to realize the industrial strategic layout and seize strategic cooperation opportunities, the company's wholly-owned subsidiary Hebei Baiyang Chengda Pharmaceutical Co., Ltd. subscribed for shares of Langfang Linkong Baiyang Huixin Equity Investment Fund Partnership (Limited Partnership) with its own funds. After the completion of the transaction, the total subscribed capital contribution of the investment fund was RMB 200 million. Hebei Baiyang Chengda Pharmaceutical Co., Ltd., as a limited partner, subscribed RMB 58 million, accounting for 29% of the total capital contribution. In February 2025, the investment fund completed the registration procedures with the Asset Management Association of China and completed the first phase of fund raising.

In order to establish a long-term friendly strategic cooperative relationship and leverage the resource advantages of both parties, the company's wholly-owned subsidiary Baiyang Zhihe signed a "Commercial Cooperation Agreement" with Beijing Giluntai Pharmaceutical Co., Ltd., stipulating that Baiyang Zhihe will obtain exclusive marketing rights for related products, and will pay a total of not more than RMB 50 million in stages in accordance with the agreement as consideration for obtaining exclusive marketing rights.

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 "Announcement on the subscription of investment fund shares by wholly-owned subsidiaries and related transactions" January 24, 2025 Juchao Information Network (www.cninfo.com.cn) "Progress announcement on the subscription of investment fund shares by wholly-owned subsidiaries" February 19, 2025 Juchao Information Network (www.cninfo.com.cn) "Announcement on the progress of the wholly-owned subsidiary's subscription of investment fund shares" February 20, 2025 Juchao Information Network (www.cninfo.com.cn) "Announcement on the signing of a commercial cooperation agreement and related transactions by the wholly-owned subsidiary" April 24, 2025 Juchao Information Network (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.

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd.'s 2025 semi-annual report

(3) Leasing situation

Applicable □Not applicable

Rental situation description

The company and its subsidiaries Qingdao Baiyang Health Pharmacy Chain Co., Ltd., Beijing Baiyang Zhihe Medical Achievements Transformation Service Co., Ltd., and Hebei Baiyang Chengda Pharmaceutical Co., Ltd. respectively signed house leasing contracts with the lessors, and rented the houses for daily operations.

The company has signed house leasing contracts with Baiyang Pharmaceutical Group Co., Ltd., Beijing Baiyang Chengchuang Pharmaceutical Research and Development Co., Ltd., etc., and rents out the houses for the lessee's daily operations.

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

Unit: RMB 10,000 External guarantees provided by the company and its subsidiaries (excluding guarantees to subsidiaries)

Guarantee amount Counter guarantee

Is the collateral related to the guarantee? Amount of guarantee actually issued. Actual guarantee. Guarantee type situation. Whether it has been fulfilled.

(For example, guarantee period, name of related party, announcement disclosure, date of birth, insured amount type (such as completion of the transaction)

Yes) Warranty Disclosure Date Yes)

The company’s guarantees for subsidiaries

Guarantee amount Counter guarantee

Is the collateral related to the guarantee? Amount of guarantee actually issued. Actual guarantee. Guarantee type situation. Whether it has been fulfilled.

(For example, guarantee period, name of related party, announcement disclosure, date of birth, insured amount type (such as completion of the transaction)

Yes) Warranty Disclosure Date Yes)

2024

1,270.4 Joint and several liability

July 10 None None 3 years Yes No

0 guarantee

day

2024

Qingdao 1,130.1 Jointly and severally liable

August 09 None None 3 years Yes Feyang Health 2023 5 years guaranteed

day

Pharmacy Company April 25 19,000

2024

Lock limited day jointly and severally liable

September 10 952.69 None None 3 years Yes No Company guarantee

day

2024

jointly and severally liable

October 10 830.57 None None 3 years Yes No

Any guarantee

day

2024

jointly and severally liable

February 07 60 None None 3 years Yes No

Any guarantee

day

2024

jointly and severally liable

June 24 380 None None 3 years Yes No

Any guarantee

Qingdao 100 days

2023

Yangyimei 4,800 2024

April 25 Jointly and severally liable

Technology has February 21 61.26 No No 3 years Yes No Day Any guarantee

Co., Ltd. Day

2024

jointly and severally liable

February 21 23.30 None None 3 years Yes No

Any guarantee

day

2024 Joint and Several Liability

196.51 None None 3 years Yes No April 29 Any guarantee

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd.'s 2025 semi-annual report

day

2024

Joint and several liability April 29 41.32 None None 3 years Yes No Guarantee date

2024

Joint liability November 08 471.92 None None 3 years Yes No Guarantee date

2024

Joint and several liability December 10 601.05 None None 3 years Yes No Guarantee date

2025

Joint liability January 07 436.22 None None 3 years No No guarantee Qingdao for 100 days

2024

Foreign Health 2025

April 23 21,000 Jointly and severally responsible pharmacy March 10 728.20 None None 3 years No No Day Any guarantee lock is limited Day

Company 2025

Joint liability April 10 906.46 None None 3 years No No guarantee date

2025

Joint liability May 09 900 None None 3 years No No guarantee date

2025

Joint liability June 10 776.67 None None 3 years No No guarantee date

2025

Jointly and severally liable Qingdao East April 30 500 None None 3 years No No 2024 Guaranteed source biology 10,000 days

April 23

Technology has 2025

Date Joint and several liability company May 30 300 None None 3 years No No guarantee date

2024

Joint and several liability September 10 177.86 None None 3 years No No guarantee date

2024

Joint liability September 23 162.43 None None 3 years No No guarantee date

2024

Jointly and severally liable Tianjin Bai October 31 148.43 None None 3 years No No 2024 Ren Guaranty Foreign Medicine 4,000 days

April 23

Limited Company 2024

Date Joint and several liability department November 08 194.10 None None 3 years No No guarantee date

2024

Joint liability November 22 317.19 None None 3 years No No guarantee date

2024

Joint liability December 02 1,000 None None 3 years No No guarantee date

2025

Joint liability Qingdao Bai March 27 250 None None 3 years No No 2024 Any guarantee Yangyimei 4,800 days

April 23

Technology has 2025

Date Joint and several liability company May 14 370 None None 3 years No No guarantee date

Qingdao Bai 2024 3,600 2024 Joint and several liability 700 None None 3 years No No guarantee April 23 September 24

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd.'s 2025 semi-annual report

Meow Trading Day Day

Co., Ltd. Joint liability company in 2024 December 27 1,000 None None 3 years No No guarantee date

Joint liability March 31, 2025 1,000 None None 3 years No Guarantee date

Joint and several liability October 30, 2024 100 None None 3 years No No guarantee date

Qingdao Code

2024 2025 Public Culture 1,200 Joint and several liability April 23 February 26 100 None None 3 years No No dissemination Liability guarantee date Day

Ltd.

Joint and several liability in 2025 March 20 200 None None 3 years No No guarantee date

Qingdao Hundred

Foreign Health 2025

Pharmacy Company April 24 21,000

Lock limited day

company

Qingdao East

2025

source organism

April 24 7,200

Technology has

day

Ltd.

Tianjin hundred

2025

Western medicine

April 24 2,400

limited company

day

Division

2025 Jointly Liable Shandong Baiyun May 28 2,000 None None 3 years No No 2025 Ren Guaranty Foreign Medicine 4,800 Days

April 24

Technology You Date 2025 Joint and several liability company June 10 2,000 None None 3 years No No guarantee date

Qingdao Hundred

2025

Yang Yimei

April 24 2,400

Technology has

day

Ltd.

Qingdao Hundred

Foreign Picky 2025

Meow Trading April 24 4,440

Limited Public Day

Division

Qingdao Code

2025

popular culture

April 24 1,200

Spread there

day

Ltd.

Beijing hundred

Foreign wisdom

2025

Medical success

April 24 20,000

fruit transformation

day

Services are

Ltd.

Hebei Hundred 2025

Yang Chengda April 24 20,000

medicine has day

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd.'s 2025 semi-annual report

Ltd.

Beijing hundred

Yang Guosheng 2025

Medical equipment April 24 2,000

Machinery Co., Ltd.

company

Qingdao Hundred

Yang Yongjian 2025

Investment Development April 24 3,500

Exhibition limited days

company

The total amount of guarantees approved for subsidiaries during the reporting period was 88,940. The actual amount of guarantees incurred was 20,286.74 (B1). (B2)

Approved guarantee amount for subsidiaries at the end of the reporting period 133,540 Total actual guarantee balance 14,267.55 Total (B3) (B4)

Guarantees provided by subsidiaries to subsidiaries

Guarantee amount Counter guarantee

Is the collateral related to the guarantee? Amount of guarantee actually issued. Actual guarantee. Guarantee type situation. Whether it has been fulfilled.

(For example, guarantee period, name of related party, announcement disclosure, date of birth, insured amount type (such as completion of the transaction)

Yes) Warranty Disclosure Date Yes) Shanghai Baidu

2024 2024

Foreign Pharmaceutical Co., Ltd. Joint and several liability July 12 6,000 August 14 500 None None 3 years No No Technology has liability guarantee date Day

Ltd.

2024

Joint liability January 30 1,000 None None 3 years Yes No Guarantee date

Shanghai Hundred

2024 2024

Foreign Pharmaceutical 4,000 Joint and several liability July 12 June 27 500 None None 3 years Yes No Technology has liability guarantee date Day

Ltd.

2024

Joint and several liability08.14 462 None None 3 years Yes No Guarantee date

2024

Joint and several liability July 18 32.47 None None 3 years Yes No Guarantee date

2024

Joint and several liability July 18 44 None None 3 years Yes No Guarantee date

2024

Joint and several liability July 18 19.60 None None 3 years Yes No Guarantee date

Shanghai Hundred 2024

2024

Foreign Pharmaceutical July 12 5,000 Joint liability July 18 693 None None 3 years Yes No Technology Yes Day Guarantee date

Ltd.

2024

Joint and several liability July 18 27.30 None None 3 years Yes No Guarantee date

2024

Joint and several liability08.16 231 None None 3 years Yes No Guarantee date

2024

Joint and several liability October 12 693 None None 3 years Yes No Guarantee date

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd.'s 2025 semi-annual report

2024

Jointly and severally liable Shanghai Baidu July 09 500 None None 3 years No No 2024 Ren Baoyang Pharmaceutical 3,200 days

July 12

Technology has 2024

Date Joint and several liability company August 06 1,000 None None 3 years No No guarantee date

2024

Jointly and severally liable Shanghai Baiyun June 20 500 None None 3 years Yes No 2024 Ren Baoyang Pharmaceutical 1,000 Days

July 12

Technology has 2024

Date Joint and several liability company July 15 500 None None 3 years Yes No Guarantee date

2024

Joint liability December 12 646.80 None None 3 years Yes No Guarantee date

2025

Joint and several liability January 13 693 None None 3 years No No guarantee date

2025

Joint and several liability February 20 693 None None 3 years No No guarantee date

Shanghai Hundred 2024

2025

Foreign Pharmaceutical September 04 5,000 Joint liability March 17 500 None None 3 years No No Technology Yes Day Any guarantee date

Ltd.

2025

Joint and several liability March 18 693 None None 3 years No No guarantee date

2025

Joint and several liability April 23 924 None None 3 years No No guarantee date

2025

Joint and several liability June 13 231 None None 3 years No No guarantee date

Shanghai Hundred

2024

foreign pharmaceutical

September 25 6,000

Technology has

day

Ltd.

2025

Jointly and severally liable Shanghai Baiyun May 06 1,000 None None 3 years No No 2025 Ren Guaranty Pharmaceutical 4,000 Days

April 17

Technology has 2025

Date Joint and several liability company June 13 924 None None 3 years No No guarantee date

Shanghai Hundred

2025 2025

Foreign Pharmaceutical Co., Ltd. Joint and several liability April 24 40,200 June 16 1,000 None None 3 years No No Technology has liability guarantee date Day

Ltd.

2024

Joint and several liability May 17 118.02 None None 3 years No No guarantee date

Qingdao 100 Years 2024

2024 Joint and several liability Foreign Pharmaceutical 15,000 May 17 100 None None 3 years No No July 12 Ren Guarantee Limited Company Date

day

Division 2024

Joint and several liability May 17 176 None None 3 years No No guarantee date

2024 100 Joint and several liability None None 3 years No No

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd.'s 2025 semi-annual report

May 17th Guarantee Day

2024

Joint and several liability May 17 121 None None 3 years No No guarantee date

2024

Joint and several liability May 17 100 None None 3 years No No guarantee date

2024

Joint and several liability May 17 121 None None 3 years No No guarantee date

2024

Joint and several liability May 17 100 None None 3 years No No guarantee date

2024

Joint and several liability May 17 100 None None 3 years Yes No Guarantee date

2024

Joint and several liability June 17 30 None None 3 years No No guarantee date

2024

Joint and several liability June 17 30 None None 3 years No No guarantee date

2024

Joint and several liability June 17 45 None None 3 years No No guarantee date

2024

Joint and several liability June 17 30 None None 3 years No No guarantee date

2024

Joint and several liability June 17 30 None None 3 years No No guarantee date

2024

Joint and several liability June 17 30 None None 3 years No No guarantee date

2024

Joint and several liability June 17 30 None None 3 years No No guarantee date

2024

Joint and several liability June 17 30 None None 3 years No No guarantee date

2024

Joint and several liability June 17 30 None None 3 years Yes No Guarantee date

2024

Joint and several liability July 04 100 None None 3 years Yes No Guarantee date

2024

Joint and several liability July 04 100 None None 3 years No No guarantee date

2024

Joint and several liability July 04 136 None None 3 years No No guarantee date

2024

Joint and several liability July 04 100 None None 3 years No No guarantee date

2024 136 Joint and several liability None None 3 years No No

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd.'s 2025 semi-annual report

July 04: Guarantee date

2024

Joint and several liability July 04 145 None None 3 years No No guarantee date

2024

Joint and several liability July 04 150 None None 3 years No No guarantee date

2024

Joint and several liability July 04 100 None None 3 years No No guarantee date

2024

Joint liability July 04 134.74 None None 3 years No No guarantee date

2024

Joint and several liability July 23 122 None None 3 years Yes No Guarantee date

2024

Joint and several liability July 23 100 None None 3 years No No guarantee date

2024

Joint and several liability July 23 169 None None 3 years No No guarantee date

2024

Joint and several liability July 23 100 None None 3 years No No guarantee date

2024

Joint and several liability July 23 169 None None 3 years No No guarantee date

2024

Joint and several liability July 23 137 None None 3 years No No guarantee date

2024

Joint and several liability July 23 200 None None 3 years No No guarantee date

2024

Joint and several liability July 23 100 None None 3 years No No guarantee date

2024

Joint and several liability July 23 167.54 None None 3 years No No guarantee date

2024

Joint liability August 20 286.31 None None 3 years Yes No Guarantee date

2024

Joint and several liability August 20 95.54 None None 3 years No No guarantee date

2024

Joint liability August 20 182.31 None None 3 years No No guarantee date

2024

Joint and several liability August 20 95.54 None None 3 years No No guarantee date

2024

Joint liability August 20 182.31 None None 3 years No No guarantee date

2024 119.93 Joint and several liability None None 3 years No No

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd.'s 2025 semi-annual report

August 20th Guarantee Day

2024

Joint and several liability August 20 226.89 None None 3 years No No guarantee date

2024

Joint and several liability August 20 95.54 None None 3 years No No guarantee date

2024

Joint and several liability August 20 108.59 None None 3 years No No guarantee date

2024

Joint liability September 14 85.03 None None 3 years Yes No Guarantee date

2024

Joint liability September 14 56.69 None None 3 years No No guarantee date

2024

Joint liability September 14 85.03 None None 3 years No No guarantee date

2024

Joint liability September 14 56.69 None None 3 years No No guarantee date

2024

Joint liability September 14 85.03 None None 3 years No No guarantee date

2024

Joint liability September 14 70.86 None None 3 years No No guarantee date

2024

Joint liability September 14 106.29 None None 3 years No No guarantee date

2024

Joint liability September 14 56.69 None None 3 years No No guarantee date

2024

Joint liability September 14 105.29 None None 3 years No No guarantee date

2024

Joint liability November 05 227.90 None None 3 years Yes No Guarantee date

2024

Joint liability November 05 151.93 None None 3 years No No guarantee date

2024

Joint liability November 05 227.90 None None 3 years No No guarantee date

2024

Joint liability November 05 151.93 None None 3 years No No guarantee date

2024

Joint liability November 05 227.90 None None 3 years No No guarantee date

2024

Joint liability November 05 189.92 None None 3 years No No guarantee date

2024 284.87 Joint and several liability None None 3 years No No

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd.'s 2025 semi-annual report

November 05: Guarantee date

2024

Joint liability November 05 151.93 None None 3 years No No guarantee date

2024

Joint liability November 05 283.87 None None 3 years No No guarantee date

2024

Joint liability November 26 70.52 None None 3 years Yes No Guarantee date

2024

Joint liability November 26 47.01 None None 3 years No No guarantee date

2024

Joint liability November 26 70.52 None None 3 years No No guarantee date

2024

Joint liability November 26 47.01 None None 3 years No No guarantee date

2024

Joint liability November 26 70.52 None None 3 years No No guarantee date

2024

Joint liability November 26 58.76 None None 3 years No No guarantee date

2024

Joint liability November 26 88.14 None None 3 years No No guarantee date

2024

Joint liability November 26 47.01 None None 3 years No No guarantee date

2024

Joint liability November 26 70.52 None None 3 years No No guarantee date

2024

Joint and several liability December 27 86.95 None None 3 years Yes No Guarantee date

2024

Joint liability December 27 57.96 None None 3 years No No guarantee date

2024

Joint liability December 27 86.95 None None 3 years No No guarantee date

2024

Joint liability December 27 57.96 None None 3 years No No guarantee date

2024

Joint liability December 27 86.95 None None 3 years No No guarantee date

2024

Joint liability December 27 72.46 None None 3 years No No guarantee date

2024

Joint and several liability December 27 108.68 None None 3 years No No guarantee date

2024 57.96 Joint and several liability None None 3 years No No

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd.'s 2025 semi-annual report

December 27 Ren Guaranty

day

2024

jointly and severally liable

December 27 86.95 None None 3 years No No guarantee

day

Qingdao Hundred

2025

foreign pharmaceutical

April 24 15,000

limited company

day

Division

Approval of subsidiaries during the reporting period

The total amount of the company's guarantees is 59,200. The total actual amount of guarantees is 22,965.99 (C1). Total (C2)

Approved at the end of the reporting period

Guarantee limit for subsidiaries 94,400 Total actual guarantee balance 16,508.12 Total (C3) (C4)

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

Approval of guarantees during the reporting period Actual guarantees during the reporting period

Total quota 148,140 Total amount incurred 43,252.73 (A1+B1+C1) (A2+B2+C2)

Actual guarantees approved at the end of the reporting period

Total guarantee limit 227,940 Total balance 30,775.67 (A3+B3+C3) (A4+B4+C4)

The actual total guarantee amount (i.e. A4+B4+C4) accounts for the company’s net capital

14.18% production ratio

Among them:

Provide guarantees for shareholders, actual controllers and their related parties

The balance (D)

Directly or indirectly, for those whose asset-liability ratio exceeds 70%

11,067.55 Debt guarantee balance provided by the insured party (E)

The amount of the total guarantee exceeding 50% of the net assets (F) 0 The total amount of the above three guarantees (D+E+F) 11,067.55 For unexpired guarantee contracts, guarantee liabilities occurred during the reporting period

There may be any evidence indicating the possibility of being jointly and severally liable for repayment. None

Description of the situation (if any)

Explanation of providing external guarantees in violation of prescribed procedures (such as

None

Yes)

Specific instructions for using composite guarantees

None

Major contracts for daily operations

Unit: yuan with significant impact

Contract performance Whether there is a contract? Recognition in the current period Recognition cumulatively

The conclusion of the contract, the total amount of the contract, the performance of the contract, the various terms of accounts receivable, the contract cannot be the company's name, the sales revenue, the sales revenue

The name of the counterparty, the progress of the amount, the status of the payment, whether the package has been issued, the re-weighing of the performance, the amount of the deposit, the amount of the deposit.

Major changes occur, increasing risks

Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd.'s 2025 semi-annual report

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

There are no other significant matters that need to be explained during the company's reporting period.

14. Major events of the company’s subsidiaries

Applicable □Not applicable

In February 2025, the company's wholly-owned subsidiary Baiyang Zhihe signed a "Promotion Agreement" with Shanghai Roche Pharmaceutical Co., Ltd., stipulating that Shanghai Roche Pharmaceutical Co., Ltd. hired Baiyang Zhihe to exclusively promote the product (rituximab injection, trade name: Rituximab®) in the region (the People's Republic of China, excluding Taiwan, Hong Kong and Macau). For details, please refer to the "Announcement on Voluntary Disclosure and Signing of a Promotion Agreement" disclosed by the company on the cninfo.com (www.cninfo.com.cn) on February 13, 2025.

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd.'s 2025 semi-annual report

Section 6 Changes in Shares and Shareholders

1. Changes in shares

Changes in shares

Unit: Before the change in share capital Increase or decrease in this change (+, -) After this change, transfer of reserve fund

Quantity Proportion Issuance of new shares Bonus shares Others Subtotal Quantity Proportion

1. Limited

Conditional shares 67,500 0.01% 67,500 0.01%

Country

Home holdings

Country

A legal person holds

Other domestic investors hold 67,500 0.01% 67,500 0.01% shares

its

Middle: within the territory

Legal person holdings

within the territory

Natural persons hold 67,500 0.01% 67,500 0.01% shares

outside

Capital holdings

its

Chinese: overseas

Legal person holdings

overseas

natural person

2. Unlimited

525,551, 525,551, conditional shares 99.99% 166 166 99.99%

810 976 copies

People

525,551, 525,551, RMB ordinary 99.99% 166 166 99.99%

810 976 shares

Environment

listed within

foreign stocks

Environment

Off the market

foreign stocks

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd.'s 2025 semi-annual report

him

3. Shares 525,619, 525,619,

100.00% 166 166 100.00%Total 310 476

Reasons for share changes

Applicable □Not applicable

Starting from October 20, 2023, "Bayang Convertible Bonds" will enter the equity conversion period; in the first half of 2025, a total of 43 "Bayang Convertible Bonds" will be converted into shares, and a total of 166 shares of "Bayang Pharmaceuticals" will be converted. For details, please refer to the relevant share transfer announcement disclosed by the company on the Juchao Information Network (www.cninfo.com.cn).

Approval status of share changes

Applicable □Not applicable

With the approval of the China Securities Regulatory Commission's "Reply on the Registration of Qingdao Baiyang Pharmaceutical Co., Ltd.'s Issuance of Convertible Corporate Bonds to Unspecified Targets" (CSRC License [2023] No. 613), the company issued convertible corporate bonds to unspecified targets on April 14, 2023 860 Ten thousand pieces, each with a face value of RMB 100, and a total issuance of RMB 860 million. The company's convertible bonds have been listed for trading on the Shenzhen Stock Exchange on May 5, 2023. The bond is referred to as "Baiyang Convertible Bonds" and the bond code is "123194". According to the "Shenzhen Stock Exchange GEM Stock Listing Rules" and the "Qingdao Baiyang Pharmaceutical Co., Ltd. GEM Issuance of Convertible Corporate Bonds to Unspecified Targets Prospectus", the conversion period of the convertible bonds issued this time will be from the first trading day six months after the completion of the issuance to the maturity date of the convertible bonds, that is, from October 20, 2023 to April 13, 2029. During the reporting period, a total of 166 shares of "Baiyang Convertible Bonds" were converted into shares.

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 share changes 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

Changes in shares have an impact 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. For details, please refer to "IV. Main Accounting Data and Financial Indicators" in "Section 2 Company Profile and Main Financial Indicators" of this report.

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: Unlocking of selling restrictions in the equity period. Increase in selling restrictions in the current period. Name of shareholder on the date when trading restrictions are to be lifted. Number of restricted shares at the beginning of the period. Number of restricted shares at the end of the period. Reasons for selling restrictions.

Number of shares Number of shares According to directors, senior officers

Li Zhen, senior management shares 67,500 0 0 67,500 Executive locked shares

Lock-in rules explained

Total excluding sales restrictions 67,500 0 0 67,500 -- --

2. Securities issuance and listing

□Applicable Not applicable

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd.'s 2025 semi-annual report

3. Number of shareholders and shareholding status of the company

Unit: Share

Preferred shares with voting rights restored at the end of the reporting period Total number of ordinary shareholders holding shares with special voting rights at the end of the reporting period 18,819 0 0 Total number of shareholders (if any) (see Note 8) Total number of shareholders (if any)

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

Holds pledged, marked or frozen status

Hold without selling

Shareholder nature Shareholding ratio Shareholding at the end of the reporting period Increase during the reporting period Sales restriction clause

Shareholder Name Condition Shares

Quality Example Number of shares Less changes Number of shares Share status Quantity

Number of servings

Domestic non-

Baiyang Pharmaceutical Collection

State-owned law 70.22% 369,077,400 0 0 369,077,400 Pledge 168,074,652 Tuan Co., Ltd.

people

Beijing Baiyangcheng Domestic non-

Chuang Pharmaceutical Investment State-owned Law 3.81% 20,000,000 0 0 20,000,000 Pledge 9,980,000 Co., Ltd. Person

Tianjin Huitongzi

Domestic non-

property management partnership

State-owned law 1.09% 5,730,750 0 0 5,730,750 Pledge 2,800,000 Enterprise (limited

people

partnership)

Tianjin Haohuizi

Domestic non-

property management partnership

State-owned law 0.83% 4,342,500 0 0 4,342,500 Pledge 2,100,000 Enterprise (limited

people

partnership)

Tianjin Huizhongzi

Domestic non-

property management partnership

State-owned law 0.82% 4,304,250 0 0 4,304,250 Pledge 2,100,000 Enterprise (limited

people

partnership)

Tianjin Qingzhengzi

Domestic non-

property management partnership

State-owned law 0.73% 3,835,000 -100,000 0 3,835,000 Not applicable 0 enterprise (limited

people

partnership)

Tianjin Huitongzi

Domestic non-

property management partnership

State-owned law 0.62% 3,270,100 0 0 3,270,100 Pledge 1,600,000 Enterprise (limited

people

partnership)

China Construction Bank

Bank Co., Ltd.

Company-ICBC

Others 0.51% 2,681,600 -7,318,437 0 2,681,600 Not applicable 0Credit Suisse Frontier Medical

therapeutic stock certificate

securities investment funds

within the territory of

Zhou Qiongfeng 0.34% 1,781,300 1,781,300 0 1,781,300 Not applicable 0 Random person

Dongxing Securities－

Industrial Bank -

Dongxing Securities

Foreign medicine employees

Others 0.31% 1,626,600 0 0 1,626,600 Not applicable 0Participate in GEM

Strategic Placement 2

No. collective assets

management plan

Strategic investors or general legal persons become the top 10 shareholders due to their participation in the strategic placement of Dongxing Securities-Industrial Bank-Dongxing Securities Baiyang Pharmaceutical's participation in the GEM strategic placement No. 2 collective asset management plan and the sale of new shares. They become the top 10 shareholders due to their participation in the strategic placement of the company's initial public offering of stocks, and their commitment to obtain the shares of this placement (if any) (see Note 3) The ticket lock-up period is 12 months from the date of the company's initial public offering and listing, and will be lifted on June 30, 2022

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd.'s 2025 semi-annual report

Sold for circulation.

BAHEAL Pharmaceutical Group Co., Ltd., Beijing BAHEAL Chengchuang Pharmaceutical Investment Co., Ltd., Tianjin Huitong Asset Management Partnership

(Limited Partnership), Tianjin Haohui Asset Management Partnership (Limited Partnership), Tianjin Huizhong Asset Management Partnership, the above-mentioned shareholders are related or acting in concert

(Limited Partnership) and Tianjin Huitong Asset Management Partnership (Limited Partnership) are the ultimate actual controllers of the company.

Fu Gang, international controller, chairman and general manager; executive affairs partner of Tianjin Qingzheng Asset Management Partnership (Limited Partnership)

Partner Wang Guoqiang is a director of Baiyang Pharmaceutical Group Co., Ltd., the company’s controlling shareholder.

The above-mentioned shareholders are involved in proxy/trustee voting

None

Explanation on the circumstances of voting rights and renunciation of voting rights

There are special repurchase accounts among the top 10 shareholders

None

Special instructions for (see Note 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 Baiyang Pharmaceutical Group Co., Ltd. 369,077,400 RMB ordinary shares 369,077,400 Beijing Baiyang Chengchuang Pharmaceutical Investment Co., Ltd. 20,000,000 RMB ordinary shares 20,000,000 Tianjin Huitong Asset Management Partnership (Limited Partnership) 5,730,750 RMB ordinary shares 5,730,750 Tianjin Haohui Asset Management Partnership (Limited Partnership) 4,342,500 RMB ordinary shares 4,342,500 Tianjin Huizhong Asset Management Partnership (Limited Partnership) 4,304,250 RMB ordinary shares 4,304,250 Tianjin Qingzheng Asset Management Partnership (Limited Partnership) 3,835,000 RMB ordinary shares 3,835,000 Tianjin Huitong Asset Management Partnership (Limited Partnership) 3,270,100 RMB ordinary shares 3,270,100 China Construction Bank Co., Ltd. - ICBC Credit Suisse Frontier Medical

2,681,600 RMB ordinary shares 2,681,600 Equity securities investment funds

Zhou Qiongfeng 1,781,300 RMB ordinary shares 1,781,300 Dongxing Securities-Industrial Bank-Dongxing Securities Baiyang Pharmaceutical employees

1,626,600 RMB ordinary shares 1,626,600 Participate in the GEM Strategic Placement No. 2 Collective Asset Management Plan

Baiyang Pharmaceutical Group Co., Ltd., Beijing Baiyang Chengchuang Pharmaceutical Investment Co., Ltd., Tianjin Huitong Asset Management Partnership

(Limited Partnership), Tianjin Haohui Asset Management Partnership (Limited Partnership), Tianjin Huizhong Asset Management Partnership (with the top 10 unrestricted tradable shares)

The ultimate actual controllers of Tianjin Huitong Asset Management Partnership (Limited Partnership) and Tianjin Huitong Asset Management Partnership (Limited Partnership) are all the actual controlling parties of the company, as well as the top 10 unknown persons.

Fu Gang, Chairman and General Manager;

Shareholders of restricted tradable shares and the top 10

There is an associated relationship or a relationship between Wang Guoqiang, the executive partner of Tianjin Qingzheng Asset Management Partnership (Limited Partnership), and the controlling shareholder of the company, Baiyang Medical Ming shareholders.

Director of Pharmaceutical Group Co., Ltd.;

instructions for action

The company does not know the information among the other top 10 shareholders of non-restricted tradable shares, the top 10 shareholders of unrestricted tradable shares and the top 10 shareholders.

Whether there is an association relationship or a relationship between persons acting in concert.

Top 10 common shareholders participate

In addition to holding 1,000 shares through ordinary securities accounts, shareholder Zhou Qiongfeng also holds customer credit financing and securities lending business through China Merchants Securities Co., Ltd.

The trading guarantee securities account holds 1,780,300 shares, and the actual total holding is 1,781,300 shares.

Clear (if any) (see Note 4)

The 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 ordinary shareholders and the top 10 unrestricted ordinary shareholders 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, supervisors and senior managers

□Applicable Not applicable

The shareholdings of the company's directors, supervisors and senior managers did not change during the reporting period. For details, please refer to the 2024 annual report.

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd.'s 2025 semi-annual report

Changes in controlling shareholders or actual controllers

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 Qingdao Baiyang Pharmaceutical Co., Ltd.'s 2025 semi-annual report

Relevant information on preference shares □Applicable Not applicable

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

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd.'s 2025 semi-annual report

Section 7 Bond-related situations

Applicable □Not applicable

1. Corporate bonds

□Applicable Not applicable

The company did not have corporate bonds during the reporting period.

2. Corporate bonds

□Applicable Not applicable

The company did not have corporate bonds during the reporting period.

3. Non-financial corporate debt financing tools

□Applicable Not applicable

During the reporting period, the company had no non-financial corporate debt financing instruments.

4. Convertible corporate bonds

Applicable □Not applicable

Issuance of convertible bonds

Convertible bond guarantors and top ten holders during the reporting period

Name of convertible corporate bonds Qingdao Baiyang Pharmaceutical Co., Ltd. Convertible corporate bonds Number of convertible bond holders at the end of the period 2,967 Guarantors of the company’s convertible bonds None

Significant changes in the guarantor’s profitability, asset status and credit status Not applicable

The top ten convertible bond holders are as follows:

At the end of the reporting period

Convertible Bonds held at the end of the reporting period. Serial number held at the end of the reporting period. Name of the convertible bond holder. Number of convertible bonds.

Nature of the owner Amount of convertible bonds (yuan) Proportion of convertible bonds (pieces)

Northwest Investment Management (Hong Kong) Co., Ltd.-Northwest Feilongji

1 Overseas legal person 559,521 55,952,100.00 6.61% Gold Co., Ltd.

Agricultural Bank of China Co., Ltd.-China Post Pure Debt Hengli Bond

2 Others 380,378 38,037,800.00 4.50% bond securities investment fund

China Merchants Bank Co., Ltd. - Bosera CSI Convertible Bonds and

3 Others 369,320 36,932,000.00 4.37%

Exchange bond traded open-end index securities investment fund

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd.'s 2025 semi-annual report

Bank of Communications Co., Ltd.-China Post Stable Income Bond Type

4 Others 351,195 35,119,500.00 4.15% Securities Investment Fund

Industrial and Commercial Bank of China Limited-China-European Convertible Bonds

5 Others 319,500 31,950,000.00 3.78% securities investment fund

E Fund Anxin Income Fixed Income Pension Product – China

6 Others 294,400 29,440,000.00 3.48% Industrial and Commercial Bank of China Co., Ltd.

Ping An Bank Co., Ltd.-Western Profit Exchange Bond Type

7 Others 280,000 28,000,000.00 3.31% Securities Investment Fund

China Life Pension Anxiang Xinqi Hybrid Pension Product - China Industrial

8 Others 278,799 27,879,900.00 3.30% Commercial Bank Co., Ltd.

China CITIC Bank Co., Ltd. - CCB Double Interest Dividend Bond Type

9 Others 263,666 26,366,600.00 3.12%

securities investment funds

10 UBS AG Overseas legal person 230,000 23,000,000.00 2.72%

Changes in convertible bonds during the reporting period

Applicable □Not applicable

Unit: Yuan Increase or decrease due to this change

Name of convertible corporate bonds Before this change After this change

Share conversion, redemption, sale back

Convertible corporate bonds of Qingdao Baiyang Pharmaceutical Co., Ltd. 8,460,442.00 43.00 0.00 0.00 8,460,399.00

Accumulated share transfers

Applicable □Not applicable

Number of shares transferred

Accounting for shares converted into shares Unconverted shares can be converted into public shares Cumulative shares converted Cumulative shares converted

Starting and Ending of Conversion Total issuance amount Total issuance amount Number of shares that have not yet been converted to shares of the issuing company’s bonds before the start date

Date (pieces) Amount (yuan) The company has issued Amount (yuan) Total amount (yuan) (shares)

Total shares ratio

proportion of

Qingdao Baiyang

10, 2023

Pharmaceutical shares

March 20th - 860,000,0 13,960,10 846,039,9

Ltd. 8,600,000 519,476 0.10% 98.38%

2029 4 00.00 0.00 00.00

convertible

March 13

corporate bonds

Previous adjustments and revisions to the stock conversion price

Convertible corporate bonds as of the end of the reporting period Adjusted conversion price Adjustment of conversion price

Conversion price adjustment date Disclosure time Latest conversion price name Price (yuan) Ming

(Yuan) Adjusted based on the conversion price

the relevant terms and

Regulations, Binding 2022

May 25, 2023 26.88 May 18, 2023

Annual equity distribution actual

Qingdao Baiyang Pharmaceutical Stocks

25.36 shares of the limited company can be transferred according to the implementation situation.

price

Exchange corporate bonds

Adjusted based on conversion price

the relevant terms and

May 29, 2024 26.12 May 21, 2024

Regulations, Binding 2023

Annual equity distribution actual

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd.'s 2025 semi-annual report

Implementation situation adjustment for share transfer

price

Adjusted based on conversion price

the relevant terms and

Regulations, combined with 2024

May 27, 2025 25.36 May 19, 2025

Annual equity distribution actual

Implementation situation adjustment for share transfer

price

The company’s liabilities, credit changes at the end of the reporting period, and cash arrangements for debt repayment in the coming years.

(1) The company's liabilities: For details, please refer to "VI. The company's main accounting data and financial indicators in the past two years as of the end of the reporting period" in this section.

(2) The company's credit status: On June 24, 2025, CSI Pengyuan Credit Rating Co., Ltd. issued the "2025 Tracking Rating Report on Related Bonds of Qingdao Baiyang Pharmaceutical Co., Ltd.". The tracking rating results are: the company's main credit rating is maintained at AA-, the rating outlook is maintained at stable, and the credit rating of "Baiyang Convertible Bonds" is maintained at AA-.

(3) The company's operating conditions are stable, its cash flow is good, and it has made reasonable cash arrangements for debt repayment in the coming years.

5. The loss in the consolidated statement scope during the reporting period exceeds 10% of the net assets at the end of the previous year

□Applicable Not applicable

6. The company’s main accounting data and financial indicators in the past two years as of the end of the reporting period

Unit: 10,000 yuan

Items End of the reporting period End of the previous year Increase or decrease in current ratio at the end of the reporting period compared with the end of the previous year 1.51 1.57 -3.82% Asset-liability ratio 65.88% 63.38% 2.50% Quick ratio 1.16 1.19 -2.52%

This reporting period Same period last year This reporting period increased or decreased net profit after deducting non-recurring gains and losses compared with the same period last year 17,737.43 37,075.88 -52.16% EBITDA total debt ratio 7.78% 14.36% -6.58% Interest coverage ratio 6.39 16.88 -62.14% Cash interest coverage ratio 8.12 13.10 -38.02% EBITDA interest coverage ratio 7.61 17.97 -57.65%Loan repayment rate 100.00% 100.00% 0.00%Interest payment rate 100.00% 100.00% 0.00%

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd.'s 2025 semi-annual report

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: Qingdao Baiyang Pharmaceutical Co., Ltd.

June 30, 2025

Unit: Yuan

Item Ending balance Beginning balance

Current assets:

Monetary funds 1,875,026,690.92 1,467,403,220.46 Settlement reserves

Loan funds

Trading financial assets 119,388,157.31 44,989,893.93 Derivative financial assets

Notes receivable 94,966,139.33 115,977,020.31 Accounts receivable 1,625,961,253.32 1,884,537,311.49 Accounts receivable financing 119,480,805.05 215,387,955.19 Advance payments 277,434,287.59 211,416,570.55 Premiums receivable

Reinsurance accounts receivable

Receivable reinsurance contract reserves

Other receivables 36,789,569.91 161,577,496.67 Including: interest receivable

Dividends receivable 223,956.00

Buy financial assets under resale agreements

Inventory 786,936,914.52 927,753,115.69

Among them: data resources

contract assets

Assets held for sale

Non-current assets due within one year

Other current assets 87,022,138.97 81,932,896.21 Total current assets 5,023,005,956.92 5,110,975,480.50 Non-current assets:

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd.'s 2025 semi-annual report

Grant loans and advances

debt investment

Other debt investments

long-term receivables

Long-term equity investment 834,538,762.04 727,624,417.04 Other equity instrument investments

Other non-current financial assets 14,854,529.53 15,000,000.00 Investment real estate 1,278,452.50 1,327,708.18 Fixed assets 536,241,043.55 535,910,126.42 Construction in progress 173,533,188.17 152,262,124.97 Productive biological assets

oil and gas assets

Right-of-use assets 120,412,302.55 122,481,520.03 Intangible assets 216,505,219.67 227,589,941.50

Among them: data resources

development expenditure

Among them: data resources

Goodwill 112,486,286.52 112,486,286.52 Long-term deferred expenses 38,748,500.53 40,728,872.05 Deferred income tax assets 84,139,079.93 58,098,495.88 Other non-current assets 4,146,315.01 8,099,278.04 Total non-current assets 2,136,883,680.00 2,001,608,770.63 Total assets 7,159,889,636.92 7,112,584,251.13 Current liabilities:

Short-term borrowings 1,796,581,678.79 1,098,574,415.39 Borrowings from the central bank

borrowing funds

Trading financial liabilities

Derivative financial liabilities

Notes payable 95,719,281.35 397,938,509.16 Accounts payable 784,959,197.29 764,569,585.29 Advance payments

Contract liabilities 92,259,987.62 118,522,639.79 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 86,824,638.15 108,749,922.84 Taxes payable 87,047,489.52 108,476,627.99 Other payables 294,337,980.37 560,404,147.45 Including: interest payable

Dividends payable

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd.'s 2025 semi-annual report

Handling fees and commissions payable

Reinsurance accounts payable

Liabilities held for sale

Non-current liabilities due within one year 71,408,471.05 71,279,847.56 Other current liabilities 21,852,099.84 29,447,918.17 Total current liabilities 3,330,990,823.98 3,257,963,613.64 Non-current liabilities:

insurance contract reserves

Long-term borrowings 495,422,848.84 357,772,882.84 Bonds payable 768,303,290.40 754,790,886.78 Including: preference shares

perpetual bond

Lease liabilities 105,196,496.08 102,562,856.59 Long-term payables

Long-term employee benefits payable

Estimated liabilities 5,000,000.00 Deferred income 10,575,614.81 11,434,936.36 Deferred income tax liabilities 6,629,311.62 18,387,469.29 Other non-current liabilities

Total non-current liabilities 1,386,127,561.75 1,249,949,031.86 Total liabilities 4,717,118,385.73 4,507,912,645.50 Owners’ equity:

Share capital 525,619,476.00 525,619,310.00 Other equity instruments 99,752,049.35 99,752,556.35 Including: preference shares

perpetual bond

Capital reserve 28,757,373.15 -2,523,778.82 minus: treasury shares

Other comprehensive income 2,805,752.41 1,678,152.03 Special reserves

Surplus reserve 202,078,158.26 202,078,158.26 General risk reserve

Undistributed profits 1,310,919,808.24 1,548,306,006.77 Total owners’ equity attributable to the parent company 2,169,932,617.41 2,374,910,404.59 Minority shareholders’ equity 272,838,633.78 229,761,201.04 Total owners’ equity 2,442,771,251.19 2,604,671,605.63 Total liabilities and owners’ equity 7,159,889,636.92 7,112,584,251.13 Legal representative: Fu Gang Person in charge of accounting work: Li Zhen Person in charge of accounting department: Liu Feng

Balance sheet of the parent company

Unit: Yuan

Item Ending balance Beginning balance

Current assets:

Monetary funds 803,871,383.31 608,850,560.58 Trading financial assets

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd.'s 2025 semi-annual report

Derivative financial assets

Notes receivable 76,652,409.11 95,018,630.81 Accounts receivable 976,585,263.44 1,048,214,140.38 Accounts receivable financing 84,266,034.95 129,210,721.64 Advance payments 85,132,967.24 109,820,051.41 Other receivables 489,953,314.35 625,961,300.70 Including: interest receivable

Dividends receivable 223,956.00

Inventory 311,513,896.04 453,000,265.35

Among them: data resources

contract assets

Assets held for sale

Non-current assets due within one year

Other current assets 69,754,520.34 63,934,862.33 Total current assets 2,897,729,788.78 3,134,010,533.20 Non-current assets:

debt investment

Other debt investments

long-term receivables

Long-term equity investment 1,633,144,389.98 1,611,454,320.98 Other equity instrument investments

Other non-current financial assets 14,854,529.53 15,000,000.00 Investment real estate 1,278,452.50 1,327,708.18 Fixed assets 170,132,621.62 175,665,867.71 Construction in progress 38,568,328.83 10,346,415.50 productive biological assets

oil and gas assets

Right-of-use assets 19,472,991.04 12,420,859.08 Intangible assets 135,242,966.75 142,194,754.77

Among them: data resources

development expenditure

Among them: data resources

goodwill

Long-term deferred expenses

Deferred income tax assets 25,772,129.91

Other non-current assets

Total non-current assets 2,038,466,410.16 1,968,409,926.22 Total assets 4,936,196,198.94 5,102,420,459.42 Current liabilities:

Short-term borrowings 1,566,018,517.82 888,952,469.35 Trading financial liabilities

Derivative financial liabilities

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd.'s 2025 semi-annual report

Notes payable 30,250,000.00 335,116,328.64 Accounts payable 402,802,586.72 431,443,073.74 Advance payments

Contract liabilities 68,873,582.02 97,887,814.08 Employee benefits payable 36,079,739.22 46,510,304.47 Taxes payable 5,619,478.32 20,433,283.95 Other payables 242,373,044.72 610,529,104.63 including: interest payable

Dividends payable

Liabilities held for sale

Non-current liabilities due within one year 23,692,529.24 17,979,643.56 Other current liabilities 12,167,148.70 22,641,773.70 Total current liabilities 2,387,876,626.76 2,471,493,796.12 Non-current liabilities:

Long-term borrowings 406,400,000.00 254,000,000.00 Bonds payable 768,303,290.40 754,790,886.78 Including: preference shares

perpetual bond

Lease liabilities 12,890,532.50 9,561,971.84 Long-term payables

Long-term employee benefits payable

Estimated liabilities

deferred income

Deferred income tax liabilities 12,353,321.77 Other non-current liabilities

Total non-current liabilities 1,187,593,822.90 1,030,706,180.39 Total liabilities 3,575,470,449.66 3,502,199,976.51 Owners’ equity:

Share capital 525,619,476.00 525,619,310.00 Other equity instruments 99,752,049.35 99,752,556.35 Including: preference shares

perpetual bond

Capital reserve 271,856,003.31 271,851,675.05 less: treasury shares

Other comprehensive income -320,298.82 -765,113.72Special reserves

Surplus reserve 212,142,499.25 212,142,499.25 Undistributed profits 251,676,020.19 491,619,555.98 Total owners’ equity 1,360,725,749.28 1,600,220,482.91 Total liabilities and owners’ equity 4,936,196,198.94 5,102,420,459.42

Consolidated income statement

Unit: Yuan

Project Half-year 2025 Half-year 2024

Total operating income 3,751,291,789.24 3,991,559,961.77

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd.'s 2025 semi-annual report

Including: operating income 3,751,291,789.24 3,991,559,961.77 interest income

Premiums earned

Fee and commission income

Total operating costs 3,428,066,346.85 3,427,059,578.19 Including: operating costs 2,383,156,639.69 2,586,119,493.94 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 28,676,242.45 24,532,039.10 Sales expenses 807,361,915.86 656,726,781.55 Management expenses 141,441,987.15 117,995,749.13 Research and development expenses 17,916,778.63 11,859,847.53Financial expenses 49,512,783.07 29,825,666.94Including: Interest expenses 48,241,399.81 36,007,997.40Interest income 7,024,956.87 8,098,552.10Plus: other income 21,639,778.93 6,874,079.11 Investment income (losses are filled in with “—”

-15,444,667.73 23,278,638.71 columns)

Of which: for associates and joint ventures

-13,791,928.72 24,803,214.03 Enterprise’s 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

-25,747,207.09 -2,409,124.63 Fill in the column with "-")

Credit impairment losses (losses are preceded by “—”

-2,412,698.12 -9,397,237.34 (please fill in the list)

Asset impairment losses (losses are represented by “—”

-35,593,152.11 -8,248,547.97 (please fill in the list)

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

31,878.14 178,011.28 (please fill in the list)

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

265,699,374.41 574,776,202.74 columns)

Add: Non-operating income 801,716.12 303,837.62 Less: Non-operating expenses 6,531,613.96 3,232,521.66

4. Total profit (total loss is marked with “—”

259,969,476.57 571,847,518.70 fill in the column)

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd.'s 2025 semi-annual report

Less: Income tax expense 48,563,366.61 138,519,620.58

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

211,406,109.96 433,327,898.12 columns)

(1) Classification by business continuity

Net profit from continuing operations (net loss divided by

211,406,109.96 433,327,898.12 (Fill in “—”)

Net profit from discontinued operations (net loss equal to

Fill in the column with "—" sign)

(2) Classification according to ownership ownership

Net profit attributable to shareholders of the parent company

163,135,677.61 402,629,193.14 (Net loss is listed with "—")

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

48,270,432.35 30,698,704.98 "Fill in the numbers)

Net after-tax amount of other comprehensive income 1,354,600.80 -1,140,551.27 Other comprehensive income attributable to owners of the parent company

Net amount after tax of 1,127,600.38 -1,170,251.71

(1) Others that cannot be reclassified into profit or loss

-59,871.42 comprehensive income

Remeasure changes in defined benefit plans

Others that cannot be transferred to profit or loss under the equity method

Comprehensive income

Fair value of other equity instrument investments

-59,871.42 change

Fair value of the company’s own credit risk

change

5.Others

(2) Other comprehensive items that will be reclassified into profit or loss

1,127,600.38 -1,110,380.29 combined income

Other comprehensive items that can be transferred to profits and losses under the equity method

314,733.03

combined income

Changes in fair value of other debt investments
Financial assets are reclassified into other comprehensive

Amount of combined income

Credit impairment provisions for other debt investments
Cash flow hedging reserve
Translation difference of foreign currency financial statements 380,765.09 49,818.80
Others 432,102.26 -1,160,199.09 Other comprehensive income attributable to minority shareholders

227,000.42 29,700.44 Net after tax

Total comprehensive income 212,760,710.76 432,187,346.85 Total comprehensive income attributable to owners of the parent company

164,263,277.99 401,458,941.43 amount

Total comprehensive income attributable to minority shareholders 48,497,432.77 30,728,405.42

8. Earnings per share:

(1) Basic earnings per share 0.31 0.77

(2) Diluted earnings per share 0.31 0.74

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: Fu Gang Person in charge of accounting work: Li Zhen Person in charge of accounting department: Liu Feng

Income statement of the parent company

Unit: Yuan

Project Half-year 2025 Half-year 2024

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd.'s 2025 semi-annual report

Operating income 1,900,901,292.62 2,548,826,973.42 Less: Operating costs 1,593,579,327.76 1,840,712,385.71 Taxes and surcharges 17,312,232.97 13,934,644.61 Sales expenses 319,186,414.95 454,698,610.24 Management expenses 55,318,230.70 38,707,384.59 Research and development expenses

Financial expenses 31,487,211.09 17,521,853.10 Including: interest expenses 41,116,368.41 27,842,430.83 Interest income 9,806,830.15 10,990,650.83 Plus: other income 442,701.66 334,599.57 investment income (losses are filled in with “—”

276,215,058.66 400,261,879.73 columns)

Of which: for associates and joint ventures

-323,587.63 3,515,182.50 Industry investment income

Money measured at amortized cost

Income from derecognition of financial assets

Net exposure hedging gains (losses expressed as “—

"Fill in the column)

Gains from changes in fair value (losses calculated as

-145,470.47

Fill in the column with "—" sign)

Credit impairment losses (losses are preceded by “—”

-1,893,926.28 -6,163,815.03 (fill in the numbers)

Asset impairment losses (losses are represented by “—”

-32,477,443.75 -6,546,611.15 (fill in the numbers)

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

-1,208.67 -2,151.18 (fill in the numbers)

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

126,157,586.30 571,135,997.11 columns)

Add: Non-operating income 681,059.85 245,856.81 Less: Non-operating expenses 4,385,664.29 1,745,762.14

3. Total profit (total loss is marked with “—”

122,452,981.86 569,636,091.78 fill in the column)

Less: Income tax expenses -38,125,358.49 42,761,426.42

4. Net profit (net loss is filled in with "—"

160,578,340.35 526,874,665.36 columns)

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

160,578,340.35 526,874,665.36 (Fill in “—”)

(2) Net profit from discontinued operations (net loss equal to

Fill in the column with "—" sign)

Net after-tax amount of other comprehensive income 444,814.90 -1,288,705.19

(1) Others that cannot be reclassified into profit or loss

-59,871.42 comprehensive income

Remeasure changes in defined benefit plans

Others that cannot be transferred to profit or loss under the equity method

Comprehensive income

Fair value of other equity instrument investments

-59,871.42 change

Fair value of the company’s own credit risk

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd.'s 2025 semi-annual report

change

5.Others

(2) Other comprehensive items that will be reclassified into profit or loss

444,814.90 -1,228,833.77 combined income

Other comprehensive items that can be transferred to profits and losses under the equity method

combined income

Changes in fair value of other debt investments
Financial assets are reclassified into other comprehensive

Amount of combined income

Credit impairment provisions for other debt investments
Cash flow hedging reserve
Translation differences of foreign currency financial statements
Others 444,814.90 -1,228,833.77
Total comprehensive income 161,023,155.25 525,585,960.17

7. Earnings per share:

(1) Basic earnings per share

(2) Diluted earnings per share

Consolidated cash flow statement

Unit: Yuan

Project Half-year 2025 Half-year 2024

1. Cash flow generated from operating activities:

Cash received from selling goods and rendering services 4,328,271,152.39 4,324,487,115.74 Net increase in customer deposits and deposits from banks

Net increase in borrowing from the central bank

Net increase in borrowing funds from other financial institutions

Cash received from premiums from the original insurance contract

Net cash received from reinsurance business

Net increase in policyholders’ savings and investment funds

Cash collected from interest, fees and commissions

Net increase in borrowing funds

Net increase in repurchase business funds

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

Tax refunds received 77,426.30 Other cash received related to operating activities 92,090,949.82 24,900,910.74 Subtotal of cash inflows from operating activities 4,420,362,102.21 4,349,465,452.78 Cash paid for purchasing goods and receiving services 2,692,725,011.33 2,689,218,751.93 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 366,869,782.70 361,719,187.30 Various taxes and fees paid 323,491,104.13 320,964,874.15 Cash paid for other operating activities 645,511,546.65 505,940,107.72 Subtotal cash outflow from operating activities 4,028,597,444.81 3,877,842,921.10 Net cash flow generated from operating activities 391,764,657.40 471,622,531.68

2. Cash flow generated from investing activities:

Cash received from recovery of investment 130,000,000.00 175,763,665.81

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd.'s 2025 semi-annual report

Cash received from investment income 6,040,308.44 5,619,993.45 Disposal of fixed assets, intangible assets and other long-term assets

29,134.40 722,921.90 Net cash amount from asset recovery

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 136,069,442.84 182,106,581.16 Purchase and construction of fixed assets, intangible assets and other long-term assets

90,772,573.22 98,398,226.60 Cash paid for assets

Cash paid for investment 326,000,000.00 249,581,600.00 Net increase in pledged loans

Obtain payment from subsidiaries and other business units

net cash

Other cash payments related to investing activities

Subtotal of cash outflows from investing activities 416,772,573.22 347,979,826.60 Net cash flow generated from investing activities -280,703,130.38 -165,873,245.44

3. Cash flow generated from financing activities:

Cash received from investment 980,000.00

Among them: subsidiaries absorb investment income from minority shareholders

980,000.00

Cash arrived

Cash received from borrowings 1,838,701,348.45 1,220,998,040.52 Cash received from other financing activities 307,000,919.47 156,913,661.89 Subtotal of cash inflows from financing activities 2,146,682,267.92 1,377,911,702.41 Cash paid to repay debts 954,064,439.10 434,688,456.92

Distribution of dividends, profits or repayment of interest payments

439,251,640.77 418,521,043.37 cash

Including: shares paid by subsidiaries to minority shareholders

6,400,000.00

Profit, profit

Cash payments related to other financing activities 276,041,706.77 178,324,411.51 Subtotal cash outflows from financing activities 1,669,357,786.64 1,031,533,911.80 Net cash flow generated from financing activities 477,324,481.28 346,377,790.61

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

-3,208,683.17 641,303.03 impact

Net increase in cash and cash equivalents 585,177,325.13 652,768,379.88 Plus: opening balance of cash and cash equivalents 1,222,546,194.05 1,134,143,413.98
Balance of cash and cash equivalents at the end of the period 1,807,723,519.18 1,786,911,793.86
Cash flow statement of the parent company

Unit: Yuan

Project Half-year 2025 Half-year 2024

1. Cash flow generated from operating activities:

Cash received from selling goods and providing services 2,037,993,864.05 2,614,378,306.13 Tax refunds received

Other cash received related to operating activities 60,851,245.07 12,459,638.97 Subtotal cash inflow from operating activities 2,098,845,109.12 2,626,837,945.10 Cash paid for purchasing goods and receiving services 1,806,290,143.36 1,935,235,564.59 Cash paid to and for employees 158,267,818.10 163,223,271.61 Various taxes and fees paid 123,987,676.68 165,706,685.45 Cash paid for other operating activities 353,351,619.44 387,886,499.07 Subtotal cash outflow from operating activities 2,441,897,257.58 2,652,052,020.72 Net cash flow generated from operating activities -343,052,148.46 -25,214,075.62

2. Cash flow generated from investing activities:

Cash received from recovery of investment 70,000,000.00 4,789,942.75 Cash received from investment income 276,907,156.87 400,710,340.00

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd.'s 2025 semi-annual report

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

9,134.40 9,349.38 Net cash amount from asset recovery

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 346,916,291.27 405,509,632.13 Purchase and construction of fixed assets, intangible assets and other long-term assets

30,903,490.73 6,211,246.40 Cash paid for assets

Cash paid for investment 355,030,822.00 65,379,400.00

Obtain payment from subsidiaries and other business units

net cash

Other cash payments related to investing activities

Subtotal of cash outflows from investing activities 385,934,312.73 71,590,646.40 Net cash flow generated from investing activities -39,018,021.46 333,918,985.73

3. Cash flow generated from financing activities:

Absorbing cash received from investments

Cash received from borrowing 1,739,058,083.56 1,141,248,258.38

Other cash received related to financing activities 349,560,658.38 160,620,285.57 Subtotal of cash inflows from financing activities 2,088,618,741.94 1,301,868,543.95 Cash paid to repay debts 777,579,602.50 200,000,000.00 distributed dividends, profits or paid interest

428,151,441.77 413,211,654.83 cash

Cash payments related to other financing activities 153,300,000.00 332,500,000.00 Subtotal of cash outflows from financing activities 1,359,031,044.27 945,711,654.83 Net cash flow generated from financing activities 729,587,697.67 356,156,889.12

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

-1,040.70

influence

Net increase in cash and cash equivalents 347,516,487.05 664,861,799.23

Add: Balance of cash and cash equivalents at the beginning of the period 441,292,396.26 464,774,113.95

Balance of cash and cash equivalents at the end of the period 788,808,883.31 1,129,635,913.18
Consolidated statement of changes in owners’ equity

Amount of current period

Unit: Yuan

2025 half year

Less equity attributable to owners of the parent company

Other equity instruments Part 1 There is a decrease and there is no amount

Project capital: Other shareholders’ equity, preferred shares, perpetual bonds, other capital reserves, treasury shares, comprehensive income, reserves, reserves, risk reserves, profits, other subtotal, shareholders’ equity, equity, joint profit reserves, 1,5 2,3 2,6 525 99, - 202 229 1,6 48, 74, 04,

,61 752 2,5 ,07 ,76

Previous year 78, 306 910 671

9,3,55 23, 8,1 Balance at the end of 1,2 152,00,40,60

6.3 778 58. 01. .03 6.7 4.5 5.6 00 5 .82 26 04 7 9 3

Add: yes

Changes in accounting policies

before

period error correction

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd.'s 2025 semi-annual report

its

him

1,5 2,3 2,6 525 99, - 202 229

1,6 48, 74, 04, ,61 752 2,5 ,07 ,76

Current period 78, 306 910 671 9,3,55 23, 8,1 1,2

Initial balance 152,00,40,60

6.3 778 58. 01.

.03 6.7 4.5 5.6 00 5 .82 26 04

7 9 3

3. This issue adds 31, 43,

1,1 237 204 161 minus changes - 281 077

166 27, ,38,97,90 (reduced to 507,15,43

.00 600 6,1 7,7 0,3 Fill in the “-” sign .00 1.9 2.7

.38 98. 87. 54. column) 7 4

53 18 44 163 164 48, 212 1,1

,13 ,26 497 ,76

(1) Comprehensive 27,

5,6 3,2 ,43 0,7Total income 600

1. 2.7 10. .38

61 99 7 76

980 983

(2) All - 4,3 3,9

166,00,97 people invested and reduced 507 11.70.

.00 0.0 0.2 Less capital .00 29 29

0 9

980 980 1. owner

,00 ,00 ordinary investment

0.0 0.0 shares

0 0 2. Other equity - 4.3 3.9 3.9 Equity instruments held 507 11. 70. 70. .00

Investor capital .00 29 29 29

3． Share branch

Payment is included in all

owner's equity

4． Others

400 400 406

6,4

(3) Profit ,52,52,92

00,

Distribution 1,8 1,8 1,8

.00

14 14 14 1. Withdraw profit

surplus public space

Extract one

General risk preparation

400 400 406 3. for all 6,4

,52,52,92 (or shares 00,

1,8 1,8 1,8 East) allocation of 000

.00

14 14 14 4. Others

(4) All

Inside the investor’s rights

carry forward

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd.'s 2025 semi-annual report

1． capital company

Convert accumulated assets to capital

(or equity)

surplus public

Convert accumulated assets to capital

(or equity)

3． surplus public

Accumulate to make up for losses

4． Settings subject to

Changes in benefit plan

Amount carried forward and retained

income

Other comprehensive

Consolidated income carried forward

retained earnings

Others

(5) Special projects

reserve

1． This issue mentions

take

This issue makes

use

31, 31, 31,

276 276 - 276

(6) Others ,84 ,84 0.0 ,84 0.6 0.6 3 0.6 8 8 5 1,3 2,1 2,4 525 99, 28, 202 272 2,8 10, 69, 42,

,61 752 757 ,07 ,83

This issue 05, 919 932 771

9,4,04,37 8,1 8,6 end balance 752,80,61,25

9.3 3.1 58. 33. .41 8.2 7.4 1.1 00 5 5 26 78

4 1 9

Amount of previous year

Unit: Yuan

2024 half year

Less equity attributable to owners of the parent company

Other equity instruments Part 1 There is a decrease and there is no amount

Project assets: Share capital of other shareholders Preferred shares Perpetual bonds Other capital reserves Treasury shares Comprehensive income reserves Reserves Reserves Risk reserves Profit Others Subtotal Owners’ equity Equity joint profit reserves 1,4 2,6 - 2,6 525 99, 421 170

1,8 48, 68, 26, 42,

,61 776 ,69 ,56

Previous year 56, 972 471 183 287

1,6 ,36 1,5 3,2

Ending balance 193,04,06,50,56

1.2 42. 87.

.02 5.4 7.1 1.4 5.6 00 9 81 60

0 2 7 5

Add: yes

Changes in accounting policies

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd.'s 2025 semi-annual report

before

period error correction

231 222 254 477 1,5 10,

,78 ,57 ,58 ,16other 62, 765

0,5 7,6 7,4 5,0he 908 ,82

1. 1. 1. .48 2.8

10 70 41 11

1,4 2,8 3,1 525 99, 653 170 228 1,8 1,5 38, 91, 19,

,61 776 ,47 ,56 ,40

Current period 56, 62, 206 048 452

1,6,36 2,1 3,2 3,8 Beginning balance 193 908,22,71,61

1.2 09. 87. 99. .02 .48 2.5 9.8 9.7 00 9 91 60 94

2 2 6

This issue adds - - 27, 28,

2,0 2,1 1,3

Less changes 1.8 1.1 1.5 476 873

5,8 22, 11, 97,

(Reduced to 54. 70, 62, ,34,46

600 713 124

Fill in the "-" sign 00 251 908 5.5 9.7

44 .87 .00 .24

column) .71 .48 2 6 - 402 401 30, 432

1,1,62,45 728,18

(1) Comprehensive

70, 9,1 8,9,40 7,3 Total income

251 93. 41. 5.4 46. .71 14 43 2 85

(2) All 1,8 48, 44, 44,

5,8

771 741 741

Less capital 00 .23 .79 .79

1． owner

ordinary investment

Other rights 1,8 48, 44, 44,

5,8

Equity instrument holdings 54. 771 741 741

83.

Investor capital 00 .23 .79 .79

3． Share branch

Payment is included in all

owner's equity

4． Others

400 400 400

(3) Profit ,51 ,51 ,51 distribution 7,4 7,4 7,4

14 14 14 1. Withdraw profit

surplus public space

Extract one

General risk preparation

- - 1. Distribution to all 400 400 400 shareholders (or shares, 51, 51, 51) 7,4 7,4 7,4

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd.'s 2025 semi-annual report

14 14 14 4. Others

(4) All

Inside the investor’s rights

carry forward

1． capital company

Convert accumulated assets to capital

(or equity)

surplus public

Convert accumulated assets to capital

(or equity)

3． surplus public

Accumulate to make up for losses

4． Settings subject to

Changes in benefit plan

Amount carried forward and retained

income

Other comprehensive

Consolidated income carried forward

retained earnings

Others

- - 1,5 1,5 1,5

(5) Special projects

62, 62, 62,reserve

908 908 908 .48 .48 .48

- - 1,1 1,1 1,1 1. This issue mentions

55, 55, 55, take

530 530 530 .51 .51 .51 407 407 407 2. This issue uses ,37,37,37 7.9 7.9 7.9 7 7 7

- 1,9 1,9

3,2 1,2 73, 73,

(6) Others 52, 78, 829 829

059 230 .64 .64

.90 .26

1,4 2,8 3,1 525 99, 655 170 255

685 40, 92, 48, ,61 770 ,49 ,56 ,88

This period ,94 317 445 326 3,4 ,47 4,7 3,2 0,2

Closing balance 1.3,93,84,08

7.8 10. 87. 45.

1 5.5 4.0 9.5 00 5 78 60 46

2 6 2

Statement of changes in owner’s equity of the parent company

Amount of current period

Unit: Yuan

Project Half Year 2025

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd.'s 2025 semi-annual report

Other equity instruments All less: Others Undivided

Capital Special Surplus Owners’ Equity Priority Perpetual Inventory Comprehensive Dividends Others

Other public reserves, reserves, equity joint ventures, bonds, shares, profits

Total 1,600

525.6 99.75 271.8 - 212.1 491.6

Previous year, 220,

19,31 2,556 51,67 765,1 42,49 19,55

Closing balance 482.9 0.00 .35 5.05 13.72 9.25 5.98

Add: yes

Changes in accounting policies

before

period error correction

its

him

1,600

525.6 99.75 271.8 - 212.1 491.6

Current year, 220,

19,31 2,556 51,67 765,1 42,49 19,55

Initial balance 482.9

0.00 .35 5.05 13.72 9.25 5.98

3. Added in this issue

-Minus change amount -

166.0 4,328 444,8 239,9 239,4 (reduced to 507.0

0 .26 14.90 43,53 94,73 Fill in “-” with 0

5.79 3.63 columns)

160,5 161,0

(1) Comprehensive 444,8

78,34 23,15Total income 14.90

0.35 5.25

(2) All -

166.0 4,311 3,970 investors input and minus 507.0

0 .29 .29 Less capital 0

1． owner

ordinary investment

Other rights -

166.0 4,311 3,970 Equity instruments held 507.0

0 .29 .29 Investors invested capital 0

3． Share branch

Payment is included in all

owner's equity

4． Others

(3) Profit 400,5 400,5 Distribution 21,87 21,87

6.14 6.14 1. Withdraw profit

surplus public space

- 1. to all

400,5 400,5 (or shares

21,87 21,87 East) distribution

6.14 6.14 3. Others

(4) All

Inside the investor’s rights

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd.'s 2025 semi-annual report

carry forward

1． capital company

Convert accumulated assets to capital

(or equity)

surplus public

Convert accumulated assets to capital

(or equity)

3． surplus public

Accumulate to make up for losses

4． Settings subject to

Changes in benefit plan

Amount carried forward and retained

income

Other comprehensive

Consolidated income carried forward

retained earnings

Others

(5) Special projects

reserve

1． This issue mentions

take

This issue makes

use

(6) Others 16.97 16.97 1,360

525.6 99.75 271.8 - 212.1 251.6

This period, 725,

19,47 2,049 56,00 320,2 42,49 76,02

Closing balance 749.2

6.00 .35 3.31 98.82 9.25 0.19

Amount of last period

Unit: Yuan

2024 half year

Other equity instruments All less: Others Undivided

Project Capital Special Surplus Owner's Equity Priority Perpetual Inventory Comprehensive Distribution Others

Other public reserves, reserves, equity joint ventures, bonds, shares, profits

Total 1,816

525.6 99.77 502.6 - 170.5 517.9

Last year, 071,

11,63 6,361 42,35 446,2 63,28 24,13

Closing balance 521.3 7.00 .29 5.59 51.40 7.60 1.26

Add: yes

Changes in accounting policies

before

period error correction

its

him

1,816

525.6 99.77 502.6 - 170.5 517.9

This year, 071,

11,63 6,361 42,35 446,2 63,28 24,13

Initial balance 521.3 7.00 .29 5.59 51.40 7.60 1.26

1,854 - 48,77 - 126,3 125,1

3. Added in this issue

.00 5,883 1.23 1,288 57,18 13,22 Full text of Qingdao Baiyang Pharmaceutical Co., Ltd. 2025 Semi-annual Report

Less change amount .44,705.5.22 1.82 (reduced by 19

Fill in the "-" sign

column)

526,8 525,5

(1) Comprehensive 1,288

74,66 85,96Total income ,705.

5.36 0.17

(2) All -

1,854 48,77 44,74 Investment and deduction 5,883

.00 1.23 1.79 Less capital .44

1． owner

ordinary investment

Other rights -

1,854 48,77 44,74 Equity instruments held 5,883

.00 1.23 1.79 Investors invested capital .44

3． Share branch

Payment is included in all

owner's equity

4． Others

(3) Profit 400,5 400,5 Distribution 17,48 17,48 0.14 0.14 1. Withdraw profit

surplus public space

- 1. to all

400,5 400,5 (or shares

17,48 17,48 East) distribution

0.14 0.14 3. Others

(4) All

Inside the investor’s rights

carry forward

1． capital company

Convert accumulated assets to capital

(or equity)

surplus public

Convert accumulated assets to capital

(or equity)

3． surplus public

Accumulate to make up for losses

4． Settings subject to

Changes in benefit plan

Amount carried forward and retained

income

Other comprehensive

Consolidated income carried forward

retained earnings

Others

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd.'s 2025 semi-annual report

(5) Special projects

reserve

1． This issue mentions

take

This issue makes

use

(6) Others

1,941

525,6 99,77 502,6 170,5 644,2

This period 1,734,184,

13,49 0,477 91,12 63,28 81,31

Closing balance ,956.743.1 1.00 .85 6.82 7.60 6.48

59 6

3. Basic situation of the company

Qingdao Baiyang Pharmaceutical Co., Ltd. (hereinafter referred to as the "Company" or the "Company") is a joint-stock company established by 13 shareholders including Baiyang Pharmaceutical Group and approved by the shareholders' meeting in July 2016.

The company's corporate legal person business license registration number: 91370200770281005N. It will be listed on the Shenzhen Stock Exchange in June 2021. The industry it belongs to is wholesale industry. As of June 30, 2025, the company had issued a total of 525,619,476 shares.

Registration address: Building 1, No. 88 Tongbai Road, Shibei District, Qingdao City, Shandong Province. Headquarters address: Building 1, No. 88 Tongbai Road, Shibei District, Qingdao City, Shandong Province.

The company's main business activities are: drug retail; drug wholesale; third-class medical device operation; third-class medical device leasing; urban distribution and transportation services (excluding dangerous goods); second-class value-added telecommunications business; Internet information services; road cargo transportation (excluding dangerous goods). (Projects that require approval according to law can only be carried out with the approval of relevant departments. Specific business projects are subject to the approval documents or licenses of relevant departments) General projects: import and export of goods; food sales (only sales of pre-packaged food); food Internet sales (only sales of pre-packaged food) products); sales of infant formula milk powder and other infant formula foods; sales of health food (prepackaged); sales of formula foods for special medical purposes; sales of Class I medical devices; sales of Class II medical devices; retail of sporting goods and equipment; retail of cosmetics; sales of daily necessities; kitchenware Wholesale of sanitary ware and daily necessities; sales of disinfectants (excluding hazardous chemicals); sales of household appliances; repair of special equipment; leasing of second-class medical equipment; low-temperature warehousing (excluding hazardous chemicals and other items that require license approval); general cargo warehousing services (excluding hazardous chemicals and other items that require license approval) approved projects); technical services, technology development, technology consulting, technology exchange, technology transfer, technology promotion; health consulting services (excluding diagnosis and treatment services); marketing planning; information consulting services (excluding licensing information consulting services); non-residential real estate leasing; technology import and export. (Except for projects that require approval according to law, business activities can be carried out independently with a business license and in accordance with the law).

The parent company of the company is Baiyang Pharmaceutical Group Co., Ltd., and the actual controller of the company is Mr. Fu Gang.

This financial statement has been approved by the company's board of directors on August 27, 2025.

4. Basis for preparation of financial statements

Basics of preparation

These financial statements are prepared in accordance with the "Accounting Standards for Business Enterprises - Basic Standards" and various specific accounting standards, application guidelines for Accounting Standards for Business Enterprises, interpretations of Accounting Standards for Business Enterprises and other relevant regulations promulgated by the Ministry of Finance (hereinafter collectively referred to as "Accounting Standards for Business Enterprises"), as well as the relevant provisions of the China Securities Regulatory Commission's "Information Disclosure Preparation Rules No. 15 for Companies that Offer Securities to the Public - General Provisions on Financial Reports".

Continued operations

These financial statements are prepared on a going concern basis.

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd.'s 2025 semi-annual report

5. Important accounting policies and accounting estimates

Specific accounting policies and accounting estimation tips:

The Company has formulated specific accounting policies and accounting estimates based on actual production and operation characteristics for transactions or events such as impairment of financial instruments, depreciation of fixed assets, amortization of intangible assets, and revenue recognition.

Statement on compliance with corporate accounting standards

This financial statement complies with the requirements of the Accounting Standards for Business Enterprises promulgated by the Ministry of Finance, and truly and completely reflects the company's consolidated and parent company's financial status as of June 30, 2025, as well as the consolidated and parent company's operating results and cash flows from January to June 2025.

Accounting period

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

Business cycle

The company's operating cycle is 12 months.

Accounting standard currency

The Company adopts RMB as the standard accounting currency.

Determination method and selection basis of importance standards

Applicable □Not applicable

Project Materiality Criteria

The recovery or reversal of bad debt provisions for important accounts receivable. The individual recovery or reversal amount accounts for more than 10% of the total amount of various types of receivables. The actual write-off of important accounts receivable. The single write-off amount accounts for more than 10% of the total bad debt provisions for various types of receivables.

The net assets of the subsidiary account for more than 5% of the group's net assets, or the net profit of the subsidiary accounts for an important amount of the group's non-wholly-owned subsidiary.

More than 5% of the group’s net profit

Important accounts payable and other accounts payable that are aged more than one year or are overdue. The ending balance is more than 1 million yuan.

The company will invest in projects under construction that have a large budget and the current amount or balance accounts for a significant amount of fixed assets.

Projects under construction with a scale ratio exceeding 10% are deemed important

Important Cash Flows from Investing Activities The company identifies individual cash flows exceeding 5% of total assets as important.

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

Business merger under common control: The assets and liabilities acquired by the merging party in the business merger (including the goodwill formed by the ultimate controlling party's acquisition of the merged party) are measured based on the book value of the merged party's assets and liabilities in the ultimate controlling party's consolidated financial statements on the merger date. The difference between the book value of the net assets acquired in the merger and the book value of the merger consideration paid (or the total face value of the shares issued) is adjusted to the equity premium in the capital reserve. If the equity premium in the capital reserve is insufficient to offset it, the retained earnings are adjusted.

Merger of businesses not under common control: The merger cost is the fair value of the assets paid, liabilities incurred or assumed, and equity securities issued by the acquirer on the acquisition date to obtain control of the acquiree. The difference between the merger cost and the fair value of the acquiree's identifiable net assets acquired in the merger is recognized as goodwill; the difference between the merger cost and the fair value of the acquiree's identifiable net assets acquired in the merger is included in the current profit and loss. All identifiable assets, liabilities and contingent liabilities of the acquiree acquired in the merger that meet the recognition conditions are measured at fair value on the acquisition date.

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd.'s 2025 semi-annual report

Directly related expenses incurred for a business merger are included in the current profits and losses when incurred; transaction costs for the issuance of equity securities or debt securities for a business merger are included in the initial recognition amount of equity securities or debt securities.

Judgment standards for control and preparation methods of consolidated financial statements

(1) Judgment criteria for control

The scope of consolidation of the consolidated financial statements is determined based on control, and the scope of consolidation includes the company and all subsidiaries. Control means that the company has power over the investee, enjoys variable returns by participating in the investee's related activities, and has the ability to use its power over the investee to affect the amount of its returns.

(2) Merger procedure

The company regards the entire enterprise group as an accounting entity and prepares consolidated financial statements in accordance with unified accounting policies to reflect the overall financial status, operating results and cash flow of the enterprise group. The effects of internal transactions between the Company and its subsidiaries and between subsidiaries are eliminated. If internal transactions indicate that impairment losses have occurred on related assets, the full amount of such losses shall be recognized. If the accounting policies and accounting periods adopted by subsidiaries are inconsistent with those of the Company, necessary adjustments shall be made in accordance with the Company's accounting policies and accounting periods when preparing consolidated financial statements.

The owner's equity of subsidiaries, current net profit and loss and current comprehensive income belonging to minority shareholders are presented separately under the owner's equity item in the consolidated balance sheet, the net profit item and the total comprehensive income item in the consolidated income statement. If the current losses shared by the minority shareholders of a subsidiary exceed the minority shareholders' share of the subsidiary's opening owner's equity, the balance is offset against the minority shareholders' equity.

Add subsidiaries or businesses

During the reporting period, if a subsidiary or business is added due to a business merger under the same control, the operating results and cash flows of the subsidiary or business combination from the beginning of the current period to the end of the reporting period will be included in the consolidated financial statements. At the same time, the opening numbers of the consolidated financial statements and relevant items in the comparative statements will be adjusted. The post-merger reporting entity will be deemed to have existed from the time when the ultimate controlling party began to control.

If it is possible to control an investee under the same control due to additional investment or other reasons, the equity investment held before obtaining control of the merged party has recognized relevant profits and losses, other comprehensive income and other changes in net assets between the date of acquisition of the original equity and the date when the merging party and the merged party are under the same control, whichever is later, to the date of merger, and shall offset the opening retained earnings or current profits and losses of the comparative statement period respectively.

During the reporting period, if a subsidiary or business is added due to a business combination not under common control, the fair value of each identifiable asset, liability and contingent liability determined on the date of purchase will be included in the consolidated financial statements from the date of purchase.

If it is possible to exercise control over an investee not under the same control due to additional investment or other reasons, the equity of the purchased party held before the purchase date shall 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 shall be included in the investment income of the current period. Other comprehensive income related to the equity of the purchased party held before the purchase date that can be reclassified into profit and loss later, and other changes in owner's equity under equity method accounting are converted into investment income for the current period on the purchase date. 2) Disposal of subsidiaries

①General treatment methods

When control over the investee is lost due to the disposal of part of the equity investment or other reasons, the remaining equity investment after disposal shall 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 sum of the share of the original subsidiary's net assets calculated continuously from the date of purchase or merger based on the original shareholding ratio and the sum of goodwill, shall be included in the investment income in the period when control is lost. Other comprehensive income related to the equity investment in the original subsidiary that can be reclassified into profit and loss in the future and other changes in owner's equity under equity method accounting will be converted into investment income for the current period when control is lost. ② Disposal of subsidiaries step by step

If the equity investment in a subsidiary is disposed of step by step through multiple transactions until control is lost, if the terms, conditions and economic impact of each transaction to dispose of the equity investment in the subsidiary meet one or more of the following circumstances, it usually indicates that the multiple transactions are a package deal:

ⅰ. the transactions were entered into simultaneously or with consideration of their effects on each other;

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

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

ⅳ. A transaction that is uneconomical on its own is economical when considered together with other transactions.

If each transaction is a package deal, each transaction will be accounted for as a transaction in which the subsidiary is disposed of and control is lost; before the loss of control, the difference between each disposal price 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 profit and loss of the current period when control is lost.

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If each transaction does not belong to a package deal, before the loss of control, the equity investment in the subsidiary will be accounted for as a partial disposal without losing control; when the control is lost, the accounting treatment will be based on the general treatment method for disposing of a subsidiary.

Purchase minority shares in subsidiaries

The difference between the newly acquired long-term equity investment due to the purchase of minority shares and the share of the subsidiary's net assets calculated continuously from the date of purchase or merger based on the newly added shareholding ratio shall be adjusted to the equity premium in the capital reserve in the consolidated balance sheet. If the equity premium in the capital reserve is insufficient to offset, the retained earnings shall be adjusted. 4) Partially dispose of equity investments in subsidiaries without losing control

The difference between the disposal price and the share of the net assets of the subsidiary corresponding to the disposal of the long-term equity investment, calculated continuously from the date of purchase or merger, is adjusted to the equity premium in the capital reserve in the consolidated balance sheet. If the equity premium in the capital reserve is insufficient to offset, the retained earnings are adjusted.

Classification of joint arrangements and accounting treatment of joint operations

Joint arrangements are divided into joint operations and joint ventures.

A joint operation refers to a joint arrangement in which the joint venture party enjoys the relevant assets of the arrangement and assumes the relevant liabilities of the arrangement.

The company confirms the following items related to the interest share in joint operations:

(1) Confirm the assets held individually by the company, and confirm the assets held jointly according to the company’s share;

(2) Confirm the liabilities borne by the company alone, and confirm the liabilities borne jointly by the company's share;

(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 output according to the company’s share;

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

The Company's investment in joint ventures is accounted for using the equity method. For details, see "V. 22. Long-term Equity Investment" in the Financial Report in Section 10 of this report.

Determination standards for cash and cash equivalents

Cash refers to the company's cash on hand and deposits that can be used for payment at any time. Cash equivalents refer to investments held by the Company that are short-term, highly liquid, easily convertible into known amounts of cash, and have little risk of value changes.

Foreign currency business and foreign currency statement conversion

(1) Foreign currency business

For foreign currency business, the spot exchange rate on the date of transaction is used as the conversion exchange rate to convert the foreign currency amount into RMB for accounting.

The balance of foreign currency monetary items on the balance sheet date is converted at the spot exchange rate on the balance sheet date. The resulting exchange differences, except for the exchange differences arising from special foreign currency borrowings related to the acquisition and construction of assets that meet capitalization conditions, are treated in accordance with the principle of capitalization of borrowing costs, and are included in the current profit and loss.

(2) Conversion of foreign currency statements

Assets and liability items in the balance sheet are translated using the spot exchange rate on the balance sheet date; owners' equity items, except for "undistributed profits" items, are translated using the spot exchange rate at the time of occurrence. Income and expense items in the income statement are translated using the spot exchange rate on the date of transaction.

When disposing of an overseas operation, the translation difference of the foreign currency financial statements related to the overseas operation will be transferred from the owner's equity items to the current profit and loss of the disposal.

Financial instruments

The Company recognizes a financial asset, financial liability or equity instrument when it becomes a party to a financial instrument contract.

(1) Classification of financial instruments

Based on the company's business model for managing financial assets and the contractual cash flow characteristics of financial assets, financial assets are classified upon initial recognition as: financial assets measured at amortized cost, financial assets measured at fair value with changes included in other comprehensive income, and financial assets measured at fair value with changes included in current profits and losses.

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The Company will classify financial assets that meet the following conditions and are not designated as measured at fair value through profit or loss for the current period as financial assets measured at amortized cost:

The business model is aimed at collecting contractual cash flows;
Contractual cash flows are solely payments of principal and interest based on the outstanding principal amount.

The business model aims at both collecting contractual cash flows and selling the financial assets;
Contractual cash flows are solely payments of principal and interest based on the outstanding principal amount.

For non-trading equity instrument investments, the Company can irrevocably designate them as financial assets measured at fair value with changes included in other comprehensive income (equity instruments) upon initial recognition. This designation is made on an individual investment basis and the underlying investment meets the definition of an equity instrument from the issuer's perspective. Except for the above-mentioned financial assets measured at amortized cost and at fair value with changes included in other comprehensive income, the Company classifies all remaining financial assets as financial assets measured at fair value with changes included in current profits and losses. At the time of initial recognition, if the accounting mismatch can be eliminated or significantly reduced, the Company may irrevocably designate financial assets that would have been classified as measured at amortized cost or at fair value through other comprehensive income as financial assets at fair value through profit or loss.

Financial liabilities are classified upon initial recognition into: financial liabilities measured at fair value through profit or loss for the current period and financial liabilities measured at amortized cost. Financial liabilities that meet one of the following conditions can be designated as financial liabilities measured at fair value with changes included in current profits and losses at the time of initial measurement:

This designation can eliminate or significantly reduce accounting mismatches.
According to the enterprise risk management or investment strategies stated in formal written documents, manage and perform performance evaluation of financial liability portfolios or financial assets and financial liability portfolios based on fair value, and report to key management personnel on this basis within the enterprise.
The financial liability contains embedded derivatives that need to be separated separately.

According to the above conditions, this type of financial liabilities designated by the company mainly include: (describe the designated situation in detail)

(2) Basis and method for confirmation of financial instruments

Financial assets measured at amortized cost

Financial assets measured at amortized cost include notes receivable, accounts receivable, other receivables, long-term receivables, debt investments, etc., which are initially measured at fair value, and relevant transaction costs are included in the initial recognition amount; accounts receivable that do not contain significant financing components and accounts receivable that the company decides not to consider financing components that do not exceed one year are initially measured at the contract transaction price.

Interest calculated using the actual interest rate method during the holding period is included in the current profit and loss.

When recovered or disposed of, the difference between the price obtained and the book value of the financial asset will be included in the current profit and loss.

Financial assets (debt instruments) measured at fair value with changes included in other comprehensive income

Financial assets (debt instruments) measured at fair value and whose changes are included in other comprehensive income include receivables financing, other debt investments, etc., which are initially measured at fair value, and related transaction costs are included in the initial recognition amount. The financial assets are subsequently measured at fair value, and changes in fair value are included in other comprehensive income, except for interest calculated using the effective interest rate method, impairment losses or gains and exchange gains and losses.

When derecognition is terminated, the accumulated gains or losses previously included in other comprehensive income are transferred out of other comprehensive income and included in the current profit and loss.

Financial assets (equity instruments) measured at fair value and changes included in other comprehensive income

Financial assets (equity instruments) measured at fair value through other comprehensive income, including other equity instrument investments, are initially measured at fair value, and relevant transaction costs are included in the initial recognition amount. The financial assets are subsequently measured at fair value, and changes in fair value are included in other comprehensive income. Dividends received are included in the current profit and loss.

Upon derecognition, the accumulated gains or losses previously included in other comprehensive income are transferred out of other comprehensive income and included in retained earnings.

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

Financial assets measured at fair value and whose changes are included in the current profit and loss include trading financial assets, derivative financial assets, other non-current financial assets, etc., which are initially measured at fair value, and related transaction costs are included in the current profit and loss. The financial assets are subsequently measured at fair value, and changes in fair value are included in current profits and losses. 5) Financial liabilities measured at fair value and changes included in current profits and losses

Financial liabilities measured at fair value and whose changes are included in the current profit and loss include trading financial liabilities, derivative financial liabilities, etc., which are initially measured at fair value, and related transaction costs are included in the current profit and loss. The financial liability is subsequently measured at fair value, and changes in fair value are included in current profits and losses.

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When derecognition is terminated, the difference between its book value and the consideration paid is included in the current profit and loss.

Financial liabilities measured at amortized cost

Financial liabilities measured at amortized cost include short-term borrowings, notes payable, accounts payable, other payables, long-term borrowings, bonds payable, and long-term payables. They are initially measured at fair value, and related transaction costs are included in the initial recognition amount.

Interest calculated using the actual interest rate method during the holding period is included in the current profit and loss.

When the recognition is terminated, the difference between the consideration paid and the book value of the financial liability will be included in the current profit and loss.

(3) Recognition basis and measurement method for derecognition of financial assets and transfer of financial assets

When one of the following conditions is met, the company terminates the recognition of financial assets:

Termination of the contractual right to receive cash flows from the financial asset;
The financial asset has been transferred, and substantially all the risks and rewards of ownership of the financial asset have been transferred to the transferee;
The financial asset has been transferred. Although the Company neither transfers nor retains substantially all risks and rewards of ownership of the financial asset, it does not retain control over the financial asset.

If the company and the counterparty modify or renegotiate the contract and it constitutes a substantial modification, the original financial asset will be terminated and a new financial asset will be recognized in accordance with the modified terms.

When a financial asset is transferred, if substantially all the risks and rewards of ownership of the financial asset are retained, the financial asset will not be derecognised.

When judging whether the transfer of financial assets meets the above conditions for derecognition of financial assets, the principle of substance over form is adopted.

The company distinguishes the transfer of financial assets into overall transfer and partial transfer of financial assets. If the overall transfer of financial assets meets the conditions for derecognition, the difference between the following two amounts will be included in the current profit and loss:

The book value of the transferred financial assets;
The sum of the consideration received for the transfer and the cumulative amount of changes in fair value that were originally directly included in the owner's equity (if the financial assets involved in the transfer are financial assets (debt instruments) measured at fair value and whose changes are included in other comprehensive income).

If a partial transfer of a financial asset meets the conditions for derecognition, the overall book value of the transferred financial asset will be apportioned between the derecognized part and the non-derecognized part according to their respective relative fair values, and the difference between the following two amounts shall be included in the current profit and loss:

The book value of the part whose recognition is terminated;
The sum of the consideration for the derecognition part and the amount corresponding to the derecognition part of the cumulative amount of changes in fair value that was originally directly included in the owner's equity (if the financial assets involved in the transfer are financial assets (debt instruments) measured at fair value and whose changes are included in other comprehensive income).

If the transfer of financial assets does not meet the conditions for derecognition, the financial assets will continue to be recognized, and the consideration received will be recognized as a financial liability.

(4) Termination of recognition of financial liabilities

If the current obligation of a financial liability has been discharged in whole or in part, the recognition of the financial liability or part of it will be terminated; if the company signs an agreement with the creditor to replace the existing financial liability by assuming a new financial liability, and the contract terms of the new financial liability and the existing financial liability are substantially different, the recognition of the existing financial liability will be terminated and the new financial liability will be recognized at the same time.

If all or part of the contract terms of an existing financial liability are substantially modified, the recognition of the existing financial liability or part of it will be terminated, and the financial liability after the modified terms will be recognized as a new financial liability.

When all or part of a financial liability is derecognised, the difference between the book value of the derecognized financial liability and the consideration paid (including non-cash assets transferred out or new financial liabilities assumed) shall be included in the current profit and loss.

If the company repurchases part of a financial liability, it will allocate the overall book value of the financial liability based on the relative fair value of the continued recognition part and the derecognized part on the repurchase date. The difference between the book value allocated to the derecognized part and the consideration paid (including non-cash assets transferred out or new financial liabilities assumed) is included in the current profit and loss.

(5) Method for determining the fair value of financial assets and financial liabilities

For financial instruments with an active market, their fair value is determined based on the quoted price in the active market. For financial instruments for which there is no active market, valuation techniques are used to determine their fair value. When valuing, the Company adopts valuation techniques that are applicable under the current circumstances and supported by sufficient available data and other information, selects input values that are consistent with the characteristics of the assets or liabilities considered by market participants in transactions of related assets or liabilities, and gives priority to the use of relevant observable input values. Unobservable inputs are used only when the relevant observable inputs are unobservable or impracticable to obtain.

(6) Testing methods and accounting treatment methods for impairment of financial instruments

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The Company performs impairment accounting treatment on the basis of expected credit losses for financial assets measured at amortized cost, financial assets (debt instruments) measured at fair value with changes included in other comprehensive income, and financial guarantee contracts.

The company considers reasonable and well-founded information about past events, current conditions and predictions of future economic conditions, weights the risk of default, calculates the probability-weighted amount of the present value of the difference between the cash flow receivable in the contract and the cash flow expected to be received, and recognizes expected credit losses.

For receivables and contract assets formed by transactions regulated by "Accounting Standards for Business Enterprises No. 14 - Revenue", regardless of whether they contain significant financing components, the Company always measures its loss provisions at an amount equivalent to the expected credit losses during the entire duration.

For lease receivables formed by transactions regulated by "Accounting Standards for Business Enterprises No. 21 - Leasing", the Company chooses to always measure its loss provisions at an amount equivalent to the expected credit losses during the entire duration.

For other financial instruments, the Company evaluates the changes in the credit risk of the relevant financial instruments since initial recognition on each balance sheet date.

The Company compares the risk of default of a financial instrument on the balance sheet date with the risk of default on the initial recognition date to determine the relative change in the default risk of the financial instrument during its expected duration to assess whether the credit risk of the financial instrument has increased significantly since initial recognition. Generally, if the financial instrument is overdue for more than 30 days, the Company considers that the credit risk of the financial instrument has increased significantly, unless there is conclusive evidence that the credit risk of the financial instrument has not increased significantly since the initial recognition. If the credit risk of a financial instrument is low on the balance sheet date, the Company considers that the credit risk of the financial instrument has not increased significantly since initial recognition. If the credit risk of the financial instrument has increased significantly since initial recognition, the Company will measure its loss provision at an amount equivalent to the expected credit losses of the financial instrument throughout its lifetime; if the credit risk of the financial instrument has not increased significantly since initial recognition, the Company will measure its loss provisions at an amount equivalent to the expected credit losses of the financial instrument within the next 12 months. The resulting increase or reversal of loss provisions is included in the current profit and loss as impairment losses or gains. For financial assets (debt instruments) measured at fair value and whose changes are included in other comprehensive income, the loss provision is recognized in other comprehensive income, and the impairment loss or gain is included in the current profit and loss, without reducing the book value of the financial asset listed in the balance sheet.

If the company no longer reasonably expects that the contractual cash flows of a financial asset can be fully or partially recovered, it will directly write down the book balance of the financial asset.

The Company divides financial assets that are not individually assessed to be credit-impaired into different portfolios based on their credit risk characteristics:

Basis for determining the combination of credit risk characteristics

Project Basis for determining combination

Credit mix:

Except for accounts receivable and other receivables for which loss provisions have been separately measured, the Company

The same or similar accounts receivable with similar credit risk characteristics divided by aging segments, Portfolio A (aging portfolio)

Based on the expected credit losses of the commercial acceptance bill receivable portfolio and taking into account forward-looking information, the loss is determined.

Unprepared.

Portfolio B (Deposit and Margin Portfolio) Various types of deposits, margins and other receivables that should be collected in daily operating activities.

According to the expected credit loss calculation, notes receivable, accounts receivable, interest receivable, and Portfolio C (a financial asset portfolio with extremely low credit risk) with extremely low credit risk

Dividends receivable, etc.

When implementing credit risk assessment on a portfolio basis, based on the financial asset portfolio structure and similar credit risk characteristics (the debtor's ability to repay the debt according to the terms of the contract), combined with historical default loss experience and current economic conditions, and considering forward-looking information, the expected credit losses are measured on the basis of the expected duration, and the loss provision for financial assets is recognized.

Methods for accruing loss provisions for different combinations of measurements:

Item accrual method

Portfolio A (aging portfolio) Estimated duration

Portfolio B (Deposit and Margin Portfolio) Estimated Duration

Portfolio C (a portfolio of financial assets with extremely low credit risk) Estimated duration

The expected credit loss rate of each portfolio is as follows:

Portfolio A (aging portfolio): expected credit loss rate

Expected credit loss rate for commercial acceptance bills receivable

Aging Expected credit loss rate of accounts receivable (%) Expected credit loss rate of other receivables (%) (%)

Within 1 year (including 1

0.5 0.5 0.5

years)

1-2 years 10 10 10

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2-3 years 50 50 50

More than 3 years 100 100 100 Portfolio B (deposit margin portfolio): Combining historical default loss experience and current economic conditions, taking into account forward-looking information, the expected credit loss rate is 0; Portfolio C (financial asset portfolio with extremely low credit risk): Combining historical default loss experience and current economic conditions, taking into account forward-looking information, the expected credit loss rate is 0.

Notes receivable

The Company conducts accounting treatment in accordance with "V. 11. Financial Instruments" in Section 8 of the Financial Report of this report.

Accounts receivable

The Company conducts accounting treatment in accordance with "V. 11. Financial Instruments" in Section 8 of the Financial Report of this report.

Accounts receivable financing

The Company conducts accounting treatment in accordance with "V. 11. Financial Instruments" in Section 8 of the Financial Report of this report.

Other receivables

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

The Company conducts accounting treatment in accordance with "V. 11. Financial Instruments" in Section 8 of the Financial Report of this report.

Contract assets

(1) Recognition methods and standards for contract assets

The Company presents contract assets or contract liabilities in the balance sheet based on the relationship between performance obligations and customer payments. The right to receive consideration for which the Company has transferred goods or provided services to a customer (and that right is dependent on factors other than the passage of time) is shown as a contract asset. Contract assets and contract liabilities under the same contract are presented on a net basis. The Company's unconditional (subject only to the passage of time) right to receive consideration from customers is presented separately as receivables. (2) Determination method and accounting treatment method of expected credit loss of contract assets

For details on the determination method and accounting treatment method of expected credit losses of contract assets, please refer to "V. 11. 6. Testing Methods and Accounting Treatment Methods for Impairment of Financial Instruments" in Section 8 Financial Report of this report.

Inventory

(1) Classification and cost of inventory

Inventories are classified into: raw materials, work-in-progress and semi-finished products, goods in stock, goods on consignment, etc.

Inventories are initially measured at cost, which includes purchase costs, processing costs and other expenses incurred to bring the inventory to its current location and status. (2) Valuation method for issued inventory

Inventories are valued based on the weighted average method when shipped.

(3) Inventory inventory system

Adopt a perpetual inventory system.

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

① Low-value consumables adopt the one-time resale method;

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②Packaging materials adopt the one-time resale method.

(5) Recognition standards and accrual methods for inventory depreciation provisions

On the balance sheet date, inventories should be measured at the lower of cost and net realizable value. When the inventory cost is higher than its net realizable value, inventory depreciation provisions should be made. Net realizable value refers to the estimated selling price of inventory in daily activities minus the estimated costs to be incurred upon completion, estimated sales expenses and related taxes.

For inventory of goods that are directly for sale, such as finished goods, inventory, and materials for sale, during the normal production and operation process, the net realizable value is determined by the estimated selling price of the inventory minus the estimated sales expenses and related taxes; for material inventories that need to be processed, during the normal production and operation process, the estimated selling price of the finished goods produced is deducted to the time of completion. The net realizable value is determined based on the estimated costs, estimated sales expenses and relevant taxes. For inventories held for the execution of sales contracts or labor contracts, the net realizable value is calculated based on the contract price. If the quantity of inventory held is greater than the quantity ordered in the sales contract, the net realizable value of the excess inventory is calculated based on the general sales price.

If the company accrues inventory depreciation provisions on a combination basis, the combination categories and determination basis as well as the basis for determination of the net realizable value of different types of inventory are as follows:

Inventory portfolio category Specific basis for accruing inventory depreciation provisions

Regarding Chinese herbal medicines, during the reporting period, the company judged whether there were signs of price decline in the corresponding Chinese herbal medicines based on the price decline of relevant finished products, conducted a price decline impairment test, and made corresponding provision for inventory declines. In addition, out of cautious consideration, the company has

For Chinese herbal medicines that have not been used for more than 1 year, we will judge whether there are signs of price decline based on public market information, conduct an impairment test and make corresponding provision for inventory decline;

For raw materials other than Chinese herbal medicines that are approaching the expiration date and are not expected to be used in the future, the price will be reduced in full.

During the reporting period, based on the price decline of relevant finished products, the company judged whether there were signs of price decline in the corresponding products in progress, and conducted price reductions on products in process and semi-finished products.

Conduct price impairment testing and make corresponding provision for inventory decline. In addition, due to the low possibility of realization of products in process with a warehouse age of more than 2 years, out of cautious considerations, the company has made full provision for inventory depreciation for products in process and finished products with a warehouse age of more than 2 years. The net realizable value of inventories held for the execution of sales contracts is calculated based on the contract price. The number of inventory goods and consignment sales goods held by the company

If the quantity exceeds the quantity ordered in the sales contract, the net realizable value of the excess inventory shall be calculated based on the general sales price. In addition,

The company makes full provision for inventory depreciation for drugs with a validity period of less than or equal to 180 days.

After the provision for inventory depreciation is accrued, if the factors that previously caused the inventory value to be written down have disappeared, causing the net realizable value of the inventory to be higher than its book value, the amount of the inventory depreciation provision that was originally accrued will be reversed, and the amount reversed will be included in the current profit and loss.

Assets held for sale

(1) Held for sale

If the book value of a non-current asset or disposal group is recovered mainly through sale (including non-monetary asset exchange with commercial substance) rather than continued use, it is classified as held for sale.

The company classifies non-current assets or disposal groups that meet both the following conditions into the held-for-sale category:

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 a sale plan and obtained a firm purchase commitment, and the sale is expected to be completed within one year. Relevant regulations require the company's relevant authorities or regulatory authorities to obtain approval before sale, and the approval has been obtained.

Classified as non-current assets held for sale (excluding financial assets, deferred income tax assets, assets formed by employee compensation) or disposal groups, if their book value is higher than the net amount of fair value minus selling expenses, the book value is reduced to the net amount of fair value minus selling expenses. The amount of the write-down is recognized as 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.

(2) Termination of operations

Discontinued operations are an individually distinguishable component that meets one of the following conditions, and the component has been disposed of by the Company or classified as held for sale by the Company:

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.

Profit and loss from continuing operations and profits and losses from discontinued operations are presented separately in the income statement. Impairment losses and reversal amounts from discontinued operations and other operating profits and losses as well as disposal gains and losses are presented as profits and losses from discontinued operations. For discontinued operations reported in the current period, the company will re-present the information originally presented as profits and losses from continuing operations as profits and losses from discontinued operations in the comparable accounting period in the current financial statements.

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Debt investment

Not applicable.

Other debt investments

Not applicable.

Long-term receivables

Not applicable.

Long-term equity investment

(1) Judgment criteria for joint control and significant influence

Joint control refers to the shared control over an arrangement in accordance with relevant agreements, and the relevant activities of the arrangement must be decided only with the unanimous consent of the parties sharing control rights. If the company and other joint venture parties jointly control the invested unit and have rights to the net assets of the invested unit, the invested unit is a joint venture of the company.

Significant influence refers to the power to participate in the financial and operating decisions of the invested unit, but it is not able to control or jointly control the formulation of these policies with other parties. If the company can exert significant influence on the invested unit, the invested unit shall be an associate of the company.

(2) Determination of initial investment cost

①Long-term equity investment formed by business merger

For long-term equity investments in subsidiaries resulting from a business combination under common control, the initial investment cost of the long-term equity investment shall be the share of the book value of the combined party's owner's equity in the ultimate controlling party's consolidated financial statements on the date of merger. The difference between the initial investment cost of a long-term equity investment and the book value of the payment consideration is adjusted to the equity premium in the capital reserve; when the equity premium in the capital reserve is insufficient for offset, the retained earnings are adjusted. If it is possible to control an investee under the same control due to additional investment or other reasons, the difference between the initial investment cost of the long-term equity investment confirmed in accordance with the above principles and the book value of the long-term equity investment before the merger plus the book value of the new consideration for further acquisition of shares on the merger date will be adjusted. If the equity premium is insufficient to offset it, the retained earnings will be offset.

For long-term equity investments in subsidiaries resulting from a business combination not under common control, the merger cost determined on the purchase date shall be regarded as the initial investment cost of the long-term equity investment. If it is possible to exercise control over an investee that is not under common control due to additional investment or other reasons, the initial investment cost shall be the sum of the book value of the original equity investment plus the cost of the new investment.

② Long-term equity investment obtained through other methods other than business mergers

For long-term equity investments obtained by paying cash, the actual purchase price paid shall be regarded as the initial investment cost.

For long-term equity investments obtained by issuing equity securities, the initial investment cost shall be based on the fair value of the equity securities issued.

(3) Subsequent measurement and profit and loss recognition methods

①Long-term equity investment accounted for by cost method

The company's long-term equity investments in subsidiaries are accounted for using the cost method, unless the investment meets the conditions of being held for sale. In addition to the actual price paid when acquiring the investment or the cash dividends or profits that have been declared but not yet distributed included in the consideration, the company recognizes the current investment income based on the cash dividends or profits declared and distributed by the investee.

②Long-term equity investment accounted for by equity method

Long-term equity investments in associates and joint ventures are accounted for using the equity method. If the initial investment cost is greater than the fair value share of the investee's identifiable net assets that should be enjoyed at the time of investment, the initial investment cost of long-term equity investment will not be adjusted; if the initial investment cost is less than the fair value share of the investee's identifiable net assets that should be enjoyed at the time of investment, the difference will be included in the current profit and loss, and the cost of long-term equity investment will be adjusted at the same time.

The company recognizes investment income and other comprehensive income according to its share of the net profit or loss and other comprehensive income realized by the invested unit, and adjusts the book value of the long-term equity investment at the same time; calculates the share of the long-term equity investment based on the profits or cash dividends declared by the invested unit, and reduces the long-term equity investment accordingly

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The book value of the long-term equity investment; for other changes in the owner's equity of the invested unit other than net profit and loss, other comprehensive income and profit distribution (referred to as "other changes in owner's equity"), the book value of the long-term equity investment is adjusted and included in the owner's equity.

When confirming the share of the investee's net profit and loss, other comprehensive income and other changes in owner's equity, the fair value of the investee's identifiable net assets when the investment is obtained is used as the basis, and in accordance with the company's accounting policies and accounting period, the net profit and other comprehensive income of the investee are adjusted and recognized. The unrealized profits and losses from internal transactions between the company and its associates and joint ventures shall be offset according to the proportion attributable to the company, and investment income shall be recognized on this basis, except where the assets invested or sold constitute a business. Unrealized internal transaction losses with invested entities, which are asset impairment losses, are recognized in full.

The company's net losses from joint ventures or associates, in addition to its obligation to bear additional losses, are limited to the reduction to zero of the book value of long-term equity investments and other long-term equities that essentially constitute the net investment in joint ventures or associates. If the joint venture or associated enterprise realizes net profits in the future, the company will resume recognizing the income sharing amount after the income sharing amount makes up for the unrecognized loss sharing amount.

③Disposal of long-term equity investments

When a long-term equity investment is disposed of, the difference between its book value and the actual price obtained shall be included in the current profit and loss.

If a long-term equity investment accounted for by the equity method is partially disposed of, and the remaining equity is still accounted for by the equity method, other comprehensive income recognized by the original equity method will be carried forward in proportion to the same basis as the investee's direct disposal of relevant assets or liabilities, and changes in other owners' equity will be carried forward to the current profit and loss in proportion.

If the joint control or significant influence on the invested unit is lost due to the disposal of equity investment or other reasons, other comprehensive income recognized by the original equity investment due to the use of equity method accounting shall be accounted for on the same basis as the investee's direct disposal of relevant assets or liabilities when the use of equity method accounting is terminated. All other changes in owner's equity will be transferred to the current profit and loss when the use of equity method accounting is terminated.

If control over the invested unit is lost due to disposal of part of the equity investment or other reasons, when preparing individual financial statements, if the remaining equity can exercise joint control or significant influence on the invested unit, it shall be accounted for according to the equity method instead, and the remaining equity shall be deemed to have been accounted for using the equity method from the time of acquisition for adjustment. For other comprehensive income recognized before obtaining control of the invested unit, the same method as for the direct disposal of relevant assets or liabilities by the invested unit shall be used. The basis is carried forward on a proportional basis, and changes in other owners' equity recognized by the equity method are carried forward proportionally to the current profit and loss; if the remaining equity cannot jointly control or exert significant influence on the invested unit, it is recognized as a financial asset, and the difference between its fair value and book value on the date of loss of control is included in the current profit and loss. Other comprehensive income and other changes in other owners' equity recognized before obtaining control of the invested unit are all carried forward.

If the equity investment in a subsidiary is disposed of in multiple transactions step by step until the control is lost, and it is a package transaction, each transaction is accounted for as a transaction in which the equity investment in the subsidiary is disposed of and control is lost; before the loss of control, the difference between the price of each disposal and the book value of the long-term equity investment corresponding to the equity disposed is first recognized as other comprehensive income in individual financial statements, and when control is lost, it is transferred to the current profit and loss for the loss of control. If the transaction does not belong to a package, each transaction shall be accounted for separately.

Investment real estate

Investment real estate measurement model

Cost method measurement

Depreciation or amortization method

For investment real estate measured according to the cost model - buildings for rental, the same depreciation policy is adopted as the company's fixed assets, and land use rights for rental are subject to the same amortization policy as intangible assets.

Fixed assets

(1) Confirmation conditions

Fixed assets refer to tangible assets held for the purpose of producing goods, providing labor services, leasing or operating management, and whose useful life exceeds one accounting year. Fixed assets are recognized when the following conditions are met at the same time:

① The economic benefits related to the fixed asset are likely to flow into the enterprise;

②The cost of the fixed asset can be measured reliably.

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd.'s 2025 semi-annual report

Fixed assets are initially measured at cost (taking into account the impact of expected disposal costs).

Subsequent expenditures related to a fixed asset are included in the cost of the fixed asset when the economic benefits related to it are likely to flow in and its cost can be reliably measured; for the replaced part, its book value is derecognised; all other subsequent expenditures are included in the current profit and loss when incurred.

(2) Depreciation method

Category Depreciation method Depreciation period Residual value rate Annual depreciation rate Houses and buildings Year-averaged method 30 2%-10% 3%-3.27%

House building attachments average age method 10 2%-10% 9%-9.8%

Housing and building decoration expenses Average method over the years 3-5 2%-10% 18%-32.67%

Machinery and equipment Average age method 3-10 2%-10% 9%-32.67%

Transportation equipment Average age method 4 2%-10% 22.5%-24.5% Electronic equipment Average age method 3-5 2%-10% 18%-32.67%

Office equipment average age method 3-5 2%-10% 18%-32.67%

Projects under construction

Construction in progress is measured based on actual costs incurred. Actual costs include construction costs, installation costs, borrowing costs eligible for capitalization and other necessary expenditures incurred before the project under construction reaches the intended usable condition. When the construction in progress reaches the intended usable state, it will be transferred to fixed assets and depreciation will be accrued from the next month. The standards and timing for transferring the company's construction-in-progress to fixed assets are as follows:

Category Criteria and time point for conversion to fixed assets

(1) The main construction project and supporting projects have been substantially completed; (2) The construction project has reached the predetermined design requirements. After survey, the house and its ancillary projects

Design, construction, supervision and other units complete the acceptance inspection; (3) Acceptance by external departments such as fire protection, land and planning, etc.; (4) If the construction project reaches the intended usable state but has not yet completed the final settlement and other procedures, the estimated value will be transferred to fixed assets based on the actual cost of the project from the date it reaches the intended usable state.

Equipment to be installed (including software) (1) Relevant equipment and other supporting facilities have been installed; (2) The equipment has been debugged and can maintain normal stable parts, machinery and equipment, and transportation operations for a period of time; (3) The production equipment can stably produce qualified products for a period of time; (4) The equipment has been inspected by asset management personnel and

Equipment, electronic equipment, etc.) User acceptance

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 will be capitalized and included in the cost of the relevant assets; other borrowing costs will be recognized as expenses based on the amount incurred when they are incurred and included in the current profits and losses.

Assets that meet the conditions for capitalization refer to fixed assets, investment real estate, inventories and other assets that require a considerable period of acquisition, construction or production activities to reach the intended usable or salable state.

(2) Capitalization period of borrowing costs

The capitalization period refers to the period from the time when borrowing costs start to be capitalized to the time when capitalization stops. The period during which the capitalization of borrowing costs is suspended is not included. Capitalization of borrowing costs begins when the following conditions are met at the same time:

① Asset expenditures have occurred. Asset expenditures include expenditures in the form of cash payments, transfers of non-cash assets or interest-bearing debts for the acquisition, construction or production of assets that meet capitalization conditions;

②The borrowing costs have been incurred;

③The necessary purchase, construction or production activities to bring the assets to the intended usable or salable state have begun.

When the acquisition, construction or production of assets that meet the capitalization conditions reaches the intended usable or salable state, the capitalization of borrowing costs ceases.

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd.'s 2025 semi-annual report

(3) Capitalization suspension period

If an abnormal interruption occurs during the acquisition, construction or production of assets that qualify for capitalization, and the interruption lasts for more than 3 months, the capitalization of borrowing costs will be suspended; if the interruption is a necessary procedure for the assets that qualify for capitalization to reach the intended usable or salable state, the borrowing costs will continue to be capitalized. Borrowing costs incurred during the interruption period are recognized as current profits and losses, and the borrowing costs continue to be capitalized until the acquisition, construction or production activities of the assets restart. (4) Calculation method of capitalization rate and capitalization amount of borrowing costs

For special borrowings borrowed for the purpose of purchasing, constructing or producing assets that qualify for capitalization, the capitalized amount of borrowing costs is determined based on the amount of borrowing costs actually incurred for the special borrowing in the current period, minus the interest income from unused borrowed funds deposited in the bank or the investment income from temporary investments. For general borrowings used for the purchase, construction or production of assets that qualify for capitalization, the amount of borrowing costs that should be capitalized on the general borrowings is calculated and determined based on the weighted average of the asset disbursements that exceed the portion of the special borrowings multiplied by the capitalization rate of the general borrowings occupied. The capitalization rate is calculated and determined based on the weighted average actual interest rate of general borrowings.

During the capitalization period, the exchange differences on the principal and interest of special foreign currency borrowings are capitalized and included in the cost of assets that meet the capitalization conditions. Exchange differences arising from the principal and interest of foreign currency borrowings other than special foreign currency borrowings are included in the current profits and losses.

Biological assets

Not applicable.

Oil and gas assets

Not applicable.

Intangible assets

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

Valuation method of intangible assets

(1) When the company obtains intangible assets, it is initially measured at cost;

The cost of outsourced intangible assets includes the purchase price, relevant taxes and other expenses directly attributable to achieving the intended use of the asset. (2) Subsequent measurement

Analyze and determine the useful life of intangible assets when acquiring them.

For intangible assets with a limited service life, they will be amortized within the period that they bring economic benefits to the enterprise; if the period in which the intangible assets can bring economic benefits to the enterprise cannot be foreseen, they will be regarded as intangible assets with an indefinite service life and will not be amortized.

Estimated service life of intangible assets with limited service life

Project

Estimated useful life Amortization method

Land use rights, property rights certificate period, average period method

Patent rights 7-20 years average term method

Software 2-10 years average method

Non-patented technology 10 years Averaging method

Trademark/Copyright 10 years Averaging method

Business license rights, license period, average period method

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd.'s 2025 semi-annual report

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

Scope of aggregation of R&D expenditures

Expenditures incurred by the company during the research and development process include relevant employee salaries, consumed materials, related depreciation and amortization expenses and other related expenses for personnel engaged in R&D activities.

Specific criteria for dividing the research stage and development stage

The company's internal research and development project expenditures are divided into research stage expenditures and development stage expenditures.

Research stage: The stage of original planned investigation and research activities to obtain and understand new scientific or technical knowledge.

Development stage: A stage in which research results or other knowledge are applied to a plan or design to produce new or substantially improved materials, devices, products, etc. before commercial production or use.

Specific conditions for capitalization of expenditures during the development phase

Expenditures in the research stage are included in the current profits and losses when incurred. Expenditures in the development stage that meet the following conditions at the same time are recognized as intangible assets. Expenditures in the development stage that do not meet the following conditions are included in the current profit and loss:

① It is technically feasible to complete the intangible asset so that it can be used or sold;

② Have the intention to complete the intangible asset and use or sell it;

③ The way intangible assets generate economic benefits includes being able to prove that there is a market for the products produced using the intangible assets or that the intangible assets themselves have a market. If the intangible assets will be used internally, their usefulness can be proven;

④ Have sufficient technical, financial and other resource support to complete the development of the intangible assets, and have the ability to use or sell the intangible assets;

⑤ The expenditures attributable to the development stage of the intangible asset can be measured reliably.

If it is impossible to distinguish between expenditures in the research stage and expenditures in the development stage, all R&D expenditures incurred will be included in the current profit and loss.

Impairment of long-term assets

Long-term equity investments, investment real estate measured using the cost model, fixed assets, projects under construction, right-of-use assets, intangible assets with limited useful lives, oil and gas assets and other long-term assets will be tested for impairment if there are signs of impairment on the balance sheet date. If the impairment test results show that the recoverable amount of the asset is lower than its book value, impairment provisions will be made based on the difference and included in the impairment loss. The recoverable amount is the higher of the asset's fair value less disposal costs and the present value of the asset's expected future cash flows. Asset impairment provisions are calculated and recognized on the basis of individual assets. If it is difficult to estimate the recoverable amount of an individual asset, the recoverable amount of the asset group to which the asset belongs is determined. An asset group is the smallest combination of assets that can independently generate cash inflows. For goodwill formed due to business mergers, intangible assets with indefinite useful lives, and intangible assets that have not yet reached a usable state, regardless of whether there are signs of impairment, an impairment test shall be conducted at least at the end of each year.

The company conducts a goodwill impairment test. The book value of goodwill formed due to business mergers will be allocated to the relevant asset groups in a reasonable manner from the date of purchase. If it is difficult to allocate it to the relevant asset groups, it will be allocated to the relevant asset group combinations. The relevant asset group or combination of asset groups is an asset group or combination of asset groups that can benefit from the synergistic effects of the business combination.

When conducting an impairment test on a relevant asset group or combination of asset groups that contains goodwill, if there are signs of impairment in the asset group or combination of asset groups that are related to goodwill, first conduct an impairment test on the asset group or combination of asset groups that does not contain goodwill, calculate the recoverable amount, and compare it with the relevant book value to confirm the corresponding impairment loss. Then conduct an impairment test on the asset group or asset group combination that contains goodwill, and compare its book value with the recoverable amount. If the recoverable amount is lower than the book value, the impairment loss will first be deducted from the book value of the goodwill allocated to the asset group or asset group combination, and then deducted from the book value of other assets in proportion based on the proportion of the book value of other assets in the asset group or asset group combination except goodwill.

Once the above-mentioned asset impairment losses are recognized, they will not be reversed in subsequent accounting periods.

Long-term deferred expenses

Long-term deferred expenses are expenses that have been incurred but should be borne by the current and subsequent periods with an amortization period of more than one year.

Long-term deferred expenses are valued at the actual costs incurred when they are formed, and are amortized evenly over the beneficial years using the straight-line method, and are presented as the net amount of actual expenses minus accumulated amortization.

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.

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd.'s 2025 semi-annual report

Contract liabilities

The Company presents contract assets or contract liabilities in the balance sheet based on the relationship between performance obligations and customer payments. The Company's obligations to transfer goods or provide services to customers for consideration received or receivable from customers are listed as contract liabilities. Contract assets and contract liabilities under the same contract are presented on a net basis.

Employee compensation

(1) Accounting treatment method for short-term compensation

During the accounting period when employees provide services to the company, the company recognizes the actual short-term compensation as a liability and includes it in the current profit and loss or related asset costs. The company pays social insurance premiums and housing provident funds for its employees, as well as union funds and employee education funds withdrawn in accordance with regulations. During the accounting period when employees provide services to the company, the corresponding amount of employee remuneration is calculated and determined based on the prescribed accrual basis and accrual ratio.

The employee welfare expenses incurred by the company are included in the current profit and loss or related asset costs based on the actual amount when they are actually incurred. Among them, non-monetary benefits are measured at fair value.

(2) Accounting treatment of post-employment benefits

Set up a withdrawal plan

The company pays basic pension insurance and unemployment insurance for its employees in accordance with relevant regulations of the local government. During the accounting period when employees provide services to the company, the amount payable is calculated based on the payment base and proportion specified by the local government, is recognized as a liability, and is included in the current profit and loss or related asset costs.

Defined benefit plan

The company attributes the welfare obligations arising from the defined benefit plan to the period in which employees provide services based on the formula determined by the expected cumulative welfare unit method, and includes them in the current profit and loss or related asset costs.

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 the net liability or net assets of a defined benefit plan. If there is a surplus in the defined benefit plan, the company shall measure the net assets of the defined benefit plan at the lower of the surplus of the defined benefit plan and the asset upper limit.

All defined benefit plan obligations, including obligations expected to be paid within twelve months after the end of the annual reporting period in which employees provide services, are discounted based on the market rate of return on Treasury bonds or high-quality corporate bonds in active markets on the balance sheet date that match the term and currency of the defined benefit plan obligation.

The service costs incurred by the defined benefit plan and the net interest on the net liabilities or net assets of the defined benefit plan are included in the current profit and loss or related asset costs; the changes caused by the remeasurement of the net liabilities or net assets of the defined benefit plan are included in other comprehensive income and will not be transferred back to profit or loss in subsequent accounting periods. When the original defined benefit plan is terminated, all parts originally included in other comprehensive income will be carried forward to undistributed profits within the scope of equity.

When the defined benefit plan is settled, the settlement gain or loss is recognized based on the difference between the present value of the defined benefit plan obligations determined on the settlement date and the settlement price.

(3) Accounting treatment method for dismissal benefits

If the company provides dismissal benefits to employees, the employee compensation liabilities arising from the dismissal benefits will be recognized and included in the current profit and loss at the earliest of the following two situations: when the company cannot unilaterally withdraw the dismissal benefits provided due to the termination of labor relations plan or layoff proposal; when the company recognizes the costs or expenses related to the restructuring involving the payment of dismissal benefits.

(4) Accounting treatment methods for other long-term employee benefits

Estimated liabilities

When the obligations related to contingencies meet the following conditions at the same time, the company will recognize them as estimated liabilities:

(1) The obligation is the current obligation of the company;

(2) Fulfilling this obligation is likely to cause economic benefits to flow out of the company;

(3) The amount of the obligation can be measured reliably.

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd.'s 2025 semi-annual report

Estimated liabilities are initially measured based on the best estimate of the expenditure required to fulfill the relevant current obligations.

When determining the best estimate, factors such as risks, uncertainties and time value of money related to contingencies are comprehensively considered. For those that have a significant impact on the time value of money, the best estimate is determined by discounting the relevant future cash outflows.

If there is a continuous range of required expenditures, and various outcomes within the range are equally likely to occur, the best estimate shall be determined based on the middle value within the range; in other cases, the best estimate shall be treated in the following situations:

• If the contingency involves a single project, it shall be determined based on the most likely amount.

• If the contingencies involve multiple projects, they shall be calculated and determined based on various possible outcomes and related probabilities.

If all or part of the expenses required to settle estimated liabilities are expected to be compensated by a third party, the compensation amount will be recognized separately as an asset when it is basically certain that it can be received, and the recognized compensation amount will not exceed the book value of the estimated liabilities.

The Company reviews the book value of estimated liabilities on the balance sheet date. If there is conclusive evidence that the book value does not reflect the current best estimate, the book value will be adjusted based on the current best estimate.

Share-based payment

The company's share-based payment is a transaction in which equity instruments are granted or liabilities determined based on equity instruments are granted in order to obtain services from employees or other parties. The Company's share-based payment is divided into equity-settled share-based payment and cash-settled share-based payment. (1) Equity-settled share-based payment and equity instruments If equity-settled share-based payment is exchanged for services provided by employees, the fair value of the equity instruments granted to employees shall be measured. For share-based payment transactions that become exercisable immediately after grant, the relevant costs or expenses will be included in the fair value of the equity instrument on the date of grant, and the capital reserve will be increased accordingly. For share-based payment transactions that are vested only after the completion of services within the waiting period or meeting specified performance conditions after grant, on each balance sheet date during the waiting period, the company will include the services obtained in the current period into relevant costs or expenses based on the best estimate of the number of exercisable equity instruments and the fair value on the date of grant, and increase the capital reserve accordingly. If the terms of equity-settled share-based payment are modified, at least the services obtained will be recognized as if the terms had not been modified. In addition, any modification that increases the fair value of the equity instruments granted, or changes that are beneficial to employees on the modification date, is recognized as an increase in services obtained. During the waiting period, if the granted equity instruments are canceled, the company will treat the cancellation of the granted equity instruments as accelerated exercise, and the amount that should be recognized during the remaining waiting period will be immediately included in the current profit and loss, and the capital reserve will be recognized at the same time. However, if new equity instruments are granted and it is determined on the grant date of the new equity instruments that the new equity instruments granted are used to replace the canceled equity instruments, the replacement equity instruments granted will be treated in the same manner as modifications to the terms and conditions of the original equity instruments. (2) Cash-settled share-based payment and equity instrument-based share-based payment shall be measured according to the fair value of the liability calculated and determined based on shares or other equity instruments assumed by the company. For share-based payment transactions that become exercisable immediately after grant, the company will include the relevant costs or expenses based on the fair value of the liability on the date of grant, and increase the liability accordingly. For share-based payment transactions that are vested only after the completion of services within the waiting period or the fulfillment of specified performance conditions after grant, 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 are included in the liabilities accordingly. On each balance sheet date and settlement date before the settlement of relevant liabilities, the fair value of the liability is remeasured, and its changes are included in the current profit and loss. If the company modifies the terms and conditions in the cash-settled share-based payment agreement to make it an equity-settled share-based payment, on the modification date (whether it occurs during the waiting period or after the end of the waiting period), the company will measure the equity-settled share-based payment based on the fair value of the equity instrument granted on that day, and include the services received in the capital reserve. At the same time, it will terminate the recognition of the liabilities recognized by the cash-settled share-based payment on the modification date, and the difference between the two will be included in the current profit and loss. If the waiting period is extended or shortened due to modification, the company will perform accounting treatment according to the modified waiting period.

Preferred shares, perpetual bonds and other financial instruments

The company classifies the financial instrument or its components as financial assets, financial liabilities or equity instruments upon initial recognition based on the contractual terms of the preferred shares/perpetual bonds issued and the economic substance reflected therein rather than just the legal form. Financial instruments such as perpetual bonds/preferred shares issued by the company meet one of the following conditions, and the entire financial instrument or its components will be classified as financial liabilities upon initial recognition: (1) There is a contractual obligation that the company cannot unconditionally avoid fulfilling by delivering cash or other financial assets; (2) It includes a contractual obligation to deliver a variable number of its own equity instruments for settlement; (3) Contains derivatives that are settled with its own equity (such as equity conversion, etc.), and the derivatives are not settled by exchanging a fixed number of its own equity instruments for a fixed amount of cash or other financial assets; (4) There are contract terms that indirectly form contractual obligations; (5) When the issuer liquidates, the perpetual bonds are in the same order of repayment as the ordinary bonds and other debts issued by the issuer. For financial instruments such as perpetual bonds/preferred stocks that do not meet any of the above conditions, the entire financial instrument or its components will be classified as equity instruments upon initial recognition.

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd.'s 2025 semi-annual report

Income

Disclose accounting policies adopted for revenue recognition and measurement by business type

(1) Accounting policies adopted for revenue recognition and measurement

The company fulfills its performance obligations in the contract, that is, when the customer obtains control of the relevant goods or services, revenue is recognized. Obtaining control over relevant goods or services means being able to direct the use of the goods or services and obtain almost all economic benefits from them.

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 standalone selling price of the goods or services promised by each individual performance obligation on the contract commencement date. The Company measures revenue based on the transaction price allocated to each individual performance obligation.

Transaction price refers to the amount of consideration that the Company expects to be entitled to receive for transferring goods or services to customers, excluding amounts collected on behalf of third parties and amounts expected to be returned to customers. The company determines the transaction price based on the terms of the contract and its past practices, and when determining the transaction price, it takes into account the impact of variable consideration, significant financing components in the contract, non-cash consideration, consideration payable to customers and other factors. The Company determines transaction prices that include variable consideration at an amount that does not exceed the amount at which a significant reversal of accumulated recognized revenue is unlikely to occur when the relevant uncertainty is eliminated. 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, and uses the effective interest method to amortize the difference between the transaction price and the contract consideration during the contract period.

If one of the following conditions is met, the performance obligation is performed within a certain period of time; otherwise, the performance obligation is performed at a certain point in time:

When the company performs the contract, the customer obtains and consumes the economic benefits brought by the company's performance.

Customers can control the goods under construction during the company's performance of the contract.

The goods produced by the company during the performance of the contract have irreplaceable uses, and the company has the right to collect payment for the cumulative performance part completed so far during the entire contract period.

For performance obligations performed within a certain period of time, the Company will recognize revenue based on the performance progress during that period, except where the performance progress cannot be reasonably determined. The company considers the nature of the goods or services and uses the output method or the input method to determine the progress of the contract. When the progress of contract performance cannot be reasonably determined and the costs incurred are expected to be compensated, the Company will recognize revenue 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, the Company recognizes revenue 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 or services, the company considers the following signs:

The company has a current right to receive payment for the goods or services, which means the customer has a current payment obligation for the goods or services.

The Company has transferred the legal ownership of the goods to the customer, which means that the customer already owns the legal ownership of the goods.

The company has physically transferred the goods to the customer, which means that the customer has physically taken possession of the goods.

The company has transferred the main risks and rewards of ownership of the commodity to the customer, which means that the customer has obtained the main risks and rewards of ownership of the commodity.

The customer has accepted the goods or services, etc.

The Company determines whether the Company is the principal or agent when engaging in transactions based on whether it has control over the goods or services before transferring them to the customer. If the company is able to control the goods or services before transferring them to the customer, the company is the principal responsible person and recognizes revenue based on the total consideration received or receivable; otherwise, the company acts as an agent and recognizes revenue based on the amount of commissions or handling fees that it is expected to be entitled to receive.

Similar business adopts different business models and involves different revenue recognition methods and measurement methods.

The company sells or distributes drugs, medical devices and other products to local dealers, hospitals and pharmacies, as well as individual consumers. The company recognizes revenue when it transfers control of the goods in accordance with agreements, contracts and other provisions.

Under the consignment sales model, revenue is recognized when the consignment list is received to confirm the transfer of drug control.

The entrusted processing business will be delivered in the form of products after quality inspection and the signature and release by both quality assurance departments. After reconciliation, the processing service fee will be charged and the revenue will be recognized.

Contract costs

Contract costs include contract performance costs and contract acquisition costs.

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd.'s 2025 semi-annual report

If the costs incurred by the company to perform the contract do not fall within the scope of relevant standards such as inventory, fixed assets or intangible assets, they will be recognized as an asset as contract performance costs when the following conditions are met:

• The cost is directly related to a current or anticipated contract.

• This cost increases the Company's future resources to use to meet its performance obligations.

• The cost is expected to be recovered.

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.

Assets related to contract costs are amortized on the same basis as the revenue recognition of goods or services related to the assets; however, if the amortization period of the contract acquisition costs does not exceed one year, the company will include them in the current profits and losses when incurred.

If the book value of assets related to contract costs is higher than the difference between the following two items, the company will make impairment provisions for the excess and recognize it as asset impairment losses: (1) The remaining consideration expected to be obtained from the transfer of goods or services related to the asset;

(2) The estimated cost to be incurred in transferring the relevant goods or services.

If the factors causing impairment in the previous period subsequently change, causing the aforementioned difference to be higher than the book value of the asset, the company will reverse the impairment provision that was originally made and include it in the current profit and loss, but the book value of the asset after the reversal will not exceed the book value of the asset on the date of reversal if no impairment provision was made.

Government subsidies

(1) Type

Government subsidies are monetary assets or non-monetary assets that the company obtains from the government for free, and are divided into asset-related government subsidies and income-related government subsidies.

Asset-related government subsidies refer to government subsidies obtained by the company and used to purchase, construct or otherwise form long-term assets. Government subsidies related to income refer to government subsidies other than government subsidies related to assets.

(2) Confirmation time

Government subsidies are recognized when the company can meet the conditions attached to it and receive it.

(3) Accounting treatment

Government subsidies related to assets are offset by the book value of the relevant assets or recognized as deferred income. If it is recognized as deferred income, it will be included in the current profit and loss in installments in a reasonable and systematic manner within the useful life of the relevant assets (if it is related to the company's daily activities, it will be included in other income; if it is not related to the company's daily activities, it will be included in non-operating income);

Income-related government subsidies that are used to compensate the company for relevant costs or losses in subsequent periods are recognized as deferred income and included in the current profit and loss during the period in which the relevant costs or losses are recognized (if they are related to the company's daily activities, they are included in other income; if they are not related to the company's daily activities, they are included in operating income) Non-operating income) or offset related costs or losses; if used to compensate for the company's related costs or losses incurred, it will be directly included in the current profit and loss (if it is related to the company's daily activities, it will be included in other income; if it is not related to the company's daily activities, it will be included in non-operating income) or offset the relevant costs or losses.

The policy-based preferential loan interest discounts obtained by the company are divided into the following two situations and are accounted for separately:

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 company will use the actual loan amount received as the entry value of the loan, and calculate the relevant borrowing costs 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 company will use the corresponding interest discount to offset related borrowing costs.

Deferred income tax assets/deferred income tax liabilities

Income tax includes current income tax and deferred income tax. Except for income taxes arising from business mergers and transactions or events that are directly included in owners' equity (including other comprehensive income), the company includes current income taxes and deferred income taxes into current profits and losses.

Deferred income tax assets and deferred income tax liabilities are calculated and recognized based on the difference (temporary difference) between the tax basis of assets and liabilities and their book value.

The recognition of deferred income tax assets for deductible temporary differences shall be limited to the amount of taxable income that is likely to be obtained in the future period to offset the deductible temporary differences. For deductible losses and tax credits that can be carried forward to future years, the corresponding deferred income tax assets are recognized to the extent that it is probable that the future taxable income will be used to offset the deductible losses and tax credits.

For taxable temporary differences, deferred income tax liabilities are recognized except in special circumstances.

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd.'s 2025 semi-annual report

Special circumstances in which deferred tax assets or deferred tax liabilities are not recognized include:

• Initial recognition of goodwill;

• It is neither a business combination nor a transaction or event that affects accounting profits and taxable income (or deductible losses) when it occurs, and the initial recognition of assets and liabilities does not result in equal amounts of taxable temporary differences and deductible temporary differences.

Deferred income tax liabilities are recognized for taxable temporary differences related to investments in subsidiaries, associates and joint ventures, unless the company is able to control the timing of the reversal of the temporary difference and it is probable that the temporary difference will not be reversed in the foreseeable future. For deductible temporary differences related to investments in subsidiaries, associates and joint ventures, deferred income tax assets are recognized when the temporary differences are likely to be reversed in the foreseeable future and it is likely to be taxable income that can be used to offset the deductible temporary differences in the future.

On the balance sheet date, deferred income tax assets and deferred income tax liabilities are measured at the applicable tax rate during the period when the relevant assets are expected to be recovered or the relevant liabilities are settled in accordance with the provisions of tax laws.

On the balance sheet date, the Company reviews the book value of deferred income tax assets. If it is probable that sufficient taxable income will not be available in future periods to offset the benefits of the deferred tax assets, the carrying amount 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.

When there is a legal right to settle on a net basis and the intention is to settle on a net basis or to obtain assets and pay off liabilities at the same time, the current income tax assets and current income tax liabilities are presented at the net amount after offsetting.

On the balance sheet date, deferred income tax assets and deferred income tax liabilities are presented as the net amount after offsetting when the following conditions are met at the same time:

• The tax payer has the legal right to settle current income tax assets and current income tax liabilities on a net basis;

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 liabilities are reversed, the taxable entity involved intends to settle the current income tax assets and liabilities with a net amount or to obtain assets and pay off liabilities at the same time.

Leasing

(1) Accounting treatment method for leasing as lessee

Right-of-use assets

On the start date of the lease period, the Company recognizes right-of-use assets for leases other than short-term leases and low-value asset leases. Right-of-use assets are initially measured at cost. This cost includes:

①The initial measurement amount of the lease liability;

② From the lease payment amount paid on or before the start date of the lease period, if there is a lease incentive, the amount related to the lease incentive that has been enjoyed will be deducted;

③The initial direct costs incurred by the company;

④ The costs that the company expects to incur to dismantle and remove the leased assets, restore the site where the leased assets are located, or restore the leased assets to the state stipulated in the lease terms, but does not include costs incurred for the production of inventories.

The Company subsequently uses the straight-line method to accrue depreciation for right-of-use assets. 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; otherwise, the company will accrue depreciation over the shorter of the lease term and the remaining useful life of the leased asset.

The company determines whether the right-of-use assets have been impaired in accordance with the principles described in "V. 30. Impairment of long-term assets" in Section 8 of the financial report of this report, and conducts accounting treatment for the identified impairment losses.

Lease liabilities

On the commencement date of the lease period, the Company recognizes lease liabilities for leases other than short-term leases and low-value asset leases. Lease liabilities are initially measured based on the present value of the lease payments that have not yet been paid. Lease payments include:

① From the fixed payment amount (including the actual fixed payment amount), if there is a leasing incentive, the amount related to the leasing incentive will be deducted;

②Variable lease payments that depend on an index or ratio;

③The amount expected to be paid based on the residual value of the guarantee provided by the company;

④The exercise price of the purchase option, provided that the company is reasonably certain that it will exercise the option;

⑤ The amount required to be paid to exercise the lease termination option, provided that the lease term reflects that the company will exercise the lease termination option.

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd.'s 2025 semi-annual report

The company uses the interest rate implicit in the lease as the discount rate, but if the interest rate implicit in the lease cannot be reasonably determined, the company's incremental borrowing rate is used as the discount rate. The company calculates the interest expense of the lease liability in each period during the lease term based on a fixed periodic interest rate, and includes it in the current profit and loss or related asset costs.

Variable lease payments that are not included in the measurement of lease liabilities are included in the current profit and loss or related asset costs when actually incurred.

After the start date of the lease period, if the following circumstances occur, the company will remeasure the lease liabilities and adjust the corresponding right-of-use assets. If the book value of the right-of-use assets has been reduced to zero, but the lease liabilities still need to be further reduced, the difference will be included in the current profit and loss:

When the evaluation results of the purchase option, lease renewal option or termination option change, or the actual exercise of the aforementioned options is inconsistent with the original evaluation results, the company remeasures the lease liability based on the present value of the changed lease payment and the revised discount rate;

When the actual fixed payment amount changes, the expected amount payable of the guaranteed residual value changes, or the index or ratio used to determine the lease payment amount changes, the company remeasures the lease liability based on the present value of the changed lease payment amount and the original discount rate. However, where changes in lease payments result from changes in floating interest rates, the present value is calculated using a revised discount rate.

Short-term leasing and leasing of low-value assets

If the company chooses not to recognize right-of-use assets and lease liabilities for short-term leases and low-value asset leases, the relevant lease payments will be included in the current profit and loss or related asset costs on a straight-line basis in each period during the lease term. Short-term lease refers to a lease with a lease period of no more than 12 months on the start date of the lease period and does not include a purchase option. Low-value asset lease refers to a lease with a low value when the single leased asset is a new asset. If a company subleases or anticipates subletting a leased asset, the original lease does not constitute a low-value asset lease.

Lease changes

If a lease changes and the following conditions are met at the same time, the company will account for the lease change as a separate lease:

① The lease change expands the scope of the lease by adding the right to use one or more leased assets;

② The increased consideration is equivalent to the amount of the separate price of the expanded part of the lease scope adjusted according to the conditions of the contract.

If the lease change is not accounted for as a separate lease, on the effective date of the lease change, the company re-allocates the consideration of the contract after the change, re-determines the lease term, and re-measures the lease liability based on the present value of the changed lease payment and the revised discount rate.

If a change in the lease results in a reduction in the scope of the lease or a shortening of the lease period, the company will reduce the book value of the right-of-use assets accordingly, and include the related gains or losses from the partial or complete termination of the lease into the current profits and losses. If other lease changes result in the remeasurement of lease liabilities, the company will adjust the book value of the right-of-use assets accordingly.

(2) Accounting treatment method for leasing as lessor

On the lease commencement date, the Company divides leases into finance leases and operating leases. Finance lease refers to a lease that substantially transfers almost all risks and rewards related to the ownership of the leased asset, regardless of whether the ownership is ultimately transferred. Operating leases refer to leases other than finance leases. When the Company acts as a sublease lessor, it classifies the sublease based on the right-of-use assets generated by the original lease.

Accounting treatment of operating leases

Lease receipts from operating leases are recognized as rental income on a straight-line basis throughout the lease term. The company capitalizes the initial direct expenses related to the operating lease and amortizes them into the current profit and loss during the lease period on the same basis as the rental income recognition. Variable lease payments that are not included in lease receipts are included in the current profit and loss when actually incurred. If an operating lease changes, the company will account for it as a new lease from the effective date of the change, and the amount of lease payments received in advance or receivable related to the lease before the change will be regarded as the payment amount of the new lease.

Accounting treatment of financial lease

On the lease commencement date, the Company recognizes finance lease receivables for finance leases and terminates the recognition of finance lease assets. When the Company initially measures the financial lease receivables, it takes the net lease investment as the entry value of the financial lease receivables. The net investment in a lease is the sum of the unguaranteed residual value and the present value of the lease payments that have not yet been received at the start of the lease term, discounted at the interest rate implicit in the lease.

The Company calculates and recognizes interest income in each period during the lease term based on fixed periodic interest rates. The derecognition and impairment of finance lease receivables shall be determined in accordance with this report.

Section 8 Financial Report "V. 11. Financial Instruments" is used for accounting treatment.

Variable lease payments that are not included in the measurement of net lease investment are included in the current profit and loss when actually incurred.

If a financial lease changes and the following conditions are met at the same time, the company will account for the change as a separate lease:

① The change expands the scope of the lease by adding the right to use one or more leased assets;

② The increased consideration is equivalent to the amount of the separate price of the expanded part of the lease scope adjusted according to the conditions of the contract.

If the change in the financial lease is not accounted for as a separate lease, the company will handle the changed lease under the following circumstances:

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd.'s 2025 semi-annual report

If the change takes effect on the lease commencement date, the lease will be classified as an operating lease. The Company will account for it as a new lease from the effective date of the lease change, and use the net investment in the lease before the effective date of the lease change as the book value of the leased asset;

If the change takes effect on the lease commencement date, the lease will be classified as a finance lease, and the Company will conduct accounting treatment in accordance with the policy on modifying or renegotiating contracts in "V. 11. Financial Instruments" of the Financial Report in Section 8 of this report.

Other important accounting policies and accounting estimates
Changes in important accounting policies and accounting estimates

(1) Changes in important accounting policies

□Applicable Not applicable

(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 first implemented starting from 2025.

□Applicable Not applicable

Others

6. Taxes

Main tax types and tax rates

Type of tax Tax calculation basis The tax rate is calculated according to the provisions of the tax law on sales of goods and taxable labor.

The output tax is calculated based on the business income. After deducting the input tax allowed to be deducted in the current period of 3%, 6%, 9% and 13% of the value-added tax, the difference is

VAT payable

Urban maintenance and construction tax Calculated and paid based on the actual value-added tax paid 5%, 7% Corporate income tax Calculated and paid based on the taxable income 15%, 16.5%, 25%, 29.84% Education fee surcharge Calculated and paid based on the actual value-added tax paid 3% Local education surcharge Calculated and paid based on the actual value-added tax paid 2% If there are taxpayers with different corporate income tax rates, a description of the disclosure

Name of taxpayer Income tax rate Qingdao Baiyang Pharmaceutical Co., Ltd. 25.00%

Baiyang Health Industry International Trading Co., Ltd. 16.50%

Baiyang Group Co., Ltd. 16.50%

Newtsuma International Health Co., Ltd. 16.50%

Qingdao Newtsuma Health Technology Co., Ltd. 25.00%

American Nutsuma Co., Ltd. 29.84%

Nutsuma (Hong Kong) Co., Ltd. 16.50%

Qingdao Baiyang Zhicheng Pharmaceutical Technology Development Co., Ltd. 25.00%

Qingdao Baiyang Health Pharmacy Chain Co., Ltd. 25.00%

Qingdao Baiyang Wanglian Pharmacy Co., Ltd. 25.00%

Beijing Chengshantang Health Technology Co., Ltd. 25.00%

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd.'s 2025 semi-annual report

Qingdao Baiyang Yimei Technology Co., Ltd. 25.00% Qingdao Baiyang Picky Cat Technology Co., Ltd. 25.00% Qingdao Dianzhong Culture Communication Co., Ltd. 25.00% Qingdao Baiyang Picky Cat Trading Co., Ltd. 25.00% Baiyang Technology Overseas Trading Co., Ltd. 16.50% Qingdao Dongyuan Biotechnology Co., Ltd. 25.00% Beijing Baiyang Dongyuan Biotechnology Co., Ltd. 25.00% Qingdao Zhiliao Health Technology Co., Ltd. 25.00% Qingdao Baiyang Pharmaceutical Logistics Co., Ltd. 25.00% Jiangxi Baiyang Pharmaceutical Co., Ltd. 25.00% Tianjin Baiyang Pharmaceutical Co., Ltd. 25.00% Shandong Baiyang Pharmaceutical Technology Co., Ltd. 25.00% Shanghai Baiyang Hui Intelligent Medical Technology Co., Ltd. 25.00% Qingdao Baiyang West Coast Pharmaceutical Technology Co., Ltd. 25.00% Baiyuan Medical Technology (Shandong) Co., Ltd. 25.00% Beijing Baiyang Zhihe Medical Achievements Transformation Service Co., Ltd. 25.00% Beijing Baiyang Chengda Pharmaceutical Technology Co., Ltd. 25.00% Beijing Baiyang Guosheng Medical Equipment Co., Ltd. 25.00% Qingdao Baiyang Guoke Medical Equipment Co., Ltd. 25.00% Hebei Baiyang Guosheng Medical Equipment Co., Ltd. 25.00% Hebei Baiyang Chengda Pharmaceutical Co., Ltd. 25.00% Shanghai Baiyang Pharmaceutical Co., Ltd. 25.00% Shanghai Baiyang Pharmaceutical Technology Co., Ltd.

15.00% (former name: Shanghai Huanghai Pharmaceutical Co., Ltd.)

Anhui Zhihetang Pharmaceutical Co., Ltd. 0

Shanghai Baiyang Modern Traditional Chinese Medicine Technology Co., Ltd. 25.00% Qingdao Baiyang Pharmaceutical Co., Ltd. 15.00% Qingdao Baiyang Investment Group Co., Ltd. 25.00% Beijing Baiyang Dacheng Pharmaceutical Technology Co., Ltd. 25.00% Beijing Baiyang Kanghe Technology Co., Ltd. 25.00% Qingdao Baiyang Yongjian Investment Development Co., Ltd. 25.00% Qingdao Baiyang Jiya Pharmaceutical Investment Co., Ltd. 25.00%

Each partner is a taxpayer and does not involve himself in corporate income tax. Qingdao Bodhi Yongze Investment Management Center (Limited Partnership)

levy

Each partner is a taxpayer and does not involve himself in corporate income tax. Tianjin Huitai Enterprise Management Partnership (Limited Partnership)

levy

Each partner is a taxpayer and does not involve himself in corporate income tax. Tianjin Juntai Technology Development Partnership (Limited Partnership)

Levy Qingdao Baiyang Yiren Investment Management Co., Ltd. 25.00% Baiyang Pharmaceutical (Hunan) Co., Ltd. 25.00% Baiyang Pharmaceutical Medical Technology (Hunan) Co., Ltd. 25.00% Baiyang Pharmaceutical Biotechnology (Hunan) Co., Ltd. 25.00% Anhui Zhekang Medical Technology Co., Ltd. 25.00% Beijing Baiyang Kangda Medical Equipment Co., Ltd. 25.00%

Tax incentives

1. Preferential corporate income tax policies

(1) According to the “Announcement on Tax Policies to Further Support the Development of Small and Micro Enterprises and Individual Industrial and Commercial Households” (Ministry of Finance and State Administration of Taxation Announcement No. 12, 2023),

The policy of calculating taxable income at a reduced rate of 25% for small and low-profit enterprises and paying corporate income tax at a rate of 20% will continue until December 31, 2027. According to

The 21 companies noted in the above policies, IV. Taxes, (1) Main tax types and tax rates, will enjoy preferential corporate income tax policies for small and micro enterprises in 2025:

(2) Shanghai Baiyang Pharmaceutical Technology Co., Ltd. obtained approval from the Shanghai Science and Technology Commission, Shanghai Finance Bureau, and State Administration of Taxation Shanghai on November 15, 2023.

High-tech enterprise certificate (valid for three years) jointly recognized by the Municipal Taxation Bureau. The high-tech enterprise approval certificate number is GR202331000323 and is valid for three years.

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd.'s 2025 semi-annual report

Enjoy the 15% preferential corporate income tax rate for high-tech enterprises. According to the relevant provisions of the national high-tech enterprise income tax preferential policies, the company's corporate income tax in 2025 will be calculated and paid at 15% of the taxable income.

(3) Qingdao Baiyang Pharmaceutical Co., Ltd. obtained a high-tech enterprise certificate (valid for three years) jointly recognized by the Qingdao Municipal Science and Technology Bureau, Qingdao Municipal Finance Bureau, and Qingdao Municipal Taxation Bureau of the State Administration of Taxation on November 29, 2023. The high-tech enterprise approval certificate number is GR202337102129, valid for three years, and enjoys the 15% preferential corporate income tax rate for high-tech enterprises. According to the relevant provisions of the national high-tech enterprise income tax preferential policies, the company's corporate income tax in 2025 will be calculated and paid at 15% of the taxable income.

(4) According to the relevant provisions of the Enterprise Income Tax Law of the People's Republic of China, the Implementation Regulations of the Enterprise Income Tax Law of the People's Republic of China, and the Announcement on the Implementation of Enterprise Income Tax Preferential Issues for Agricultural, Forestry, Animal Husbandry, and Fishery Projects (State Administration of Taxation Announcement No. 48 of 2011), Anhui Zhihetang Pharmaceutical Co., Ltd.'s main business is the primary processing of agricultural products, and it is exempt from income tax for agricultural, forestry, animal husbandry, and fishery projects.

(5) According to the "Announcement on Further Improving the Pre-tax Super Deduction Policy for R&D Expenses" (Announcement No. 7 of the Ministry of Finance and the State Administration of Taxation in 2023), starting from January 1, 2023, if the actual R&D expenses incurred by the enterprise in carrying out R&D activities do not form intangible assets and be included in the current profits and losses, on the basis of actual deductions in accordance with regulations, 100% of the actual amount will be super-deducted before tax; if they form intangible assets, they will be amortized before tax at 200% of the cost of the intangible assets. According to the above policy, Shanghai Baiyang Pharmaceutical Technology Co., Ltd. and Qingdao Baiyang Pharmaceutical Co., Ltd. enjoyed this preferential policy during the reporting period.

2. Value-added tax preferential policies

(1) According to Article 15(2) of the "Interim Regulations of the People's Republic of China on Value-Added Tax", the sales of contraceptives and appliances are exempt from VAT.

(2) According to Article 1 of the "Announcement of the Ministry of Finance and the State Administration of Taxation on Further Implementing the "Six Taxes and Two Fees" Reduction and Reduction Policy for Small and Micro Enterprises" (Announcement No. 10 of the Ministry of Finance and the State Administration of Taxation in 2022): Small-scale value-added tax taxpayers, small low-profit enterprises and individual industrial and commercial households can be exempted from resource tax, urban maintenance and construction tax, real estate tax, urban land use tax, stamp tax (excluding securities transaction stamp tax), cultivated land occupation tax and education surcharge, and local education surcharge within a 50% tax range.

(3) According to Articles 2 and 3 of the "Notice of the Ministry of Finance and the State Administration of Taxation on Several Tax Policy Issues Regarding Value-Added Tax" (Caishuizi [1994] No. 60): Special items for disabled people are exempt from value-added tax. The exemption period is from April 1, 2018 to March 31, 2028.

(4) According to the "Announcement of the Ministry of Finance and the State Administration of Taxation on the Additional Value-Added Tax Deduction Policy for Advanced Manufacturing Enterprises" (Announcement No. 43 of the Ministry of Finance and the State Administration of Taxation 2023)

Article 1: From January 1, 2023 to December 31, 2027, advanced manufacturing enterprises are allowed to deduct an additional 5% of the deductible input tax for the current period to deduct the value-added tax payable.

Others

7. Notes on Consolidated Financial Statement Items

Monetary funds

Unit: Yuan

Item Ending balance Beginning balance

Cash on hand 61,499.89 38,841.16 Bank deposits 1,623,890,798.07 1,143,596,949.21 Other monetary funds 251,074,392.96 323,767,430.09 Total 1,875,026,690.92 1,467,403,220.46

Including: Total amount deposited abroad 302,143,817.12 169,583,487.73 Other instructions

Trading financial assets

Unit: Yuan

Item Ending balance Beginning balance

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd.'s 2025 semi-annual report

Measured at fair value with changes included in current profit and loss

119,388,157.31 44,989,893.93 beneficial financial assets

Among them:

Investment in equity instruments 19,388,157.31 44,989,893.93

Structured deposit 100,000,000.00

Among them:

Total 119,388,157.31 44,989,893.93Other instructions:

Derivative financial assets

Unit: Yuan

Item Ending balance Beginning balance

Other notes:

Notes receivable

(1) Classified presentation of notes receivable

Unit: Yuan

Item Ending balance Beginning balance

Bank acceptance notes 58,746,909.43 82,845,817.83 Commercial acceptance notes 36,241,792.87 33,151,013.43 Bad debt provisions -22,562.97 -19,810.95 Total 94,966,139.33 115,977,020.31

(2) Classified disclosure according to bad debt accrual method

Unit: Yuan Ending balance Beginning balance

Book balance Provision for bad debts Book balance Provision for bad debts

Category Book price Book price provision ratio Provision ratio

Amount Ratio Amount Value Amount Ratio Amount Value Example

its

Medium:

by combination

bad provision

94,988, 22,562. 94,966, 115,996 19,810. 115,977 Account provision 100.00% 0.02% 100.00% 0.02%

702.30 97 139.33, 831.26 95, 020.31 receivables

bill

its

Medium:

58,746, 58,746, 82,845, 82,845, Combination C 61.85% 71.42%

909.43 909.43 817.83 817.83Portfolio A 36,241, 38.15% 22,562. 0.06% 36,219, 33,151, 28.58% 19,810. 0.06% 33,131,

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd.'s 2025 semi-annual report

792.87 97 229.90 013.43 95 202.48

94,988, 22,562. 94,966, 115,996 19,810. 115,977Total 100.00% 0.02% 100.00% 0.02%

702.30 97 139.33, 831.26 95, 020.31 Bad debt provision category name by combination: Aging combination

Unit: Yuan ending balance

Name

Book balance Bad debt provision Provision ratio

Combination C 58,746,909.43

Portfolio A 36,241,792.87 22,562.97 0.06% Total 94,988,702.30 22,562.97

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 Beginning Balance Ending Balance

Provision Recovery or transfer Write-off Others

Portfolio A 19,810.95 22,562.97 19,810.95 22,562.97Total 19,810.95 22,562.97 19,810.95 22,562.97 Among them, the amount of bad debt provision recovery or reversal in the current period is important:

□Applicable Not applicable

(4) Notes receivable pledged by the company at the end of the period

Unit: Yuan

Project Amount pledged at the end of the period

(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 40,687,319.05 Total 40,687,319.05

(6) Notes receivable actually written off in the current period

Unit: Yuan

Item Write-off Amount

Among them, the important write-off of bills receivable:

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd.'s 2025 semi-annual report

Unit: Whether the Yuan amount is paid by the related unit, nature of the note receivable, write-off amount, reason for write-off, write-off procedures performed

Instructions for writing off notes receivable resulting from transactions:

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) 1,526,690,826.99 1,764,619,014.49 1 to 2 years 99,904,577.75 121,799,791.04 2 to 3 years 33,863,982.10 38,104,827.66 More than 3 years 18,983,052.05 10,784,068.01 3 to 4 years 8,731,929.52 1,748,661.00 4 to 5 years 6,074,729.51 6,801,281.24

More than 5 years 4,176,393.02 2,234,125.77 Total 1,679,442,438.89 1,935,307,701.20

(2) Classified disclosure according to bad debt accrual method

Unit: Yuan Ending balance Beginning balance

Book balance Provision for bad debts Book balance Provision for bad debts

Category Book price Book price provision ratio Provision ratio

Amount Ratio Amount Value Amount Ratio Amount Value Example

its

Medium:

by combination

Bad provision 1,679,4 1,625,9 1,935,3 1,884,5

53,481, 50,770,

Account provision 42,438. 100.00% 3.18% 61,253. 07,701. 100.00% 2.62% 37,311.

185.57 389.71

Accounts receivable 89 32 20 49

its

Medium:

1,667,8 1,614,4 1,922,1 1,871,4

53,481, 50,770,

Portfolio A 88,334. 99.31% 3.21% 07,149. 79,308. 99.32% 2.64% 08,918. 185.57 389.71

60 03 40 69

11,554, 11,554, 13,128, 13,128, combination C 0.69% 0.68%

104.29 104.29 392.80 392.80 1,679,4 1,625,9 1,935,3 1,884,5

53,481, 50,770,

Total 42,438. 100.00% 3.18% 61,253. 07,701. 100.00% 2.62% 37,311. 185.57 389.71

89 32 20 49 Bad debt provision category name by combination: Aging combination

Unit: Yuan

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd.'s 2025 semi-annual report

Ending balance

Name

Book balance Bad debt provision Provision ratio

Portfolio A 1,667,888,334.60 53,481,185.57 3.21% Portfolio C 11,554,104.29

Total 1,679,442,438.89 53,481,185.57

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

(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

Portfolio A 50,770,389.71 13,483,440.39 10,748,599.22 24,045.31 53,481,185.57Total 50,770,389.71 13,483,440.39 10,748,599.22 24,045.31 53,481,185.57 Among them, the amount of bad debt provision recovery or reversal in the current period is important:

Unit: Yuan Determine the name of the original bad debt provision accrual unit, the amount recovered or reversed, the reason for the reverse, the method of recovery, the basis for the ratio and its reasonableness

sex

(4) Accounts receivable actually written off in the current period

Unit: Yuan

Item Write-off Amount

Actual write-off of accounts receivable 24,045.31 Among them, the important write-off of accounts receivable:

Unit: Yuan Whether the amount is paid by the name of the related unit Nature of accounts receivable Amount of write-off Reason for write-off The write-off procedures performed

Instructions for writing off accounts receivable arising from transactions:

(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 amount Value provision closing balance Customer 1 146,936,003.83 146,936,003.83 8.75% 737,903.58

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd.'s 2025 semi-annual report

Customer two 90,721,267.43 90,721,267.43 5.40% 453,606.34 Customer three 86,368,391.55 86,368,391.55 5.14% 431,841.96 Customer four 72,260,735.68 72,260,735.68 4.30% 372,691.22Customer 5 56,048,595.85 56,048,595.85 3.34% 309,620.54Total 452,334,994.34 452,334,994.34 26.93% 2,305,663.64

Contract assets

(1) Contract assets

Unit: Yuan Ending balance Beginning balance

Project

Book balance Provision for bad debts Book value Book balance Provision for bad debts Book value

(2) Amount and reasons of major changes in book value during the reporting period

Unit: Yuan

Item Amount of change Reason for change

(3) Classified disclosure according to bad debt accrual method

Unit: Yuan Ending balance Beginning balance

Book balance Provision for bad debts Book balance Provision for bad debts

Category Book price Book price provision ratio Provision ratio

Amount Ratio Amount Value Amount Ratio Amount Value Example

its

Medium:

its

Medium:

Number of categories of bad debt provisions accrued by combination: 0

Provision for bad debts based on the general expected credit loss model

□Applicable Not applicable

(4) Bad debt provisions accrued, recovered or reversed in the current period

Unit: Yuan

Item Provision for the current period Recovered or reversed for the current period Write-off/write-off for the current period Reasons

Among them, the amount of recovery or reversal of bad debt provisions for the current period is important:

sex

Other instructions

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd.'s 2025 semi-annual report

(5) Contract assets actually written off in the current period

Unit: yuan item write-off amount

Among them, the important write-off of contract assets

Unit: Whether the yuan amount is paid by the name of the related unit, nature of the amount, write-off amount, write-off reason, write-off procedures performed

Instructions for writing off contract assets generated by transactions:

Other notes:

Accounts receivable financing

(1) Classified presentation of financing receivables

Unit: Yuan Item Ending balance Beginning balance

Notes receivable 119,480,805.05 215,387,955.19 Total 119,480,805.05 215,387,955.19

(2) Classified disclosure according to bad debt accrual method

Unit: Yuan Ending balance Beginning balance

Book balance Provision for bad debts Book balance Provision for bad debts

Category Book price Book price provision ratio Provision ratio

Amount Ratio Amount Value Amount Ratio Amount Value Example

Among them:

Provision for bad debts based on the general expected credit loss model

Unit: Yuan Phase 1 Phase 2 Phase 3

Expected credit throughout the lifetime Credit expected throughout the lifetime

Provision for bad debts Expected credit in the next 12 months Total

Loss (no credit deduction has occurred Loss (credit deduction has occurred)

loss

value) value)

Balance as of January 1, 2025

In this issue

Basis for division of each stage and provision ratio for bad debts

Explanation of significant changes in the book balance of accounts receivable financing that have experienced changes in loss provisions in the current period:

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd.'s 2025 semi-annual report

(3) Bad debt provisions accrued, recovered or reversed in the current period

Unit: Yuan Amount of changes in the current period

Category Opening balance Ending balance Provision Recovery or reversal Write-off or write-off Other changes

Among them, the amount of recovery or reversal of bad debt provisions for the current period is important:

Unit: Yuan Determine the name of the original bad debt provision accrual unit, the recovery or reversal amount, the reason for the reversal, the recovery method, the basis for the ratio and its rationality

Other notes:

(4) Financing of the company’s pledged receivables at the end of the period

Unit: Yuan Project Amount pledged at the end of the period

(5) Financing of receivables 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 bill 328,460,503.37

Total 328,460,503.37

(6) Financing of receivables actually written off in the current period

Unit: yuan item write-off amount

Important financing write-offs of receivables

Unit: Whether the yuan amount is paid by the name of the related unit, nature of the amount, write-off amount, write-off reason, write-off procedures performed

Instructions for writing off transactions:

(7) Increases and decreases in receivables financing during the current period and changes in fair value

Accumulated balance in other comprehensive income at the end of the previous year New additions in the current period Derecognition in the current period Other changes Closing balance

Item Losses recognized by Yizhong (yuan) (yuan) (yuan) (yuan) (yuan)

Prepare

bank acceptance

215,387,955.19 675,734,485.41 772,073,737.81 432,102.26 119,480,805.05

money order

Total 215,387,955.19 675,734,485.41 772,073,737.81 432,102.26 119,480,805.05 -

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd.'s 2025 semi-annual report (8) Other instructions

Other receivables

Unit: Yuan Item Ending balance Beginning balance

Dividends receivable 223,956.00

Other receivables 36,565,613.91 161,577,496.67 Total 36,789,569.91 161,577,496.67 (1) Interest receivable

Classification of interest receivable

Unit: Yuan Item Ending balance Beginning balance

Important overdue interest

Unit: Yuan Whether impairment occurs and the borrowing unit is judged. Ending balance Overdue time Reason for overdue

Judgment basis

Other notes:

Classified disclosure according to bad debt accrual method

□Applicable Not applicable

Bad debt provisions accrued, recovered or reversed in the current period

Unit: Yuan Amount of changes in the current period

Category Opening balance Ending balance Provision Recovery or reversal Write-off or write-off Other changes

Among them, the amount of recovery or reversal of bad debt provisions for the current period is important:

Other notes:

Interest receivable actually written off in the current period

Unit: Yuan Qingdao Baiyang Pharmaceutical Co., Ltd. Full text of 2025 semi-annual report

Item Write-off Amount

Among them, the important write-off of interest receivable

Unit: Whether the yuan amount is paid by the name of the related unit, nature of the amount, write-off amount, write-off reason, write-off procedures performed

transaction generated

Write-off instructions:

Other notes:

(2) Dividends receivable

Classification of dividends receivable

Unit: yuan project (or invested unit) Ending balance Beginning balance

Dividend payment from Rimeijian Pharmaceutical (China) Co., Ltd. 223,956.00

Total 223,956.00

Important dividends receivable aged more than 1 year

Unit: Yuan Whether impairment occurs and the judgment item (or invested unit) Closing balance Aging Reason for non-recovery

Judgment basis

Classified disclosure according to bad debt accrual method

□Applicable Not applicable

Bad debt provisions accrued, recovered or reversed in the current period

Unit: Yuan Amount of changes in the current period

Category Opening balance Ending balance Provision Recovery or reversal Write-off or write-off Other changes

Among them, the amount of recovery or reversal of bad debt provisions for the current period is important:

Other notes:

Dividends receivable actually written off in the current period

Unit: Yuan

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd.'s 2025 semi-annual report

Item Write-off Amount

Among them, the important write-off of dividends receivable

Unit: Whether the yuan amount is paid by the name of the related unit, nature of the amount, write-off amount, write-off reason, write-off procedures performed

Instructions for writing off transactions:

Other notes:

(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

Current accounts 127,172,139.14 Security deposits and deposits 28,093,259.55 25,201,431.11 Reserve funds 501,509.71 503,156.53 Others 11,785,499.12 12,840,319.44 Total 40,380,268.38 165,717,046.22

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) 15,338,327.94 139,778,638.33 1 to 2 years 4,568,464.38 5,569,069.71 2 to 3 years 2,279,712.05 3,466,962.65 More than 3 years 18,193,764.01 16,902,375.53 3 to 4 years 4,470,198.93 2,702,972.59 4 to 5 years 4,554,532.78 6,110,637.45

More than 5 years 9,169,032.30 8,088,765.49 Total 40,380,268.38 165,717,046.22

Classified disclosure according to bad debt accrual method

Applicable □Not applicable

Unit: Yuan Ending balance Beginning balance

Book balance Provision for bad debts Book balance Provision for bad debts

Category Book price Book price provision ratio Provision ratio

Amount Ratio Amount Value Amount Ratio Amount Value

Example Example

Among them:

By combination 40,380, 100.00% 3,814,6 9.45% 36,565, 165,717 100.00% 4,139,5 2.50% 161,577

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd.'s 2025 semi-annual report

Provision for bad accounts 268.38 54.47 613.91, 046.22 49.55, 496.67

Among them:

10,307, 3,814,6 6,492,4 139,526 4,139,5 135,386 Combination A 25.53% 37.01% 84.20% 2.97%

121.25 54.47 66.78 ,377.90 49.55 ,828.35

28,093, 28,093, 25,201, 25,201, Portfolio B 69.57% 15.21%

259.55 259.55 431.11 431.11

1,979,8 1,979,8 989,237 989,237 Combination C 4.90% 0.59%

87.58 87.58 .21 .21

40,380, 3,814,6 36,565, 165,717 4,139,5 161,577Total 100.00% 9.45% 100.00% 2.50%

268.38 54.47 613.91 ,046.22 49.55 ,496.67 Bad debt provision category name by combination: Aging combination

Unit: Yuan ending balance

Name

Book balance Bad debt provision Provision ratio

Portfolio A 10,307,121.25 3,814,654.47 37.01% Portfolio B 28,093,259.55

Combination C 1,979,887.58

Total 40,380,268.38 3,814,654.47

Description of what this combination is based on:

Provision for bad debts is made based on the general expected credit loss model:

Unit: Yuan Phase 1 Phase 2 Phase 3

Expected credit throughout the lifetime Credit expected throughout the lifetime

Provision for bad debts Expected credit in the next 12 months Total

Loss (no credit deduction has occurred Loss (credit deduction has occurred)

loss

value) value)

Balance on January 1, 2025 1,093,876.25 3,045,673.30 4,139,549.55 Balance on January 1, 2025

In this issue

——Transfer to the third stage -436,555.58 436,555.58

Provision in this period 146,564.11 436,555.58 583,119.69 Transfer in this period 882,678.00 25,336.76 908,014.76 Remainder as of June 30, 2025

357,762.35 3,456,892.12 3,814,654.47 amount

Basis for division of each stage and provision ratio for bad debts

Changes in book balances with significant changes in loss provision during the current 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

Portfolio A 4,139,549.55 583,119.69 908,014.76 3,814,654.47 Full text of Qingdao Baiyang Pharmaceutical Co., Ltd. 2025 Semi-annual Report

Total 4,139,549.55 583,119.69 908,014.76 3,814,654.47

Among them, the amount of bad debt provision for the current period that is reversed or recovered is important:

Other receivables actually written off in the current period

Unit: yuan item write-off amount

Important write-offs of other receivables:

Unit: Whether the Yuan amount is paid by the related unit. Nature of other receivables. Write-off amount. Reason for write-off. Write-off procedures performed.

transaction generated

Instructions for writing off other receivables:

Other receivables with the top five closing balances based on debtors

Unit: Yuan accounted for other receivable period

Name of the unit with the ending balance of bad debt provision Nature of the payment Ending balance Aging Total ending balance

Proportion

Customer 1 Security deposit and deposit 4,000,000.00 More than 3 years 9.91%

Customer 2 Security deposit and deposit 3,000,000.00 More than 3 years 7.43%

Within 1 year; 1-2

Others, margin and

Customer three 1,916,967.98 years; 2-3 years; 3 years 4.75% 861,305.26 deposit

above

Customer 4 Others 1,841,560.35 More than 3 years 4.56% 1,841,560.35 Customer 5 Others 1,777,767.86 Within 1 year 4.40%

Total 12,536,296.19 31.05% 2,702,865.61

Presented in other receivables due to centralized management of funds

Unit: Yuan Other instructions:

Advance payment

(1) Prepayments are listed based on aging

Unit: Yuan

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd.'s 2025 semi-annual report

Ending balance Beginning balance

Aging

Amount Ratio Amount Ratio

Within 1 year 236,850,511.34 85.37% 182,514,921.69 86.33% 1 to 2 years 24,126,822.01 8.70% 16,987,260.14 8.03% 2 to 3 years 6,927,033.43 2.50% 4,516,843.69 2.14% More than 3 years 9,529,920.81 3.44% 7,397,545.03 3.50% Total 277,434,287.59 211,416,570.55

Explanation of the reasons why prepayments with an aging of more than 1 year and important amounts are not settled in a timely manner:

(2) Prepayments with the top five closing balances by prepayment objects

Prepayment object Closing balance (yuan) Proportion of total closing balance of prepayments Supplier 1 46,483,126.60 16.75%

Supplier two 20,000,000.00 7.21%

Supplier three 19,578,052.80 7.06%

Supplier four 12,047,776.94 4.34%

Supplier five 11,842,972.90 4.27%

Total 109,951,929.24 39.63%

Other notes:

Inventory

Whether the company needs to comply with the real estate industry’s disclosure requirements

(1) Inventory classification

Unit: Yuan Ending balance Beginning balance

Provision for inventory decline Provision for inventory decline

Project

Book balance or contract performance costs Book value Book balance or contract performance costs Book value impairment provision

152,510,094. 150,787,704. 124,892,039. 123,079,335. Raw materials 1,722,390.06 1,812,703.92

89 83 56 64

36,732,859.3 36,732,859.3 23,533,365.2 23,177,803.0 Products in progress 355,562.19

1 1 1 2

627,730,551. 30,112,635.3 597,617,916. 791,705,721. 11,981,629.1 779,724,092. Inventory products

88 2 56 79 8 61 Consigned goods 2,069,577.85 271,144.03 1,798,433.82 1,966,075.48 194,191.06 1,771,884.42

819,043,083. 32,106,169.4 786,936,914. 942,097,202. 14,344,086.3 927,753,115.Total

93 1 52 04 5 69

(2) Data resources confirmed as inventory

Unit: Yuan

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd.'s 2025 semi-annual report

Self-processed data resources Data obtained through other means

Item Outsourced data resource inventory Total

Inventory Resource Inventory

(3) Provision for inventory depreciation and provision for impairment of contract performance costs

Unit: Yuan Increase amount in this period Decrease amount in this period

Item Beginning balance Closing balance

Provision Others Reversal or write-off Others

Raw materials 1,812,703.92 90,313.86 1,722,390.06 Work in progress 355,562.19 355,562.19

Inventory goods 11,981,629.18 35,516,199.14 17,385,193.00 30,112,635.32 Consigned goods 194,191.06 76,952.97 271,144.03Total 14,344,086.35 35,593,152.11 17,831,069.05 32,106,169.41

Provision for inventory decline in value on a group basis

Unit: End of the period Beginning of the period

Portfolio name Provision for decline in price Provision for decline in price Provision for decline in price Closing balance Provision for decline in price Opening balance Provision for decline in price

Proportion Proportion The standard for accruing inventory depreciation provisions based on the combination

(4) Explanation that the closing balance of inventory includes the capitalized amount of borrowing costs

(5) Explanation of the amortization amount of contract performance costs for the current period

Assets held for sale

Unit: Yuan

Item Book balance at the end of the period Impairment provision Book value at the end of the period Fair value Estimated disposal costs Estimated disposal time Other instructions

Non-current assets due within one year

Unit: Yuan

Item Ending balance Beginning balance

(1) Debt investments due within one year

□Applicable Not applicable

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd.'s 2025 semi-annual report

(2) Other debt investments due within one year

□Applicable Not applicable

Other current assets

Unit: Yuan

Item Ending balance Beginning balance

Prepaid corporate income tax 353,667.88 51,271,884.62 Input tax to be deducted 85,828,099.79 28,450,758.95 Prepaid expenses 568,763.23 1,267,002.99 Input tax to be transferred 105,149.57 940,671.68 Others 166,458.50 2,577.97 Total 87,022,138.97 81,932,896.21 Other notes:

Debt investment

(1) Situation of debt investment

Unit: Yuan Ending balance Beginning balance

Project

Book balance Impairment provision Book value Book balance Impairment provision Book value Debt investment impairment provision Changes in the current period

Unit: Yuan

Item Opening balance Increase in the current period Decrease in the current period Ending balance

(2) Important debt investments at the end of the period

Unit: Yuan

Ending balance Beginning balance

claims

Coupon interest Actual interest Overdue principal Coupon interest Actual interest Overdue principal Face value Maturity date Face value Maturity date

rate rate gold rate rate gold

(3) Provision of impairment provisions

Unit: Yuan Phase 1 Phase 2 Phase 3

Expected credit throughout the lifetime Credit expected throughout the lifetime

Provision for bad debts Expected credit in the next 12 months Total

Loss (no credit deduction has occurred Loss (credit deduction has occurred)

loss

value) value)

Balance as of January 1, 2025

In this issue

Basis for division of each stage and provision ratio for bad debts

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd.'s 2025 semi-annual report

(4) Debt investment actually written off in this period

Unit: yuan item write-off amount

Among them, the important write-off of debt investment

Debt investment write-off instructions:

Changes in book balances with significant changes in loss provision during the current period

□Applicable Not applicable

Other notes:

Other debt investments

(1) Situation of other debt investments

Unit: yuan accumulated in its

He comprehensively collects

Fair for the current period Fair for the cumulative period

Item Opening balance Accrued interest Interest adjustment Closing balance Cost Recognition in profit Remarks Value changes Value changes

impairment standard

Prepare

Changes in impairment provisions for other debt investments during the current period

Unit: Yuan Item Beginning balance Increase in the current period Decrease in the current period Ending balance

(2) Other important debt investments at the end of the period

Unit: Yuan Ending balance Beginning balance

Other debts

Coupon interest Actual interest Overdue capital Coupon interest Actual interest Overdue capital items Face value Maturity date Face value Maturity date

rate rate gold rate rate gold

(3) Provision of impairment provisions

Unit: Yuan Phase 1 Phase 2 Phase 3

Expected credit throughout the lifetime Credit expected throughout the lifetime

Bad debt provision Expected total credit losses in the next 12 months (no credit deductions have occurred Losses (credit deductions have occurred)

loss

value) value)

Balance as of January 1, 2025

In this issue

Basis for division of each stage and provision ratio for bad debts

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd.'s 2025 semi-annual report

(4) Other debt investments actually written off in the current period

Unit: yuan item write-off amount

Among them, the write-off of other important debt investments

Changes in book balances with significant changes in loss provision during the current period

□Applicable Not applicable

Other notes:

Investment in other equity instruments

Unit: Yuan Designated as fair value included in the current period Included in the current period Accumulated at the end of the period Accumulated at the end of the period

Recognized and measured in the current period and its other comprehensive Other comprehensive accounting is included in its Other comprehensive accounting is included in its

Item name Dividend income at the beginning of the period Dividend income at the end of the period Changes included in income Loss of income Other comprehensive income Other comprehensive income

Income Other comprehensive gains and losses Gains and losses

original income

Because

There is termination confirmation in this period

Unit: yuan Project name Accumulated gains transferred to retained earnings Accumulated losses transferred to retained earnings Reasons for derecognition

Disclosure of non-trading equity instrument investments in the current period by items

Unit: Yuan designated as fair

Other comprehensive income Dividend income measured in value and recognized in other comprehensive income

Project name Accumulated profits Accumulated losses Transfer to retained earnings Changes are included in other Transfer to retained earnings

The amount of comprehensive income is due to

Other notes:

Long-term receivables

(1) Long-term receivables

Unit: Yuan Ending balance Beginning balance

Item Discount rate range Book balance Bad debt provision Book value Book balance Bad debt provision Book value

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd.'s 2025 semi-annual report

(2) Classified disclosure according to bad debt accrual method

Unit: Yuan Ending balance Beginning balance

Book balance Provision for bad debts Book balance Provision for bad debts

Category Book price Book price provision ratio Provision ratio

Amount Ratio Amount Value Amount Ratio Amount Value Example

Among them:

Provision for bad debts based on the general expected credit loss model

Unit: Yuan Phase 1 Phase 2 Phase 3

Expected credit throughout the lifetime Credit expected throughout the lifetime

Provision for bad debts Expected credit in the next 12 months Total

Loss (no credit deduction has occurred Loss (credit deduction has occurred)

loss

value) value)

Balance as of January 1, 2025

In this issue

Basis for division of each stage and provision ratio for bad debts

(3) Bad debt provisions accrued, recovered or reversed in the current period

Unit: Yuan Amount of changes in the current period

Category Opening balance Ending balance Provision Recovery or reversal Write-off or write-off Others

Among them, the amount of bad debt provision for the current period that is reversed or recovered is important:

Other notes:

(4) Long-term receivables actually written off in the current period

Unit: yuan item write-off amount

Among them, the important write-off situation of long-term receivables:

Unit: Whether the yuan amount is paid by the name of the related unit, nature of the amount, write-off amount, write-off reason, write-off procedures performed

Instructions for writing off long-term receivables arising from transactions:

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd.'s 2025 semi-annual report

Long-term equity investment

Unit: Yuan

Increases and decreases in the current period

Beginning of period Equity declaration End of period

Impairment Impairment investment balance Other disbursement balance under the law

Preparation Other Provision Provision Note (Account Addition Decrease Confirmation Comprehensive Cash (Accounting Period Equity Impairment Others Ending Position Face Price Investment Investment Income Dividends Face Price Balance Change Reserve Balance Value) Capital Loss Adjustment or Profit Value)

profit

1. Joint ventures

2. Joint ventures

ZAP

MEDIC 362,5 31,27 370,3

23,75 314,7

AL 12,42 6,840 45,49

8,505 33.03

SYSTE 5.52 .68 3.73

.50

M LTD

ounce

Pharmaceutical -

255,1 12,48 4,967 260,9 (1,683

23,07 7,960 ,865. 59,51 Mountains) ,647.

1.45 .46 00 9.87 Limited 04

company

Japan and the United States

health medicine

Products 9,374 - 9,235

95,56 223,9

(Chinese, 215. 9,831, 994.

7.26 56.00

country) 24.95 55 limited

company

Beijing

Five Dimensions -

46,45 8,308 44,89 8,308Conke 1,557

3,360 ,125. 5,516 ,125. Jiyou ,843.

.00 91 .05 91 Public limited 95

Division

Shanghai

Traditional Chinese Medicine

Dayuan 1,031 - 1,012 Chuangke ,200. 18,69 ,501. Jiyou 90 9.05 85 Limited public

Division

Beijing

city gate

Tougou

District Bai

foreign doctor

24,14 50,00 - 73,67Pharmaceuticals

4,150 0,000 472,9 1,206 Industrial Investment

.07 .00 43.75 .32Zi Ji

gold

(Yes

Limited combination

Guy)

Langfang 28,98 - 28,79

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd.'s 2025 semi-annual report

Linkong 5,993 192,8 3,130Bayang .86 63.61 .25 Equity

investment

fund

partnership

enterprise

(Yes

Limited combination

Guy)

Langfang

Rinku

Baiyang

Huixin

Equity

46,00 - 45,62 Investment

0,000 374,6 5,399Fund

.00 00.58 .42Partnership

enterprise

(Yes

Limited combination

Guy)

727,6 8,308 96,00 31,27 5,191 834,5 8,308

13,79 314,7 1,693

Subtotal 24,41 ,125. 0,000 6,840 ,821. 38,76 ,125. 1,928 33.03 ,478.

7.04 91 .00 .68 00 2.04 91 .72 99

727,6 8,308 96,00 31,27 5,191 834,5 8,308

13,79 314,7 1,693

Total 24,41 ,125. 0,000 6,840 ,821. 38,76 ,125. 1,928 33.03 ,478.

7.04 91 .00 .68 00 2.04 91

.72 99

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 in impairment testing in previous years or external information

Reasons for the discrepancy between the information used in the company's impairment testing in previous years and the actual situation of that year.

Other instructions

Other non-current financial assets

Unit: Yuan

Item Ending balance Beginning balance

Investment in equity instruments 14,854,529.53 15,000,000.00 Total 14,854,529.53 15,000,000.00

Other notes:

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd.'s 2025 semi-annual report

Investment real estate

(1) Investment real estate using cost measurement model

Applicable □Not applicable

Unit: Yuan

Projects Houses and buildings Land use rights Construction in progress Total

1. Original book value

Balance at the beginning of the period 3,110,886.00 3,110,886.00 2. Increase in the current period

(1) Outsourcing

(2) Inventory\

Fixed assets\construction in progress transfer

enter

(3) Enterprise cooperation

and increase

Reduction amount in this period

(1) Disposal

(2) Other transfers

out

Closing balance 3,110,886.00 3,110,886.00

2. Accumulated depreciation and accumulation

Amortization

Balance at the beginning of the period 1,783,177.82 1,783,177.82 2. Increased amount in the current period 49,255.68 49,255.68 (1) Provision or

49,255.68 49,255.68 Amortization

Reduction amount in this period

(1) Disposal

(2) Other transfers

out

Ending balance 1,832,433.50 1,832,433.50

3. Impairment provision

Opening balance
Increase amount in this period

(1) Provision

Reduction amount in this period

(1) Disposal

(2) Other transfers

out

Ending balance

4. Book value

Book value at the end of the period 1,278,452.50 1,278,452.50 2. Book value at the beginning of the period 1,327,708.18 1,327,708.18 The recoverable amount is determined based on the net amount of fair value minus disposal costs.

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd.'s 2025 semi-annual report

□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 in impairment testing in previous years or external information

Reasons for the discrepancy between the information used in the company's impairment testing in previous years and the actual situation of that year.

Other notes:

(2) Investment real estate using fair value measurement model

□Applicable Not applicable

(3) Converted to investment real estate and measured at fair value

Unit: Accounting Section before yuan conversion Amount of other comprehensive income items Reason for conversion Approval procedure Impact on profit and loss

Benefit impact

(4) Investment real estate that has not completed the ownership certificate

Unit: Yuan

Item Book value Reasons for not completing the property rights certificate

Other instructions

Fixed assets

Unit: Yuan

Item Ending balance Beginning balance

Fixed assets 536,241,043.55 535,910,126.42 Total 536,241,043.55 535,910,126.42

(1) Fixed assets

Unit: Yuan

Items Houses and buildings Machinery and equipment Transportation equipment Electronic equipment Office equipment Total

1. Original books

Value:

Balance at the beginning of the period 504,281,331. 366,034,233. 17,744,737.4 35,882,797.3 31,304,987.9 955,248,088. Amount 93 77 1 1 9 41 2. Increase in this period 24,496,909.8 31,197,720.4

1,594,202.92 375,006.08 2,190,412.94 2,541,188.69

Add amount 0 3

(1 412,987.01 1,594,202.92 375,006.08 2,190,412.94 432,373.71 5,004,982.66

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd.'s 2025 semi-annual report

) purchase

24,083,922.7 25,399,142.8) Transfer of projects under construction 1,315,220.07

9 6 in

) Business merger increases

add

(4) Other additions

793,594.91 793,594.91 plus

Less for this period

3,044,969.68 742,434.58 331,004.35 148,771.08 4,267,179.69 Small amount

2,543,395.12 742,434.58 331,004.35 148,771.08 3,765,605.13) Disposal or scrapping

(2) Other minus

501,574.56 501,574.56 less

Ending balance 528,778,241. 364,583,467. 17,377,308.9 37,742,205.9 33,697,405.6 982,178,629. Amount 73 01 1 0 0 15

2. Accumulated depreciation

Balance at the beginning of the period 175,360,850. 192,468,053. 13,290,624.4 14,008,706.2 24,209,727.6 419,337,961. Amount 02 64 4 9 0 99 2. Increase in this period 14,528,010.2 30,217,467.0

8,860,554.28 971,381.31 4,758,093.34 1,099,427.86

Added amount 5 4 (1 14,528,010.2 30,217,467.0

8,860,554.28 971,381.31 4,758,093.34 1,099,427.86

) Provision 5 4 3. Less for this period

2,443,187.01 709,928.23 320,903.95 143,824.24 3,617,843.43 Small amount

2,362,450.64 709,928.23 320,903.95 143,824.24 3,537,107.06) Disposal or scrapping

(2) Other minus

80,736.37 80,736.37 less

Ending balance 184,221,404. 204,552,876. 13,552,077.5 18,445,895.6 25,165,331.2 445,937,585. Amount 30 88 2 8 2 60

3. Impairment provision

Balance at the beginning of the period

2.Increase in this period

Add amount

) accrual

Less for this period

small amount

) disposal or scrapping

End of period balance

4. Book value

Closing accounts 344,556,837. 160,030,590. 19,296,310.2 536,241,043.

3,825,231.39 8,532,074.38

Face value 43 13 2 55 2. Opening account 328,920,481. 173,566,180. 21,874,091.0 535,910,126.

4,454,112.97 7,095,260.39

Face value 91 13 2 42 Full text of the 2025 semi-annual report of Qingdao Baiyang Pharmaceutical Co., Ltd. (2) Temporarily idle fixed assets

Unit: Yuan Item Original book value Accumulated depreciation Impairment provision Book value Remarks

(3) Fixed assets leased through operating leases

Unit: Yuan Item Closing book value

(4) Fixed assets whose property rights certificates have not been obtained

Unit: Yuan Item Book value Reasons for not completing the property rights certificate

Other instructions

(5) Impairment testing of fixed assets

□Applicable Not applicable

(6) Fixed assets liquidation

Unit: Yuan Item Ending balance Beginning balance

Other instructions

Projects under construction

Unit: Yuan Item Ending balance Beginning balance

Construction in progress 173,533,188.17 152,262,124.97 Total 173,533,188.17 152,262,124.97 (1) Construction in progress

Unit: Yuan Ending balance Beginning balance

Project

Book balance Impairment provision Book value Book balance Impairment provision Book value 173,533,188. 173,533,188. 152,262,124. 152,262,124. Construction in progress

17 17 97 97 173,533,188. 173,533,188. 152,262,124. 152,262,124.Total

17 17 97 97 Full text of the 2025 semi-annual report of Qingdao Baiyang Pharmaceutical Co., Ltd. (2) Changes in important projects under construction during the current period

Unit: Yuanqi

Engineering

Interest in this period:

Current period Cumulative Current period

Capital transferred in this period This period

Project Budget Beginning of Period Others End of Period Investment Project Interest Increase in Funds Fixed Accumulated Interest

Name Number Balance Decrease Balance Accounting for Advance Progress Capital Source Amount Asset Accounting Capital

Amount calculation ratio

Amount Amount Funding

Example

Baiyang

Own business 20,00 8,215 3,576 11,79

58.96 Funding and capacity 0,000,210.,016. 1,226

% Raising platform .00 66 07 .73

Six tranches of funds

New 190.0 118.7 40.36 25.39 133.6

89.10

Factory building 00,00 13,37 0,101 9,142 74,33 Self-raised%

Item 0.00 6.66 .19 .86 4.99

210,0 126,9 43,93 25,39 145,4

Total 00,00 28,58 6,117 9,142 65,56

0.00 7.32 .26 .86 1.72

(3) Provision for impairment of projects under construction in the current period

Unit: Yuan Item Beginning balance Increase in the current period Decrease in the current period Closing balance Other explanations for the reasons for provision

(4) Impairment testing of projects under construction

□Applicable Not applicable

(5) Engineering materials

Unit: Yuan Ending balance Beginning balance

Project

Book balance Impairment provision Book value Book balance Impairment provision Other instructions for book value:

Productive biological assets

(1) Productive biological assets using cost measurement model

□Applicable Not applicable

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd.'s 2025 semi-annual report

(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

Project Houses and Buildings Total

1. Original book value

Opening balance 170,992,679.51 170,992,679.51 2. Increase in the current period 13,845,874.84 13,845,874.84 New leases 13,845,874.84 13,845,874.84 3. Decrease in the current period 3,800,749.55 3,800,749.55 —Disposal 1,847,283.55 1,847,283.55 —Other decreases 1,953,466.00 1,953,466.00 4. Closing balance 181,037,804.80 181,037,804.80

2. Accumulated depreciation

Balance at the beginning of the period 48,511,159.48 48,511,159.48 2. Increase in the current period 14,525,234.84 14,525,234.84

(1) Provision 14,525,234.84 14,525,234.84 3. Decrease amount in the current period 2,410,892.07 2,410,892.07

(1) Disposal 1,781,628.47 1,781,628.47 (2) Other decreases 629,263.60 629,263.60 4. Closing balance 60,625,502.25 60,625,502.25

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 120,412,302.55 120,412,302.55 2. Book value at the beginning of the period 122,481,520.03 122,481,520.03

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd.'s 2025 semi-annual report

(2) Impairment testing of right-of-use assets

□Applicable Not applicable

Other notes:

Intangible assets

(1) Intangible assets

Unit: Yuan trademark/author

Project Land use rights Patent rights Non-patented technology Software Business license rights Total

right

1. Original books

value

Beginning of the period 71,585,462 2,926,047. 23,987,368 148,407,24 47,169,811 294,259,28

183,355.50

Balance .29 16 .40 2.91 .32 7.58 2. Current period

300,445.85 300,445.85 Increased amount

(

300,445.85 300,445.85 1) Purchase

(

Internal research

send

(

Enterprise cooperation

and increase

3.This issue

13,425.76 30,225.98 238,077.73 281,729.47 Reduction amount

(

13,425.76 30,225.98 238,077.73 281,729.47 1) Disposal

Period-end 71,585,462 2,912,621. 23,957,142 148,469,61 47,169,811 294,278,00

183,355.50

Balance .29 40 .42 1.03 .32 3.96

2. Accumulated amortization

Beginning of the period 17,036,802 2,921,423. 23,975,188 22,660,888 66,669,346

75,042.88

Balance .47 20 .73 .80 .08 2. Current period 8,142,532. 2,358,490. 11,268,396

756,609.04 531.45 1,196.45 9,036.91

Increase amount 58 56.99 (8,142,532. 2,358,490. 11,268,396

756,609.04 531.45 1,196.45 9,036.91

Provision 58 56 .99 3. Current period

8,412.24 19,255.36 137,291.18 164,958.78 Reduction amount

(

8,412.24 19,255.36 137,291.18 164,958.78 1) Disposal

End of the period 17,793,411 2,913,542. 23,957,129 30,666,130 2,358,490. 77,772,784

84,079.79

Balance .51 41 .82 .20 56 .29 Full text of Qingdao Baiyang Pharmaceutical Co., Ltd. 2025 Semi-annual Report

3. Impairment standard

Prepare

Beginning of the period

balance

2.This issue

increase amount

(

Provision

3.This issue

reduce amount

(

Disposal

4.End of term

balance

4. Book price

value

End of period 53,792,050 117,803,48 44,811,320 216,505,21 -921.01 12.60 99,275.71

Book value .78 0.83 .76 9.67 2. Beginning of the period 54,548,659 125,746,35 47,169,811 227,589,94 4,623.96 12,179.67 108,312.62

Book value .82 4.11 .32 1.50 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

(2) Data resources recognized as intangible assets

Unit: Yuan Outsourced data resources are intangible Self-developed data resources Data obtained through other means

Item Total assets Intangible assets Resources intangible assets

(3) Land use rights for which property rights certificates have not been obtained

Unit: Yuan Item Book value Other explanations for reasons for not completing the property rights certificate

(4) Impairment testing of intangible assets

□Applicable Not applicable

Goodwill

(1) Original book value of goodwill

Unit: yuan Name of invested unit Increase in this period Decrease in this period

Events that call or form goodwill. Opening balance. Ending balance. Formation of business combination. Disposal

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd.'s 2025 semi-annual report

Shanghai Baiyang Pharmaceutical 106,900,523. 106,900,523. Co., Ltd. 05 05 Qingdao Newtsuma

Health Technology Co., Ltd. 661,309.27 661,309.27 Company

Tianjin Baiyang Pharmaceutical

33,449.89 33,449.89 Co., Ltd.

Anhui Zekang Medical

4,891,004.31 4,891,004.31 Technology Co., Ltd.

112,486,286. 112,486,286.Total

52 52

(2) Goodwill impairment provision

Unit: Yuan Name of the invested unit Increase in the current period Decrease in the current period is called goodwill formed Opening balance Ending balance Provision Disposal

matters

total

(3) Relevant information about the asset group or asset group combination where the goodwill is located

The composition of the asset group or portfolio to which it belongs and

Name, operating segment and basis. Is the basis consistent with previous years?

Main business operating assets formed

The asset group of Shanghai Baiyang Pharmaceutical Co., Ltd. includes fixed assets, non-tangible assets and other long-term assets. Mainly responsible for the production and sales of drugs.

Because it mainly sells NutraSuma whey

Qingdao Nutsuma Health Technology Co., Ltd. mainly sells Nutsuma whey protein

Protein powder series products, so they are integrated into the company's protein powder series products

entity as asset group

Because it is mainly responsible for hospitals in Tianjin area

Mainly responsible for the wholesale and distribution business of Tianjin Baiyang Pharmaceutical Co., Ltd. for hospitals in Tianjin area, so it is integrated into the distribution business.

entity as asset group

Main business operating assets formed

Mainly responsible for the asset group of Anhui Zhekang Medical Technology Co., Ltd. in Anhui region, including fixed assets, non-material sales

tangible assets and other long-term assets

Changes in asset group or asset group combination

Name Composition before the change Composition after the change Objective facts and basis for the change Other explanations

(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

Reasons for the obvious inconsistency between the aforementioned information and the information used in impairment testing in previous years or external information

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd.'s 2025 semi-annual report

Reasons for the discrepancy between the information used in the company's impairment testing in previous years and the actual situation of that year.

(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

Unit: Yuan Performance Commitment Completion Status Goodwill Impairment Item Current Period Previous Period

This issue Previous issue

Promised performance Actual performance Completion rate Promised performance Actual performance Completion rate

Shanghai Baiyang

172,260,0 90,679,75 144,290,0 76,251,58

Pharmaceutical shares 52.64% 52.85%

00.00 3.16 00.00 7.47

Ltd.

Other instructions

Long-term deferred expenses

Unit: Yuan

Item Beginning balance Increase in the current period Amortization in the current period Other decreases Closing balance Decoration fee 30,148,840.64 813,266.73 2,202,600.62 28,759,506.75 Software technology service fee 108,333.27 24,999.91 83,333.36 Product production qualification fee 10,471,698.14 566,037.72 9,905,660.42Total 40,728,872.05 813,266.73 2,793,638.25 38,748,500.53Other instructions

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 77,278,688.32 18,838,520.65 57,066,217.79 13,546,607.11 Unrealized profits from internal transactions 43,390,775.79 8,150,412.02 41,575,162.87 8,737,022.56 Deductible losses 253,768,978.08 66,395,417.14 173,120,207.82 42,072,765.44 Lease liabilities 133,332,187.51 33,287,669.45 129,807,247.01 32,246,203.32 Amortization difference of intangible assets 23,466,667.07 3,520,000.06 25,666,666.84 3,850,000.03 Deferred income 6,312,344.32 1,501,851.65 6,659,273.74 1,568,891.06 Valuation of trading financial instruments

19,792,983.03 3,278,207.19

value

Total 557,342,624.12 134,972,078.16 433,894,776.07 102,021,489.52

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd.'s 2025 semi-annual report

(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 Amortization of right-of-use assets 117,657,859.28 29,303,099.98 122,075,010.05 30,265,370.27 Convertible corporate bonds temporary

70,074,574.91 17,518,643.73 83,591,239.64 20,897,809.91 Sexual differences

Difference in depreciation of fixed assets 32,190,525.02 4,828,578.76 29,018,989.34 4,352,848.40 Non-monetary asset investment

23,247,949.53 5,811,987.38 23,247,949.53 5,811,987.38 Deferred tax

Valuation of trading financial instruments

5,954,224.06 982,446.97 value

Total 243,170,908.74 57,462,309.85 263,887,412.62 62,310,462.93

(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 50,832,998.23 84,139,079.93 43,922,993.64 58,098,495.88 Deferred income tax liabilities 50,832,998.23 6,629,311.62 43,922,993.64 18,387,469.29

(4) Details of deferred income tax assets not recognized

Unit: Yuan

Item Ending balance Beginning balance

Deductible temporary differences 12,145,884.11 12,447,338.41 Deductible losses 287,809,285.70 269,247,491.09 Total 299,955,169.81 281,694,829.50

(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

2025 10,050,220.11 14,952,714.20

2026 29,118,544.63 29,163,766.33

2027 45,057,326.03 45,058,404.30

2028 78,636,800.95 80,094,350.96

2029 36,145,503.58 36,180,025.49

2030 22,778,727.93

Indefinitely 66,022,162.46 63,798,229.81

Total 287,809,285.69 269,247,491.09

Other instructions

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd.'s 2025 semi-annual report

Other non-current assets

Unit: Yuan Closing balance Beginning balance item

Book balance Impairment provision Book value Book balance Impairment provision Book value Prepaid long-term assets

2,258,828.31 2,258,828.31 6,297,151.34 6,297,151.34 Purchase money

Others 1,887,486.70 1,887,486.70 1,802,126.70 1,802,126.70Total 4,146,315.01 4,146,315.01 8,099,278.04 8,099,278.04

Other notes:

Assets whose ownership or use rights are restricted

Unit: End of the period Beginning of the period

Project

Book balance Book value Restriction type Restriction situation Book balance Book value Restriction type Restriction situation Bank acceptance Bank acceptance Bill of exchange guarantee Bill of exchange margin, issuance

76,927,41 76,927,41 Fund, issuance 254,957,5 254,957,5 Letter of guarantee to guarantee monetary funds

0.44 0.44 Letter of guarantee 46.37 46.37 Fund, credit fund, letter of credit guarantee deposit, frozen funds endorsed, endorsed,

40,687,31 40,687,31 43,109,64 43,109,64

Notes receivable Discount not yet received Discount not yet 9.05 9.05 5.24 5.24

period period

65,248,17 45,619,34 65,248,17 46,652,44

Fixed assets Loans and mortgages Loans and mortgages 5.45 5.43 5.45 2.05

26,693,74 20,441,60 26,693,74 20,708,54

Intangible assets Loans and mortgages Loans and mortgages 5.93 7.74 5.93 5.16

5,883,748 5,538,844

Accounts receivable 17,078.60 16,993.21 Loan and pledge Loan and pledge.18 .39

209,573,7 183,692,6 395,892,8 370,967,0

total

29.47 75.87 61.17 23.21

Other notes:

Short-term borrowing

(1) Classification of short-term loans

Unit: Yuan

Item Ending balance Beginning balance Pledged loan 105,738,748.19 116,147,019.88 Guaranteed loan 154,821,048.68 190,930,007.79 Credit loan 1,534,672,722.31 790,550,076.05 Interest accrued 1,349,159.61 947,311.67

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd.'s 2025 semi-annual report

Total 1,796,581,678.79 1,098,574,415.39 Description of short-term loan classification:

(2) Overdue short-term borrowings that have not been repaid

The total amount of overdue and unpaid short-term borrowings at the end of the period was RMB, among which the important overdue and unpaid short-term borrowings are as follows:

Unit: Yuan

Borrowing unit Closing balance Borrowing interest rate Overdue time Other explanations on overdue interest rate

Trading financial liabilities

Unit: Yuan Item Ending balance Beginning balance

Among them:

Other notes:

Derivative financial liabilities

Unit: Yuan

Item Ending balance Beginning balance

Other notes:

Notes payable

Unit: Yuan

Category Ending balance Beginning balance

Commercial acceptance bill 4,751,088.01 Bank acceptance bill 95,719,281.35 393,187,421.15 Total 95,719,281.35 397,938,509.16 The total amount of bills payable that has expired but not been paid at the end of this period is yuan, and the reason for unpaid due is.

Accounts payable

(1) Presentation of accounts payable

Unit: Yuan

Item Ending balance Beginning balance

Within 1 year 664,295,792.57 725,000,158.50

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd.'s 2025 semi-annual report

1-2 years 44,053,493.68 19,180,369.71 2-3 years 54,736,821.71 6,553,357.65 More than 3 years 21,873,089.33 13,835,699.43 Total 784,959,197.29 764,569,585.29

(2) Important accounts payable that are aged more than 1 year or are overdue

Unit: Yuan

Item Closing balance Reason for outstanding or carried forward

Supplier 1 5,550,739.21 Not yet met the settlement conditions

Supplier 2 2,448,776.70 Not yet met settlement conditions

Supplier three 2,093,104.03 has not met the settlement conditions

Supplier Four 1,567,842.89 Not yet met settlement conditions

Supplier five 1,256,264.23 has not met the settlement conditions

Supplier Six 1,136,433.24 Not yet met the settlement conditions

Supplier Seven 1,124,751.44 Not yet met the settlement conditions

Supplier eight 1,025,463.18 Not yet met settlement conditions

Supplier nine 1,010,626.39 Not yet met the settlement conditions

Total 17,214,001.31

Other notes:

Other payables

Unit: Yuan

Item Ending balance Beginning balance

Other payables 294,337,980.37 560,404,147.45 Total 294,337,980.37 560,404,147.45

(1) Interest payable

Unit: Yuan

Item Ending balance Beginning balance

Important overdue and unpaid interest information:

Unit: Yuan

Borrowing unit Overdue amount Reasons for overdue

Other notes:

(2) Dividends payable

Unit: Yuan

Item Ending balance Beginning balance

Other explanations, including important dividends payable that have not been paid for more than 1 year, should disclose the reasons for non-payment:

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd.'s 2025 semi-annual report

(3) Other payables

List other payables according to the nature of the payment

Unit: Yuan

Item Ending balance Beginning balance

Current funds 183,804,295.80 470,984,682.07 Expense reimbursements 98,767,530.35 79,891,225.66 Security deposits and deposits 9,670,880.07 7,369,926.60 Taxes payable in advance 1,361,546.67 2,132,421.23 Others 733,727.48 25,891.89 Total 294,337,980.37 560,404,147.45

Important other payables aged more than 1 year or overdue

Unit: Yuan

Item Closing balance Reason for outstanding or carried forward

Supplier 1 3,637,189.37 Not yet met the settlement conditions

Supplier 2 1,008,351.64 Not yet met the settlement conditions

Total 4,645,541.01

Other instructions

Advance payments

(1) Presentation of advance receipts

Unit: Yuan

Item Ending balance Beginning balance

(2) Important advances from customers aged more than 1 year or overdue

Unit: Yuan Item Closing balance Reason for outstanding or carry-forward

Unit: Yuan

Item Amount of change Reason for change

Contract liabilities

Unit: Yuan

Item Ending balance Beginning balance

Within 1 year 86,718,164.17 113,543,726.43 1-2 years 2,355,237.10 2,072,552.07 2-3 years 2,413,951.29 1,272,310.43 More than 3 years 772,635.06 1,634,050.86 Total 92,259,987.62 118,522,639.79 Important contract liabilities aged more than 1 year

Unit: Yuan

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd.'s 2025 semi-annual report

Item Closing balance Reason for outstanding or carried forward

Amount and reasons for significant changes in book value during the reporting period

Unit: yuan change fee

Item Reason for change

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 compensation 106,898,515.54 310,267,066.66 332,512,700.02 84,652,882.18

2. Post-employment benefits-settings

1,851,407.30 27,806,940.84 27,772,181.17 1,886,166.97 Withdrawal plan

Dismissal benefits 7,453,859.57 7,168,270.57 285,589.00 Total 108,749,922.84 345,527,867.07 367,453,151.76 86,824,638.15

(2) Presentation of short-term remuneration

Unit: Yuan

Item Opening balance Increase in the current period Decrease in the current period Ending balance

Salary, bonus, allowance

100,351,541.67 268,883,940.57 291,063,603.97 78,171,878.27 and subsidies

Employee welfare fees 791,158.11 6,136,626.43 6,058,638.42 869,146.12
Social insurance premiums 1,005,606.71 15,052,356.41 15,025,132.35 1,032,830.77 including: medical insurance

913,913.64 14,432,810.25 14,411,821.42 934,902.47 fee

Work injury insurance

22,212.37 597,931.56 598,112.39 22,031.54 fee

maternity insurance

13,461.05 13,461.05

fee

Others 69,480.70 8,153.55 1,737.49 75,896.76

Housing provident fund 326,294.86 16,879,543.75 16,865,813.23 340,025.38
Trade union funds and employee education

4,423,914.19 3,314,599.50 3,499,512.05 4,239,001.64 Education funds

Total 106,898,515.54 310,267,066.66 332,512,700.02 84,652,882.18

(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 1,786,018.21 26,760,235.34 26,726,068.29 1,820,185.26
Unemployment insurance premium 65,389.09 1,046,705.50 1,046,112.88 65,981.71Total 1,851,407.30 27,806,940.84 27,772,181.17 1,886,166.97Other instructions:

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd.'s 2025 semi-annual report

Taxes payable

Unit: Yuan

Item Ending balance Beginning balance

Value-added tax 12,781,723.17 34,330,692.82 Corporate income tax 65,186,561.84 64,783,981.56 Personal income tax 1,599,035.65 2,364,004.98 Urban maintenance and construction tax 3,080,233.67 2,322,789.38 Stamp tax 753,721.97 1,295,472.41 Property tax 1,059,564.75 1,281,767.83 Education fee surcharge 1,409,230.57 1,112,758.20 Local education fee surcharge 939,486.06 741,838.76 Land use tax 221,360.31 221,073.39 Employment security fund for persons with disabilities 14,478.03 Others 16,571.53 7,770.63 Total 87,047,489.52 108,476,627.99 Other instructions

Liabilities held for sale

Unit: Yuan

Item Ending balance Beginning balance

Other instructions

Non-current liabilities due within one year

Unit: Yuan

Item Ending balance Beginning balance

Long-term borrowings due within one year 41,137,761.60 40,377,300.44 Bonds payable due within one year 1,807,978.71 3,036,487.64 Lease liabilities due within one year 28,462,730.74 27,866,059.48 Total 71,408,471.05 71,279,847.56Other instructions:

Other current liabilities

Unit: Yuan

Item Ending balance Beginning balance

Endorsed or discounted bills that have not been derecognized 9,916,733.49 15,532,928.08 Output tax to be transferred 11,935,366.35 13,914,990.09

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd.'s 2025 semi-annual report

Total 21,852,099.84 29,447,918.17 Increase or decrease in short-term bonds payable:

Unit: yuan per face

Overflow discount

Bond Par Issue Bond Issuance Beginning of Period Value of Current Period End of Period Whether

face value price spread

Name Interest Rate Date Term Amount Balance Issuance Profit Repayment Balance Default Cancellation

information

total

Other notes:

Long-term borrowing

(1) Classification of long-term loans

Unit: Yuan

Item Ending balance Beginning balance

Pledged loans 406,400,000.00 254,000,000.00 Pledged loans 89,022,848.84 103,772,882.84 Total 495,422,848.84 357,772,882.84 Description of long-term loan classification:

The company pledged the long-term equity investments of its subsidiaries Qingdao Baiyang Investment Group Co., Ltd., Qingdao Baiyang Yiren Investment Management Co., Ltd. and Beijing Baiyang Kanghe Technology Co., Ltd. (the balance as of June 30, 2025 was 346,641,906.75 yuan) and obtained a pledged loan of 406,400,000.00 yuan.

Other instructions, including interest rate ranges:

Bonds payable

(1) Bonds payable

Unit: Yuan

Item Ending balance Beginning balance

"Baiyang Convertible Bonds" - "123194" 768,303,290.40 754,790,886.78 Total 768,303,290.40 754,790,886.78

(2) Increases and decreases in bonds payable (excluding preference shares, perpetual bonds and other financial instruments classified as financial liabilities)

Unit: yuan per face

Overflow discount

Bond Par Issue Bond Issuance Beginning of Period Value of Current Period End of Period Whether

Par value Share conversion

Name Interest Rate Date Term Amount Balance Issuance Profit Repayment Balance Default Cancellation

information

"Hundreds 2023 2023. 860,0 754,7 3,001 13,51 4,230 768,3

100.0 0.3%- 3,888

Foreign transfer Year 04 4.14- 00,00 90,88 ,712. 6,291 ,209. 03,29 No

0 2.5% .31

Debt”-Month 14, 2029. 0.00 6.78 73.93 50 0.40

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd.'s 2025 semi-annual report

"123rd 4.13

194” (6

years)

860,0 754,7 3,001 13,51 4,230 768,3

3,888

Total 00,00 90,88 ,712. 6,291 ,209. 03,29

.31

0.00 6.78 73 .93 50 0.40

(3) Description of convertible corporate bonds

(1) The coupon rate of the bond is 0.3%-2.5%

(2) During the conversion period of the convertible bonds issued this time, when any of the following situations occurs, the company has the right to decide to redeem all or part of the unconverted convertible bonds at the price of the bond face value plus the current accrued interest: ① During the conversion period, if the company’s shares The closing price of the stock on at least fifteen trading days out of any thirty consecutive trading days shall not be less than 130% (inclusive) of the current conversion price; ② When the unconverted balance of the convertible bonds issued this time is less than RMB 30 million.

(3) The initial conversion price of "Baiyang Convertible Bonds" is 27.64 yuan/share. On May 25, 2023, the company implemented the 2022 equity distribution implementation plan, and the conversion price of "Baiyang Convertible Bonds" was adjusted from 27.64 yuan/share to 26.88 yuan/share; on May 29, 2024, the company implemented the 2023 Equity Distribution Implementation Plan. In the annual equity distribution implementation plan, the conversion price of "Baiyang Convertible Bonds" was adjusted from 26.88 yuan/share to 26.12 yuan/share. On May 27, 2025, the company implemented the 2024 equity distribution implementation plan, and the conversion price of "Baiyang Convertible Bonds" was adjusted from 26.12 yuan/share to 25.36 yuan/share.

(4) Description of other financial instruments classified as financial liabilities

Basic information on preferred shares, perpetual bonds and other financial instruments outstanding at the end of the period

Statement of changes in outstanding preferred stocks, perpetual bonds and other financial instruments at the end of the period

Unit: yuan outstanding. Beginning of the period. Increase in the current period. Decrease in the current period. End of the period.

financial engineering

Quantity Book value Quantity Book value Quantity Book value Quantity Book value

tools

Explanation of the basis for classifying other financial instruments as financial liabilities

Other instructions

Lease liabilities

Unit: Yuan

Item Ending balance Beginning balance

Lease payment 117,308,029.92 117,476,010.89 Unrecognized financing expenses -12,111,533.84 -14,913,154.30Total 105,196,496.08 102,562,856.59Other instructions

Long-term payables

Unit: Yuan

Item Ending balance Beginning balance

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd.'s 2025 semi-annual report

(1) List long-term payables according to the nature of the payment

Unit: Yuan Item Ending balance Beginning balance

Other notes:

(2) Special accounts payable

Unit: Yuan Item Beginning balance Increase in the current period Decrease in the current period Ending balance Reasons for formation

Other notes:

Long-term employee benefits payable

(1) Long-term employee salary payable table

Unit: Yuan Item Ending balance Beginning balance

(2) Changes in defined benefit plans

Present value of defined benefit plan obligations:

Unit: Yuan Item Amount of the current period Amount of the previous period

Plan assets:

Unit: Yuan Item Amount of the current period Amount of the previous period

Net liabilities (net assets) of defined benefit plans

Unit: Yuan Item Amount of the current period Amount of the previous period

Description of the content of the defined benefit plan and the risks associated with it, as well as the impact on the company's future cash flows, timing and uncertainty:

Explanation of significant actuarial assumptions and sensitivity analysis results of defined benefit plans:

Other notes:

Estimated liabilities

Unit: Yuan Qingdao Baiyang Pharmaceutical Co., Ltd. Full text of 2025 semi-annual report

Item Ending balance Beginning balance Reason for formation

Pending litigation 5,000,000.00

Total 5,000,000.00

Other explanations, including important assumptions and estimation instructions related to important estimated liabilities:

Deferred income

Unit: Yuan Item Beginning balance Increase in the current period Decrease in the current period Closing balance Reason for formation Government subsidy 11,434,936.36 140,000.00 999,321.55 10,575,614.81

Total 11,434,936.36 140,000.00 999,321.55 10,575,614.81

Other notes:

Other non-current liabilities

Unit: Yuan Item Ending balance Beginning balance

Other notes:

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

525,619,31 525,619,47 Total shares 166.00 166.00

0.00 6.00Other instructions:

Other equity instruments

(1) Basic information on preferred shares, perpetual bonds and other financial instruments outstanding at the end of the period

issue

accounting outside

Dividend rate or expiration date or renewal condition Conversion note Conversion fee Issuance time Minutes Issuance price Quantity Amount

Interest Rate Conditions Condition Financial Industry Category

tools

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd.'s 2025 semi-annual report

Convertible bonds

Conversion period

Since this time

Convertible bonds

Issue result

Coupon rate End date

For: First (2023

0.30% as of April 20, 2025 6 payable

T+4 of the second year) 30-month bond

0.50% can be transferred, after 6 days, if you already have coupons,

Change of public ownership Third year Accumulated after month 2023-04-14 Others 100 yuan/ticket 8,600,000 860,000,000.00 April 13, 2029

Debt 1.00%, first 139,601 equity

Bond Year 4 Trading Day Zhang Bond changes job

1.50%, (2023 for

Fifth year October 519,476 2.00%, 20th) Share capital From the sixth year to

2.50% convertible bonds to

due date

(2029

April

13th)

stop

Total 8600000 860,000,000.00

(2) Statement of changes in outstanding preferred stocks, perpetual bonds and other financial instruments at the end of the period

Unit: Yuan

Outstanding at the beginning of the period Increase during the period Decrease during the period End of the period

financial engineering

Quantity Book value Quantity Book value Quantity Book value Quantity Book value instrument

Convertible 8,460,442 99,752,55 99,752,04

43 507.00 8,460,399

Corporate bonds .00 6.35 9.35

99,752,55 99,752,04Total 8,460,442 43 507.00 8,460,399

6.35 9.35

Changes in other equity instruments during the current period, explanations of the reasons for the changes, and the basis for relevant accounting treatments:

Other notes:

Capital reserve

Unit: Yuan

Item Opening balance Increase in the current period Decrease in the current period Ending balance

capital premium (equity premium

151,609.14 4,311.29 155,920.43 price)

Other capital reserves -2,675,387.96 31,276,840.68 28,601,452.72

Total -2,523,778.82 31,281,151.97 28,757,373.15

Other explanations, including changes in increases and decreases in the current period and explanations of reasons for changes:

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd.'s 2025 semi-annual report

During the reporting period, the conversion of convertible bonds into shares increased the capital reserve by RMB 4,311.29, and other changes in equity of long-term equity investment investees accounted for by the equity method increased the capital reserve by RMB 31,276,840.68.

Treasury stocks

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:

Other comprehensive income

Unit: Yuan Amount incurred in the current period

Less: previous period Less: previous period

Income for the current period is included in other items and is included in other items. Attribution after tax

Item Opening balance Less: Income Attribution after tax Ending balance before tax Comprehensive income Comprehensive income Attributable to minority shares

Tax expenses at the parent company

Amount transferred in the current period Transferred in in the current period

Profit and loss Retained earnings

2. Will be heavy

Classified loss 1,678,152 1,354,600 1,127,600 227,000.4 2,805,752Other gains .03 .80 .38 2 .41Comprehensive income

Among them: right

It can be done under beneficial laws

314,733.0 314,733.0 328,634.8 transferred to profit and loss 13,901.82

3 3 5 other comprehensive

income

foreign currency

2,493,607 607,765.5 380,765.0 227,000.4 2,874,373Financial statements

.97 1 9 2 .06 Conversion difference

Notes receivable - -

432,102.2 432,102.2

Fair value 829,357.7 397,255.5

6 6

Change 6 0Other comprehensive 1,678,152 1,354,600 1,127,600 227,000.4 2,805,752Total income .03 .80 .38 2 .41Other explanations, including adjustments to the initial recognition amount of the effective portion of cash flow hedging gains and losses converted into hedged items:

Special reserves

Unit: Yuan

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd.'s 2025 semi-annual report

Surplus reserve

Unit: Yuan

Item Beginning balance Increase in the current period Decrease in the current period Ending balance Statutory surplus reserve 202,078,158.26 202,078,158.26 Total 202,078,158.26 202,078,158.26 Description of surplus reserve, including changes in increases and decreases in the current period and reasons for changes:

Undistributed profits

Unit: Yuan

Projects in this issue Previous issue

Undistributed profits at the end of the previous period before adjustment 1,548,306,006.77 1,448,972,045.40 Total undistributed profits at the beginning of the period before adjustment (adjustment +,

-10,765,822.88 reduction-)

Adjusted opening undistributed profits 1,548,306,006.77 1,438,206,222.52 plus: net profit attributable to owners of the parent company for the period

163,135,677.61 691,593,321.92 profit

Less: Withdrawal of statutory surplus reserve 41,579,211.65

Dividends payable on ordinary shares 400,521,876.14 400,517,480.14 Business combination under common control 139,396,845.88 Undistributed profits at the end of the period 1,310,919,808.24 1,548,306,006.77 Details of adjustments to undistributed profits at the beginning of the period:

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.
Due to changes in accounting policies, the undistributed profit at the beginning of the period is affected.
Due to the correction of major accounting errors, the undistributed profit at the beginning of the period was affected.

4). Changes in the scope of consolidation due to the same control will affect the undistributed profit at the beginning of the period.

The total of other adjustments affects the opening undistributed profit yuan.

Operating income and operating costs

Unit: Yuan Amount of current period Amount of previous period

Project

revenue cost revenue cost

Main business 3,739,983,311.20 2,378,310,337.44 3,977,133,106.61 2,578,927,573.98 Other businesses 11,308,478.04 4,846,302.25 14,426,855.16 7,191,919.96 Total 3,751,291,789.24 2,383,156,639.69 3,991,559,961.77 2,586,119,493.94 Decomposition information of operating income and operating costs:

Unit: Yuan

Segment 1 Segment 2 Amount for the current period Total

Contract classification

Operating income Operating cost Operating income Operating cost Operating income Operating cost Operating income Operating cost Business type

Among them:

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd.'s 2025 semi-annual report

Brand operation 2,716,167 1,430,310 2,716,167 1,430,310Business,011.66,844.70,011.66,844.70Wholesale distribution 833,214,6 765,904,9 833,214,6 765,904,9Business 99.26 70.27 99.26 70.27

190,601,6 182,094,5 190,601,6 182,094,5Retail business

00.28 22.47 00.28 22.47

11,308,47 4,846,302 11,308,47 4,846,302Other businesses

8.04 .25 8.04 .25

3,751,291 2,383,156 3,751,291 2,383,156Total

,789.24 ,639.69 ,789.24 ,639.69 Information related to performance obligations:

The company's pre-payments, the company's performance obligations, and the important payment terms. The company's commitment to transfer is the main responsibility.

The item will be refunded to the customer during the period. The type and time of the quantity guarantee. The nature of the goods. Anyone.

Account’s money and other explanations of related obligations

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 92,259,987.62 yuan. Among them, 92,259,987.62 yuan is expected to be recognized as revenue in 2025, and 92,259,987.62 yuan is expected to be recognized as revenue in 2025.

Information related to variable consideration in the contract:

Major contract changes or major transaction price adjustments

Unit: Yuan

Item Accounting treatment method Amount of impact on income

Other instructions

Taxes and surcharges

Unit: Yuan

Item Amount for the current period Amount for the previous period

Urban maintenance and construction tax 13,558,703.12 10,608,594.17 Education surcharge 6,272,242.72 4,954,833.66 Property tax 1,852,798.74 2,172,688.72 Land use tax 442,935.66 834,532.96 Vehicle and vessel use tax 10,710.29 8,041.50 Stamp duty 1,851,915.83 2,371,431.86 Local education surcharge 4,181,495.18 3,303,222.46 Environmental protection tax 27,718.96 29,614.30 Local water conservancy construction fund 34,788.85 16,944.01 Others 442,933.10 232,135.46 Total 28,676,242.45 24,532,039.10 Other notes:

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd.'s 2025 semi-annual report

Management expenses

Unit: Yuan

Item Amount for the current period Amount for the previous period

Employee compensation 73,711,506.12 64,905,285.94 Depreciation and amortization expenses 21,432,354.70 16,326,161.67 Office expenses 3,551,153.91 4,694,359.37 Rent and property utilities 20,127,670.90 12,126,670.35 Conference and training fees 721,040.16 1,738,116.45 Business entertainment fees 7,390,031.22 3,669,395.48 Professional service fees 7,025,004.79 8,359,331.94 Travel expenses 4,775,453.76 3,231,147.44 Other expenses 2,707,771.59 2,945,280.49 Total 141,441,987.15 117,995,749.13

Other instructions

Sales expenses

Unit: Yuan

Item Amount for the current period Amount for the previous period

Marketing and promotion expenses 585,284,388.27 439,778,327.47 Employee compensation 196,668,029.94 193,924,317.50 Travel expenses 7,672,085.33 7,176,492.80 Business entertainment expenses 4,447,108.35 4,830,977.74 Rent and property utility bills 5,183,976.27 3,075,620.63 Depreciation and amortization expenses 7,105,051.63 5,170,902.53 Other expenses 1,001,276.07 2,770,142.88 Total 807,361,915.86 656,726,781.55

Other notes:

Research and development expenses

Unit: Yuan

Item Amount for the current period Amount for the previous period

Employee compensation 5,592,900.44 6,545,688.90 Material fees 2,677,528.39 1,723,406.91 Depreciation and amortization expenses 1,540,748.41 1,204,176.64 Testing and laboratory processing fees 4,965,561.71

Intellectual property affairs fees 294,359.46

Technical service fee 36,860.55 1,380,582.09 Other expenses 538,819.67 1,005,992.99

Entrusted research and development expenses 2,270,000.00

Total 17,916,778.63 11,859,847.53

Other instructions

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd.'s 2025 semi-annual report

Financial expenses

Unit: Yuan

Item Amount for the current period Amount for the previous period

Interest expense 48,241,399.81 36,007,997.40 Including: Interest expense on lease liabilities 2,842,173.39 2,622,075.61 Less: Interest income 7,024,956.87 8,098,552.10 Exchange gains and losses 7,675,184.76 941,198.26 Handling fee expenses 621,155.37 975,023.38 Total 49,512,783.07 29,825,666.94 Other instructions

Other income

Unit: Yuan

Sources of other income Amount incurred in the current period Amount incurred in the previous period

Government subsidies 19,334,398.98 4,925,119.89 Input tax additional deduction 1,504,848.52 1,190,620.98 Tax reduction and exemption refund 102,994.97 85,306.84 Tax withholding and payment handling fee refund 697,536.46 672,908.49 Others 122.91 Total 21,639,778.93 6,874,079.11

Net exposure hedging income

Unit: Yuan

Item Amount for the current period Amount for the previous period

Other instructions

Gains from changes in fair value

Unit: Yuan

Sources of income from changes in fair value Amount incurred in the current period Amount incurred in the previous period

Trading financial assets -25,601,736.62 -2,409,124.63 Other non-current financial assets -145,470.47

Total -25,747,207.09 -2,409,124.63Other instructions:

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 -13,791,928.72 24,803,214.03

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd.'s 2025 semi-annual report

Investment income from disposal of long-term equity investments 592,296.32

Investment income from disposal of trading financial assets 480,147.12 652,128.45 Measured at fair value and changes in other comprehensive

-2,725,182.45 -2,176,703.77 Investment income from financial assets with combined income

Total -15,444,667.73 23,278,638.71Other instructions

Credit impairment losses

Unit: Yuan

Item Amount for the current period Amount for the previous period

Bad debt losses on notes receivable -2,752.02

Bad debt losses on accounts receivable -2,734,841.18 -9,367,674.78 Bad debt losses on other receivables 324,895.08 -29,562.56 Total -2,412,698.12 -9,397,237.34Other notes

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

-35,593,152.11 -8,248,547.97 value loss

Total -35,593,152.11 -8,248,547.97Other instructions:

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 -386.41 91,142.28 Income from disposal of construction in progress 26,652.14 Income from disposal of right-of-use assets 32,264.55 60,216.86 Total 31,878.14 178,011.28

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

Fine 392.60 2,595.83 392.60 Gains from disposal of non-current assets 1,800.00

Others 801,323.52 299,441.79 801,323.52

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd.'s 2025 semi-annual report

Total 801,716.12 303,837.62 801,716.12Other instructions:

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

External donations 5,831,251.50 2,297,313.10 5,831,251.50 Loss from damage and scrapping of non-current assets 166,348.30 162,058.25 166,348.30 Others 534,014.16 773,150.31 534,014.16Total 6,531,613.96 3,232,521.66 6,531,613.96Other instructions:

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 86,362,015.14 127,963,476.45 Deferred income tax expense -37,798,648.53 10,556,144.13 Total 48,563,366.61 138,519,620.58

(2) Adjustment process of accounting profits and income tax expenses

Unit: Yuan

Item Amount incurred in this period

Total profit 259,969,476.57 Income tax expenses calculated according to statutory/applicable tax rates 64,992,369.14 The impact of different tax rates applicable to subsidiaries -28,648,311.68 The impact of adjusting income taxes in previous periods -492,565.16 The impact of non-deductible costs, expenses and losses 9,813,789.28 Deductible temporary differences or deductible temporary differences that have not been recognized as deferred income tax assets in the current period

4,380,631.28 Impact of loss

Additional deductible expenses stipulated in the tax law -3,079,306.41 Impact on investment income and losses of associated companies 2,984,733.14 Others -1,387,972.98 Income tax expenses 48,563,366.61 Other notes:

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd.'s 2025 semi-annual report

Other comprehensive income

See notes for details

Cash flow statement items

(1) Cash related to operating activities

Other cash received related to operating activities

Unit: Yuan

Item Amount for the current period Amount for the previous period

Bank deposit interest received 5,900,638.38 8,098,552.10 Government subsidies received 18,475,077.43 3,771,070.41 Others (reserve funds, security deposits, current accounts) 67,715,234.01 13,031,288.23Total 92,090,949.82 24,900,910.74 Description of other cash received related to operating activities:

Other cash paid related to operating activities

Unit: Yuan

Item Amount for the current period Amount for the previous period

Payment of operating expenses and administrative expenses, etc. 630,135,620.38 472,395,953.36 External donations 4,187,003.68 2,418,756.31 Bank fees paid 715,067.88 975,023.38 Others (reserve funds, security deposits) 10,473,854.71 30,150,374.67 Total 645,511,546.65 505,940,107.72 Description of other cash paid related to operating activities:

(2) Cash related to investing activities

Other cash received related to investing activities

Unit: Yuan

Item Amount for the current period Amount for the previous period

Significant cash received related to investing activities

Unit: Yuan

Item Amount for the current period Amount for the previous period

Description of other cash received related to investing activities:

Other cash paid related to investing activities

Unit: Yuan

Item Amount for the current period Amount for the previous period

Significant cash payments related to investing activities

Unit: Yuan

Item Amount for the current period Amount for the previous period

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd.'s 2025 semi-annual report

Description of other cash paid related to investment activities:

(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

Received deposits from financial institutions 178,639,430.89 5,331,055.33 Received loans from related companies 128,361,488.58 150,415,740.00 Refund of lease liabilities 1,166,866.56 Total 307,000,919.47 156,913,661.89

Description of other cash received related to financing activities:

Other cash payments related to financing activities

Unit: Yuan

Item Amount for the current period Amount for the previous period

Deposit paid by financial institutions 5,609,294.96 24,952,618.65 Return of borrowings from affiliated companies 149,521,940.00 Payment of rent for right-of-use assets 6,421,589.81 3,849,852.86 Consideration paid for the merger of enterprises under common control and purchase of minority shares

264,010,822.00

right

Total 276,041,706.77 178,324,411.51

Description of other cash payments related to financing activities:

Changes in various liabilities arising from financing activities

Applicable □Not applicable

Unit: Yuan

Increase in this period Decrease in this period

Item Opening balance Closing balance Cash change Non-cash change Cash change Non-cash change

1,098,574,41 1,541,993,28 12,584,394.9 835,457,680. 21,112,740.5 1,796,581,67 Short-term borrowings

5.39 9.65 4 67 2 8.79 Long-term borrowings (including

398,150,183. 158,400,000. 14,013,018.5 20,752,557.3 13,250,034.0 536,560,610. Part due within one year

28 00 0 4 0 44 points)

Bonds payable (including

757,827,374. 13,512,403.6 770,111,269. Due within one year 1,228,508.93

42 2 11 points)

Lease liabilities (including

130,428,916. 21,087,392.7 11,435,492.1 133,659,226. Due within one year 6,421,589.81

07 3 7 82 minutes)

Other payables - 428,601,664. 264,010,822. 164,590,842. Current accounts 66 00 66

400,521,876. 400,521,876.

Dividends payable

14 14

2,813,582,55 1,700,393,28 461,719,085. 1,527,164,52 47,026,775.6 3,401,503,62Total

3.82 9.65 93 5.96 2 7.82

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd.'s 2025 semi-annual report

(4) Explanation on presenting cash flow in net amount

Item Relevant facts and circumstances Basis for net presentation Financial impact

(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

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 211,406,109.96 433,327,898.12 plus: asset impairment provision 38,005,850.23 17,645,785.31 Depreciation of fixed assets, depreciation of oil and gas assets

30,266,722.72 19,111,862.67 Depreciation of consumption and productive biological assets

Depreciation of right-of-use assets 14,525,234.84 9,670,951.10 Amortization of intangible assets 11,268,396.99 7,691,056.55 Amortization of long-term prepaid expenses 2,793,638.25 2,849,658.21 Disposal of fixed assets, intangible assets and other

Loss of other long-term assets (income is listed with "-" sign -1,800.00 -178,011.28)

Loss on scrapping of fixed assets (income based on

166,348.30 162,058.25 (Fill in “-”)

Loss from change in fair value (gain based on

25,747,207.09 2,409,124.63 (Fill in “-”)

Financial expenses (revenues are filled in with "-"

51,450,082.98 35,366,694.37 columns)

Investment losses (income is filled in with "-"

15,444,667.73 -23,278,638.71 columns)

Deferred tax assets decreased (increased by

-26,040,584.05 6,384,675.34 (Fill in “-”)

Deferred tax liabilities increased (decreased by

-11,758,157.67 2,214,947.29 (Fill in “-”)

Decrease in inventory (increase marked with "-"

123,054,118.11 52,820,940.36 fill in the column)

Decrease in operating receivables (increase in

198,390,721.59 114,549,898.59 (please fill in with "-")

Increase (decrease) in operating payables

-292,953,899.67 -209,126,369.12 (please fill in the list with "-")

Others

Net cash flow generated from operating activities 391,764,657.40 471,622,531.68

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd.'s 2025 semi-annual report

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

3． Net changes in cash and cash equivalents:

Closing balance of cash 1,798,099,280.48 1,778,771,852.56 Less: Opening balance of cash 1,212,445,674.09 1,128,096,282.67 Add: Closing balance of cash equivalents 9,624,238.70 8,139,941.30 Less: Beginning balance of cash equivalents 10,100,519.96 6,047,131.31 Net increase in cash and cash equivalents 585,177,325.13 652,768,379.88

(2) Net cash paid in the current period to acquire subsidiaries

Unit: Yuan

Amount

Among them:

Other notes:

(3) Net cash received from disposal of subsidiaries in the current period

Unit: Yuan

Amount

Among them:

Other notes:

(4) Composition of cash and cash equivalents

Unit: Yuan

Item Ending balance Beginning balance

Cash 1,798,099,280.48 1,212,445,674.09 Including: Cash on hand 61,499.89 38,841.16 Bank deposits that can be used for payment at any time 1,623,890,798.07 1,143,596,949.21 Other monetary resources that can be used for payment at any time

174,146,982.52 68,809,883.72 gold

Cash equivalents 9,624,238.70 10,100,519.96
Balance of cash and cash equivalents at the end of the period 1,807,723,519.18 1,222,546,194.05

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd.'s 2025 semi-annual report

(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

(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

Other notes:

(7) Description of other major activities

Notes on items in the statement of changes in owners’ equity

Explain the names of "other" items and the amount of adjustments that were made to the closing balance of the previous year:

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 299,638,209.43 Including: US dollars 41,151,058.96 7.1586 294,583,970.67 Euros 562.63 8.4024 4,727.44 Hong Kong dollars 4,661,581.09 0.91195 4,251,128.88 pounds 39,956.40 9.83 392,771.41

Japanese yen 8,178,631.00 0.049594 405,611.03 Accounts receivable

Among them: US dollars 2,513,306.67 7.1586 17,991,757.14 euros

Hong Kong dollar

Other receivables 1,522,442.59 including: USD 177,115.32 7.1586 1,267,897.73 Euros

Hong Kong dollars 279,121.50 0.91195 254,544.86 Accounts payable 14,018,328.33 Including: US dollars 1,951,571.12 7.1586 13,970,517.62 Euros 378.00 8.4024 3,176.11

Japanese yen 900,000.00 0.049594 44,634.60

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd.'s 2025 semi-annual report

Other payables 169,754.56 including: Hong Kong dollars 118,160.00 0.91195 107,756.01

Japanese yen 1,250,122.00 0.049594 61,998.55 Employee benefits payable 287,722.94 Including: Hong Kong dollars 315,502.98 0.91195 287,722.94 Taxes payable 9,172.24 Including: US dollars 1,281.29 7.1586 9,172.24

long term borrowing

Of which: US dollars

Euro

Hong Kong dollar

Other notes:

(2) 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

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

During the reporting period, short-term lease expenses of RMB 5,728,444.18 were included in the simplified treatment of related asset costs or current profits and losses.

Situations involving sale and leaseback transactions

(2) The company as the lessor

Operating lease as lessor

Applicable □Not applicable

Unit: Yuan Including: Variable lease items not included in lease receipts Lease income

Payment related revenue

Operating lease income 2,922,320.36

Total 2,922,320.36

Finance lease as lessor

□Applicable Not applicable

Undiscounted lease payments for each of the next five years

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd.'s 2025 semi-annual report

□Applicable Not applicable

Reconciliation of undiscounted lease receipts and net lease investment

(3) Recognizing financial lease sales profits and losses as a manufacturer or distributor

□Applicable Not applicable

Data resources
Others

8. R&D expenditures

Unit: Yuan

Item Amount for the current period Amount for the previous period

Intellectual property affairs fees 294,359.46

Technical service fee 36,860.55 1,380,582.09 Other expenses 538,819.67 1,005,992.99 Entrusted research and development expenses 2,270,000.00

Total 17,916,778.63 11,859,847.53 Including: expensed R&D expenditures 17,916,778.63 11,859,847.53

Capitalized R&D expenditures

R&D projects that meet capitalization conditions

Unit: Yuan

Increase amount in this period Decrease amount in this period

Item Opening balance Internal development Confirmed as N/A Transferred to current period Closing balance Others

Expenditure tangible assets Profit and loss

total

Significant Capitalized R&D Projects

Estimated economic benefits when capitalization begins Specific projects to begin capitalization R&D progress Estimated completion time

Production method Point entity based on development expenditure impairment provision

Unit: Yuan

Item Opening balance Increase in the current period Decrease in the current period Ending balance Impairment test situation

Important outsourced research projects

Project name The way in which economic benefits are expected to be generated The judgment criteria and specific basis for capitalization or expense. Full text of the 2025 Semi-annual Report of Qingdao Baiyang Pharmaceutical Co., Ltd.

According to other instructions:

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 Purchase date to Purchase date to Purchase date to the purchased party Equity acquisition Equity acquisition Equity acquisition Equity acquisition Equity acquisition Purchased at the end of the period Acquired at the end of the period Acquired at the end of the period Name of date Time point Cost Proportion Method Determination basis Buyer’s acquisition Buyer’s net Buyer’s cash income Profit Cash flow Other explanations:

(2) Merger costs and goodwill

Unit: Yuan combined cost

--cash

--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 combined costs

Less: Share of fair value of identifiable net assets acquired

Goodwill/merger cost is less than the fair value share of identifiable net assets acquired

Method for determining the fair value of merger costs:

Description of contingent consideration and its changes

The main reasons for the formation of large amounts of goodwill:

Other notes:

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd.'s 2025 semi-annual report

(3) The identifiable assets and liabilities of the purchased party on the purchase date

Unit: Yuan

Fair value on acquisition date Book value assets on acquisition date:

Monetary funds

Accounts receivable

Inventory

fixed assets

intangible assets

Liabilities:

borrow money

Accounts payable

Deferred income tax liability

net worth

Less: Minority interests

Net assets acquired

Method for determining the fair value of identifiable assets and liabilities:

Contingent liabilities of the purchased party assumed in a business combination:

Other notes:

(4) Gains or losses arising from the remeasurement of equity held before the purchase date at fair value

Is there any transaction that realizes the business combination step by step through multiple transactions and obtains control during the reporting period Yes  No

(5) Relevant explanation that the merger consideration or the fair value of the acquiree’s identifiable assets and liabilities cannot be reasonably determined on the acquisition date or at the end of the current period of merger.

(6) Other instructions

Merger of enterprises under common control

(1) Business mergers under the same control that occurred in the current period

Unit: Yuan for the current period of the merger. The composition for the current period of the merger is the same.

Business combination from the beginning of the period to the merger period from the beginning of the period to the merger period Comparative period Comparative period Enterprises under the control of the merged party On the date of merger

Obtained from Merger date Merger date Merger date Merger name of merged party Determination basis of business merger

Equity ratio, merger’s acquisition, merger’s net income, basis of net profit

Other instructions for profit:

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd.'s 2025 semi-annual report

(2) Merger cost

Unit: Yuan

Combined cost--cash

--Book value of non-cash assets

--The book value of debt issued or assumed --The face value of equity securities issued

--Contingent consideration

Description of contingent consideration and its changes:

Other notes:

(3) Book value of the assets and liabilities of the merged party on the merger date

Unit: Yuan

Merger date Closing assets of the previous period:

Monetary funds

Accounts receivable

Inventory

fixed assets

intangible assets

Liabilities:

borrow money

Accounts payable

net worth

Less: Minority interests

Net assets acquired

Contingent liabilities of the merged party assumed in a business merger:

Other notes:

Reverse purchase

Basic information of the transaction, the basis for the transaction to constitute 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:

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd.'s 2025 semi-annual report

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

Explain the 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:

Qingdao Baiyang Wanglian Pharmacy Co., Ltd.

Qingdao Baiyang Wanglian Pharmacy Co., Ltd. completed its cancellation on March 20, 2025, with a registered capital of 1 million yuan; Qingdao Baiyang Health Pharmacy Chain Co., Ltd. currently holds 100% of the shares.

Beijing Baixin Kangda Medical Equipment Co., Ltd.

Beijing Baixin Kangda Medical Equipment Co., Ltd. was established on January 26, 2025, with a registered capital of 2 million yuan, and the company currently holds 51% of the shares.

Others

10. Interests in other entities

Interests in subsidiaries

(1) Composition of enterprise groups

Unit: Yuan

Shareholding ratio

Name of subsidiary company Registered capital Main place of business Place of registration Nature of business How to obtain

direct indirect

Baiyang Health Products is established through

118,450,00 Brand services and

Industry International Business Hong Kong Hong Kong 100.00%

0.001 Cross-border e-commerce

Co., Ltd. Company Baheal Group has 1,000,000. Investment and business under common control

Hong Kong Hong Kong 100.00%

Co., Ltd. 002 Expansion Corporate merger with Nutsuma Country

10,000,000 Investment and Business International Health Limited under common control Hong Kong Hong Kong 66.50%

.003 Expansion Business Combination Company

Qingdao Newtech

20,000,000 Health nutrition products Non-identical control Ma Health Technology Qingdao City Qingdao City 100.00%

.004 SALE UNDER BUSINESS COMBINED LTD.

Newt Shuma

1,000,000. Health supplements Under the same control (Hong Kong) Hong Kong Hong Kong 100.00%

005 Sales Business Mergers Ltd.

American Nutrisol Health Nutritional Products Not under the same Control

19.566 United States United States 89.50%

Ma Co., Ltd. R&D and sales merged with Qingdao Baiyangzhi

Through the establishment of Fangcheng Medical Technology 20,000,000 medical device sales

Qingdao City Qingdao City 100.00% formally acquired Sub-Development Co., Ltd. .007 sold

Corporate Division

Qingdao Baiyangjian

80,000,000 Xiakang Pharmacy Chain under common control Qingdao City Qingdao City Drug sales 100.00%

.00 BUSINESS COMBINED LIMITED.

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd.'s 2025 semi-annual report

Beijing Chengshan Hall

10,000,000 Health nutrition products Health technology under the same control Beijing City Beijing City 58.00%

.00 Sales BUSINESS COMBINED LIMITED.

Qingdao Baiyangyi

100,000,00 Health and nutrition products Under the same control, Mei Technology Co., Ltd. Qingdao City Qingdao City 60.00%

0.00 Sales Business Combination Company

Medical device sales

Qingdao Baiyangtiao passed the establishment party

10,000,000 Sales, daily use

TickMiao Technology has Qingdao City Qingdao City 100.00% formula obtained

.00 products, cosmetics

Ltd. Company

sales

Qingdao Dianzhongwen

10,000,000 Non-Controlled Communication Co., Ltd. Qingdao City Qingdao City Business Services 100.00%

.00 Under Business Combination Corporation

Medical device sales

Qingdao Baiyangtiao passed the establishment party

10,000,000 Sales, daily use

TickMiao Trading has Qingdao City Qingdao City 100.00% formula obtained

.00 products, cosmetics

Ltd. Company

sales

Baiyang Technology Sea passed the establishment party

1,000,000.

Foreign Trade Co., Ltd. Hong Kong Hong Kong Cross-border e-commerce 100.00% acquired subsidiary company Qingdao Dongyuansheng

20,000,000 Sales of medical devices Wu Technology Co., Ltd. under common control Qingdao City Qingdao City 80.00%

.00 Sold Business Combination Company

Beijing Baiyangdong passed the establishment party

10,000,000 Medical device sales

Source Biotechnology Beijing Beijing 92.00%

.00 sold

Co., Ltd. Bai Yuan Medical Department was established by

10,000,000 Medical device sales

Technology (Shandong) Jinan City Jinan City 74.00%

.00 sold

Co., Ltd. The company Qingdao Zhilijian was established through

36,363,600 Healthy Nutritional Products

Kang Technology Co., Ltd. Qingdao City Qingdao City 100.00%

.00 sales

Company Company Qingdao Baiyang Medical Through the establishment method

10,000,000

Limited drug flow Qingdao City Qingdao City Warehousing and Logistics 100.00%

.00

Company Company Jiangxi Baiyang Medical 20,410,000 Not under common control

Jiangxi Ji'an City Pharmaceutical Sales 51.00%

Pharmaceutical Co., Ltd. .00 Business merger with Tianjin Baiyang Medical 43,500,000 Not under common control

Tianjin City Tianjin City Pharmaceutical Sales 51.00%

Pharmaceutical Co., Ltd. .00 The enterprise merged with Shandong Baiyang Pharmaceutical and Medical through the establishment method

100,000,00

Pharmaceutical Technology Co., Ltd. Jinan City Jinan City Equipment, health 51.00%

0.00

Company Nutritious Products Sales Company Shanghai Baiyanghui Medical Devices Company Passed the Establishment Party

10,000,000

Intelligent Medical Department Shanghai Municipal Government, Food Business 51.00%

.00

Technology Co., Ltd. Qingdao Baiyangxi Co., Ltd. was established through

20,000,000 Pharmaceuticals, medical

Shore Medical Technology Qingdao City Qingdao City 51.00%

.00 Device Sales

Co., Ltd. Company Beijing Baiyangzhi

Through the establishment of Fanghe Medical Achievements 50,000,000

Beijing City Beijing City Brand Service 100.00% The sub-conversion services obtained by formula are .00

Ltd.

Beijing Baiyangcheng passed the establishment party

100,000,00

Da Pharmaceutical Technology Beijing Beijing Pharmaceutical Sales 100.00%

0.00

Co., Ltd. Company Beijing Baiyangguo 10,000,000 Medical device business passed the establishment method

Beijing City Beijing City 90.00%

Victory Medical Devices .00 Camp Type Obtained Sub

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd.'s 2025 semi-annual report

Co., Ltd. The company Qingdao Baiyangguo was established through

10,000,000 Medical device production

Scientific and medical equipment Qingdao City Qingdao City 100.00% obtained by formula

.00 Production and operation

Co., Ltd. The company Hebei Baiyangguo was established through

100,000,00 Equipment sales

Sheng Medical Instruments Beijing City Beijing City 100.00% formula obtained

0.00 Sold

Co., Ltd. Hebei Baiyangcheng was established through

400,000,00 Equipment sales

Da Pharmaceutical Co., Ltd. Langfang City Langfang City 100.00%

0.00 Sold

Company Company Shanghai Baiyang Manufacturing Co., Ltd.

114,025,80 Pharmaceutical production and pharmaceutical production under the same control Shanghai Municipality Shanghai Municipality 18.22% 41.98%

0.00 Sales Business Combination Company

Shanghai Baiyang System

Pharmaceutical Technology Co., Ltd.

company

105,050,00 Pharmaceutical production and under the same control (former name: Shanghai City Shanghai City 100.00%

0.00 Sales Business Merger Shanghai Huanghai Manufacturing

Pharmaceuticals Limited Liability

company)

Anhui Zhihetang

8,265,120. Bozhou, Anhui Province Bozhou, Anhui Province Pharmaceutical production and Pharmaceutical Co., Ltd. under common control 100.00%

00 City City Sales Business Merger Department

Shanghai Baiyang now

4,500,000. Pharmaceutical production and next-generation traditional Chinese medicine technology under common control Shanghai City Shanghai City 100.00%

00 Sales Corporate Mergers Ltd.

Qingdao Baiyang Manufacturing 98,304,300 Pharmaceutical production and under common control

Qingdao City Qingdao City 93.33%

Pharmaceutical Co., Ltd. .00 Sales Business Merger Qingdao Baiyang Investment

500,000,00 Group Co., Ltd. under common control Qingdao City Qingdao City Investment business 100.00%

0.00 Business Combination Company

Beijing Baiyangda

66,000,000 Chengdu Pharmaceutical Technology under common control Beijing City Beijing City Investment business 92.87%

.00 BUSINESS COMBINED LIMITED.

Beijing Baiyangkang

50,000,000 He Technology Co., Ltd. under common control Beijing Beijing Investment business 40.00% 60.00%

.00 Business Combination Company

Qingdao Baiyangyong

10,000,000 Jian Investment and Development under common control Qingdao City Qingdao City Investment business 100.00%

.00 BUSINESS COMBINED LIMITED.

Qingdao Baiyangji

10,000,000 Ya Pharmaceutical Investment under common control Qingdao City Qingdao City Investment business 83.20%

.00 BUSINESS COMBINED LIMITED.

Qingdao Bodhi Wing

Ze Investment Management 1,000,000. Under common control

Qingdao City Qingdao City Investment Business 100.00%

Center (Limited 00 Business Incorporation Partnership)

Tianjin Huitai Enterprise

business management partnership under common control

500,000.00 Tianjin City Tianjin City Investment Business 100.00%

Business (Limited Business Incorporation Partnership)

Tianjin Juntech

Technology Development Partnership Under common control

500,000.00 Tianjin City Tianjin City Investment Business 100.00%

Business (Limited Business Incorporation Partnership)

Qingdao Baiyangyi 12,000,000 Under the same control

Qingdao City Qingdao City Investment Business 100.00%

Ren Investment Management .00 Business Combination

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd.'s 2025 semi-annual report

Ltd.

Baheal Pharmaceutical passed the establishment

10,000,000 Changsha, Hunan Province Changsha, Hunan Province Sales of equipment

(Hunan) has 51.00% of the winning numbers

.00 city sale

Co., Ltd. Company Baiyang Pharmaceuticals

Through the establishment of Fangzhi Technology (Lake 2,000,000. Changsha, Hunan Province Changsha, Hunan Province Equipment Sales

51.00% obtained by Zinan) Co., Ltd. 00 City Commercially available

Corporate Division

Baiyang medical student

Through the establishment of Fangwu Technology (Hu 5,000,000. Changsha, Hunan Province Changsha, Hunan Province Equipment Sales

51.00% obtained by Zinan) Co., Ltd. 00 City Commercially available

Corporate Division

Anhui Zhekang Medical

10,204,100 Hefei, Anhui Province Hefei, Anhui Province Sales of equipment and equipment Non-identical Control Therapy Technology Co., Ltd. 51.00%

.00 City Market Sold Under Business Merger Company

Beijing Baixinkang passed the establishment

2,000,000. Equipment sales

Da Medical Devices Beijing City Beijing City 51.00%

00 sale

Ltd. Company Note: 1 Hong Kong Dollar

2 Hong Kong dollars

3 Hong Kong dollars

4 Hong Kong dollars

5 Hong Kong dollars

7 Hong Kong dollars

8 Hong Kong dollars

Explanation on the difference between the proportion of shareholding in subsidiaries and the proportion of voting rights:

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:

For important structured entities included in the scope of consolidation, the basis for control is:

Basis for determining whether a company is agent or principal:

Other notes:

(2) Important non-wholly owned subsidiaries

Unit: Yuan Attributable to minority shareholders in this period Announcement to minority shareholders in this period Name of the company remaining in minority shareholders’ equity at the end of the period Shareholding ratio of minority shareholders

Profit and loss Amount of dividends distributed

Qingdao Dongyuan Biotechnology Co., Ltd.

20.00% 4,489,604.30 6,400,000.00 40,740,688.10 Co., Ltd.

Shanghai Baiyang Pharmaceutical Co., Ltd.

39.80% 44,444,425.86 298,989,721.85 Co., Ltd.

Explanation on the difference between the shareholding ratio of minority shareholders of subsidiaries and the voting rights ratio:

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd.'s 2025 semi-annual report

Other notes:

(3) Main financial information of important non-wholly owned subsidiaries

Unit: Yuan

Ending balance Beginning balance

Zigong

non-flow non-flow non-flow non-flow

Company name Current assets Current liabilities Current assets Current liabilities

dynamic capital dynamic negative dynamic capital dynamic negative

Said Assets Total Liabilities Total Assets Total Liabilities Total

property debt property debt

Qingdao

dongyuan

265,2 15,12 280,3 100,2 1,923 102,2 299,6 17,01 316,6 110,7 2,583 113,2Biology

11,23 3,834 35,07 80,59 ,334. 03,93 06,18 3,214 19,39 12,23 ,977. 96,20Technology

6.59 .30 0.89 5.99 24 0.23 1.33 .87 6.20 2.08 44 9.52Limited

company

Shanghai

Baiyang 1,205 1,063

736,7 468,9 405,5 72,38 477,9 589,3 474,5 356,7 86,10 442,8Pharmaceutical ,669, ,904,

25,15 44,63 89,70 7,123 76,82 94,44 10,12 56,09 0,429 56,51 shares 790.9 573.7

3.84 7.14 4.20 .07 7.27 7.37 6.36 0.00 .81 9.81Limited 8 3

company

Unit: Yuan

Amount for the current period Amount for the previous period

Subsidiary name

Comprehensive Income Operating Activities Comprehensive Income Operating Activities Operating Income Net Profit Operating Income Net Profit

Total Cash Flow Total Cash Flow Qingdao Dongyuan

138,623,9 6,807,953 6,807,953 35,374,82 156,281,6 17,702,68 17,702,68 8,126,103Biotechnology

17.34 .98 .98 7.11 65.31 2.69 2.69 .76 Co., Ltd.

Shanghai Baiyang

538,219,7 106,644,9 106,644,9 161,882,8 431,619,7 80,225,80 80,225,80 123,737,2 Pharmaceutical shares

19.67 09.79 09.79 53.48 23.98 9.15 9.15 74.28 Co., Ltd.

Other notes:

(4) Significant restrictions on the use of enterprise group assets and settlement of enterprise group debts

(5) Financial support or other support provided to structured entities included in the scope of consolidated financial statements

Other notes:

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd.'s 2025 semi-annual report

Transactions in which the ownership share of the subsidiary changes and the subsidiary is still controlled

(1) Description of changes in owner’s equity shares of subsidiaries

(2) The impact of the transaction on minority shareholders’ equity and owner’s equity attributable to the parent company

Unit: Yuan

Purchase cost/disposal consideration

--cash

--Fair value of non-cash assets

Total purchase cost/disposal consideration

Less: Share of net assets of subsidiaries calculated based on the proportion of equity acquired/disposed of

difference

Including: Adjustment of capital reserve

Adjust the surplus reserve

Adjust undistributed profits

Other instructions

Interests in joint ventures or associated enterprises

(1) Important joint ventures or associates

Shareholding ratio Investment in joint ventures or joint ventures or associates

Main place of business Registration place Nature of business

Name of operating enterprise Direct indirect accounting treatment method

Fashi Pharmaceuticals (Chinese pharmaceutical production and sales

Zhongshan City Zhongshan City 4.74% 28.38% Equity Law Shan) Co., Ltd. Sale

Japanese beauty and health drugs

(China) Co., Ltd. Huizhou City Huizhou City Pharmaceutical Sales 10.04% Equity method company

Beijing Wuwei Kangke

Beijing Beijing Equipment Sales 40.05% Equity Legal Technology Co., Ltd.

ZAP MEDICAL Equipment production and sales in California, USA

Cayman 17.69% Equity method SYSTEM, LTD Asia for sale

Explanation on the difference between the proportion of shareholdings in joint ventures or associates and the proportion of voting rights:

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:

The company has sent one director to Japan Meijiang Pharmaceutical (China) Co., Ltd. and ZAP MEDICAL SYSTEM, LTD, which can have a significant impact.

(2) Main financial information of important joint ventures

Unit: Yuan

Ending balance/amount of the current period Beginning balance/amount of the previous period

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd.'s 2025 semi-annual report

current assets

Of which: cash and cash equivalents

non-current assets

Total assets

current liabilities

non-current liabilities

Total liabilities

minority interests

Equity attributable to shareholders of the parent company

Share of net assets calculated based on shareholding ratio

Adjustments

--Goodwill

--Unrealized profits from internal transactions

--Others

Book value of equity investments in joint ventures

There are publicly quoted equity investments in joint ventures

fair value

operating income

financial charges

income tax expense

net profit

Net profit from discontinued operations

other comprehensive income

Total comprehensive income

Dividends received from joint ventures during the year

Other instructions

(3) Main financial information of important associates

Unit: Yuan Closing balance/amount of the current period Opening balance/amount of the previous period

ZAP Japanese health medicine ZAP Anshi Pharmaceutical Beijing Wuwei Anshi Pharmaceutical Beijing Wuwei

Products (中 MEDICAL Products (中 MEDICAL (Zhongshan) Kang Technology has (Zhongshan) Kang Technology has

国) Co., Ltd. SYSTEM, 国) Co., Ltd. SYSTEM, Co., Ltd. Co., Ltd.

Company LTD Company LTD

732,322,0 83,041,76 15,716,62 488,035,0 756,238,1 104,142,2 12,547,37 411,895,9 Current assets

44.55 7.10 2.12 69.00 62.09 32.35 2.13 38.20 Non-current capital 225,334,7 900,468.6 1,208,057 37,505,84 181,354,2 951,171.4 1,284,336 34,497,96 production 54.10 2 .49 3.78 45.87 5 .10 3.44

957,656,7 83,942,23 16,924,67 525,540,9 937,592,4 105,093,4 13,831,70 446,393,9Total assets

98.65 5.72 9.61 12.78 07.96 03.80 8.23 01.64

169,187,3 24,343,78 11,079,76 165,204,1 165,129,5 44,109,32 4,096,707 195,575,1 Current liabilities

19.31 3.55 6.85 17.32 28.88 8.94 .79 58.80Non-current liabilities 3,907,370 804,486.7 81,347,24 4,343,160 804,486.7 33,927,78Debt .00 6 2.97 .00 6 1.99

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd.'s 2025 semi-annual report

173,094,6 25,148,27 11,079,76 246,551,3 169,472,6 44,913,81 4,096,707 229,502,9 Total liabilities

89.31 0.31 6.85 60.29 88.88 5.70 .79 40.79Minority shareholders 6,792,666 7,972,881

Equity .52 .99

belong to mother

777,769,4 58,793,96 5,844,912 278,989,5 760,146,8 60,179,58 9,735,000 216,890,9 Company shareholders

42.82 5.41 .76 52.49 37.09 8.10 .44 60.85 Equity

According to shareholding ratio

Calculated by example 257,590,2 5,902,914 2,340,683 49,345,99 251,753,7 6,042,030 3,898,526 41,512,92 Net assets 39.54 .14 .00 8.12 91.12 .65 .95 9.91 amount

3,369,280 3,333,080 42,554,83 320,999,4 3,369,280 3,332,184 42,554,83 320,999,4 Adjustments

.33 .41 3.05 95.61 .33 .59 3.05 95.61

4,180,366 3,330,264 50,863,02 320,999,4 4,180,366 3,330,264 50,863,02 320,999,4 --Goodwill

.23 .92 3.49 95.61 .23 .92 3.49 95.61 --Internal communication -

872,561.1

Yi Wei realized 9,831.95 9,611,599 -7,912.28

Profit .49

8,800,513

--Others 1,683,647 -7,016.46 8,308,190 9,831.95 8,308,190

.59

.04 .44 .44

to joint ventures

Owner's equity investment 260,959,5 9,235,994 44,895,51 370,345,4 255,123,0 9,374,215 46,453,36 362,512,4 equity investment book 19.87 .55 6.05 93.73 71.45 .24 0.00 25.52 value

existence public

quotation link

business rights

beneficial investment

fair value

342,293,4 30,979,07 1,825,004 80,374,81 497,963,4 35,800,76 1,674,620 59,749,80Operating income

48.75 1.38 .30 0.81 30.38 0.14 .78 7.45 - - - -

31,442,39 853,937.3 73,798,19 1,709,185

Net profit 3,794,971 134,324,4 3,760,662 93,505,52 0.26 1 8.04 .30

.55 65.47 .11 0.35 Termination of operation

net profit

Other comprehensive 1,779,419 424,282.0Income .44 6

- 73,798,19 1,709,185 - - -Comprehensive income 31,442,39 853,937.3

3,794,971 132,545,0 8.04 .30 3,760,662 93,081,23Total 0.26 1

.55 46.03 .11 8.29 Revenue this year

Arrivals from 4,967,865 4,967,865

Associates .00 .00

of dividends

Other instructions

(4) Summary financial information of unimportant joint ventures and associates

Unit: Yuan

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd.'s 2025 semi-annual report

Closing balance/Amount incurred in the current period Opening balance/Amount incurred in the previous period Joint ventures:

The total of the following items calculated based on shareholding ratio

Associates:

Total investment book value 149,102,237.84 54,161,344.83 Total of the following items calculated based on shareholding ratio

--Net profit -1,059,046.98 -95,715.23Other instructions

(5) 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

Unit: Yuan

Unrecognized losses in the current period (or

Name of joint venture or associated enterprise Accumulated unrecognized losses in previous periods Accumulated unrecognized losses at the end of the period

shared net profit)

Other instructions

(7) Unconfirmed commitments related to investment in joint ventures

(8) Contingent liabilities related to investments in joint ventures or associates

Important joint operations

Shareholding ratio/share joint business name Main place of business Registration place Nature of business

Explanation on whether the proportion of direct or indirect shareholdings or shares enjoyed in a joint operation is different from the proportion of voting rights:

If the joint operation is a separate entity, the basis for classifying it as a joint operation is:

Other instructions

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd.'s 2025 semi-annual report

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:

Others

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 Included in the current period

New additions in the current period are transferred to other changes and assets/receipts in the current period. Opening balance. Non-professional income. Ending balance.

Amount of subsidy Amount of other income Motivation Amount of beneficiary

11,275,901 10,550,226

Deferred income 725,675.38 related to assets

.59 .21

Deferred income 159,034.77 140,000.00 273,646.17 25,388.60 Related to income

11,434,936 10,575,614

Total 140,000.00 999,321.55

.36 .81

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

Modern Compound Traditional Chinese Medicine Quality Control Standards for the International Market

346,745.96 390,646.19 Quasi research and development and process improvement (special project)

Fuzheng Huayu Capsule National High-tech Industrialization Demonstration

150,000.00 150,000.00 Engineering Project

13th Five-Year Plan: International Common Research Supplement on Sustained and Controlled Release of Solids

121,500.00 121,500.00 sticker

Eomeprazole magnesium enteric-coated pellet capsule technology

61,886.34 84,327.76 Application research and development

Technical transformation project for advanced treatment of wastewater from traditional Chinese medicine extraction 32,000.00 32,000.00 Technical transformation subsidy 13,543.08 12,616.94 Special economic development funds 14,315,000.00 770,000.00 Industrial support funds 3,746,380.03 2,730,300.00 Job stabilization/job expansion/employment subsidy 273,697.40 193,599.71Others 273,646.17 440,129.29Total 19,334,398.98 4,925,119.89Other instructions

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd.'s 2025 semi-annual report

12. Risks related to financial instruments

Various risks arising from financial instruments

The company faces various financial risks in the course of its operations: credit risk, liquidity risk and market risk (including exchange rate risk, interest rate risk and other price risks). The above financial risks and the risk management policies adopted by the Company to reduce these risks are as follows:

The board of directors is responsible for planning and establishing the company's risk management structure, formulating the company's risk management policies and relevant guidelines, and supervising the implementation of risk management measures. The Company has formulated risk management policies to identify and analyze the risks faced by the Company. These risk management policies clearly define specific risks and cover many aspects such as market risk, credit risk and liquidity risk management. The Company regularly evaluates changes in the market environment and the Company's operating activities to determine whether to update risk management policies and systems. The Company's risk management is carried out by the Risk Management Committee in accordance with policies approved by the Board of Directors. The Risk Management Committee identifies, evaluates and avoids relevant risks through close cooperation with other business departments of the Company. The Company's internal audit department conducts regular audits on risk management controls and procedures and reports the audit results to the Company's Audit Committee.

The Company diversifies financial instrument risks through appropriate diversification of investments and business portfolios, and reduces risks concentrated in a single industry, specific region or specific counterparty by formulating corresponding risk management policies.

Credit risk

Credit risk refers to the risk that the counterparty fails to perform its contractual obligations, causing the company to suffer financial losses.

The Company mainly faces customer credit risks caused by credit sales. Before entering into new contracts, the Company conducts an assessment of the credit risk of new customers, including external credit ratings and, in some cases, bank references when this information is available. The company sets a credit sales limit for each customer, which is the maximum amount that does not require additional approval.

The company ensures that the company's overall credit risk is within a controllable range through quarterly monitoring of existing customer credit ratings and monthly review of aging analysis of accounts receivable. When monitoring customer credit risk, group customers according to their credit characteristics. Customers rated as "high risk" will be placed on the restricted customer list, and only with additional approval, the company can sell to them on credit in the future period, otherwise they must be required to pay the corresponding amount in advance.

Liquidity risk

Liquidity risk refers to the risk of a shortage of funds when an enterprise fulfills its obligations settled by delivering cash or other financial assets.

The Company's policy is to ensure that sufficient cash is available to meet its debt obligations as they fall due. Liquidity risk is centrally controlled by the Company's financial department. The Finance Department ensures that the company has sufficient funds to repay its debt under all reasonable forecasts by monitoring cash balances, marketable securities that are readily liquidable, and rolling forecasts of cash flows over the next 12 months. At the same time, we continue to monitor whether the company complies with the provisions of the borrowing agreement and obtain commitments from major financial institutions to provide sufficient standby funds to meet short-term and long-term funding needs.

The Company's various financial liabilities are listed as follows based on undiscounted contractual cash flows by maturity date:

Ending balance (yuan)

That is

Total undiscounted contract amount for project

Within 1 year 1-2 years 2-5 years More than 5 years Book value compensation

Also

Short-term 1,796,581,678.79 1,796,581,678.79 1,796,581,678.79 Loans

Notes payable 95,719,281.35 95,719,281.35 95,719,281.35

Accounts payable 784,959,197.29 784,959,197.29 784,959,197.29

Others 294,337,980.37 294,337,980.37 294,337,980.37 Payable

money

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd.'s 2025 semi-annual report

Others 9,916,733.49 9,916,733.49 9,916,733.49 Current

Liabilities

Payable 8,460,398.80 12,690,598.47 884,111,695.48 905,262,692.75 770,111,269.11 Bonds

(Including

one year

Inside

period

department

points)

Lease 28,462,730.74 25,993,351.17 48,862,821.55 30,340,323.36 133,659,226.82 133,659,226.82Liabilities

(Including

one year

Inside

period

department

points)

Long-term 41,137,761.60 42,678,391.00 206,504,457.84 246,240,000.00 536,560,610.44 536,560,610.44 Loans

(Including

one year

Inside

period

department

points)

Total 3,059,575,762.43 81,362,340.64 1,139,478,974.87 276,580,323.36 4,556,997,401.30 4,421,845,977.66

Item Ending balance of the previous year (yuan)

That is, within 1 year, 1-2 years, 2-5 years, and more than 5 years, the undiscounted contract amount is calculated as the total book value.

compensate

Also

Short-term borrowings 1,098,574,415.39 1,098,574,415.39 1,098,574,415.39

Notes payable 397,938,509.16 397,938,509.16 397,938,509.16

Accounts payable 764,569,585.29 764,569,585.29 764,569,585.29

Other payables 560,404,147.45 560,404,147.45 560,404,147.45

Other current negative 15,532,928.08 15,532,928.08 15,532,928.08

debt

Bonds payable 3,036,487.64 7,266,708.39 899,194,319.21 909,497,515.24 757,827,374.42 (including within one year

Expired department

points)

Lease liabilities 27,866,059.48 22,596,886.72 47,985,308.77 31,980,661.10 130,428,916.07 130,428,916.07 (including within one year

Expired department

points)

Long-term borrowings 40,377,300.44 34,141,391.00 165,031,491.84 158,600,000.00 398,150,183.28 398,150,183.28 (including within one year

Expired department

points)

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd.'s 2025 semi-annual report

Total 2,908,299,432.93 64,004,986.11 1,112,211,119.82 190,580,661.10 4,275,096,199.96 4,123,426,059.14

Market risk

Market risk of financial instruments refers to the risk that the fair value or future cash flows of financial instruments fluctuate due to market price changes, including exchange rate risk, interest rate risk and other price risks.

(1) 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.

Interest-bearing financial instruments with fixed interest rates and floating interest rates expose the Company to fair value interest rate risk and cash flow interest rate risk respectively. The Company determines the ratio of fixed-rate and floating-rate instruments based on market conditions, and maintains an appropriate mix of fixed-rate and floating-rate instruments through regular review and monitoring. When necessary, the Company will use interest rate swap instruments to hedge interest rate risks.

On June 30, 2025, with other variables held constant, if the borrowing rate calculated at floating interest rates increases or decreases by 100 basis points, the company's net profit will decrease or increase by RMB 6,643,242.32 (June 30, 2024: RMB 2,954,182.86). Management believes that 100 basis points reasonably reflects the reasonable range of possible changes in interest rates over the next year.

(2) Exchange rate risk

Exchange rate 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 continuously monitors the scale of foreign currency transactions and foreign currency assets and liabilities to minimize the foreign exchange risks it faces. In addition, the company may also sign forward foreign exchange contracts or currency swap contracts to avoid exchange rate risks. During this period and the previous period, the Company did not sign any forward foreign exchange contract or currency swap contract. The exchange rate risk faced by the Company mainly comes from financial assets and financial liabilities denominated in US dollars. The amounts of foreign currency financial assets and foreign currency financial liabilities converted into RMB are listed as follows:

Ending balance Last year's end balance

Project

U.S. dollar Other foreign currencies Total U.S. dollars Other foreign currencies Total monetary assets 294,583,970.67 5,054,238.76 299,638,209.43 175,464,124.43 3,163,856.27 178,627,980.70

gold

Accounts receivable 17,991,757.14 17,991,757.14 24,349,176.10 24,349,176.10

money

Others 1,267,897.73 254,544.86 1,522,442.59 1,056,649.95 30,946.40 1,087,596.35

Collection

Total assets 313,843,625.54 5,308,783.62 319,152,409.16 200,869,950.48 3,194,802.67 204,064,753.15

plan

Accounts payable 13,970,517.62 47,810.71 14,018,328.33 20,802,124.89 44,454.41 20,846,579.30

money

Others 169,754.56 169,754.56 114,977.13 114,977.13

payment

Tax payable 9,172.24 9,172.24 29,632.31 29,632.31

fee

Payable to employees 287,722.94 287,722.94 5,556.24 5,556.24 Workers’ compensation

Total liabilities 13,979,689.86 505,288.21 14,484,978.07 20,831,757.20 164,987.78 20,996,744.98

Net amount 299,863,935.68 4,803,495.41 304,667,431.09 180,038,193.28 3,029,814.89 183,068,008.17 On June 30, 2025, with all other variables held constant, if the RMB appreciates or depreciates by 5% against the US dollar, the company will increase or decrease its net profit by RMB 15,233,371.55 (December 31, 2024: RMB 9,001,909.66). Management believes that 5% reasonably reflects the reasonable range of possible changes in the RMB against the US dollar in the next year.

Hedging

(1) The company carries out hedging business for risk management

□Applicable Not applicable

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd.'s 2025 semi-annual report

(2) The company carries out qualified hedging business and applies hedging accounting

Unit: Yuan Confirmed hedged items

The effectiveness of the hedge and the absence of a hedge are included in the hedged item and the carrying value of the hedge. Hedge accounting has a negative impact on the company's financial items.

Related book value of period instruments Partial source of cumulative fair effect of hedged items Hedging adjustment related to impact on financial statements

Hedging risk type

Hedging category

Other instructions

(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

Unit: Yuan Determining transfer method of derecognition. Nature of financial assets transferred. Amount of financial assets transferred. Derecognition status.

Basis

The financial assets have been transferred, and the financial asset ownership notes have not been endorsed or discounted in the financing of receivables. 328,460,503.37 Termination of recognition

Almost all the risks and rewards on the mature bank acceptance bill are transferred to the transferee. The financial assets have been transferred, but the notes receivable have not yet matured.

Bank acceptance bills and commercial bills that do not endorse or discount financial asset ownership bills 40,687,319.05 Not derecognized

on nearly all risks and industry acceptance bills

The total amount of remuneration transferred to the transferee is 369,147,822.42

(2) Financial assets derecognized due to transfer

Applicable □Not applicable

Unit: yuan Gain or loss items related to derecognition Method of transferring financial assets Amount of financial assets derecognized

lose

Accounts receivable financing Bill endorsement and discount 328,460,503.37 -1,301,761.41 Total 328,460,503.37 -1,301,761.41

(3) Asset transfer financial assets that continue to be involved

□Applicable Not applicable

Other instructions

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd.'s 2025 semi-annual report

13. Disclosure of fair value

Closing fair value of assets and liabilities measured at fair value

Unit: Yuan Ending Fair Value

Item Level 1 fair value measurement Second level fair value measurement Third level fair value measurement

total

quantity quantity quantity

1. Sustained fair value

Measurement

(1) Trading finance

19,388,157.31 100,000,000.00 119,388,157.31 production

Measured at fair value and

The changes are included in the current profit and loss 19,388,157.31 100,000,000.00 119,388,157.31 financial assets

(2) Investment in equity instruments 19,388,157.31 19,388,157.31 (4) Structured deposits 100,000,000.00 100,000,000.00 Accounts receivable financing 119,480,805.05 119,480,805.05 Other non-current financial assets 14,854,529.53 14,854,529.53 Continuously measured at fair value

Total assets of 19,388,157.31 219,480,805.05 14,854,529.53 253,723,491.89

2. Non-sustainable fair price

value measurement

Basis for determining the market price of continuous and non-continuous first-level fair value measurement items

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.

Continuous and non-continuous second-level fair value measurement items, valuation techniques used and qualitative and quantitative information on important parameters

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.

Continuous and non-continuous third-level fair value measurement projects, valuation techniques used and qualitative and quantitative information on important parameters

The third level input value is the unobservable input value of the relevant asset or liability.

The level to which the fair value measurement result belongs is determined by the lowest level to which the input value that is significant to the overall fair value measurement belongs.

Continuous third-level fair value measurement items, reconciliation information between the opening and closing book values and sensitivity analysis of unobservable parameters

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd.'s 2025 semi-annual report

For ongoing fair value measurement items, if there is a conversion between various levels during the current period, the reasons for the conversion and the policy for determining the time of conversion
Valuation technology changes that occurred during the current period and reasons for the changes
Fair value of financial assets and financial liabilities not measured at fair value
Others

14. Related parties and related transactions

Information about the parent company of this enterprise

Parent company to this enterprise Parent company to this enterprise Parent company name Place of registration Nature of business Registered capital

The proportion of shareholding and the proportion of voting rights of Baheal Pharmaceutical Group

Qingdao City External Investment 100 million yuan 70.22% 70.22% Co., Ltd.

Description of the parent company of this enterprise

The parent company and controlling shareholder of the company is Baheal Pharmaceutical Group Co., Ltd.. During the reporting period, the registered capital of Baheal Pharmaceutical Group Co., Ltd. was 100 million yuan. The shareholders of Baheal Pharmaceutical Group are Mr. Fu Gang, Ms. Song Qing, Mr. Chen Haishen and Mr. Zhu Xiaowei, with shareholding ratios of 52%, 16%, 16% and 16% respectively.

The ultimate controller of this enterprise is Mr. Fu Gang.

Other notes:

Information about the company’s subsidiaries

For details of the company's subsidiaries, please refer to Note "10. Equity in Other Entities".

Information on joint ventures and associated enterprises of the enterprise

For details of the company's important joint ventures or associates, please refer to Note "10. Interests in Other Entities".

The situation of other joint ventures or associates that have related party transactions with the company in the current period, or related party transactions with the company in previous periods that resulted in balances is as follows:

Name of the joint venture or associated enterprise Other description of the relationship with the enterprise

Other related parties

Names of other related parties Relationship between other related parties and the company Qingdao Bodhi Medical Hospital Management Group Co., Ltd. Other companies controlled by the controlling shareholder

Qingdao Baiyang Huibao Commercial Services Co., Ltd. Other companies controlled by the controlling shareholder

Qingdao Baiyang Oasis Home Hotel Co., Ltd. Other companies controlled by the controlling shareholder

Qingdao Chengtian Shangshi Catering Management Co., Ltd. Other companies controlled by the controlling shareholder

Qingdao Baiyang Zhuozheng Smart Health Industry Management Co., Ltd. Other companies controlled by the controlling shareholder

Tongxin Biotechnology (Beijing) Co., Ltd. Other companies controlled by controlling shareholders

Qingdao Zhikang Hotel Management Co., Ltd. Other companies controlled by the controlling shareholder

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd.'s 2025 semi-annual report

Beijing Baiyang Oasis Home Hotel Management Co., Ltd. Other enterprises controlled by the controlling shareholder Qingdao Haihui Property Management Co., Ltd. Other enterprises controlled by the controlling shareholder Qingdao Haihui Property Management Co., Ltd. Shibei District Jingsuzhai Restaurant Other enterprises controlled by the controlling shareholder Qingdao Putike Biomedical Technology Co., Ltd. Other enterprises controlled by the controlling shareholder Qingdao Bodhihuisheng Medical Testing Co., Ltd. Other enterprises controlled by the controlling shareholder Beijing Baiyang Chengchuang Pharmaceutical R&D Co., Ltd. Other enterprises controlled by the controlling shareholder Beijing Baiyang Guoxin Medical Technology Co., Ltd. Other companies controlled by the controlling shareholder Beijing Baiyang Zhongxin Health Investment Management Co., Ltd. Other companies controlled by the controlling shareholder Beijing Zhongxin Chenghai Health Industry Management Development Co., Ltd. Other companies controlled by the controlling shareholder Beijing Baiyangjia Health Management Co., Ltd. Other companies controlled by the controlling shareholder Beijing Baiyang Medical Equipment Manufacturing Co., Ltd. Other companies controlled by the controlling shareholder Hebei Baiyang Chengchuang Pharmaceutical Development Co., Ltd. Other companies controlled by the controlling shareholder Qingdao Baiyang Health Industrial Park Co., Ltd. Other companies controlled by the controlling shareholder Suzhou Tongxin Medical Technology Co., Ltd. Other companies in which the controlling shareholder has a stake include Beijing Maidi Zhongkang Technology Co., Ltd. An company in which the controlling shareholder has a significant influence Anshi Pharmaceutical (Zhongshan) Co., Ltd. An enterprise in which the controlling shareholder has a significant influence Rimeijian Pharmaceuticals (China) Co., Ltd. An enterprise in which the company has a significant influence Qingdao Wuweikang Technology Co., Ltd. An enterprise in which the company has a significant influence Beijing Wuweikang Technology Co., Ltd. An enterprise in which the company has a significant influence Qingdao Palm Medical Information Technology Co., Ltd. Other enterprises controlled by the controlling shareholder Beijing Yigezaim Information Technology Co., Ltd. Other enterprises controlled by the controlling shareholder Beijing Yihuikang Intelligent Technology Co., Ltd. Other enterprises controlled by the controlling shareholder Baiyang Intelligent Technology Group Co., Ltd. Other enterprises controlled by the controlling shareholder Qingdao Baiyang Bodhi Biological Diagnostics Co., Ltd. Other enterprises controlled by the controlling shareholder Zap Medical System, Ltd. Enterprises with significant influence by the company Qingdao Baiyang Health Medical Technology Co., Ltd. Other enterprises controlled by the controlling shareholder Qingdao Baiyang Shenghui Medical Equipment Co., Ltd. Enterprises controlled by the company

Qingdao Baiyangjia Health Technology Co., Ltd. Shibei Hospital

Other enterprises controlled by the controlling shareholder (former name: Qingdao Shihuahui Hospital Co., Ltd. Shibei Shihuahui Hospital)

Qingdao Baiyang Yunjian Hotel Management Co., Ltd. Other enterprises controlled by the controlling shareholder Qingdao Huizhu Baiyang Health Industry Investment Fund (Limited Partnership) Enterprises with significant influence by the controlling shareholder Qingdao Bodhi Yonghe Investment Management Center (Limited Partnership) Other enterprises controlled by the controlling shareholder Qingdao Yifuxian Network Technology Co., Ltd. Other enterprises controlled by the controlling shareholder ZAP Surgical Systems, Inc. Enterprises with significant influence by the company

Other instructions

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 the transaction amount is exceeded Related party Content of related transactions Amount incurred in the current period Approved transaction limit Amount incurred in the previous period

Duozhi Pharmaceutical (Chinese)

Purchase of goods 133,287,865.82 508,000,000.00 No 238,020,626.15 Shan) Co., Ltd.

Japanese beauty and health drugs (Chinese

Purchase of goods 10,479,292.61 39,600,000.00 No 10,172,484.13 Guo) Co., Ltd.

Tongxin Biotechnology Controlled by controlling shareholders

(Beijing) Co., Ltd. Purchase of goods 32,283.20 Total goods purchased by the company No 23,860.18 The limit is

Qingdao Zhikang Hotel Management Purchase of goods 9,215.94 290,000.00 No 110,870.00

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd.'s 2025 semi-annual report

management co., ltd.

Suzhou Tongxin Medical Department

Purchase of goods 5,421,681.43 25,490,000.00 No 11,049,645.99 Technology Co., Ltd.

Qingdao Wuweikang Technology

Purchase of goods 67,964.66 13,060,000.00 No 854,282.34 Co., Ltd.

Beijing Maidi Zhongconke

Purchase goods 8,077,955.76 Technology Co., Ltd.

Qingdao mobile medical information

Receiving services 1,186,886.87 3,400,000.00 No 515,605.89 Information Technology Co., Ltd.

Beijing Baiyang Oasis Home

Park Hotel Management Co., Ltd. Receives services 2,337,512.07 No 1,925,322.00 Company

Qingdao Baiyang Oasis Home

Receive services 1,918,378.84 No

Park Hotel Co., Ltd. Controlled by the controlling shareholder

Qingdao Haihui Property Management Company accepts general labor service

Receive services 1,465,604.19 No

Management Co., Ltd. The limit is

Qingdao Haihui Property Management 22,030,000.00

Management Co., Ltd. Shibei receives services 110,671.00 No

District Pure Vegetarian Restaurant

Qingdao Chengtian Restaurant

Receive services 1,794,490.50 No

Beverage Management Co., Ltd.

Beijing Yige Zaimuxin

Receive services 160,377.36

Information Technology Co., Ltd.

Baheal Pharmaceutical Group has

Receive services 501,491.54

Ltd.

Baiyang Intelligent Technology Collection

Receive service 233,198.11 Tuan Co., Ltd.

Qingdao Bodhi Medical

Hospital Management Group Co., Ltd. receives services 3,098.00 company

Qingdao Baiyang Insurance Company

Industrial Services Co., Ltd. Receives services 28,609.14 companies

List of goods sold/services provided

Unit: Yuan

Related parties Contents of related transactions Amount incurred in the current period Amount incurred in the previous period Qingdao Bodhi Medical Hospital Management Group

Sales of goods 345,128.74 415,739.51 Co., Ltd.

Baiyang Pharmaceutical Group Co., Ltd. Sales of goods 600,040.43 1,878,500.64 Qingdao Baiyang Huibao Commercial Services Co., Ltd.

Sales of goods 912.39 499,627.12 Responsible company

Qingdao Baiyang Oasis Home Hotel Co., Ltd.

Sales of goods 60,898.96 company

Qingdao Chengtian Shangshi Catering Management Co., Ltd.

Sales of goods 4,297.00 company

Qingdao Baiyang Zhuozheng Smart Health Industry

Products for sale 477.88 Management Co., Ltd.

Tongxin Biotechnology (Beijing) Co., Ltd.

Sales of goods 23,318.15 13,983.04Company

Anshi Pharmaceutical (Zhongshan) Co., Ltd. provides services 78,603,840.85 87,199,779.97 Baheal Pharmaceutical Group Co., Ltd. provides services 468,774.67 Tongxin Biotechnology (Beijing) Co., Ltd.

Providing services 724,404.00 company

Nippon Pharmaceuticals (China) Co., Ltd.

Providing services 943,396.23 divisions

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd.'s 2025 semi-annual report

Qingdao Baiyang Bodhi Biodiagnostic Co., Ltd.

Services provided 10,713.59 Company

Description of related transactions for purchasing and selling goods, providing and receiving services

(2) Related entrusted management/contracting and entrusted management/outsourcing situation

The company's entrusted management/contracting status table:

Unit: Yuan

Trusteeship income/commitment Trustee/contractor confirmed in the current period Trustee/contractor Trustee/contracting capital Trusteeship/contracting start Trustee/contracting end

Package revenue pricing is based on managed revenue/contractor name party name product type start date end date

According to the income-related custody/contracting situation

The company’s entrusted management/outsourcing status table:

Unit: Yuan entrusting party/contracting, entrusted party/contracting, entrusting/contracting fund, entrusting/contracting start, entrusting/contracting end, custody fee/contracting, entrustment confirmed in this period

Party name Party name Product type Start date End date Fee pricing basis Management fee/outsourcing fee related management/outsourcing situation description

(3) Related leasing situation

As a lessor, our company:

Unit: Yuan

Name of the lessee Type of leased assets Lease income recognized in the current period Lease income recognized in the previous period Baheal Pharmaceutical Group Co., Ltd. Office building 650,291.33 4,497,643.93 Qingdao Putike Biomedical Technology Co., Ltd. Office building 101,274.36 101,274.36 Qingdao Bodhi Huisheng Medical Testing Co., Ltd. Office building 814,549.15

Beijing Baiyang Chengchuang Pharmaceutical R&D Co., Ltd. Office Building 817,122.32 684,107.18 Beijing Baiyang Guoxin Medical Technology Co., Ltd. Office Building 30,102.62

Beijing Baiyang Zhongxin Health Investment Management Co., Ltd. Office Building 74,434.39

Beijing Zhongxin Chenghai Health Industry Management Development Co., Ltd. Office Building 9,303.82

Beijing Yigezaim Information Technology Co., Ltd. Office Building 9,303.82

Beijing Yihuikang Intelligent Technology Co., Ltd. Office Building 9,303.82

Beijing Baiyang Oasis Home Hotel Management Co., Ltd. Office Building 10,397.47

Beijing Baiyangjia Health Management Co., Ltd. Office Building 9,303.82

Beijing Baiyang Medical Equipment Manufacturing Co., Ltd. Office building 12,588.65

Beijing Wuweikang Technology Co., Ltd. Office building 29,008.96 60,145.28 The company serves as the lessee:

Unit: Yuan Short-term simplified treatment not included in lease liabilities

Lease and low-value assets Measured variable lease Lease liabilities assumed Increased rent paid by the lessor of right-of-use assets Lease assets

Rental fee for property leasing Payment amount (if applicable Interest expense Property name Property type

Use (if applicable)

Posted in this issue Posted in the previous issue Posted in this issue Posted in the previous issue Posted in this issue Posted in the previous issue Posted in this issue Posted in the previous issue Posted in this issue Posted in the previous issue

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd.'s 2025 semi-annual report

Amount of students Amount of students Amount of students Amount of students Amount of students Amount of students Amount of students Amount of students Amount of students Bai Yang Doctor

11,888 Pharmaceutical Group 3,008, 547,39

Office building 0.00 0.00 0.00, 130.9 Co., Ltd. 103.00 1.51

Division

Hebei Bai

Yangchengchuang

1,481,

Medical development office building 0.00 0.00 0.00 0.00

302.61

exhibition limited

company

Qingdao Hundred

foreign health

Industrial Park 2,126,

Warehouse 0.00 0.00 0.00 0.00

District shares 604.15

limited company

Division

Description of related leasing situation

(4) Related guarantees

The company acts as a guarantor

Unit: Yuan

Whether the guarantee has been fulfilled by the guaranteed party, the guarantee amount, the guarantee starting date, the guarantee expiry date

Complete

The company as the guaranteed party

Unit: Yuan

Whether the guarantee has been fulfilled by the guarantor, the guarantee amount, the guarantee starting date, the guarantee expiry date

Bi Qingdao Baiyang Yunjian Hotel Management

750,681.92 January 19, 2023 January 17, 2026 Fuli Co., Ltd.

Qingdao Baiyang Yunjian Hotel Management

3,000,000.00 January 19, 2023 June 20, 2025 Shili Co., Ltd.

Qingdao Baiyang Yunjian Hotel Management

2,000,000.00 February 6, 2023 June 20, 2025 Shili Co., Ltd.

Qingdao Baiyang Yunjian Hotel Management

504,200.00 February 6, 2023 January 17, 2026 Fuli Co., Ltd.

Qingdao Baiyang Yunjian Hotel Management

1,000,000.00 March 1, 2023 December 20, 2025 Fuli Co., Ltd.

Qingdao Baiyang Yunjian Hotel Management

113,000.00 March 1, 2023 January 17, 2026 Fuli Co., Ltd.

Qingdao Baiyang Yunjian Hotel Management

3,000,000.00 April 14, 2023 December 20, 2025 Fuli Co., Ltd.

Qingdao Baiyang Yunjian Hotel Management

795,118.08 April 14, 2023 January 17, 2026 Fuli Co., Ltd.

Qingdao Baiyang Yunjian Hotel Management

7,000,000.00 June 2, 2023 May 29, 2030 Fuli Co., Ltd.

Qingdao Baiyang Yunjian Hotel Management

1,000,000.00 June 2, 2023 June 20, 2025 Shili Co., Ltd.

Qingdao Baiyang Yunjian Hotel Management

1,500,000.00 June 2, 2023 December 20, 2025 Fuli Co., Ltd.

Qingdao Baiyang Yunjian Hotel Management 1,500,000.00 June 2, 2023 June 20, 2026 No

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd.'s 2025 semi-annual report

management co., ltd.

Qingdao Baiyang Yunjian Hotel Management

2,000,000.00 June 2, 2023 December 20, 2026 Fuli Co., Ltd.

Qingdao Baiyang Yunjian Hotel Management

2,000,000.00 June 2, 2023 June 20, 2027 Fuli Co., Ltd.

Qingdao Baiyang Yunjian Hotel Management

2,500,000.00 June 2, 2023 December 20, 2027 Fuli Co., Ltd.

Qingdao Baiyang Yunjian Hotel Management

2,500,000.00 June 2, 2023 June 20, 2028 Fuli Co., Ltd.

Qingdao Baiyang Yunjian Hotel Management

3,000,000.00 June 2, 2023 December 20, 2028 Fuli Co., Ltd.

Qingdao Baiyang Yunjian Hotel Management

3,000,000.00 June 2, 2023 June 20, 2029 Fuli Co., Ltd.

Qingdao Baiyang Yunjian Hotel Management

7,000,000.00 June 2, 2023 December 20, 2029 Fuli Co., Ltd.

Pay Steel 100,000,000.00 March 29, 2024 March 29, 2025 Yes Pay Steel 88,800,000.00 August 5, 2024 August 1, 2034 No Pay Steel 3,000,000.00 August 5, 2024 March 20, 2025 Yes to pay steel 7,000,000.00 August 5, 2024 July 20, 2028 No to pay steel 3,000,000.00 August 5, 2024 March 20, 2029 No to pay steel 7,000,000.00 August 5, 2024 July 20, 2029 No steel to be paid 3,200,000.00 August 5, 2024 March 20, 2030 No steel to be paid 10,000,000.00 August 5, 2024 July 20, 2030 No steel to be paid 10,000,000.00 August 5, 2024 March 20, 2031 No payment of steel 16,400,000.00 August 5, 2024 July 20, 2031 No payment of steel 10,000,000.00 August 5, 2024 March 20, 2032 No steel payment 42,800,000.00 August 5, 2024 July 20, 2032 No steel payment 10,000,000.00 August 5, 2024 March 20, 2033 No steel payment 42,800,000.00 August 5, 2024 July 20, 2033 No steel to be paid 10,000,000.00 August 5, 2024 March 20, 2034 No steel to be paid 72,960,000.00 April 10, 2025 August 1, 2034 No steel to be paid 3,000,000.00 April 10, 2025 March 20, 2029 No payment of steel 7,000,000.00 April 10, 2025 July 20, 2029 No payment of steel 3,000,000.00 April 10, 2025 March 20, 2030 No steel payment 7,000,000.00 April 10, 2025 July 20, 2030 No steel payment 3,000,000.00 April 10, 2025 March 20, 2031 No steel payment 4,920,000.00 April 10, 2025 July 20, 2031 No steel to be paid 5,840,000.00 April 10, 2025 March 20, 2032 No steel to be paid 10,000,000.00 April 10, 2025 July 20, 2032 No steel to be paid 10,000,000.00 April 10, 2025 March 20, 2033 No payment of steel 21,680,000.00 April 10, 2025 July 20, 2033 No payment of steel 10,000,000.00 April 10, 2025 March 20, 2034 No

Description of related guarantees

The guarantor, Qingdao Baiyang Yunjian Hotel Management Co., Ltd., uses the property on floors 1-4 of No. 16 Huayang Road held by it as collateral.

(5) Fund lending from related parties

Unit: Yuan

Related parties Borrowing amount Start date Maturity date Description

dismantle

take out

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd.'s 2025 semi-annual report

(6) Asset transfer and debt restructuring of related parties

Unit: Yuan

Related parties Related party transaction content Amount incurred in the current period Amount incurred in the previous period

(7) Remuneration of key management personnel

Unit: Yuan

Item Amount for the current period Amount for the previous period

Remuneration of key management personnel 8,403,317.13 8,104,591.23

(8) Other related transactions

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

Tongxin Biotechnology

Accounts receivable (Beijing) Co., Ltd. 1,678,701.05 0.00 2,795,395.34 0.00

Japanese beauty and health drugs (Chinese

Accounts receivable 0.00 0.00 1,552,296.83 7,761.48 Guo) Co., Ltd.

Baheal Pharmaceutical Group has

Accounts receivable 109,038.91 0.00 223,424.00 0.00 Co., Ltd.

Qingdao Bodhi Medical

Accounts receivable Institute Management Group Co., Ltd. 112,115.63 0.00 128,046.48 0.00 Company

Qingdao Baiyang Insurance Company

Accounts Receivable Industrial Services LLC 268.00 0.00 0.00 0.00Company

Qingdao Baiyang Oasis Home

Accounts receivable 29,742.00 0.00 0.00 0.00Park Hotel Co., Ltd.

Beijing Maidi Zhongconke

Advance payment 0.00 868,050.00 0.00 Technology Co., Ltd.

Qingdao Wuweikang Technology

Prepayment 6,765,235.36 0.00 732,389.40 0.00 Co., Ltd.

Anshi Pharmaceutical (China

Prepayment 127,692.83 0.00 127,692.83 0.00 Shan) Co., Ltd.

Qingdao mobile medical information

Prepayment 89,535.00 0.00 47,135.00 0.00Xi Technology Co., Ltd.

Beijing Baiyang Oasis Home

Prepayment Park Hotel Management Co., Ltd. 26,500.00 0.00 41,800.00 0.00Company

Qingdao Centennial Health Medicine

Advance payment 1,700,000.00 0.00 0.00 0.00 Therapy Technology Co., Ltd.

ZAP Surgical

Prepayments 46,483,126.60 0.00 15,526,944.00 0.00 Systems, Inc.

Qingdao Baiyang Shenghui Medical Center

Other receivables 0.00 0.00 127,172,139.14 635,860.70

Medical Equipment Co., Ltd.

Other receivables Qingdao Bodhi Huisheng Medical 1,777,767.86 0.00 889,909.28 0.00

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd.'s 2025 semi-annual report

Scientific Inspection Co., Ltd.

Qingdao Haihui Property Management

Other receivables 85,950.00 0.00 368,580.00 333.15 Management Co., Ltd.

Beijing Baiyang Oasis Home

Other receivables Park Hotel Management Co., Ltd. 236,700.00 0.00 238,100.00 0.00Company

Qingdao Putike Biotechnology

Other receivables Pharmaceutical Technology Co., Ltd. 110,389.06 0.00 55,194.53 0.00

Qingdao Baiyangjia Health

Other receivables City of Science and Technology Co., Ltd. 30,755.66 0.00 30,755.66 0.00Beijing Hospital

Beijing Baiyang Family Health

Other receivables 0.00 0.00 8,377.74 0.00Management Co., Ltd.

Qingdao Baiyang Oasis Home

Other receivables 1,295.00 0.00 0.00 0.00 Park Hotel Co., Ltd.

Qingdao Centennial Health Medicine

Other receivables 15,000.00 0.00 0.00 0.00 Therapy Technology Co., Ltd.

Qingdao Haihui Property Management

Other receivables Shibei Management Co., Ltd. 10,930.00 0.00 0.00 0.00 District Jingsu Zhai Restaurant

Japanese beauty and health drugs (Chinese

Other receivables 223,956.00 0.00 0.00 0.00

country) Co., 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 Anshi Pharmaceutical (Zhongshan) Co., Ltd. 111,220,387.96 116,198,356.61

Nippon Pharmaceuticals (China) Co., Ltd.

Accounts payable 5,043,681.23 6,470,336.10 Division

Tongxin Biotechnology (Beijing) Co., Ltd.

Accounts payable 25,728.00 32,640.00Company

Qingdao Baiyang Huibao Commercial Services Co., Ltd.

Accounts payable 28,873.78 28,873.78 Responsible company

Qingdao Palm Medical Information Technology Co., Ltd.

Accounts payable 0.00 88,912.80Company

Qingdao Baiyang Shenghui Medical Equipment Co., Ltd.

Accounts payable 5,550,739.21 0.00 Company

Suzhou Tongxin Medical Technology Co., Ltd.

Accounts payable 819,240.00 0.00

company

Notes payable Anshi Pharmaceutical (Zhongshan) Co., Ltd. 332,028,968.64 301,778,968.64 Other payables Baiyang Pharmaceutical Group Co., Ltd. 124,412,372.89 321,065,204.66

Qingdao Huizhu Baiyang Health Industry Investment

Other payables 38,078,255.00 95,195,638.00 Fund (limited partnership)

Qingdao Bodhi Yonghe Investment Management Center

Other payables 4,936,329.00 12,340,822.00 (limited partnership)

Qingdao Baiyang Health Industrial Park Co., Ltd.

Other payables 1,451,014.50 5,830,526.61 Co., Ltd.

Qingdao Chengtian Shangshi Catering Management Co., Ltd.

Other payables 527,995.00 1,034,389.00 Company

Qingdao Baiyang Oasis Home Hotel Co., Ltd.

Other payables 139,585.69 245,790.36Company

Qingdao Palm Medical Information Technology Co., Ltd.

Other payables 100,000.00 78,042.00

company

Other payables Baiyang Intelligent Technology Group Co., Ltd. 0.00 62,897.00

Qingdao Baiyang Pharmaceutical Co., Ltd. 2025 Semi-annual Report Full Text Company

Other payables managed by Beijing Baiyang Oasis Home Hotel Management 25,629.00 157,410.96 Co., Ltd.

Other payables of Qingdao Yifuxian Network Technology Co., Ltd. 693.65 693.65

Division

Other payables Qingdao Haihui Property Management Co., Ltd. 56,350.98 0.00

Other payables of Hebei Baiyang Chengchuang Pharmaceutical Development Co., Ltd. 1,912,605.17 0.00 Company

Other payables of Beijing Baiyang Chengchuang Pharmaceutical Research and Development Co., Ltd. 51,300.33 0.00

company

Lease liabilities Baiyang Pharmaceutical Group Co., Ltd. 28,548,536.34 19,197,618.60 Lease liabilities due within one year Baiyang Pharmaceutical Group Co., Ltd. 11,099,545.67 6,190,741.43

Related party commitments
Others

15. Share-based payment

Overall situation of share-based payment

□Applicable Not applicable

Equity-settled share-based payment

□Applicable Not applicable

Share-based payment settled in cash

□Applicable Not applicable

Share-based payment expenses for this period

□Applicable Not applicable

Modification and termination of share-based payment
Others

16. Commitments and contingencies

Important commitments

Important commitments existing at the balance sheet date

Contingent matters

(1) Important contingencies existing on the balance sheet date

Full text of the 2025 semi-annual report of Qingdao Baiyang Pharmaceutical Co., Ltd. (2) The company has no important contingencies that need to be disclosed and should also explain them.

The company has no important contingencies that need to be disclosed.

Others

17. Events after the balance sheet date

Important non-adjustment matters

Unit: Yuan Items that have an impact on financial status and operating results. Contents. Reasons why the impact cannot be estimated. Number of effects.

Profit distribution
Sales return
Description of other post-balance sheet events

18. Other important matters

Correction of accounting errors in the previous period

(1) Retrospective restatement method

Unit: Yuan Contents of correction of accounting errors in the statements of each comparison period affected Processing procedures Name of the cumulative impact number item

(2) Prospective applicable law

Contents of correction of accounting errors Approval process Reasons for adopting prospective application

Debt restructuring
Asset replacement

(1) Non-monetary asset exchange

(2) Other asset swaps

Annuity plan
Termination of operations

Unit: Yuan

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd.'s 2025 semi-annual report

Items Attributable to Parent Revenue Expenses Total Profit Income Tax Expense Net Profit Termination of Owner

Other explanations of operating profit

Branch information

(1) Determination basis and accounting policies of reporting segments

The reportable segments are determined by business type, and are respectively the brand product sales and promotion business segment, which is responsible for the sales and brand operations of brand products such as Diqiao, Miite, Fuzheng Huayu, Nutsuma, Astellas, Keonis, Esnona, and Hailu; the pharmaceutical wholesale and distribution business segment is responsible for professional drug logistics and distribution, with Qingdao as the center radiating to secondary hospitals, community clinics and pharmacies in surrounding cities, wholesale and distribution of drugs, medical equipment, and consumables; the pharmaceutical and health product retail business segment, through offline self-operation DTP Pharmacy sells medicines and other health products directly to consumers through a combination of multiple online models. The reporting segments all implement the company's unified accounting policies.

(2) Financial information of reporting segments

Unit: Yuan Brand Product Sales Promotion Pharmaceutical Wholesale and Distribution Industry Pharmaceutical and Health Products

Item Inter-segment elimination Total General Business Segment Retail Business Segment

2,716,167,011.6 3,739,983,311.2 Main business income 833,214,699.26 190,601,600.28

6 0

1,430,310,844.7 2,378,310,337.4 Main business costs 765,904,970.27 182,094,522.47

0 4

(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.

(4) Other instructions

Other important transactions and matters that have an impact on investors’ decision-making
Others

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) 932,975,275.21 1,001,457,916.04 1 to 2 years 45,371,653.11 48,204,386.74 2 to 3 years 12,866,168.72 16,338,277.38 More than 3 years 12,429,916.22 7,640,784.85

3 to 4 years 4,905,100.94 1,152,702.98

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd.'s 2025 semi-annual report

4 to 5 years 5,531,905.63 4,903,291.90

More than 5 years 1,992,909.65 1,584,789.97 Total 1,003,643,013.26 1,073,641,365.01

(2) Classified disclosure according to bad debt accrual method

Unit: Yuan Ending balance Beginning balance

Book balance Provision for bad debts Book balance Provision for bad debts

Category Book price Book price provision ratio Provision ratio

Amount Ratio Amount Value Amount Ratio Amount Value Example

its

Medium:

by combination

Bad provision 1,003,6 1,073,6 1,048,2

27,057, 976,585 25,427,

Account provision 43,013. 100.00% 2.70% 41,365. 100.00% 2.37% 14,140.

749.82,263.44 224.63

Accounts receivable 26 01 38

its

Medium:

1,031,5 1,006,1

802,184 27,057, 775,126 25,427,

Portfolio A 79.93% 3.37% 55,837. 96.08% 2.46% 28,613. ,469.64 749.82 ,719.82 224.63

88 25

201,458 201,458 42,085, 42,085, Combination C 20.07% 3.92%

,543.62 ,543.62 527.13 527.13 1,003,6 1,073,6 1,048,2

27,057, 976,585 25,427,

Total 43,013. 100.00% 2.70% 41,365. 100.00% 2.37% 14,140. 749.82,263.44 224.63

26 01 38 Category name of bad debt provision based on combination: Aging combination

Unit: Yuan ending balance

Name

Book balance Bad debt provision Provision ratio

Portfolio A 802,184,469.64 27,057,749.82 3.37% Portfolio C 201,458,543.62

Total 1,003,643,013.26 27,057,749.82

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

(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

Portfolio A 25,427,224.6 13,483,440.3 11,852,915.2 27,057,749.8

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd.'s 2025 semi-annual report

3 9 0 2

25,427,224.6 13,483,440.3 11,852,915.2 27,057,749.8 Total

3 9 0 2 Among them, the amount of bad debt provision recovery or reversal in the current period is important:

sex

(4) Accounts receivable actually written off in the current period

Unit: Yuan

Item Write-off Amount

Important write-offs of accounts receivable:

Unit: Yuan Whether the amount is paid by the name of the related unit Nature of accounts receivable Amount of write-off Reason for write-off The write-off procedures performed

Instructions for writing off accounts receivable arising from transactions:

(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 amount Value provision closing balance Customer 1 90,472,696.49 90,472,696.49 9.01% 452,363.48 Subsidiary 1 76,774,939.92 76,774,939.92 7.65%

Customer two 75,330,443.81 75,330,443.81 7.51% 376,652.22 Customer three 55,939,467.85 55,939,467.85 5.57% 279,697.34 Subsidiary two 49,889,991.67 49,889,991.67 4.97%

Total 348,407,539.74 348,407,539.74 34.71% 1,108,713.04

Other receivables

Unit: Yuan

Item Ending balance Beginning balance

Dividends receivable 223,956.00

Other receivables 489,729,358.35 625,961,300.70 Total 489,953,314.35 625,961,300.70

(1) Interest receivable

Classification of interest receivable

Unit: Yuan Qingdao Baiyang Pharmaceutical Co., Ltd. Full text of 2025 semi-annual report

Item Ending balance Beginning balance

Important overdue interest

Unit: Yuan Whether impairment occurs and the borrowing unit is judged. Ending balance Overdue time Reason for overdue

Judgment basis

Other notes:

Classified disclosure according to bad debt accrual method

□Applicable Not applicable

Bad debt provisions accrued, recovered or reversed in the current period

Unit: Yuan Amount of changes in the current period

Category Opening balance Ending balance Provision Recovery or reversal Write-off or write-off Other changes

Among them, the amount of recovery or reversal of bad debt provisions for the current period is important:

Other notes:

Interest receivable actually written off in the current period

Unit: yuan item write-off amount

Among them, the important write-off of interest receivable

Unit: Whether the yuan amount is paid by the name of the related unit, nature of the amount, write-off amount, write-off reason, write-off procedures performed

transaction generated

Write-off instructions:

Other notes:

(2) Dividends receivable

Classification of dividends receivable

Unit: Yuan Qingdao Baiyang Pharmaceutical Co., Ltd. Full text of 2025 semi-annual report

Project (or invested unit) Closing balance Opening balance

Dividend payment from Rimeijian Pharmaceutical (China) Co., Ltd. 223,956.00

Total 223,956.00

Important dividends receivable aged more than 1 year

Unit: Yuan Whether impairment occurs and the judgment item (or invested unit) Closing balance Aging Reason for non-recovery

Judgment basis

Classified disclosure according to bad debt accrual method

□Applicable Not applicable

Bad debt provisions accrued, recovered or reversed in the current period

Unit: Yuan Amount of changes in the current period

Category Opening balance Ending balance Provision Recovery or reversal Write-off or write-off Other changes

Among them, the amount of recovery or reversal of bad debt provisions for the current period is important:

Other notes:

Dividends receivable actually written off in the current period

Unit: yuan item write-off amount

Among them, the important write-off of dividends receivable

Unit: Whether the yuan amount is paid by the name of the related unit, nature of the amount, write-off amount, write-off reason, write-off procedures performed

transaction generated

Write-off instructions:

Other notes:

(3) Other receivables

Classification of other receivables according to nature of payment

Unit: Yuan

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd.'s 2025 semi-annual report

Nature of payment Book balance at the end of the period Book balance at the beginning of the period

Consolidated accounts with related parties 480,900,679.03 617,295,491.00 Accounts with other companies 6,141,605.27 5,345,026.67 Security deposit 6,170,405.97 6,540,713.86 Total 493,212,690.27 629,181,231.53

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) 238,086,405.30 286,388,988.18 1 to 2 years 138,152,392.76 173,278,430.02 2 to 3 years 27,268,197.67 48,653,376.28 More than 3 years 89,705,694.54 120,860,437.05 3 to 4 years 50,381,123.05 61,246,681.92 4 to 5 years 9,209,752.99 28,083,598.68

More than 5 years 30,114,818.50 31,530,156.45 Total 493,212,690.27 629,181,231.53

Classified disclosure according to bad debt accrual method

Unit: Yuan Ending balance Beginning balance

Book balance Provision for bad debts Book balance Provision for bad debts

Category Book price Book price provision ratio Provision ratio

Amount Ratio Amount Value Amount Ratio Amount Value

Example Example

Among them:

by combination

493,212 3,483,3 489,729 629,181 3,219,9 625,961 Bad provision 100.00% 0.71% 100.00% 0.51%

,690.27 31.92 ,358.35 ,231.53 30.83 ,300.70 Account preparation

Among them:

4,472,2 3,483,3 988,960 4,360,7 3,219,9 1,140,8 Combination A 0.91% 77.89% 0.69% 73.84%

92.69 31.92 .77 89.46 30.83 58.63

6,045,6 6,045,6 6,540,7 6,540,7 Combination B 1.23% 1.04%

05.97 05.97 13.86 13.86

482,694 482,694 618,279 618,279 Combination C 97.87% 98.27%

,791.61 ,791.61 ,728.21 ,728.21

493,212 3,483,3 489,729 629,181 3,219,9 625,961Total 100.00% 0.71% 100.00% 0.51%

,690.27 31.92 ,358.35 ,231.53 30.83 ,300.70 Bad debt provision based on combination Category name: Aging combination

Unit: Yuan ending balance

Name

Book balance Bad debt provision Provision ratio

Portfolio A 4,472,292.69 3,483,331.92 77.89% Portfolio B 6,045,605.97

Combination C 482,694,791.61

Total 493,212,690.27 3,483,331.92

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd.'s 2025 semi-annual report

Description of what this combination is based on:

Provision for bad debts is made based on the general expected credit loss model:

Unit: Yuan Phase 1 Phase 2 Phase 3

Expected credit throughout the lifetime Credit expected throughout the lifetime

Provision for bad debts Expected credit in the next 12 months Total

Loss (no credit deduction has occurred Loss (credit deduction has occurred)

loss

value) value)

Balance on January 1, 2025 211,989.33 3,007,941.50 3,219,930.83 Balance on January 1, 2025

In this issue

——Transfer to the third stage -419,898.74 419,898.74

Provision in this period 41,939.15 419,898.74 461,837.89 Transfer in this period 187,050.34 11,386.46 198,436.80 Remainder as of June 30, 2025

66,878.14 3,416,453.78 3,483,331.92 amount

Basis for division of each stage and provision ratio for bad debts

Changes in book balances with significant changes in loss provision during the current 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

Portfolio A 3,219,930.83 461,837.89 198,436.80 3,483,331.92 Total 3,219,930.83 461,837.89 198,436.80 3,483,331.92

Among them, the amount of bad debt provision for the current period that is reversed or recovered is important:

sex

Other receivables actually written off in the current period

Unit: Yuan

Item Write-off Amount

Important write-offs of other receivables:

Unit: Yuan Qingdao Baiyang Pharmaceutical Co., Ltd. Full text of 2025 semi-annual report

Whether the amount is paid by related entities, the nature of other receivables, the write-off amount, the reason for the write-off, the write-off procedures performed

transaction generated

Instructions for writing off other receivables:

Other receivables with the top five closing balances based on debtors

Unit: Yuan accounted for other receivable period

Name of the unit with the ending balance of bad debt provision Nature of the payment Ending balance Aging Total ending balance

Proportion

Within 1 year; 1-2

Merge related parties

Subsidiary 1 130,292,193.11 years; 2-3 years; 3 years 26.42%

Incoming payment

above

Merge related parties

Subsidiary 2 101,545,769.85 Within 1 year 20.59%

Incoming payment

Merge related parties

Subsidiary Three 63,410,700.00 Within 1 year 12.86%

Incoming payment

Within 1 year; 1-2

Merge related parties

Subsidiary 4 55,767,455.92 years; 2-3 years; 3 years 11.31%

Incoming payment

above

Merging related parties within 1 year; 1-2

Subsidiary 5 36,088,539.35 7.32%

Payment year; 2-3 years

Total 387,104,658.23 78.50%

Presented in other receivables due to centralized management of funds

Unit: Yuan Other instructions:

Long-term equity investment

Unit: Yuan Ending balance Beginning balance

Project

Book balance Impairment provision Book value Book balance Impairment provision Book value 1,444,593,66 1,444,593,66 1,471,645,71 1,471,645,71 Investment in subsidiaries

5.58 5.58 2.95 2.95 Associates and joint ventures 196,858,850. 188,550,724. 148,116,733. 139,808,608. 8,308,125.91 8,308,125.91

Enterprise investment 31 40 94 03 1,641,452,51 1,633,144,38 1,619,762,44 1,611,454,32Total 8,308,125.91 8,308,125.91

5.89 9.98 6.89 0.98

(1) Investment in subsidiaries

Unit: Yuan Beginning balance Increase or decrease in the current period Ending balance

Invested party Impairment provision Impairment provision (book price Impairment provision (book price

Position Opening balance Additional investment Decrease investment Others Closing balance value) Reserve value)

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd.'s 2025 semi-annual report

Qingdao Dongyuan

111,731,8 111,731,8Biotechnology

13.68 13.68 Ltd.

Qingdao Baiyang

58,072,06 58,072,06

Yimei Technology

4.34 4.34

Ltd.

Tianjin Baiyang

22,185,00 22,185,00 Pharmaceutical Co., Ltd.

0.00 0.00Company

Shandong Baiyang

51,000,00 51,000,00Medical Technology

0.00 0.00 Co., Ltd.

Jiangxi Baiyang

10,410,00 10,410,00 Pharmaceutical Co., Ltd.

0.00 0.00Company

Shanghai Baiyang

Smart Medical 1,700,000 1,700,000 Medical Technology Co., Ltd. .00 .00

Qingdao Baiyang

West Coast Medicine 10,200,00 10,200,00Technology Co., Ltd. 0.00 0.00Company

Beijing Chengshan

Tang Health Department 3,412,292 3,412,292 Technology Co., Ltd. .18 .18 Company

Qingdao cicada

14,500,00 14,500,00Health Technology

2.00 2.00 Co., Ltd.

Qingdao Baiyang

2,930,000 2,930,000Pharmaceutical logistics

.00 .00 LIMITED.

Beijing Baiyang

Intelligent Medicine

28,100,00 28,100,00 Results conversion

0.00 0.00Limited service

company

Beijing Baiyang

Chengda Pharmaceutical 59,000,00 59,000,00 Technology Co., Ltd. 0.00 0.00Company

Beijing Baiyang

Guosheng Medical 9,000,000 9,000,000 Equipment Co., Ltd. .00 .00 Company

Baiyang Health

Industrial International 102,982,0 102,982,0 Trading Co., Ltd. 00.00 00.00 Company

Hebei Baiyang

326,000,0 30,000,00 356,000,0Chengda Pharmaceutical

00.00 0.00 00.00 Co., Ltd.

Qingdao Baiyang

302,383,4 302,383,4 Investment Group

32.87 32.87 Ltd.

Qingdao Baiyang 44,096,84 44,096,84

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd.'s 2025 semi-annual report

Yiren Investment 7.08 7.08 Management Co., Ltd.

company

Beijing Baiyang

161,626.8 161,626.8 Kanghe Technology

0 0 Ltd.

Baiyang Pharmaceutical

5,100,000 5,100,000 (Hunan)

.00 .00 LIMITED.

Anhui Zekang

17,693,90 17,693,90Medical Technology

0.00 0.00 Co., Ltd.

Shanghai Baiyang

290,986,7 290,986,7 Pharmaceutical shares

34.00 34.00 Ltd.

Beijing Baixin

Kangda Medical 1,020,000 1,020,016

16.97

Instrument Co., Ltd. .00 .97 Inc.

1,471,645 31,020,00 58,072,06 1,444,593Total 16.97

,712.95 0.00 4.34 ,665.58

(2) Investment in associates and joint ventures

Unit: Yuan

Increases and decreases in the current period

Beginning of period Equity declaration End of period

Impairment Impairment Balance Other Disbursement Balance Investment Provision Other Disbursement Provision (Account Addition Decrease Confirmation Comprehensive Cash (Billing Unit Beginning Equity Impairment Others Ending Face Price Investment Income from Investment Dividend Face Price

Balance Change Provision Balance Value) Capital Loss Adjustment or Profit Value)

profit

1. Joint ventures

2. Joint ventures

ounce

pharmaceutical

34,51 1,814 35,62 (mid 710,3

6,975,328. 0,963 Mountains) 40.00

.46 37 .83 limited

company

Japan and the United States

health medicine

Products 9,374 9,235

85,73 223,9

(Chinese, 215., 994.

5.31 56.00

country) 24 55 limited

company

Beijing

Five Dimensions -

42,78 8,308 41,22 8,308Conke 1,557

7,273 ,125. 9,429 ,125. Jiyou ,843.

.40 91 .45 91 Public limited 95

Division

Beijing 24,14 50,00 - 73,67 City Gate 4,150 0,000 472,9 1,206

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd.'s 2025 semi-annual report

Tougou .07 .00 43.75 .32 District 100

foreign doctor

pharmaceutical products

Industry investment

Ziji

gold

(Yes

Limited combination

Guy)

Langfang

Rinku

Baiyang

Equity

Investment 28,98 - 28,79Fund 5,993 192,8 3,130Partnership .86 63.61 .25Enterprise

(Yes

Limited combination

Guy)

139,8 8,308 50,00 - 188,5 8,308

934,2

Subtotal 08,60 ,125. 0,000 323,5 50,72 ,125. 96.00

8.03 91 .00 87.63 4.40 91 139.8 8,308 50.00 - 188.5 8,308

934,2

Total 08,60 ,125. 0,000 323,5 50,72 ,125. 96.00

8.03 91.00 87.63 4.40 91

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 in impairment testing in previous years or external information

Reasons for the discrepancy between the information used in the company's impairment testing in previous years and the actual situation of that year.

(3) Other instructions

Operating income and operating costs

Unit: Yuan

Amount for the current period Amount for the previous period

Project

revenue cost revenue cost

Main business 1,897,096,075.35 1,591,822,626.69 2,540,376,001.22 1,836,839,504.13

Other business 3,805,217.27 1,756,701.07 8,450,972.20 3,872,881.58

Total 1,900,901,292.62 1,593,579,327.76 2,548,826,973.42 1,840,712,385.71

Breakdown information of operating income and operating costs:

Unit: Yuan

Contract classification Segment 1 Segment 2 Amount for the current period Total

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd.'s 2025 semi-annual report

Operating income Operating cost Operating income Operating cost Operating income Operating cost Operating income Operating cost Business type

Among them:

Brand operation 1,081,604 803,476,0 1,081,604 803,476,0Business ,047.21 75.99 ,047.21 75.99Wholesale distribution 815,492,0 788,346,5 815,492,0 788,346,5Business 28.14 50.70 28.14 50.70

3,805,217 1,756,701 3,805,217 1,756,701Other businesses

.27 .07 .27 .07

1,900,901 1,593,579 1,900,901 1,593,579Total

,292.62 ,327.76 ,292.62 ,327.76 Information related to performance obligations:

The company's pre-payments, the company's performance obligations, and the important payment terms. The company's commitment to transfer is the main responsibility.

The item will be refunded to the customer during the period. The type and time of the quantity guarantee. The nature of the goods. Anyone.

Account’s money and other explanations of related obligations

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 68,873,582.02, of which RMB 68,873,582.02 is expected to be recognized as revenue in 2025, RMB is expected to be recognized in the year, and RMB is expected to be recognized in the year.

Major contract changes or major transaction price adjustments

Unit: Yuan

Item Accounting treatment method Amount of impact on income

Other notes:

Investment income

Unit: Yuan

Item Amount for the current period Amount for the previous period

Long-term equity investment income calculated by the cost method 275,600,000.00 398,446,276.94 Long-term equity investment income calculated by the equity method -323,587.63 3,515,182.50 Investment income generated from the disposal of long-term equity investment 2,520,231.98

Investment income from disposal of trading financial assets 4,520.55

Measured at fair value through other comprehensive

-1,586,106.24 -1,699,579.71 Investment income from financial assets with combined income

Total 276,215,058.66 400,261,879.73

Others

20. Supplementary information

Detailed statement of non-recurring profits and losses for the current period

Applicable □Not applicable

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd.'s 2025 semi-annual report

Unit: Yuan Item Amount Description Profit and loss from disposal of non-current assets 624,174.46

Government subsidies included in current profits and losses (related to the company’s regular

Mainly for the investment promotion incentives received by subsidiaries to support their regular business operations and are closely related to national policies.

19,334,398.98 special funds to support and promote social and economic development, production regulations, enjoyment according to determined standards, and benefit to the company

Except for government subsidies that have a lasting impact on financial gains and losses due to high-quality development policies in the pharmaceutical and pharmaceutical industry)

Except for effective transactions related to the company’s normal business operations,

In addition to futures hedging business, non-financial enterprises hold financial

Mainly due to changes in fair value of Zhongkang Holdings’ stocks and Huahao Zhongtian Pharmaceutical’s assets and financial liabilities -25,267,059.97

Gains and losses from changes in fair value of stocks and disposal of financial assets and financial liabilities

profit and loss

Charges levied on non-financial enterprises included in current profits and losses

1,122,027.77

Fund occupation fee

Other non-operating income other than the above items and

-5,729,897.84 Mainly donations

expenditure

Other profit and loss items that meet the definition of non-recurring profits and losses

437,698.92

Head

Less: Income tax impact -1,812,430.84

Amount of impact on minority shareholders’ equity (after tax) 6,572,398.11

Total -14,238,624.95 --Details of other profit and loss items that meet the definition of non-recurring profits and losses:

Applicable □Not applicable

It is mainly the amount attributed to the company for items of associated enterprises that meet the definition of non-recurring gains 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 attributable to the company’s ordinary shareholders

7.07% 0.31 0.31Profit

After deducting non-recurring gains and losses, attributable to

7.69% 0.34 0.34 Net profit of the company’s ordinary shareholders

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

Full text of the 2025 semi-annual report of Qingdao Baiyang Pharmaceutical Co., Ltd. (3) Explanation of reasons for 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