/Qianhong Pharmaceutical: Changzhou Qianhong Biochemical Pharmaceutical Co., Ltd. issues convertible corporate bonds to unspecified objects and lists on the main board prospectus (revised draft)

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Qianhong Pharmaceutical: Changzhou Qianhong Biochemical Pharmaceutical Co., Ltd. issues convertible corporate bonds to unspecified objects and lists on the main board prospectus (revised draft)

Shenzhen Stock Exchange

2026/03/11

Stock abbreviation: Qianhong Pharmaceutical Stock code: 002550Changzhou Qianhong Biopharma Co., Ltd.

(No. 518, Yunhe Road, Xinbei District, Changzhou City)

Issue convertible corporate bonds to unspecified objects and list on the main board

Prospectus

(revised draft)

Sponsor (lead underwriter)

(Room 401, Building B7, Qianhai Shenzhen-Hong Kong Fund Town, No. 128 Guiwan 5th Road, Nanshan Street, Qianhai Shenzhen-Hong Kong Cooperation Zone, Shenzhen)

March 2026

Statement

Any decisions or opinions made by the China Securities Regulatory Commission and the exchange on this issuance do not indicate that they guarantee the authenticity, accuracy, and completeness of the application documents and disclosed information, nor do they indicate that they have made a substantial judgment or guarantee on the issuer's profitability, investment value, or investors' income. Any statement to the contrary is false or untrue.

According to the provisions of the Securities Law, after securities are issued in accordance with the law, the issuer shall be solely responsible for changes in its operations and income. Investors independently judge the issuer's investment value, make investment decisions independently, and bear the investment risks caused by changes in the issuer's operations and income or changes in securities prices after the securities are issued in accordance with the law.

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Important reminder

Investors are particularly reminded that before making investment decisions, they must carefully read the text of this prospectus and pay special attention to the following important matters.

1. Regarding the credit rating of the convertible corporate bonds issued by the company this time

The convertible corporate bonds issued by the company have been rated by CSI Pengyuan. According to the credit rating report issued by it, the credit rating of the convertible bonds is AA and the company's main credit rating is AA.

After the convertible bonds are listed, CSI Pengyuan Ratings will conduct regular or irregular follow-up ratings on the credit status of the bonds during the bond's duration and issue a follow-up rating report. Regular follow-up ratings shall be conducted at least once a year during the bond's duration. If the credit rating of the convertible bonds is lowered due to factors such as the external operating environment, the company's own conditions or changes in rating standards, it will increase investors' investment risks and have a certain impact on investors' interests.

2. Regarding the guarantees for the company’s current issuance of convertible corporate bonds

The company's issuance of convertible bonds to unspecified objects does not provide guarantees. If an event occurs during its existence that has a significant negative impact on business management and debt solvency, the convertible bonds may increase the repayment risk because no guarantee is set.

The participation of shareholders, directors and senior executives holding more than 5% of the company’s shares in the issuance and subscription of convertible bonds

In accordance with the requirements of the "Securities Law", "Measures for the Administration of Convertible Corporate Bonds" and other relevant regulations, the company's controlling shareholders, actual controllers, natural person shareholders holding more than 5% of the shares, directors and senior executives have issued subscription-related commitments for the issuance of convertible corporate bonds to unspecified objects. For details, please refer to "IV. Commitments and Performance" of "Section 4 Basic Information of the Issuer" in this prospectus.

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4. Special risk warning

Investors are reminded to carefully read the full text of "Section 3 Risk Factors" of this prospectus and pay special attention to the following risks:

(1) Risks of global heparin market fluctuations

Due to the economic fluctuations of major economies around the world, the impact of end-use clinical needs, policies and regulations, and the fluctuation of crude raw materials in the upstream of heparin, the heparin API business is greatly affected by the cyclical nature of the industry. In 2020, due to the increased demand for auxiliary treatment due to global public health emergencies, the use of heparin has increased, driving up the terminal demand for heparin sodium. According to data from the General Administration of Customs of my country, the average monthly export price of heparin in my country in June 2021 was as high as US$15,849/kg. After the global public health emergency, global drug demand gradually fell back to normal. Coupled with rising operating costs, overseas heparin API customers have become more cautious and adjusted inventory strategies. Heparin downstream preparation companies have destocked, and the demand for upstream API products has declined to a large extent. Market competition has intensified, and the price of heparin API has corrected. As of October 2023, heparin prices have quickly fallen back to US$4,805/kg. The price of heparin will fluctuate in 2024, with the export price in December being US$3,992/kg. In 2025, the price of heparin API will be in a relatively stable stage, with the export price in September being US$4,576/kg. Market price fluctuations have a direct impact on the company's operating performance: rising heparin prices usually drive revenue growth and increase gross profit margins; while during price declines, the company faces pressure from reduced sales revenue and gross profit margins, and profitability stability will be challenged. If the heparin market price continues to be low or fluctuate in the future, the company may face the risk of slowing or even declining revenue growth. At the same time, with the advancement of science and technology, if other anticoagulant drugs appear to be more effective than heparin drugs, or if synthetic similar products succeed and replace heparin products in large quantities, it will have a huge impact on the entire heparin industry and have a major adverse impact on the company's production and operations.

(2) Risks of policy reform in the pharmaceutical industry

In recent years, as the reform of the pharmaceutical system continues to deepen, the state's management of the pharmaceutical industry has continued to increase. The implementation of a series of policy measures such as drug approval, quality supervision, drug bidding, public hospital reform, medical insurance fee control, two-invoice system, and centralized drug procurement have a significant impact on the future development of the entire pharmaceutical industry, and the company faces risks brought about by changes in industry policies. If the company's main preparation products fail to win the bid in the national centralized bulk procurement, resulting in restrictions on the sales of the company's preparation products in public medical institutions, the domestic market share of the company's preparation products will be at risk of declining, which will have an adverse impact on the company's operating performance.

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(3) Risk of gross profit margin fluctuations

In each period of the reporting period, the company's comprehensive gross profit margin was 38.59%, 43.26%, 54.85% and 57.71% respectively. Affected by factors such as raw material price fluctuations and market competition, the company's gross profit margin fluctuated during the reporting period. If the price of raw materials rises sharply in the future and the price of the company's products drops sharply due to centralized procurement, there is a risk of a decline in gross profit margin.

(4) Risks that the investment project cannot be implemented smoothly or does not meet expectations

Innovative drug research and development projects

The company plans to use the raised funds of 410 million yuan for the Phase III clinical research and marketing registration project of the new acute ischemic stroke drug QHRD106 injection, the Phase IIb clinical research and marketing registration project of the new acute myeloid leukemia drug QHRD107 capsule, and the Phase III clinical research and marketing registration project of the new drug QHRD211 injection for slow growth in children caused by endogenous growth hormone deficiency. The development of innovative drugs has the characteristics of large R&D investment, high technical difficulty, and long trial period, and is easily affected by unpredictable factors, including: the risk that key technical difficulties cannot be solved, that is, because one or some technical indicators and standards fail to meet expectations or the cost of meeting expected standards is too high, or the product cannot be successfully launched The amplification of industrialization will cause product development progress to lag behind, or even fail; the risk of clinical research failure, that is, during the clinical trial process, if unexpected serious adverse events occur or the clinical efficacy does not meet expectations, it may cause regulatory authorities to suspend or terminate clinical research, which will affect research and development progress or even lead to research and development failure. New drug research and development is a process with a long cycle and high investment. The different stages from research and development to the final product launch into the market are full of challenges. Therefore, innovative drug research and development projects have the risk of not meeting expectations or even failure of research and development.

Hubei Zhongxiang API Production Base Phase I Construction Project

The company plans to use the raised funds of 300 million yuan for the first phase construction project of Hubei Zhongxiang API production base. During the actual construction and operation of the project, there is a risk that the investment project will not be completed on schedule or fail to achieve expected returns due to major adverse changes in the macroeconomic situation, industrial policies, terminal market expansion, competitive environment, market capacity, emergence of new substitute products, changes in product prices, etc., as well as unforeseen factors during project implementation. At the same time, after the completion of the project, the company's fixed assets will increase significantly. After the project construction reaches the scheduled usable state, the company will add more depreciation expenses every year. After the investment project with the funds raised this time has fully reached production, if the company's investment project with the funds raised this time does not realize the expected income and the project income cannot cover the relevant expenses, the company will have short-term losses due to depreciation and amortization of fixed assets.

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The risk of adverse effects on net profit growth.

5. The system and implementation of the company’s profit distribution policy and cash dividend policy

(1) The company’s profit distribution policy and cash dividend policy

According to the provisions of profit distribution policy in the Company Law, Securities Law, Supervision Guidelines for Listed Companies No. 3 - Cash Dividends of Listed Companies, and the provisions of the Articles of Association, the company's profit distribution policy is as follows:

Profit distribution principle

(1) The company should attach great importance to reasonable returns to investors, especially small and medium-sized investors, formulate a sustained and stable profit distribution policy, and distribute dividends to shareholders every year in accordance with the prescribed proportion of the parent company's distributable profits realized in that year.

(2) The company’s profit distribution policy maintains continuity and stability. After the profit distribution policy is determined, it shall not be adjusted at will to reduce the level of returns to shareholders.

(3) The company's profit distribution policy should take into account the company's long-term interests, the overall interests of all shareholders and the company's sustainable development. The company should formulate a profit distribution plan based on the company's profitability, combined with the company's operating capital needs and shareholder return planning, social capital costs and external financing environment and other factors.

(4) The company gives priority to the profit distribution method of cash dividends. If stock dividends are used for profit distribution, there should be real and reasonable factors such as the company's growth potential and the dilution of net assets per share.

Profit distribution form

The company distributes dividends in the form of cash, stocks, or a combination of cash and stocks.

Period intervals for profit distribution

If the company meets the conditions for profit distribution, it should make profit distribution every year, and the company can make mid-term profit distribution. If the company meets the conditions for cash dividends, it should also include cash dividends in its annual profit distribution plan.

Differentiated cash dividend policy

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The company's board of directors should comprehensively consider factors such as the characteristics of the company's industry, development stage, its own business model, profitability level, debt repayment ability, whether there are major capital expenditure arrangements and investor returns, distinguish the following situations, and propose differentiated cash dividend policies in accordance with the procedures stipulated in the company's articles of association:

① If the company is in a mature development stage and has no major capital expenditure arrangements, when distributing profits, the proportion of cash dividends in this profit distribution should be at least 80%;

② If the company is in a mature stage of development and has major capital expenditure arrangements, when distributing profits, the proportion of cash dividends in this profit distribution should be at least 40%;

③ If the company is in the growth stage and has major capital expenditure arrangements, when distributing profits, the proportion of cash dividends in the profit distribution should be at least 20%;

If the company's development stage is difficult to distinguish but it has major capital expenditure arrangements, it may be handled in accordance with the provisions of item 3 of the preceding paragraph.

Specific conditions and proportions of cash dividends

If the following conditions are met, the company shall distribute dividends in cash. The profits distributed by the company in cash each year shall not be less than 10% of the distributable profits of the parent company realized in the current year, and the cumulative profits distributed by the company in cash in the past three years shall not be less than 30% of the average annual distributable profits realized by the parent company in the last three years. The specific conditions that cash dividends should meet are:

(1) After making up for losses and withdrawing statutory reserve funds in accordance with the law, the parent company has distributable profits and the company has sufficient cash flow, and the implementation of cash dividends will not affect the company's subsequent continued operations;

(2) The company has no major investment plans or major cash expenditures. Major investment plans or major cash expenditures refer to the following: the company’s planned cumulative expenditures on external investments, acquisitions of assets or equipment in the next twelve months reach or exceed 30% of the company’s audited net assets in the most recent fiscal year and exceed RMB 50 million (excluding raised capital projects);

(3) The audit institution issues a standard unqualified audit report on the company's financial report for the current year. If the above conditions for cash dividends are not met, the company will not distribute cash dividends. Although the company meets the aforementioned conditions for cash dividends but has the following circumstances, it may not distribute cash dividends:

(1) There are unrecovered losses;

(2) When the company’s cash flow from operating activities is negative for two consecutive years;

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(3) When the asset-liability ratio for the year exceeds 70% in the company's annual audit report.

Specific conditions for the company to issue stock dividends

(1) Conditions for stock dividend distribution: When the company is operating in good operating conditions and the board of directors believes that the company's stock price does not match the company's share capital and that issuing stock dividends is beneficial to the overall interests of all shareholders of the company, it may propose a stock dividend distribution plan provided that the above conditions for cash dividends are met.

(2) Stock dividend distribution should be implemented simultaneously with cash dividend distribution.

Decision-making procedures and mechanisms for the company’s profit distribution plan

(1) The company's profit distribution policy and profit distribution plan shall be formulated by the audit committee of the company's board of directors, submitted to the company's board of directors for review, and submitted to the company's shareholders' meeting for approval.

(2) When formulating a profit distribution plan based on the established profit distribution policy, the company's board of directors needs to solicit the opinions of shareholders, especially public shareholders, and formulate a profit distribution plan based on the consideration of sustained, stable and scientific returns to all shareholders. The profit distribution plan should explain the use plan of the retained undistributed profits. If the company does not distribute cash dividends in the profit distribution plan, the board of directors should provide a special explanation on the specific reasons, the exact use of the company's retained earnings and expected investment income.

(3) When the board of directors formulates a specific plan for cash dividends, it should carefully study and demonstrate the timing, conditions and minimum ratio of the company's cash dividends, conditions for adjustment and decision-making process requirements, etc. Independent directors have the right to express independent opinions if they believe that the specific plan for cash dividends may damage the rights and interests of listed companies or small and medium-sized shareholders. If the board of directors fails to adopt the opinions of independent directors or does not fully adopt them, it shall record the opinions of independent directors and the specific reasons for not adopting them in the board resolution and disclose them. The board of directors should record in detail management suggestions, key points of speeches of participating directors, opinions of independent directors, voting status of the board of directors, etc., and form written records and keep them properly as company files.

The company's profit distribution plan must be approved by more than half of all directors, and the company's board of directors must form a special resolution before it can be submitted to the company's shareholders' meeting for review.

(4) The company will provide multiple channels (telephone, fax, email, interactive platform, etc.) to communicate with shareholders, listen to shareholders’ suggestions on the company’s dividends, fully listen to the opinions and demands of small and medium-sized shareholders, respond to issues of concern to small and medium-sized shareholders in a timely manner, and effectively protect the rights of public shareholders to participate in shareholders’ meetings. director

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The shareholders' meeting, independent directors and shareholders individually or jointly holding more than 1% of the company's issued shares may solicit their voting rights for the company's profit distribution plan at the shareholders' meeting from other shareholders of the company.

(5) When the company convenes the annual shareholders' meeting to review the annual profit distribution plan, it may review and approve the conditions, proportion limit, amount limit, etc. of the next year's interim cash dividend. The upper limit of the next year's interim dividend to be reviewed by the annual shareholders' meeting shall not exceed the net profit attributable to shareholders of the listed company during the corresponding period. The board of directors formulates a specific interim dividend plan based on the resolution of the shareholders' meeting and subject to the conditions for profit distribution.

The company's profit distribution plan shall be approved by a majority vote of more than half of the shares held by shareholders (including shareholders' proxies) present at the shareholders' meeting.

The formulation cycle and adjustment mechanism of the company’s profit distribution policy

(1) The company shall re-examine the shareholder return plan for the next three years at least once every three years, and make appropriate modifications to the company's ongoing dividend distribution policy based on the opinions of shareholders (especially public shareholders) and independent directors to determine the shareholder return plan for that period. The company's board of directors will combine specific operating data, fully consider the company's profit scale, cash flow status, development stage and current capital needs, and take into account the opinions of shareholders (especially public shareholders) and independent directors, the board of directors will formulate a new shareholder return plan for the next three years and submit it to the shareholders' meeting for review and approval.

(2) The company's profit distribution policy shall not be changed at will, and the cash dividend policy determined in the company's articles of association and the specific cash dividend plan reviewed and approved by the shareholders' meeting shall be strictly implemented.

(3) In the event of force majeure such as war or natural disaster, or if the company's external operating conditions change and have a significant impact on the company's production and operations, the company may adjust its profit distribution policy.

(4) In the process of revising the profit distribution policy, the board of directors should take the protection of shareholders' rights and interests as the starting point and fully listen to the opinions of shareholders (especially public shareholders). If the board of directors proposes to adjust or change the profit distribution policy, it shall demonstrate and explain the reasons in detail. When the company makes adjustments to the use plan of retained undistributed profits, it should resubmit to the board of directors and shareholders' meeting for approval, and the reasons for the adjustment should be demonstrated and explained in detail in the relevant proposals.

(5) If it is really necessary to adjust or change the cash dividend policy specified in the company's articles of association, the conditions stipulated in the company's articles of association must be met. The board of directors must hold a special discussion, explain the reasons in detail, and submit a written argumentation report to the shareholders' meeting for review after being approved by more than half of all directors, and approved by more than two-thirds of the voting rights held by shareholders attending the shareholders' meeting. When the shareholders' meeting considers changes in the profit distribution policy, online voting must be provided.

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Profit distribution information disclosure mechanism

(1) The company should disclose the implementation of the profit distribution plan and cash profit distribution policy in the annual report and semi-annual report, and explain whether it complies with the provisions of the articles of association or the requirements of the resolution of the shareholders' meeting, whether the dividend standards and proportions are clear and clear, whether the relevant decision-making procedures and mechanisms are complete, whether small and medium-sized shareholders have the opportunity to fully express their opinions and demands, whether the legitimate rights and interests of small and medium-sized shareholders are fully protected, etc. If the cash dividend policy is adjusted or changed, a detailed explanation of whether the conditions and procedures for adjustment or change are compliant and transparent, etc.

(2) If the company's board of directors fails to make a cash profit distribution plan, the reasons should be disclosed in the periodic report. It should also specifically explain the specific reasons for not distributing cash dividends, the exact use of the company's retained earnings, expected investment income, and the next steps to be taken to enhance investor returns. Matters such as this should be submitted to the shareholders' meeting for review and disclosed in the company's designated media.

Other matters

If a shareholder illegally appropriates company funds, the company shall deduct the cash dividends distributed by the shareholder to repay the funds occupied.

(2) The company’s cash dividends in the past three years

The company's cash dividends in the past three years are shown in the table below:

Unit: 10,000 yuan

Item 2024 2023 Subtotal of cash dividends in each year of 2022 (tax included) 29,073.29 18,006.96 15,297.60 Including: Cash dividend amount (tax included) 14,997.60 14,997.60 15,297.60 Share repurchases in cash are included in cash dividends

14,075.69 3,009.36 - Amount

Attributable to shareholders of listed companies in consolidated statements

35,603.20 18,186.07 32,341.44Net profit

Cash dividends account for attributable to shareholders of listed companies

81.66% 99.02% 47.30% Net profit ratio

Total cumulative cash dividends in the past three years 62,377.85 Average annual distributable profit realized in the past three years 28,710.24 Cumulative cash distribution profits in the past three years % of realized

217.27% average annual distributable profit ratio

Note: According to the relevant provisions of the "Shenzhen Stock Exchange Self-Regulatory Guidelines for Listed Companies No. 9 - Share Repurchase", the amount of share repurchases implemented by the company in the current year is regarded as cash dividends and is included in the calculation of the relevant proportion of cash dividends for that year.

The company's profits distributed in cash in each of the past three years (including share repurchases) accounted for

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The net profit proportions of shareholders of listed companies are 47.30%, 99.02% and 81.66% respectively; the cumulative profits distributed in cash in the past three years totaled 623.7785 million yuan, accounting for 217.27% of the average annual distributable profit of 287.1024 million yuan achieved in the past three years. The company's profit distribution complies with the relevant provisions of the China Securities Regulatory Commission and the Articles of Association.

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Section 1 Interpretation

In this prospectus, unless otherwise indicated in the context, the following words or abbreviations have the following specific meanings:

1. General interpretation

Changzhou Qianhong Biochemical Pharmaceutical Co., Ltd. issued a convertible public prospectus to unspecified objects.

Corporate bonds and listing prospectus on the main board

Company, Qianhong Pharmaceutical refers to Changzhou Qianhong Biochemical Pharmaceutical Co., Ltd.

Jiangsu Zhonghong refers to the company's subsidiary, Jiangsu Zhonghong Bioengineering Drug Research Institute Co., Ltd. Innoshengkang refers to the company's subsidiary, Changzhou Innoshengkang Biomedical Technology Co., Ltd. Hubei Qianhong refers to the company's subsidiary, Qianhong Biochemical Pharmaceutical (Hubei) Co., Ltd. Qianhong Great Health refers to the company's subsidiary, Changzhou Qianhong Great Health Technology Co., Ltd.

Qianhong Biotechnology refers to the company's subsidiary, Changzhou Qianhong Biotechnology Co., Ltd.

Henan Qianmu refers to the company's subsidiary, Henan Qianmu Biopharmaceutical Co., Ltd.

Qianhong Hong Kong refers to the company's subsidiary, Qianhong (Hong Kong) Technology Development Co., Ltd. Jinghong Biotech refers to the company's subsidiary, Jiangsu Jinghong Biomedical Technology Co., Ltd. Jingsen Bio refers to the company's joint-stock company, Jiangsu Jingsen Biomedical New Material Technology Co., Ltd. Changzhou Qianhong Biochemical Pharmaceutical Co., Ltd. issuance of a convertible public plan to unspecified objects refers to

corporate bond plan

Convertible bonds refer to convertible corporate bonds

This issuance, this time can

Convertible corporate bonds, this time the company issued convertible corporate bonds to unspecified objects, and the total amount of funds raised

refer to

Secondary issuance of convertible corporate bonds with an amount not exceeding RMB 1,000,000,000 (including the principal amount)

"Company Law" means "Company Law of the People's Republic of China"

“Securities Law” refers to the “Securities Law of the People’s Republic of China”

China Securities Regulatory Commission refers to China Securities Regulatory Commission

Articles of Association refers to the "Articles of Association of Changzhou Qianhong Biochemical Pharmaceutical Co., Ltd."

Shareholders’ meeting refers to the shareholders’ meeting of Changzhou Qianhong Biochemical Pharmaceutical Co., Ltd.

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Shareholders’ meeting refers to the shareholders’ meeting of Changzhou Qianhong Biochemical Pharmaceutical Co., Ltd.

Board of Directors refers to the Board of Directors of Changzhou Qianhong Biochemical Pharmaceutical Co., Ltd.

The Board of Supervisors of Changzhou Qianhong Biochemical Pharmaceutical Co., Ltd. (the Board of Supervisors designated in November 2025

Cancel)

Trading day refers to the normal trading day of Shenzhen Stock Exchange

Reporting period, last three years

Refers to 2022, 2023, 2024 and January to September 2025

Phase I

Yuan, 10,000 Yuan refers to RMB Yuan, 10,000 Yuan

2. Professional interpretation

Sulfated glycosaminoglycan compounds extracted from mammalian tissues are polysaccharide chain mixtures with different chain lengths composed of uronic acid, hexosamine and their derivatives. Heparin refers to

things. Heparin has a strong anticoagulant effect both in vivo and in vitro, so it is widely used as an anticoagulant in clinical practice.

The upstream products of the heparin industry chain, as raw materials for the production of mid-stream and downstream products of heparin, the main crude heparin product refers to the heparin resin formed after the heparin component is absorbed by the resin, and the granular or powdered crude heparin sodium made after simple elution and drying processing.

Including crude heparin, heparin raw materials, heparin preparations, low molecular weight heparin raw materials, and low-heparin products.

Molecular heparin preparations. The heparin products exported by my country mainly include crude heparin and heparin raw materials.

Heparin products, which are obtained by refining and purifying crude heparin, have quality standards that comply with relevant standards. Heparin raw materials refer to

Heparin products that are stipulated in the Pharmacopoeia and have completed relevant drug registration and other procedures, including heparin sodium API, heparin calcium API and other heparin API salts

Formed by further processing of standard heparin raw materials through chemical or enzymatic depolymerization, low molecular weight heparin raw materials can be used to refer to

It is used in the production of enoxaparin, nadroparin, dalteparin and other low-molecular-weight heparin preparations' raw materials. Heparin raw materials are clinically used preparations made through preparation processes. They are currently the standard clinical heparin preparations.

anticoagulant drugs

Preparations for clinical use made from low-molecular-weight heparin raw materials through preparation processes, including low-molecular-weight heparin preparations.

Noparin, dalteparin, nadroparin, etc.

A component of the kinin system, also known as kallikrein or pancreatic kallikrein, pancreatic kallikrein refers to

A proteolytic enzyme extracted from animal pancreas, which belongs to the proteolytic enzyme category and has the function of dilating blood vessels, improving blood circulation and microcirculation, and preventing thrombosis.

It is extracted from animal pancreas with water. It can also be obtained by using bacterial culture medium and water elastase at low temperature.

Extracted, it is mainly used in clinical medicine to treat hyperlipidemia and prevent atherosclerosis and fatty liver.

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A drug that has a selective inhibitory effect on tumor cells and can cause the enzyme asparaginase in the serum to refer to

Amide hydrolysis makes tumor cells lack asparagine, thereby inhibiting growth. The active unit contained in each mg of the product, the important quality of heparin API and other products refers to the potency.

The pharmacopoeia of different countries may lead to differences in potency due to different detection methods.

The drug regulatory department shall, in accordance with legal procedures, conduct regulations on the safety and drug registration of drugs to be marketed.

Systematic evaluation of effectiveness, quality controllability, etc., and an approval process for whether to agree to the application.

The raw materials used to produce various preparations are the active ingredients in the preparations and are chemically synthesized raw materials.

Various powders, crystals, extracts, etc. prepared by ingredients, plant extractions or biotechnology for medicinal purposes

European Directorate for the Quality of Medicines, European Directorate for the Quality of Medicines, EDQM refers to

steering committee

Good Manufacturing Practice, pharmaceutical manufacturing quality management practices, my country's pharmaceutical GMP refers to the basic guidelines for production and quality management, applicable to the entire process of pharmaceutical preparation production and the key processes that affect the quality of finished products in the production of raw materials.

Certificate of Suitability to Monograph of European Pharmacopoeia, CEP certification refers to

European Pharmacopoeia Certificate of Suitability

FDA refers to Food and Drug Administration, U.S. Food and Drug Administration

USP refers to U.S. Pharmacopeia, United States Pharmacopeia

EP stands for European Pharmacopoeia, European Pharmacopoeia

Drug Master File is the archived information submitted to the FDA for review, including information related to DMF activities in the manufacturing, processing, packaging, storage, and wholesale of human pharmaceuticals.

Detailed information on the production facilities, processes, quality control used, and the raw materials and packaging materials used. DMF holder submits DMF to FDA

Using pressure or centrifugal force to force water and other small molecule solutes through a semipermeable membrane, molecular membrane ultrafiltration refers to

Large molecular solutes are trapped on the membrane to achieve concentration and desalination.

Ion exchange refers to a reversible chemical reaction between ions in the liquid phase and ions in the solid phase

It is a malignant disease of myeloid hematopoietic stem/progenitor cells. It is mainly characterized by abnormal proliferation of primitive and immature myeloid cells in bone marrow and peripheral blood, and its clinical manifestations are anemia, bleeding, infection and acute myeloid leukemia.

Heat, organ infiltration, metabolic abnormalities, etc. Most cases are seriously ill and have a dangerous prognosis. If not treated in time, they can often be life-threatening.

It is a group of clinical syndromes caused by obstruction of blood supply to brain tissue caused by various reasons, resulting in ischemia, hypoxia, acute ischemic stroke, finger necrosis, and neurological dysfunction, accounting for 60%-80% of strokes.

Growth hormone refers to a peptide hormone secreted by the anterior lobe of the human pituitary gland, consisting of 191 amino acids.

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It can promote the growth of bones, internal organs and the whole body, promote protein synthesis, affect fat and mineral metabolism, and plays a key role in human growth and development.

Cyclin-dependent kinase 9, which mainly plays a role in the regulation of transcription elongation, CDK9 refers to

without affecting cell cycle processes

Polymerase chain reaction is a technique that amplifies the amount of DNA in a sample and enriches a specific DNA sequence among many DNA molecules. In this reaction, multiple rounds of DNA synthesis are performed using oligonucleotides complementary to the target PCR finger DNA sequence as primers. These include DNA denaturation, primer annealing and DNA synthesis catalyzed by TaqDNA polymerase

Macromolecules refer to biological molecules with large molecular weight and complex structures such as proteins, antibodies, vaccines, and viruses.

Small molecules refer to substances with small molecular weight such as organic compounds, natural products, antibiotics, and polypeptides.

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Section 2 Overview of this issuance

1. Basic situation of the company

Company Name Changzhou Qianhong Biochemical Pharmaceutical Co., Ltd.

English name Changzhou Qianhong Biopharma Co., Ltd.

Listing place: Shenzhen Stock Exchange

Securities abbreviation Qianhong Pharmaceutical

Securities code 002550.SZ

Legal representative Wang Ke

Total share capital 1,279.80 million shares

Registered address: No. 518, Yunhe Road, Xinbei District, Changzhou City

Licensed items: pharmaceutical production; pharmaceutical entrusted production; pharmaceutical wholesale; pharmaceutical retail; pharmaceutical import and export (projects that require approval according to law can only be carried out with the approval of relevant departments, and specific business projects are subject to the approval results)

General projects: technology import and export; import and export agency; medical packaging material manufacturing; primary agricultural business scope

Product acquisition; technical services, technology development, technical consultation, technology exchange, technology transfer, technology promotion; information consulting services (excluding licensing information consulting services); non-residential real estate leasing; housing leasing (except for projects that require approval according to law, independently carry out business activities with a business license in accordance with the law)

Unified social credit code 91320400748726864T

Phone number 0519-86020688

Fax number 0519-86020617

Company website www.qhsh.com.cn

Email [email protected]

2. Background and purpose of this issuance

(1) Background of this issuance

The pharmaceutical industry has broad development space and the market size is growing.

China's pharmaceutical market consists of three major sectors: chemical drugs, biological drugs and traditional Chinese medicine. The total size of China's pharmaceutical market in 2024 will be RMB 1,629.74 billion. Currently, Chinese medicines account for the largest proportion of the Chinese pharmaceutical market. Its market size in 2024 will be RMB 704.14 billion. Biological drugs are the most promising area in China's pharmaceutical market, with a compound annual growth rate of 11.1% from 2018 to 2024. With policy support, the continuous expansion of patient groups and the improvement of patients' affordability, the scale of China's pharmaceutical market will continue to expand, and is expected to grow by 4.6% from 2024 to 2030

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The compound annual growth rate will increase from 1,629.74 billion yuan to 2,129.71 billion yuan, of which the biopharmaceutical market will reach 493.01 billion yuan in 2024 and 1,024.22 billion yuan in 2030.

China's pharmaceutical market size is split by chemical drugs, biological drugs and traditional Chinese medicine, 2018-2030E

Data source: Frost & Sullivan analysis

According to the "Measures for the Administration of Drug Registration", my country's drug registration is based on the following five registration categories, namely: Category 1 innovative drugs, Category 2 improved new drugs, Category 3 overseas generic drugs, Category 4 domestic generic drugs and Category 5 imported drugs. Among them, Category 1 innovative drugs refer to drugs that are not on the market at home and abroad and contain new compounds with clear structures and pharmacological effects and have clinical value. Category 2 improved new drugs refer to drugs whose structure, dosage form, prescription process, administration route, indications, etc. are optimized on the basis of known active ingredients and have obvious clinical advantages. Category 5 imported drugs include original research drugs and generic drugs that have applied for domestic marketing overseas. Therefore, the market size of innovative drugs in the figure below refers to the original drug portion of Category 1 drugs, Category 2 drugs and Category 5 drugs. The new "Measures for the Administration of Drug Registration" further adjusts and improves drug registration management, optimizes the review and approval workflow, is consistent with various national reform systems that encourage innovation, and can continue to promote drug research and development innovation. China's innovative drug market size will be approximately RMB 1,115.08 billion in 2024, accounting for 68.4% of China's overall drug market share. Supported by favorable factors such as the introduction of innovative drug encouragement policies, dynamic adjustments to medical insurance, and increased corporate R&D investment, China's innovative drug market will maintain a high growth rate and is expected to grow at a compound annual growth rate of 7.2% from 2024 to 2030, reaching RMB 1,692.15 billion in 2030.

China's pharmaceutical market size is split by innovative drugs, generic drugs & biosimilars, 2018-2030E

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Data source: Frost & Sullivan analysis

Favorable policy support promotes the sustained and rapid development of the biochemical drug industry

As an emerging industry on a global scale, the pharmaceutical industry in which the company is located has become one of the most active strategic emerging industries in the world today. A series of policies have been introduced at the national and local levels to support and promote the sustained and rapid development of the biochemical drug industry.

The "Fourteenth Five-Year Plan for National Economic and Social Development of the People's Republic of China and the Outline of Long-term Goals for 2035" released in March 2021 clearly proposes to promote the integration and innovation of biotechnology and information technology, accelerate the development of biomedicine, biological breeding, biomaterials, bioenergy and other industries, and make the bioeconomy bigger and stronger. The "14th Five-Year Plan for the Development of the Pharmaceutical Industry" issued in January 2022 requires consolidating the manufacturing advantages of APIs, accelerating the development of a number of new varieties of specialty APIs with large market potential and high technical thresholds, as well as new product types such as nucleic acids and peptides, and promoting the extension of the API industry to higher value chains. The "14th Five-Year Plan for the Development of the Pharmaceutical Industry in Hubei Province" issued by Hubei Province aims to make up for shortcomings, improve the system, promote the coordinated development of pharmaceutical industry parks through innovation leadership and joint development, optimize the allocation of regional resources, strengthen the characteristics of the park, and improve the ability to undertake high-end projects. By 2025, the key links and service facilities of the pharmaceutical industry will be more complete, breakthroughs in a number of key core technologies will be achieved, a number of original achievements will be produced, and industrial innovation strength, industrial scale, agglomeration effects, and development ecology will be comprehensively leading. In addition, measures such as accelerating digital transformation and upgrading, promoting the construction of a green pharmaceutical manufacturing system, increasing policy support, optimizing the development environment, and consolidating talent support are also proposed.

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The state strongly supports the development of innovative drugs and the market prospects are broad.

As the world's second largest pharmaceutical market, China's government attaches great importance to the pharmaceutical industry and has issued a number of policies to encourage imported and domestic innovative drugs to be launched faster. In 2020, the revised "Measures for the Administration of Drug Registration", "Measures for the Supervision and Administration of Drug Production", "Good Clinical Practice for Drugs", "Priority Review and Approval Procedures for Drug Marketing Authorization (Trial)" and "Registration Classification and Application Document Requirements for Biological Products" will come into effect, reforming new drug research and development, registration processes, clinical trial management and production management. In 2021, the "14th Five-Year Plan" for the development of the pharmaceutical industry was officially released, taking innovation as the basic principle and innovation as the core task to promote the high-quality development of the pharmaceutical industry, accelerating the implementation of innovation-driven development strategies, building an open innovation ecosystem, improving the quality and efficiency of innovation, accelerating the industrialization of innovation results, and creating a new engine for the sustainable and healthy development of the pharmaceutical industry. It also proposed that in the field of antibody drugs, focus on the development of new antibody drugs for tumors and immune diseases. In 2023, the Drug Evaluation Center of the State Drug Administration issued the "Drug Evaluation Center's Standards for Accelerating the Review of Applications for Marketing Authorization of Innovative Drugs (Trial)" to encourage the research and creation of innovative new drugs, children's drugs, and rare disease drugs, speed up the review and approval of innovative drug varieties, and encourage new drug research and development entities to pay more attention to clinical value. The "Key Tasks for Deepening the Reform of the Medical and Health System in 2024" released in 2024 proposed to speed up the review and approval of innovative drugs, rare disease treatment drugs, urgently needed clinical drugs, etc., as well as innovative medical devices.

The company currently focuses on developing innovative drug R&D pipelines for major diseases such as acute myeloid leukemia, acute ischemic stroke, and slow growth in children caused by endogenous growth hormone deficiency, and is committed to providing better treatment options for unmet clinical needs. With the continuous promotion of national industrial policies, the domestic pharmaceutical industry has entered a stage of high-quality development, with an obvious trend of innovative development.

(2) Purpose of this issuance

Improve the company’s production capacity of raw materials and preparations, and expand the company’s pipeline layout

Since its initial listing in 2011, the company has continued to actively reward investors through cash dividends and other methods. The company's actual controller and its persons acting in concert have increased their holdings of the company's shares many times and are firmly optimistic about the company's development. As the domestic pharmaceutical industry enters a stage of high-quality development, the company adapts to the new round of biotechnology revolution and industrial changes and accelerates transformation and upgrading. The use of funds raised from this issuance is in line with relevant national industrial policies, industry development trends and the company's strategic development direction, which will help further enhance the company's API and preparation production capabilities, while accelerating the research and development process of its own innovative drug pipeline, broadening the company's pipeline layout, effectively resisting market risks, and enhancing the company's long-term

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Profitability and comprehensive competitiveness, achieve the company's long-term sustainable development, and safeguard the long-term interests of shareholders.

Meet the company’s working capital needs and enhance the company’s ability to resist risks.

RMB 290 million of the company's funds raised from this issuance will be used to supplement working capital, which can effectively alleviate the company's working capital pressure. After the convertible bonds are converted into shares, the company's net assets can be increased, the asset-liability ratio can be reduced, the company's capital structure can be effectively improved, and the company's operational capabilities and market competitiveness can be enhanced. It will help achieve the company's long-term strategic development goals and provide financial guarantee for the sustainable development of future business and further consolidate and enhance its industry status.

Further improve the company's operating efficiency, in line with the interests of the company and all shareholders

This issuance can further improve the company's standardized operation level, strengthen internal management, improve operating efficiency, optimize the company's capital market image, better convey the company's strategic layout and operating results to the market, help promote the company to seize market opportunities, further enhance the company's core competitiveness, enhance the company's sustainable development capabilities, and is in the interests of the company and all shareholders.

3. Basic information of this issuance

(1) Type of securities issued this time

The type of securities issued this time is convertible corporate bonds that can be converted into the company's A shares. The convertible bonds and the A-shares converted in the future will be listed on the Shenzhen Stock Exchange.

(2) Issue quantity, face value of securities, issuance price or pricing method

The total amount of convertible bonds issued this time shall not exceed RMB 1,000,000,000 (including the principal amount). The specific issuance amount shall be determined by the company's board of directors authorized by the company's shareholders' meeting within the above-mentioned amount range. Each convertible bond issued this time has a face value of RMB 100 and is issued at face value.

(3) Estimated amount of raised funds (including issuance fees), net amount of raised funds, and account for special storage of raised funds

The total amount of funds expected to be raised from this issuance of convertible bonds will not exceed RMB 1,000,000,000 (including the principal amount), and the net amount of funds raised will be determined after deducting issuance expenses. The company has established a special storage system for raised funds. The funds raised from this issuance of convertible bonds will be deposited in a special account decided by the company’s board of directors. The specific account opening matters will be

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Determined by the company's board of directors before issuance.

(4) Investment direction of raised funds

The total amount of funds raised from this issuance of convertible corporate bonds shall not exceed RMB 1,000,000,000 (including the principal amount). After deducting the issuance expenses, it is planned to be used for the following projects:

Unit: Ten Thousand Yuan Order Planned to Use Raised Funds

Project name Total project investment

No. Investment amount 1 Innovative drug research and development project 41,923.49 41,000.00 2 Phase I construction project of Hubei Zhongxiang API production base 33,000.00 30,000.00 3 Supplementary working capital 29,000.00 29,000.00

Total 103,923.49 100,000.00

Before the funds raised from this issuance of convertible corporate bonds are in place, the company will first invest through its own or self-raised funds based on the actual progress of the investment project with raised funds, and replace the raised funds in accordance with the procedures stipulated in relevant laws and regulations after the funds are in place.

If the actual funds raised in this issuance (after deducting issuance expenses) are less than the total amount of funds to be invested in this issuance, the company's board of directors will arrange the specific use of the funds raised according to the importance and urgency of the use of the funds raised. The shortfall will be solved with its own funds or self-raised methods. The use of funds raised in this issuance and the specific arrangements will be adjusted based on the comprehensive judgment of regulatory authorities on specific projects, changes in market conditions, changes in implementation conditions of investment projects with raised funds, etc. without exceeding the scale of funds raised in this issuance reviewed and approved by the shareholders' meeting.

(5) Issuance method and issuance objects

The specific issuance method of this convertible corporate bond will be determined by the company's board of directors (or persons authorized by the board of directors) authorized by the company's shareholders' meeting to negotiate with the sponsor (lead underwriter). The convertible corporate bonds are issued this time to natural persons, legal persons, securities investment funds, and other investors that comply with legal regulations (except those prohibited by national laws and regulations) who hold securities accounts of the Shenzhen Branch of China Securities Depository and Clearing Co., Ltd.

(6) Underwriting method and underwriting period

This issuance is underwritten by the sponsor (lead underwriter) on a balance underwriting basis. The underwriting period is from [ ] year [ ] month [ ] day to [ ] year [ ] month [ ] day.

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(7) Issuance fees

No. Item Amount (10,000 yuan) 1 Sponsorship and underwriting fees [ ] 2 Lawyer fees [ ] 3 Audit and capital verification fees [ ] 4 Credit rating fees [ ] 5 Issuance fees, information disclosure and other fees [ ]

Total【】

(8) Time schedule for securities listing and stock exchange applying for listing

Project Matters Suspension Arrangements

Publish the "Prospectus", "Indicative Announcement of Prospectus" and "Issue Announcement"

T-2 day normal trading "Online Roadshow Announcement"

The original shareholder’s priority allotment equity registration date;
Online roadshow;

T-1 day 3. On the offline subscription day, offline institutional investors submit the "Offline Normal Transaction Subscription Form" and other relevant documents before 17:00, and pay the subscription deposit before 17:00 (such as

required)

Publish the "Informative Announcement on the Issuance of Convertible Bonds";
Priority allotment and subscription date for original A-share ordinary shareholders (full payment of funds);

Normal trading on T day

Online subscription (no need to pay subscription funds);
Determine the winning rate of online subscription
Publish the "Online Winning Rate and Offline Allotment Results Announcement";

Normal trading on T+1 day

Online subscription lottery
Publish the "Online Lottery Result Announcement";
Online investors confirm the subscription amount based on the winning number and pay the subscription fee.

(Investors ensure that the capital account has sufficient convertible bond subscription at the end of T+2 day

T+2 day normal trading funds);

Offline investors pay according to the allotment amount (if the subscription deposit is lower than the allotment amount

amount)

The lead underwriter determines the final allotment results and

T+3 day normal trading

Underwriting amount

On T+4, the "Issue Result Announcement" will be published and normal trading will occur.

(9) The listing and circulation of the securities issued this time, including restrictions or commitments on the holding period of various investors

There is no holding period limit for the issuance of convertible corporate bonds. After the issuance is completed, the company will apply to the Shenzhen Stock Exchange for listing and trading as soon as possible, and the specific listing time will be announced separately.

The company’s controlling shareholders, actual controllers, natural person shareholders holding more than 5% of the shares, directors and senior executives have undertaken

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It promises that if the subscription is successful, it will strictly abide by the provisions of the Securities Law and other relevant laws and regulations on stock and convertible bond transactions, that is, from the first day of the issuance of the convertible bonds (the announcement date of the prospectus) to six months after the completion of the issuance of the convertible bonds, it will not reduce its directly held shares of the issuer and the convertible bonds issued this time. For details, please refer to "(2) Commitments related to this issuance" of "IV. Commitments and Performance" in "Section 4 Basic Information of the Issuer" in this prospectus.

(10) Basic terms of this issuance of convertible bonds

Issuance scale

According to the provisions of relevant laws, regulations and normative documents and taking into account the company's financial status and investment plan, the total amount of funds raised by this issuance of convertible corporate bonds shall not exceed RMB 1,000,000,000 (inclusive). The specific amount of funds raised shall be determined by the company's shareholders' meeting authorizing the company's board of directors (or a person authorized by the board of directors) to determine within the above-mentioned amount.

Par amount and issue price

The convertible corporate bonds issued this time have a face value of RMB 100.00 each and are issued at face value.

Duration of convertible corporate bonds

The term of the convertible corporate bonds issued this time is six years from the date of issuance.

Coupon interest rate

The method of determining the coupon rate of the convertible corporate bonds issued this time and the final interest rate level in each interest-bearing year are requested to be determined by the company's shareholders meeting to authorize the board of directors (or a person authorized by the board of directors) to negotiate with the sponsor (lead underwriter) based on national policies, market conditions and the company's specific circumstances before issuance.

Time limit and method of repayment of principal and interest

The convertible corporate bonds issued this time accrue and pay interest based on annual simple interest, and the principal will be repaid once upon maturity, that is, interest will be paid once a year based on the bond balance, and the last interest will be paid together with the outstanding principal balance. The specific work regarding the interest payment and principal redemption of this convertible corporate bond will be handled in accordance with the relevant business rules of the China Securities Regulatory Commission, Shenzhen Stock Exchange and the securities registration and clearing agency.

(1) Annual interest calculation

The annual interest refers to the amount that the convertible corporate bond holders can earn based on the total par amount of the convertible corporate bonds they hold.

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The current interest that can be enjoyed for each full year from the first day of issuance of convertible corporate bonds.

The calculation formula for annual interest is: I=B×i

I: annual interest amount;

B: The total par amount of the convertible corporate bonds held by the holders of the convertible corporate bonds issued this time on the interest payment claim registration date in the interest accrual year (hereinafter referred to as "the current year" or "each year");

i: Coupon interest rate for the current year of convertible corporate bonds.

(2) Interest payment method

① The convertible corporate bonds issued this time adopt the simple interest payment method of once a year, and the interest accrual start date is the first day of the issuance of the convertible corporate bonds.

②Interest payment date: The annual interest payment date is the day of each full year from the first date of issuance of the convertible corporate bonds. If that day is a legal holiday or rest day, it will be postponed to the next trading day, and no additional interest will be paid during the postponement period. There is one interest accrual year between two adjacent interest payment dates.

Matters such as the attribution of interest and dividends in the year of share conversion shall be determined by the company's board of directors in accordance with relevant laws and regulations and the provisions of the Shenzhen Stock Exchange.

③ Interest-paying creditor's rights registration date: The annual interest-paying creditor's rights registration date is the trading day before the annual interest payment date. The company will pay the current year's interest within five trading days after the annual interest payment date. For convertible corporate bonds that are converted into company stocks before the registration date of interest-paying claims (including the registration date of interest-paying claims), the company will no longer pay interest to its holders for this and subsequent interest-bearing years.

④The tax payable on the interest income received by the holders of the convertible corporate bonds issued this time shall be borne by the convertible corporate bond holders.

(3) Repay principal and interest when due

The company will complete the repayment of the principal and interest of the bond balance within five working days after the expiration of the convertible corporate bonds.

Share conversion period

The conversion period of the convertible corporate bonds issued this time starts from the first trading day six months after the issuance completion date and ends on the maturity date of the convertible corporate bonds. Convertible corporate bond holders are interested in converting or not converting shares

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Have the right to choose and become a shareholder of the company on the next day after the share transfer.

Determination of share conversion price

The initial conversion price of the convertible corporate bonds issued this time shall not be lower than the average trading price of the company's stock on the twenty trading days before the announcement date of the Prospectus (if there is any stock price adjustment due to ex-rights or ex-dividends within the twenty trading days, the average trading price on the trading day before the adjustment shall be (calculated based on the price adjusted for corresponding ex-rights and ex-dividends) and the average trading price of the company's stock on the previous trading day. The specific initial conversion price is submitted to the company's shareholders meeting to authorize the company's board of directors (or a person authorized by the board of directors) to negotiate and determine with the sponsor (lead underwriter) based on market conditions before the issuance.

The average trading price of the company's stock in the previous twenty trading days = the total trading volume of the company's stock in the previous twenty trading days ÷ the total trading volume of the company's stock in the twenty trading days;

The average trading price of the company's stocks on the previous trading day = the total trading volume of the company's stocks on the previous trading day ÷ the total trading volume of the company's stocks on that day.

Adjustment method and calculation method of stock conversion price

After this issuance, when the company distributes stock dividends, converts into share capital, allocates shares, distributes cash dividends, etc., the company will adjust the conversion price according to the following formula (retaining two decimal places, the last digit is rounded):

Distribute stock dividends or convert to share capital: P =P ÷ (1+n);

1 0

Rights issue: P = (P +A×k)÷(1+k);

1 0

The above two items are carried out simultaneously: P = (P +A×k)÷(1+n+k);

1 0

Distribute cash dividends: P =P -D;

1 0

The above three items are carried out simultaneously: P = (P - D + A × k) ÷ (1 + n + k).

1 0

Among them: P is the conversion price after adjustment, P is the conversion price before adjustment, n is the share bonus rate or the increase in share capital.

1 0

rate, k is the allotment rate, A is the allotment price, and D is the cash dividend per share.

When the company experiences the above-mentioned changes in shares and/or shareholders' equity, the conversion price will be adjusted sequentially, and an announcement will be published on qualified information disclosure media for listed companies. The date of adjustment of the conversion price, adjustment method, and suspension of conversion period (if necessary) will be stated at that time. On the date of adjustment of the conversion price, the convertible

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If a corporate bond holder applies for stock conversion on or after the date but before the conversion stock registration date, the holder's stock conversion application will be executed at the company's adjusted stock conversion price.

When the company may undergo a share repurchase, merger, spin-off or any other situation that changes the company's share class, number and/or shareholders' equity, which may affect the creditor's rights or conversion-derived rights of the convertible corporate bond holders this time, the company will adjust the conversion price based on the specific circumstances and in accordance with the principles of fairness, justice, equity and the principle of fully protecting the rights and interests of the convertible corporate bond holders. The content and operation methods of the adjustment of the share conversion price will be formulated in accordance with the relevant laws and regulations of the country, the securities regulatory authorities and the securities registration and settlement institutions at that time.

Terms for downward revision of stock conversion price

(1) Correction conditions and correction range

During the existence of the convertible corporate bonds issued this time, when the closing price of the company's stock on at least fifteen trading days out of any thirty consecutive trading days is lower than 85% of the current conversion price, the company's board of directors has the right to propose a downward revision plan for the conversion price and submit it to the company's shareholders' meeting for review and vote. The plan must be approved by more than two-thirds of the voting rights held by shareholders attending the meeting before it can be implemented. When voting at the shareholders' meeting, shareholders holding convertible corporate bonds issued by the company this time should recuse themselves. The revised stock conversion price shall not be lower than the higher of the average trading price of the company's stock on the twenty trading days before the date of the shareholders' meeting and the average trading price of the company's stock on the previous trading day, and shall not be lower than the latest audited net asset value per share and the face value of the stock.

If a conversion price adjustment occurs within the aforementioned thirty trading days, the calculation will be based on the conversion price and closing price before the adjustment on the trading day before the conversion price adjustment date, and the adjusted conversion price and closing price on the trading day after the conversion price adjustment date.

(2) Correction procedure

When a company lowers its conversion price, it must publish an announcement of the resolution of the shareholders' meeting on a qualified listed company information disclosure media, disclosing information such as the magnitude of the correction, the starting time of the conversion price revision (i.e., the conversion price revision date), and the suspension of conversion period (if necessary).

If the date of revision of the conversion price is on or after the date of conversion application and before the date of registration of converted shares, such conversion application shall be executed based on the revised conversion price.

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How to determine the number of shares to be converted

When holders of the convertible corporate bonds issued this time apply for stock conversion during the stock conversion period, the number of shares to be converted is calculated as: Q=V÷P, and the rounding method is used to obtain an integer multiple of one share.

Among them: Q is the number of shares to be converted, V is the total par amount of convertible corporate bonds applied for conversion by the convertible corporate bond holder, and P is the conversion price valid on the day of application for conversion.

The shares that holders of convertible corporate bonds in this issuance apply for conversion must be an integral number of shares. If the balance of the convertible corporate bonds is insufficient to be converted into one share during the conversion, the company will, in accordance with the relevant regulations of the China Securities Regulatory Commission, the Shenzhen Stock Exchange and the securities registration and clearing agency, pay the convertible corporate bond holder in cash within five trading days after the date of conversion.

Redemption Terms

(1) Maturity redemption terms

Within five trading days after the expiration of the convertible corporate bonds issued this time, the company will redeem all convertible corporate bonds that have not been converted into shares. The specific redemption price will be determined by the company's board of directors (or person authorized by the board of directors) authorized by the company's shareholders' meeting to negotiate with the sponsor (lead underwriter) based on market conditions before this issuance. (2) Conditional redemption terms

During the conversion period of the convertible corporate bonds issued this time, if one of the following circumstances occurs, the company has the right to decide to redeem all or part of the unconverted convertible corporate bonds at the price of the bond's face value plus current accrued interest:

① During the share conversion period, if the closing price of the company’s stock on at least fifteen trading days out of any thirty consecutive trading days is not less than 130% (inclusive) of the current share conversion price;

②The unconverted balance of the convertible corporate bonds issued this time is less than RMB 30 million.

The calculation formula for current accrued interest is: IA=B×i×t÷365

IA: current accrued interest;

B: The total par amount of the convertible corporate bonds to be redeemed held by the holders of the convertible corporate bonds issued this time;

i: Coupon interest rate for the current year of convertible corporate bonds;

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t: The number of interest accrual days, that is, the actual number of calendar days from the last interest payment date to the redemption date of this interest accrual year (the beginning is not counted).

Sale-back terms

(1) Conditional sell-back clause

During the last two interest-bearing years of the issuance of convertible corporate bonds, if the closing price of the company's stock on any thirty consecutive trading days is lower than 70% of the current conversion price, the convertible corporate bond holders have the right to sell all or part of the convertible corporate bonds they hold back to the company at the price of the bond's face value plus current accrued interest.

If the conversion price is adjusted during the above-mentioned trading days due to the distribution of stock dividends, capitalization, allotment of shares, distribution of cash dividends, etc., the conversion price and closing price before the adjustment will be calculated on the trading day before the conversion price adjustment day, and the adjusted conversion price and closing price on the trading days after the conversion price adjustment day. If the conversion price is revised downward, the "thirty consecutive trading days" mentioned above must be recalculated from the first trading day after the conversion price is adjusted.

In the last two interest accrual years of the issuance of convertible corporate bonds, the convertible corporate bond holders can exercise the putback right once according to the above agreed conditions after the putback conditions are first met in each interest accrual year. If the putback conditions are met for the first time and the convertible corporate bond holder fails to declare and implement the putback within the resale declaration period announced by the company at that time, the putback right cannot be exercised in that interest accrual year, and the convertible corporate bond holder cannot exercise part of the putback right multiple times in the same interest accrual year.

(2) Additional sell-back terms

If the implementation of the investment project raised by the convertible corporate bonds issued this time has significant changes compared with the company's commitments in the Prospectus, and the change is recognized by the China Securities Regulatory Commission or the Shenzhen Stock Exchange as a change in the purpose of the raised funds, the holders of the convertible corporate bonds have the right to sell back once. Convertible corporate bond holders have the right to sell all or part of the convertible corporate bonds they hold back to the company at the face value of the bond plus current accrued interest. After the additional sell-back conditions are met, the holder can sell back during the additional sell-back declaration period after the company's announcement. If the sell-back is not implemented during the additional sell-back declaration period,

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The additional put right should no longer be exercised. For the calculation method of current accrued interest, please refer to the relevant content of the redemption terms.

Dividend distribution after share conversion

The company's shares increased due to the conversion of the convertible corporate bonds issued this time have the same rights and interests as the original stocks. All common shareholders registered on the equity registration date for dividend distribution (including shareholders formed due to the conversion of convertible corporate bonds) will participate in the current dividend distribution and enjoy the same rights and interests.

Issuance method and issuance objects

Arrangements for placement to original shareholders

The convertible corporate bonds issued this time will be prioritized for allotment to the company's original shareholders, and the original shareholders have the right to waive the priority allotment rights. The specific proportion of preferential allotment to original shareholders shall be submitted to the company's shareholders meeting to authorize the company's board of directors (or persons authorized by the board of directors) to negotiate with the sponsor (lead underwriter) based on the specific circumstances of the issuance, and shall be disclosed in the relevant issuance documents of this convertible corporate bond. The balance other than the preferential allotment by the original shareholders and the part after the original shareholders gave up the preferential allotment will be carried out through a combination of offline placement to investors in other markets (if necessary) and online pricing issuance through the Shenzhen Stock Exchange system. The balance will be underwritten by the underwriters.

Matters related to the meeting of convertible corporate bond holders

(1) Rights of holders of convertible corporate bonds

① Enjoy the agreed interest based on the amount of convertible corporate bonds held by it;

②Convert the convertible corporate bonds held into company stocks according to the conditions agreed in the Prospectus; ③Exercise the right to sell back according to the conditions agreed in the Prospectus;

④ Participate or entrust an agent to participate in bondholder meetings and exercise voting rights in accordance with laws, administrative regulations and other relevant regulations;

⑤Transfer, donate or pledge the assets held by it in accordance with the provisions of laws, administrative regulations and the Articles of Association

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convertible corporate bonds;

⑥Obtain relevant information in accordance with laws, administrative regulations, other normative documents and the Articles of Association;

⑦Require the company to repay the principal and interest of the convertible corporate bonds according to the time limit and method agreed in the Prospectus; ⑧Other rights as the company's creditor granted by laws, administrative regulations and the Articles of Association. (2) Obligations of holders of convertible corporate bonds

① Comply with the relevant provisions of the terms of the company’s issuance of convertible corporate bonds;

② Pay subscription funds according to the amount of convertible corporate bonds subscribed;

③Comply with the effective resolutions reached at the bondholders’ meeting;

④Except as stipulated by laws, regulations and the Prospectus, the company shall not be required to repay the principal and interest of this convertible corporate bond in advance;

⑤ Other obligations that should be borne by the holders of this convertible corporate bond as stipulated in laws, administrative regulations and the Articles of Association.

(3) Convening of convertible corporate bond holders’ meeting

During the duration of this convertible corporate bond, if one of the following circumstances occurs, the company's board of directors shall convene a meeting of convertible corporate bond holders:

① Plan to change the provisions of the Prospectus;

② Plan to amend the bondholders’ meeting rules;

③ Plan to change the bond trustee or the main contents of the trustee management agreement;

④The company cannot pay the principal and interest of this convertible corporate bond on time;

⑤ The company's capital reduction (except for the capital reduction caused by the repurchase of shares due to the implementation of employee stock ownership plans, equity incentives or performance of performance commitments, and the capital reduction caused by the repurchase of shares necessary to maintain the company's value and shareholders' rights), mergers, etc. may lead to major adverse changes in the solvency, and a decision or authorization is required to take corresponding measures; ⑥ The company is divided, placed in trusteeship, dissolved, applies for bankruptcy or enters bankruptcy proceedings in accordance with the law;

⑦ There are significant changes in the guarantor (if any), collateral (if any) or other debt repayment safeguards of this convertible corporate bond;

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⑧The company and holders who individually or collectively hold more than 10% of the total outstanding face value of the convertible corporate bonds of this convertible corporate bond propose in writing to convene the meeting;

⑨ The company’s management cannot perform its duties normally, causing serious uncertainty in the issuer’s debt repayment ability;

⑩The company proposes a debt restructuring plan;

⑪Other events that have a significant substantive impact on the rights and interests of bondholders occur;

⑫ Other matters that should be reviewed and decided by the bondholders’ meeting in accordance with laws, administrative regulations, China Securities Regulatory Commission, Shenzhen Stock Exchange, the Prospectus and the rules of this bondholders’ meeting.

(5) The following institutions or persons may propose in writing to convene a meeting of convertible corporate bond holders:

The company's board of directors, bondholders who individually or collectively hold more than 10% of the total outstanding face value of the convertible corporate bonds, bond trustees, or other institutions or persons specified by relevant laws and regulations, the China Securities Regulatory Commission, and the Shenzhen Stock Exchange may propose in writing to convene a bondholder meeting.

Guarantee matters

The convertible corporate bonds issued this time are not guaranteed.

Convertible corporate bond rating matters

The convertible corporate bonds issued by the company this time have been rated by CSI Pengyuan Credit Rating Co., Ltd. According to the "Credit Rating Report of Changzhou Qianhong Biochemical Pharmaceutical Co., Ltd. Issuing Convertible Corporate Bonds to Unspecified Objects" issued by CSI Pengyuan Credit Rating Co., Ltd., the long-term credit rating of the company's main body is AA, and the credit rating of this convertible bond is AA, with a stable rating outlook.

After the convertible bonds issued this time are listed, the rating agency will conduct regular or irregular follow-up ratings on the credit status of the bonds during the bond's duration and issue a follow-up rating report. Regular follow-up ratings shall be carried out at least once a year during the bond life.

(11) Trust management matters of this convertible bond

The company appointed Huatai United Securities as the trustee of this convertible corporate bond and agreed to accept the supervision of Huatai United Securities. During the duration of this convertible corporate bond, Huatai United Securities will follow relevant laws and regulations, normative documents and self-regulatory rules, the "Prospectus", "Trust Management Agreement" and "Convertible Bonds".

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to exercise rights and perform obligations in accordance with the provisions of the Meeting Rules of Conversion Corporate Bondholders. Investors who subscribe or hold this convertible corporate bond are deemed to agree to Huatai United Securities as the trustee of this convertible corporate bond, and are deemed to agree to the relevant agreements under the "Bond Trusteeship Management Agreement" and the convertible corporate bond holders' meeting rules.

(12) Liability for breach of contract and dispute resolution mechanism

Breach of contract

The following events constitute default events under this bond:

(1) The company has or is expected to be unable to pay the principal or interest of this bond on time;

(2) The company has or is expected to be unable to pay other interest-bearing liabilities other than this bond on time, and the outstanding amount due exceeds 50 million yuan and reaches more than 10% of the parent company’s latest audited net assets, which may lead to a default on this bond;

(3) Important subsidiaries within the scope of the company's consolidated statements (referring to subsidiaries whose latest audited total assets, net assets or operating income account for more than 30% of the corresponding items in the company's consolidated statements) have been or are expected to be unable to pay interest-bearing liabilities on time, and the outstanding amount due exceeds 50 million yuan and reaches more than 10% of the parent company's latest audited net assets, which may lead to a default on this bond;

(4) The company undergoes a capital reduction, merger, split, is ordered to suspend production and business, has its license suspended or revoked, causing serious uncertainty in the company's solvency, or is placed in trusteeship/takeover, dissolved, applies for bankruptcy or enters bankruptcy proceedings in accordance with the law;

(5) The company’s management is unable to perform its duties normally, causing the company’s solvency to face serious uncertainty;

(6) The company or its controlling shareholders or actual controllers transfer assets for free or at obviously unreasonable consideration, give up creditor's rights, provide large external guarantees, etc., causing the company's solvency to face serious uncertainty; (7) There are major adverse changes in credit enhancement entities, credit enhancement measures or other debt repayment guarantee measures;

(8) During the duration of this bond, the company violated the representations and warranties under the Trusteeship Agreement, failed to perform information disclosure obligations, notification obligations, credit risk management responsibilities and other obligations and responsibilities in accordance with regulations or agreements, which had a significant adverse impact on the company's ability to repay principal and interest on this bond, and has not been corrected for twenty consecutive working days;

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(9) The company has other events that have a significant adverse impact on the rights and interests of bondholders.

How to assume liability for breach of contract

(1) If the company's default listed in "1. Default Situations" in this section occurs, according to the bond holders' meeting rules, the bond holders with voting rights can form a valid resolution through the bond holders' meeting, notify the company in writing, and declare that the bond principal and corresponding interest are immediately due and payable;

(2) After announcing the acceleration of repayment, if the company takes the following relief measures without violating applicable legal provisions, the bond trustee may notify the company in writing and announce the cancellation of the decision to accelerate repayment after passing the resolution of the bondholders meeting:

① Provide a security deposit to the bond trustee, and the security deposit amount is sufficient to cover the total of the following amounts:

a. Reasonable compensation, fees and expenses of the bond trustee;

b. Interest on all late payments;

c. All principal amounts due and payable;

d. Compound interest calculated on the deferred payment of bond principal to the extent permitted by applicable law;

② The company's default event has been relieved or exempted by the bondholders' meeting resolution; ③ Other relief measures agreed to by the bondholders' meeting.

Dispute resolution mechanism

The issuance of bonds shall be governed by and interpreted in accordance with Chinese laws. Any dispute arising under or in connection with the Trusteeship Agreement shall first be resolved through negotiation between the parties to the dispute. If the negotiation fails, a lawsuit can be filed with the people's court with jurisdiction over the place where the agreement is signed. When any dispute arises and any dispute is being resolved in accordance with the provisions of the previous article, except for the disputed matters, each party has the right to continue to exercise other rights under the "Entrustment Management Agreement" and shall perform other obligations under the "Entrustment Management Agreement".

(13) Reasonable analysis of the scale of convertible bonds issued this time

At the end of 2022, the end of 2023, the end of 2024 and the end of September 2025, the company's asset-liability ratio (consolidated basis) was 13.28%, 10.56%, 11.09% and 8.48% respectively; 2022, 2023, 2024 and 2025 1-9 In March, the net cash flows generated by the company’s operating activities were -71.4739 million yuan,

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533.328 million yuan, 514.7091 million yuan and 291.3467 million yuan. The company has a reasonable asset-liability structure and normal cash flow. This issuance of convertible bonds intends to raise 1 million yuan, and the company's net assets at the end of the reporting period are 2,759,626,000 yuan. The company's cumulative corporate bond balance after the issuance of convertible bonds accounted for 36.24% of the net assets at the end of the latest period, accounting for no more than 50%. After the funds raised from this issuance are in place, the company's total assets and net assets will increase, the company's financial strength will be improved, and the company's financial risks will be reduced. This issuance can effectively optimize the company's capital structure, and it is expected that the company will have sufficient cash flow to pay the principal and interest of corporate bonds in the future.

(14) This issuance is in line with rational financing and the financing scale is reasonably determined

The total amount of funds planned to be raised by the company through this issuance of convertible bonds does not exceed RMB 1,000,000,000 (including the principal amount). The company's previous fund-raising was an initial public offering of stock listings. All the funds raised in the previous round were fully received in February 2011. The date of the resolution of the board of directors of this issuance was more than 18 months from the date when the funds raised in the previous round were in place. The funds raised by the issuer from this issuance will be used for "Innovative Drug Research and Development Projects", "Hubei Zhongxiang API Production Base Phase I Construction Project" and "Supplementary Working Capital". Among them, "Innovative Drug Research and Development Projects" and "Hubei Zhongxiang API Production Base Phase I Construction Project" will help further enhance the company's API and preparation production capabilities , while accelerating the research and development process of its own innovative drug pipeline, broadening the company's pipeline layout, and investing mainly in the company's main business; "supplementary working capital" is used to supplement the working capital required for daily operations, meet the needs of healthy development, promote the development of production and operation and improve efficiency, so as to consolidate the company's market position and enhance the company's comprehensive competitiveness. The company determined the financing scale of this issuance after comprehensively considering factors such as the downstream market demand, research and development status, and funding situation of the products raised and invested in this project. The scale of this financing is reasonable.

To sum up, the company’s issuance focuses on its main business, rational financing and reasonable financing scale.

4. Relevant institutions of this issuance

(1) Issuer

Name Changzhou Qianhong Biochemical Pharmaceutical Co., Ltd.

Legal representative Wang Ke

Address: No. 518, Yunhe Road, Xinbei District, Changzhou City

Secretary of the Board of Directors Yao Yi

Contact number 0519-86020688

Fax number 0519-86020617

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(2) Sponsor (lead underwriter)

Name Legal representative of Huatai United Securities Co., Ltd. Jiang Yu

Small residence of Qianhai Shenzhen-Hong Kong Fund, No. 128, Guiwan 5th Road, Nanshan Street, Qianhai Shenzhen-Hong Kong Cooperation Zone, Shenzhen City

No. 401, Building B7, Town

Sponsor representatives Diao Guijun, Zhuang Chen

Project co-organizer Zhang Xiaoqing

Project team members Ji Lihua, Zhang Xinzhe, Liang Ge, Zhang Wei, Xue Jie Contact number: 025-83387701

Fax number 025-83387711

(3) Law Firm

Name Head of Beijing Guofeng Law Firm Zhang Liguo

Address: 7th Floor, News Building, No. 26 Jianguomennei Street, Dongcheng District, Beijing. Attorneys Dai Wendong, Shi Wenwen and Li Zong. Contact number: 010-88004488

Fax number 010-66090016

(4) Accounting firm

Name Zhang Caibin, head of the organization of Gongzheng Tianye Accounting Firm (Special General Partnership)

Residence: Room 5-1001, Jiaye Fortune Center, Taihu New Town, Wuxi City Managing Certified Public Accountant Wang Wenkai, Diao Hongyan

Contact number 0519-86622612

Fax number 0519-86605893

(5) Application for listing on a stock exchange

Name Shenzhen Stock Exchange

Address: No. 2012, Shennan Avenue, Futian District, Shenzhen Tel: 0755-88668888

Fax number 0755-82083164

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(6) Receiving bank

Name: Zhenhua Sub-branch, Shenzhen Branch, Industrial and Commercial Bank of China Co., Ltd. Account opening name: Huatai United Securities Co., Ltd.

Account number 4000010209200006013

(7) Credit rating agencies

Name CSI Pengyuan Credit Rating Co., Ltd.

Legal representative Zhang Jianwen

Address: 42nd Floor, East Tower, Digital China International Innovation Center, No. 82, Shenwan 2nd Road, Nanshan District, Shenzhen. Personnel: Xu Ningyi, Zeng Lili

Contact number 0755-82872897

Fax number 0755-82872090

The relationship between the issuer and the intermediaries related to this issuance

There is no direct or indirect equity relationship or other interest relationship between the issuer and the sponsors, underwriters, securities service agencies and their responsible persons, senior managers and handling personnel related to this issuance.

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Section 3 Risk Factors

1. Risks related to the issuer

(1) Risk of raw material price fluctuations

During each reporting period, the main raw materials purchased by the company were pig by-products such as crude heparin and crude pancreatin. Their prices are easily affected by the economic situation and the supply and demand environment, and direct materials are an important part of the company's main business costs. If the prices of the main raw materials purchased by the company fluctuate significantly in the future, it will directly affect the company's production costs, which will in turn have a greater impact on the company's operating performance.

(2) Risk of gross profit margin fluctuations

(3) Inventory impairment risk

At the end of each reporting period, the book value of the company's inventory was 536.4834 million yuan, 602.0105 million yuan, 426.8126 million yuan and 382.9738 million yuan respectively, accounting for 31.80%, 37.02%, 25.20% and 382.9738% of the current assets at the end of each period respectively. 19.77%, the inventory amount is relatively large, mainly raw materials such as crude heparin. If there are significant adverse changes in the market prices of raw materials or the sales prices of the company's products in the future, or if the company's inventory management is poor, the company will face the risk of inventory impairment.

(4) Risks of R&D and technological innovation falling short of expectations

The biopharmaceutical industry in which the company operates is a technology-intensive industry. The R&D and production processes have high technical difficulties and R&D thresholds. They involve deep intersections in multiple fields such as molecular biology, clinical medicine, and pharmacy, requiring R&D and production personnel to possess highly specialized knowledge and skills. In order to ensure that the company continues to maintain its core competitiveness in R&D and innovation, the company needs to continuously independently develop new technologies and new products and complete registration based on accurate and timely grasp of market demand and industry technology development trends. In addition, the company is developing innovative clinical drugs

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The experimental results and future marketization process are also uncertain. If the company fails to make correct judgments on the direction of research and development in the future, fails to make breakthroughs in key technologies during the research and development process, fails to achieve clinical trial results as expected, or fails to obtain market recognition for the drugs it develops, the company will face the risk that it will be difficult to recoup its early R&D investment and achieve the expected benefits, which will have an adverse impact on the company's performance.

(5) Risk of core technology leakage

After years of accumulation of R&D innovation, the company has mastered a number of purification and preparation processes for polysaccharides and protease drugs. The continuous optimization of the company's existing products and the successful development of innovative products largely rely on independently developed core technologies and extensive preclinical research and development work. The company attaches great importance to the protection of independent intellectual property rights and promptly applies for patent protection during the research and development process. If the company fails to effectively protect its own product intellectual property rights in the future, the company's competitive advantage in the market may be affected. If core technology leaks occur due to poor internal technology confidentiality management, or the company's applied patents are maliciously infringed, it will damage the company's market competitiveness to a certain extent and may have an adverse impact on the company's production and operations.

(6) Risk of technical talent loss

The core technical talents of pharmaceutical companies are the key driving factors for the long-term development of the company. Having a stable, high-level team of professional and technical talents with comprehensive professional backgrounds is crucial for the company to maintain its competitive advantage. As the competition for talents among domestic and foreign pharmaceutical R&D and production companies becomes increasingly fierce, if the company fails to establish a long-term technical talent training mechanism and fails to provide market competitive salary packages and incentive mechanisms, there may be a risk of losing core technical talents, which will adversely affect the company's technological innovation and production operations.

(7) Risk of unrecoverable accounts receivable

At the end of each reporting period, the book values of the company's accounts receivable were 565.0804 million yuan, 225.0318 million yuan, 254.3876 million yuan and 249.2203 million yuan respectively, accounting for 33.49%, 13.84%, 15.02% and 12.86% of current assets respectively. If the operating conditions of the company's major customers deteriorate in the future and the company is unable to collect receivables in a timely manner, there will be a risk of bad debt losses on the receivables.

(8) Exchange rate fluctuation risk

The company's overseas business is mainly settled in US dollars, and the exchange rate of RMB against the US dollar and other major international currencies fluctuates.

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The action will have a direct impact on the profitability of the issuer's export business. In each reporting period, the company's exchange gains and losses (negative numbers indicate exchange losses) were 74.016 million yuan, 1.2619 million yuan, 3.7262 million yuan and -6.6143 million yuan respectively. Exchange rate fluctuations have a certain impact on the company's performance.

(9) Internal control system construction and internal control system implementation risks

The internal control system is an important factor in ensuring the normal operation of the company's finances and business. The company has established a complete set of modern enterprise internal control systems in accordance with the requirements of modern enterprise management, covering subsidiary management and control, pharmaceutical industry compliance management, etc. If the internal control system is not continuously tracked and improved based on specific operating conditions during daily operations and management, or the relevant personnel fail to implement the relevant requirements of the company's internal control system during specific business processing, or the internal control supervision and management agency fails to promptly discover defects in internal control design or execution during the supervision process, the company may still have risks caused by unreasonable design, poor implementation, or lack of supervision of the internal control system, which will directly affect the realization of the company's operation and management objectives, the safety of the company's property, and the stability of its operating performance.

(10) Operation and management risks

As the company develops, its assets, personnel, and business scale will gradually expand. Correspondingly, the company's operating activities, organizational structure, and management system will also become more complex. The production process of biopharmaceutical products is long, the process is complex, and there are many factors that affect product quality. Higher requirements will also be placed on the operational capabilities, internal control, and human resources management of the company's management team. If the subsequent company cannot adjust and improve the organizational structure and management system in a timely manner, and improve the business quality and management level of the management, the company will face operational and management risks caused by scale expansion.

2. Risks related to the industry

(1) Risks of global heparin market fluctuations

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As a result of destocking, the demand for upstream API products has declined significantly, market competition has intensified, and the price of heparin API has fallen back. As of October 2023, the price of heparin has fallen rapidly to US$4,805/kg. The price of heparin will fluctuate in 2024, with the export price in December being US$3,992/kg. In 2025, the price of heparin API will be in a relatively stable stage, with the export price in September being US$4,576/kg. Market price fluctuations have a direct impact on the company's operating performance: rising heparin prices usually drive revenue growth and increase gross profit margins; while during price declines, the company faces pressure from reduced sales revenue and gross profit margins, and profitability stability will be challenged. If the heparin market price continues to be low or fluctuate in the future, the company may face the risk of slowing or even declining revenue growth. At the same time, with the advancement of science and technology, if other anticoagulant drugs appear to be more effective than heparin drugs, or if synthetic similar products succeed and replace heparin products in large quantities, it will have a huge impact on the entire heparin industry and have a major adverse impact on the company's production and operations.

(2) International trade frictions and risks of overseas operations

In recent years, with the in-depth adjustment of the global industrial structure, international trade frictions have continued, and anti-globalization trends have emerged. Some countries have adopted trade protection measures, which have had an objective adverse impact on the development of related industries in China. Chinese companies will face increasing international trade frictions and trade disputes. In each reporting period, the company's foreign sales revenue accounted for 43.23%, 30.79%, 23.11% and 26.18% of its main business revenue respectively. It is mainly sold to Europe, Asia, America, Oceania and other regions, and its product sales area covers a wide range of areas. There are great differences in the economic, political, legal and business environments in different overseas sales regions. If the company cannot promptly respond to changes in overseas market environments, regulatory policies and other changes, the company's overseas business development and the company's overall operating performance may be adversely affected.

(3) Risks of policy reform in the pharmaceutical industry

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(4) Risks of intensified market competition

The pharmaceutical manufacturing industry in which the company is located is a fully competitive industry, involving a wide range of industrial chains and numerous market participants. Most of the company's main competitors are listed companies, which have a large advantage in scale. With the influx of new competitors and the continued investment of existing market players, the industry faces the risk of intensified competition. If the company's products, technologies and services cannot meet the needs of downstream customers in a timely manner or lag behind competitors in the same industry, the company's products will be at a disadvantage in market competition, which will have an adverse impact on the company's market share and profitability.

3. Other risks

(1) Risks of investment projects using raised funds

Innovative drug research and development projects

The company plans to use the raised funds of 410 million yuan for the Phase III clinical research and marketing registration project of the new acute ischemic stroke drug QHRD106 injection, the Phase IIb clinical research and marketing registration project of the new acute myeloid leukemia drug QHRD107 capsule, and the Phase III clinical research and marketing registration project of the new drug QHRD211 injection for slow growth in children caused by endogenous growth hormone deficiency. The research and development of innovative drugs has the characteristics of large R&D investment, high technical difficulty, and long trial period, and is easily affected by unpredictable factors, including: the risk that key technical difficulties cannot be solved, that is, because one or some technical indicators and standards fail to meet expectations or the cost of meeting expected standards is too high, or the product cannot be successfully launched The amplification of industrialization will cause product development progress to lag behind, or even fail; the risk of clinical research failure, that is, during the clinical trial process, if unexpected serious adverse events occur or the clinical efficacy does not meet expectations, it may cause regulatory authorities to suspend or terminate clinical research, which will affect research and development progress or even lead to research and development failure. New drug research and development is a process with a long cycle and high investment. The different stages from research and development to the final product launch into the market are full of challenges. Therefore, innovative drug research and development projects have the risk of not meeting expectations or even failure of research and development.

Hubei Zhongxiang API Production Base Phase I Construction Project

The company plans to use the raised funds of 300 million yuan for the first phase construction project of Hubei Zhongxiang API production base. During the actual construction and operation of the project, there are major adverse changes in the macroeconomic situation, industrial policies, terminal market expansion, competitive environment, market capacity, the emergence of new substitute products, product price changes, etc., as well as unforeseen factors during the project implementation process, resulting in the fund-raising project not being completed on schedule.

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risks of working or not achieving expected returns. At the same time, after the completion of the project, the company's fixed assets will increase significantly. After the project construction reaches the scheduled usable state, the company will add more depreciation expenses every year. After the investment project with the funds raised this time has fully reached production, if the company's investment project with the funds raised this time does not realize the expected returns and the project income cannot cover the relevant expenses, the company will have the risk of having an adverse impact on net profit growth due to depreciation and amortization of fixed assets in the short term.

(2) Risks of digestion of new production capacity

After the first phase of the construction project of Hubei Zhongxiang API production base is completed, the company's production capacity will be greatly improved. However, the project invested with funds raised this time requires a certain construction period and production period. During the project implementation process and after the completion of the project, if there are major adverse changes in the market environment, technology, relevant policies, etc., the company may not be able to fully absorb the new production capacity of the project invested with funds raised this time, resulting in problems such as idle production capacity, which will have an adverse impact on the company's operations.

(3) Risks of new depreciation and amortization expenses

The company's capital expenditure for this fundraising project is relatively large. After the project is completed and reaches the intended usable state, a large amount of depreciation and amortization expenses will be added every year, which will have a certain impact on the company's operating performance. According to preliminary calculations based on the current depreciation and amortization policies, after the completion of this fundraising project, the company will incur new depreciation and amortization expenses of a total of 23.2947 million yuan in the year of reaching production, accounting for 1.44% of the company's expected revenue in the year of reaching production, and accounting for 4.02% of the company's expected net profit in the year of reaching production, which will have a certain impact on the company's performance. At the same time, after the investment of fixed assets and intangible assets, it will take a certain amount of time for the project to fully reach production and market development. If the future market development progress is less than expected or the company's overall operating efficiency fails to effectively improve, the project will not be able to reach production as planned and achieve expected benefits. In this case, the additional depreciation and amortization costs will directly affect the company's profit level and constitute certain operating risks.

(4) Risk of decline in return on net assets in the short term

During each reporting period, the company's weighted average return on equity after deducting non-recurring gains and losses was 11.46%, 5.89%, 11.13% and 10.26% respectively. After this issuance is completed and the funds raised are in place, the company's net assets will increase significantly. However, it will take a certain amount of time to construct and put the investment projects into production and generate economic benefits. Therefore, the company has the risk of a decline in the return on net assets in the short term.

(5) The risk of this issuance diluting spot returns

After the completion of this issuance, the company's net assets and total share capital will increase accordingly, and the investment projects with raised funds will

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It takes a certain process and time for the project to generate benefits. In the short term, the company's profit realization and shareholder returns still mainly rely on the existing business. Therefore, in the short term, the company's financial indicators such as earnings per share and return on net assets may be at risk of decline. Investors are hereby reminded to pay attention to the risk of diluting current returns from this issuance.

(6) Risks of changes in preferential tax policies

During the reporting period, the main tax preferential policy enjoyed by the company is the 15% preferential corporate income tax rate for high-tech enterprises. If the state adjusts relevant tax support policies, or the company itself no longer meets the conditions for identification of high-tech enterprises, resulting in the company being unable to continue to enjoy relevant tax preferential policies, it will have a certain adverse impact on the company's operating performance.

(7) Main risks related to this issuance of convertible bonds

The risk of issuing convertible bonds that cannot be converted into shares upon maturity

After entering the conversion period of convertible bonds, convertible bond investors will mainly face the following risks related to the conversion:

(1) The trend of the company's stock price depends on the company's performance, macroeconomic situation, overall stock market conditions and other factors. During the conversion period, if the company's stock price cannot reach or exceed the current conversion price of the convertible bonds due to various factors, the conversion value of the convertible bonds may decrease, thus affecting investors' investment returns.

(2) This convertible bond has a conditional redemption clause. During the conversion period, if the redemption conditions are met, the company has the right to redeem all or part of the unconverted convertible bonds at the face value plus current accrued interest. If the company exercises the conditional redemption clause, investors in the convertible bonds may be prompted to convert shares in advance, thereby exposing investors to the risk of shortening the duration of the convertible bonds and reducing future interest income.

(3) The conversion of convertible bonds into shares is affected by many factors such as the conversion price, the company’s stock price during the conversion period, investor preferences and expectations, etc. If the convertible corporate bonds fail to be converted during the conversion period due to reasons such as the company's stock price being low or not meeting the expectations of bondholders, the company will need to repay the principal and interest on the unconverted convertible corporate bonds. The company will have certain financial pressure on regular repayments, thereby increasing the company's financial expense burden and capital pressure.

Principal and interest payment risk

The duration of the convertible bonds issued this time is 6 years, with interest paid once a year. After maturity, the principal and the interest for the last year will be repaid in one go. If there is a major negative impact on the company's operation management and solvency during the duration of the convertible bonds,

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Impact events may affect the payment of bond interest and principal.

Risk of price fluctuation of convertible bonds

Convertible bonds are hybrid securities with bond characteristics and stock options attached. They are complex derivative financial products with dual characteristics of stocks and bonds. Its price in the secondary market is affected by many factors such as market interest rates, remaining term of the bond, conversion price, company stock price, redemption terms, sell-back terms and conversion price downward revision terms, investor expectations, etc. Investors in convertible bonds need to have certain professional knowledge. During the listing, trading, equity conversion, etc. process, the price of convertible bonds may fluctuate abnormally or seriously deviate from its investment value, which may prevent investors from obtaining expected investment returns.

The risk that the downward revision clause of the conversion price during the duration of the convertible bonds will not be implemented or the magnitude of the revision is uncertain.

During the duration of the convertible bonds, the conditions for downward revision of the convertible bond conversion price may not be met. At the same time, if the conditions for a downward revision of the convertible bond conversion price are met, the issuer's board of directors may still not propose a downward adjustment plan for the conversion price based on multiple considerations such as the company's actual situation, stock price trends, and market factors. Therefore, holders of convertible bonds during the duration may face the risk that the downward revision clause of the conversion price cannot be implemented and the magnitude of the revision of the conversion price is uncertain.

Risks of unguaranteed convertible bonds

The company did not establish guarantees for this issuance of convertible bonds. If an event occurs during the existence of this convertible bond that has a significant negative impact on the company's operating ability and solvency, the issuance of convertible bonds may increase the redemption risk because there is no guarantee.

Risk of early redemption

This convertible corporate bond has a conditional redemption clause. During the duration of the convertible bond, if the relevant conditions are met, if the company exercises the above conditional redemption clause, it may lead to the redemption of this convertible bond.

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Investors convert shares in advance, which results in investors facing the risk of shortening their investment period and losing their expected future interest income.

Risk of credit rating changes

The convertible corporate bonds issued by the company this time have been rated by China Securities Pengyuan Credit Rating Co., Ltd., of which the long-term credit rating of the company is AA, the credit rating of the convertible bonds is AA, and the rating outlook is stable. During the duration of this convertible bond, if the credit rating of this bond is adversely changed due to factors such as the company's external operating environment, the company's own conditions or changes in rating standards, it will increase investors' risks and have a certain impact on investors' interests.

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Section 4 Basic Information of the Issuer

1. Total share capital before this issuance and shareholding status of the top ten shareholders

As of September 30, 2025, the company's total share capital was 1,279.80 million shares, of which the top 10 shareholders are as shown in the table below:

Unit: shares pledged, marked or frozen name of shareholder Nature of shareholder

shareholding

Number of shares held

Hold a sales restriction

situation

Ratio Number of Shares of Pieces

Share status Quantity Wang Yaofang Domestic natural person 19.96% 255,402,000 191,551,500 Not applicable -Wang Ke Domestic natural person 6.67% 85,409,600 64,057,200 Not applicable -Zhao Gang Domestic natural person 4.60% 58,913,021 51,975,750 N/A -Hong Kong Securities Clearing Company

Overseas legal person 3.83% 49,035,172 - Not applicable - Limited company

Qiu Shixun Domestic natural person 3.39% 43,380,000 - Not applicable - Jiang Jianping Domestic natural person 3.09% 39,567,000 - Not applicable - Liu Jun Domestic natural person 1.88% 24,059,644 18,044,733 Not applicable - Ping An Securities - Zhou

Guanxin-Safety Certificate

Guan Xinchuang No. 50 Others 1.52% 19,476,900 - Not applicable - Single asset management

plan

Zhao Renyi Domestic natural person 1.17% 15,000,000 - Not applicable - CCBIT Fund-Zhao

Renyi - Jian Xinxin

Others 1.09% 14,000,000 - N/A

Enjoy No. 1 single subscription

property management plan

Among the above-mentioned shareholders, Wang Yaofang and Wang Ke have a father-son relationship, and Zhao Gang,

Explanation on the related relationship or concerted actions between Zhao Renyi and the single above-mentioned shareholder "Jianxin Fund - Zhao Renyi - Jianxin Xinxiang No. 1"

Asset Management Plan" is a concerted action relationship, and other shareholders and shareholders

There is no correlation between

A report on the participation of the top 10 shareholders in margin trading and securities lending business

None

Ming (if any)

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The company’s organizational structure and important equity investments in other companies

(1) The company’s internal organizational chart

(2) Important subsidiaries

As of the end of the reporting period, the company had a total of 8 holding subsidiaries and 3 joint-stock companies. The details of the subsidiaries are as follows:

Qianhong Biochemical Pharmaceutical (Hubei) Co., Ltd.

(1) Basic situation

Company name Qianhong Biochemical Pharmaceutical (Hubei) Co., Ltd. Registered capital 50 million yuan Paid-in capital 50 million yuan Legal representative He Yifei

Date of establishment 2010-12-10

Residence: Xihuan 3rd Road, Economic and Technological Development Zone, Zhongxiang City

1-1-49 Shareholder composition and control situation The company holds 100% of its shares

The main business and its relationship with the issuer's main company's pig small intestine, casings, pig small intestinal mucosa, crude heparin, pig pancreatic enzyme powder and other biochemical business production of pharmaceutical raw materials

Licensed items: pharmaceutical production; food production; grain processed food production; health food production; infant formula production; food additive production; special medical purpose formula production; drug production; inspection and testing services; food sales; drug import and export (items subject to approval according to law, subject to relevant departments Business activities can only be carried out after approval. Specific business projects are subject to approval documents or licenses from relevant departments.) General projects: production, sales, processing, transportation, storage and other related services of agricultural products; manufacturing of basic chemical raw materials (excluding the manufacturing of hazardous chemicals and other licensed chemicals); medical packaging business scope

Material manufacturing; leasing services (excluding licensed leasing services); warehousing equipment leasing services; engineering and technology research and experimental development; technical services, technology development, technical consultation, technology exchange, technology transfer, technology promotion; biochemical product technology research and development; fermentation process optimization technology research and development; sales of formula foods for special medical purposes; sales of infant formula milk powder and other infant formula foods; sales of health food (prepackaged); sales of packaging materials and products (except for licensed businesses, projects that are not prohibited or restricted by laws and regulations can be independently operated in accordance with the law)

(2) Brief financial data for the most recent year

Unit: Ten thousand yuan project 2024/December 31, 2024

Total assets 10,075.01

Net assets 4,268.55

Operating income 711.72

Net profit -92.40

Note: The data in the above table have been notarized and audited by Tianye Accounting Firm (Special General Partnership).

Jiangsu Zhonghong Bioengineering Drug Innovation Research Institute Co., Ltd.

(1) Basic situation

Company name Jiangsu Zhonghong Bioengineering Drug Research Institute Co., Ltd.

Registered capital US$9.8 million

Paid-in capital USD 9.8 million

Legal representative BRUCE YONG MA (Mayong)

Date of establishment 2011-08-25

Address: No. 518, Yunhe Road, Xinbei District, Changzhou City, Jiangsu Province

The company holds 59.00% of the shares, and BRUCE YONG MA holds 39.00% of the shares. The composition and control of shareholders

GEN WANG holds 1.00% of the shares and Shi Jianming holds 1.00% of the shares

Biopharmaceutical products and intermediates, biopharmaceutical reagents, in vitro diagnostic reagents, nutrition main business and its main business with the issuer

The research and development of health care products, regenerative medicine materials and products, etc., is related to the issuer’s research and development business.

Taiwan

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Licensed items: pharmaceutical production; pharmaceutical entrusted production; pharmaceutical import and export; pharmaceutical retail; pharmaceutical wholesale (projects that require approval according to law can only be carried out with the approval of relevant departments, and specific business projects are subject to the approval results)

General projects: medical research and experimental development (except for the development and application of human stem cells, gene diagnosis and treatment technologies); manufacturing of special chemical products (excluding hazardous chemicals); business scope

Sales of special chemical products (excluding hazardous chemicals); research and development of new material technology; technical services, technology development, technical consulting, technology exchange, technology transfer, technology promotion; technology research and development of biochemical products; technology research and development of bio-based materials; manufacturing of bio-based materials; sales of bio-based materials (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)

(2) Brief financial data for the most recent year

Unit: Ten thousand yuan project 2024/December 31, 2024

Total assets 19,083.19

Net worth -128.79

Operating income 206.19

Net profit -5,123.34

Note: The data in the above table have been notarized and audited by Tianye Accounting Firm (Special General Partnership).

Changzhou Innuoshengkang Biomedical Technology Co., Ltd.

(1) Basic situation

Company Name Changzhou Innoshengkang Biomedical Technology Co., Ltd.

Registered capital 5.7647 million yuan

Paid-in capital 5.7647 million yuan

Legal representative Wang Yaofang

Date of establishment 2011-04-29

Address: No. 518, Yunhe Road, Xinbei District, Changzhou City, Jiangsu Province

The company holds 65.00% of the shares, and SHUDONGWANG holds 30.0001%. The composition and control of Changzhou Gao’s shareholders

New Venture Capital Co., Ltd. holds 4.9999% shares

The main business and its relationship with the issuer’s main biopharmaceutical research and development, technical services, technical consulting and technology transfer are the R&D platform for the issuer’s business relationship.

Technology research and development, technical services, technical consultation and technology transfer of biopharmaceuticals and intermediates; engaged in pharmaceuticals (subject to the scope approved by the "Pharmaceutical Business License"), pharmaceutical business scope

Import, export and wholesale business of intermediates; import and export of technology. (Projects that require approval according to law can only be carried out with the approval of relevant departments)

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(2) Brief financial data for the most recent year

Unit: Ten thousand yuan project 2024/December 31, 2024

Total assets 477.29

Net assets -1,123.62

Operating income 315.51

Net profit -124.80

Note: The data in the above table have been notarized and audited by Tianye Accounting Firm (Special General Partnership).

Changzhou Qianhong Biotechnology Co., Ltd.

(1) Basic situation

Company Name Changzhou Qianhong Biotechnology Co., Ltd.

Registered capital 21 million yuan

Paid-in capital 13.5 million yuan

Legal representative Zou Shaobo

Date of establishment 2023-02-02

Residence: No. 518, Yunhe Road, Xuejia Town, Xinbei District, Changzhou City

The company holds 71.4286% of the shares, Shanghai Hongsheng Junchi Biotechnology Partnership (limited shareholder composition and control situation

(Partner) holds 28.5714% of the shares

The main business and its relationship with the issuer: pharmaceutical production, contracted production of pharmaceuticals; animal casing processing; food production, etc., for the development of business. Pedestrians invest in Henan Qianmu’s platform

Licensed projects: pharmaceutical production; contracted production of pharmaceuticals; processing of animal casings; food production; food sales (projects that require approval according to law can only be carried out with the approval of relevant departments, and specific business projects are subject to the approval results)

General projects: purchase of primary agricultural products; sales of agricultural and sideline products; production and business scope of agricultural products

Sales, processing, transportation, storage and other related services; engaging in investment activities with own funds; technical services, technology development, technical consultation, technology exchange, technology transfer, technology promotion (except for projects that require approval according to law, independently carry out business activities with a business license in accordance with the law)

Note: In December 2025, the updated shareholder composition and control situation of Changzhou Qianhong Biotechnology Co., Ltd.: the company holds 85.7143% of the shares, and Shanghai Hongsheng Junchi Biotechnology Partnership (Limited Partnership) holds 14.2857% of the shares.

(2) Brief financial data for the most recent year

Unit: Ten thousand yuan project 2024/December 31, 2024

Total assets 2,551.30

Net assets 2,551.30

Operating income –

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Project Net profit in 2024/December 31, 2024 -0.10

Note: The data in the above table have been notarized and audited by Tianye Accounting Firm (Special General Partnership).

Henan Qianmu Biopharmaceutical Co., Ltd.

(1) Basic situation

Company Name Henan Qianmu Biopharmaceutical Co., Ltd.

Registered capital 100 million yuan

Paid-in capital 50 million yuan

Legal representative Zou Shaobo

Date of establishment 2023-06-27

Residence No. 1, Deqing Road, Tuandong Town, Neixiang County, Nanyang City, Henan Province

Changzhou Qianhong Biotechnology Co., Ltd. holds 51.00% of the shares, and the shareholder composition and control of Muyuan Meat Food Co., Ltd.

Holding 49.00% of shares

The main business and its relationship with the issuer: pharmaceutical production, pharmaceutical commissioned production; pharmaceutical import and export; animal casing processing; food production; food sales, etc., the company's production base licensing projects for raw materials: pharmaceutical production; pharmaceutical commissioned production; pharmaceutical import and export; animal casing processing; food production; food sales (items subject to approval according to law, business activities can only be carried out after approval by relevant departments, specific business projects are subject to the approval documents or license business scope of the relevant departments) General items: purchase of primary agricultural products; sales of agricultural and sideline products; production, sales, processing, transportation, storage and other related services of agricultural products; import and export of technology; import and export of goods; import and export agency; food import and export (except for items that require approval according to law, business activities can be carried out independently with a business license in accordance with the law)

(2) Brief financial data for the most recent year

Unit: Ten thousand yuan project Total assets in 2024/December 31, 2024 5,116.58

Net assets 4,916.13

Operating income –

Net profit -74.31

Note: The data in the above table have been notarized and audited by Tianye Accounting Firm (Special General Partnership).

Changzhou Qianhong Health Technology Co., Ltd.

(1) Basic situation

Company Name Changzhou Qianhong Health Technology Co., Ltd.

Registered capital 10 million yuan

Paid-in capital 10 million yuan

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Legal representative Zheng Tao

Date of establishment 2021-10-28

Address: No. 518, Yunhe Road, Xinbei District, Changzhou City

The company holds 70.00% of the shares, Zheng Tao holds 12.00%, and Wang Liangxing holds 8.00%. The composition and control of Jiang Wen’s shareholders

Qun holds 5.00% of the shares and Gu Guodong holds 5.00% of the shares.

Main business and its relationship with the issuer's main business: health food production and special medical formula food production, the company's health food and other business products production base

Licensed items: Production of grain processed foods; leasing of Class III medical devices; production of infant formulas; cosmetics production; production of formulas for special medical purposes; food sales; Internet sales of food; Class II medical device production; Class III medical device production; Class III medical device operations; medical device Internet information services; health food production; food production (subject to law) Approved projects can only carry out business activities after being approved by relevant departments. Specific business projects are subject to the approval results.) General projects: food import and export; cosmetics retail; cosmetics wholesale; daily necessities sales; health care services (non-medical); Internet sales (except for the sale of goods that require licenses); sales of sanitary products and disposable medical supplies; food sales (only business scope) Sales of prepackaged food); sales of health food (prepackaged); traditional Chinese medicine health care services (non-medical); sales of formula foods for special medical purposes; wholesale of pet food and supplies; sales of infant formula milk powder and other infant formula foods; retail sale of pet food and supplies; sales of food additives; Internet sales of food (only sales of prepackaged food); production of Class I medical devices; Class I Sales of medical devices; sales of Class II medical devices; leasing of Class I medical devices; leasing of Class II medical devices; technology research and development of biochemical products; sales of chemical products (excluding licensed chemical products); sales of special chemical products (excluding hazardous chemicals); health consulting services (excluding diagnosis and treatment services) (Except for projects that require approval according to law, business activities can be carried out independently with a business license in accordance with the law)

(2) Brief financial data for the most recent year

Unit: 10,000 yuan

Project 2024/December 31, 2024

Total assets 993.36

Net worth 987.87

Operating income 209.08

Net profit -5.69

Note: The data in the above table have been notarized and audited by Tianye Accounting Firm (Special General Partnership).

Qianhong (Hong Kong) Technology Development Co., Ltd.

(1) Basic situation

Company name Qianhong (Hong Kong) Technology Development Co., Ltd.

Registered capital 300,000 Hong Kong dollars

Paid-in capital HKD 300,000

Date of establishment 2018-12-17

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FLAT/RMA12/FZJ300,300LOCKHARTROAD,WANCHAI,HON residence

GKONG

Shareholder composition and control: The company holds 100.00% of the shares

Main business and its relationship with the issuer

Issuer overseas investment platform

business relationship

Business scope: technology, investment, trade, services, consulting

(2) Brief financial data for the most recent year

Unit: Ten thousand yuan project 2024/December 31, 2024

Total assets 262.57

Net assets -2,575.81

Operating income –

Net profit 397.86

Note: The data in the above table have been audited by Gongzheng Tianye Accounting Firm (Special General Partnership) within the scope of consolidation.

Jiangsu Jinghong Biomedical Technology Co., Ltd.

(1) Basic situation

Company Name Jiangsu Jinghong Biomedical Technology Co., Ltd.

Registered capital 50 million yuan

Paid-in capital 50 million yuan

Legal representative BRUCE YONG MA (Mayong)

Date of establishment 2015-06-16

Address: No. 192, Huanghe West Road, Xinbei District, Changzhou City

Shareholder composition and control Jiangsu Zhonghong holds 99.00% of the shares and the company holds 1.00%

The research, development and sales of Class II and III medical devices, the main business of Class I medical devices and the production and sales of the issuer's main instruments; the development, production and sales of food safety testing reagents and their inspection and analysis instruments; the wholesale and import and export business of self-operated and agent various commodities and technologies, the issuer's research and development platform

Research, development, and sales of Class II and Class III medical devices (limited to clinical testing reagents, in vitro diagnostic reagents, molecular diagnostic and genetic testing reagents, and testing and analysis instruments supporting the above reagents); Production and sales of Class I medical devices; Research, development, and business scope of food safety testing reagents (except hazardous chemicals) and their testing and analysis instruments

Production and sales; self-operated and agency wholesale, import and export business of various commodities and technologies (except for commodities and technologies that are restricted by national companies or prohibited from import and export). (The above-mentioned business scope projects that require approval according to law can only carry out business activities after approval by relevant departments)

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(2) Brief financial data for the most recent year

Unit: Ten thousand yuan project 2024/December 31, 2024

Total assets 586.31

Net worth 585.80

Operating income –

Net profit -212.24

Note: The data in the above table have been notarized and audited by Tianye Accounting Firm (Special General Partnership).

Basic information of controlling shareholders and actual controllers and changes since listing

(1) Controlling shareholders and actual controllers

As of September 30, 2025, Wang Yaofang directly holds 19.96% of the company's shares and is the company's controlling shareholder and actual controller. Wang Ke directly holds 6.67% of the company's shares, has a father-son relationship with Wang Yaofang, and is a person acting in concert with the company's actual controller. The basic situation of Wang Yaofang and Wang Ke is as follows:

Mr. Wang Yaofang, born in 1953, Chinese nationality, no permanent residence abroad, ID number: 3204021953********, domiciled in Changzhou City, Jiangsu Province.

Mr. Wang Ke, born in 1983, Chinese nationality, no permanent residence abroad, ID number: 3204021983********, domiciled in Changzhou City, Jiangsu Province.

The company was listed on the Shenzhen Stock Exchange in February 2011. Since its listing, the company's controlling shareholder and actual controller have not changed.

(2) Other enterprises controlled by controlling shareholders and actual controllers

As of the signing date of this prospectus, in addition to the company and its subsidiaries, the situation of other companies controlled by the company’s controlling shareholders and actual controllers is as follows:

Serial number Company name Business scope Main business: industrial investment; project investment; entrusted management of private equity investment funds, from

investment management and related consulting services; asset management (except finance,

1 Qianhong Investment (equity investment insurance); trade agent. (Projects that require approval according to law must be approved by relevant ministries.

Business activities can only be carried out after approval from the department)

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(3) Situation in which shares held by controlling shareholders are pledged

As of the signing date of this prospectus, there are no pledges or other disputes over the issuer's shares held directly or indirectly by the issuer's controlling shareholders and actual controllers.

4. Commitments and implementation status

(1) Important commitments made by the issuer and relevant personnel during the reporting period and their implementation status

inherit

promise promise promise type promise promise

Commitment content Reasons for performance Square shape Time period

limited

Since Changzhou Qianhong Biochemical Pharmaceutical Co., Ltd. (known as

(hereinafter referred to as the “Issuer”) for the first time since its establishment and in the future

Wang Yao Guan Yu Tong

Disclosure: During the existence of the pedestrian, I have not engaged in, and will not engage in, the commitment of the person in the future.

Fang; Zhao industry competition,

Issuance Not directly or indirectly engaged in, and also contributed to the violation of my wholly-owned 2011

Gang; Shen Guan Liao

Or, the holding subsidiaries and other enterprises shall not engage in any situation that constitutes the annual 02 permanent commitment.

Xiaohui; Yi, capital

Financing Any business or activity that competes with the issuer's peers, current status, ongoing

Zhou Guan occupies square footage

Time and place Including but not limited to development, production, sales and release date Strictly implemented

New; Chiang Kai-shek's inheritance

The undertaking is the undertaking to develop, produce and sell identical or similar products.

Jianping Nuo

promise any product, and are willing to pay for any violation of the above commitments.

The issuer shall be liable for compensation for economic losses caused by the issuer.

As of the signing date of this prospectus, the relevant promisee has not breached its promise.

(2) Commitments related to this issuance

The company’s controlling shareholders, actual controllers, directors, and senior managers have made commitments to ensure that the company’s return measures can be effectively fulfilled.

(1) Commitment of the company’s controlling shareholder and actual controller

Wang Yaofang, the company's controlling shareholder and actual controller, has made the following commitments in accordance with the relevant regulations of the China Securities Regulatory Commission to ensure that the company's measures to compensate for diluted immediate returns can be effectively implemented:

① I will strictly abide by the laws, regulations and the company's articles of association, and ensure that I will not interfere with the company's business management activities beyond my authority or infringe on the company's interests;

② I guarantee that I will earnestly implement the specific compensation measures for diluting current returns formulated by the company. If I violate this commitment or refuse to perform this commitment and cause losses to the company or shareholders, I agree to bear the corresponding legal liability; ③ I guarantee that the above commitment is a true expression of intention, and voluntarily accept the Shenzhen Stock Exchange, Securities

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Supervision by regulatory agencies, self-regulatory organizations and the public;

④ I promise that from the date of issuance to the completion of the company's issuance, if the China Securities Regulatory Commission, Shenzhen Stock Exchange and other regulatory authorities make other new regulatory regulations regarding supplementary return measures and commitments, I will voluntarily abide by the new regulatory regulations.

(2) Commitment of directors and senior managers

In accordance with the relevant regulations of the China Securities Regulatory Commission, the company's directors and senior managers have made the following commitments to ensure that the company's measures to cover diluted immediate returns can be effectively implemented:

① I promise not to transfer benefits to other units or individuals for free or on unfair terms, nor to damage the interests of the company in other ways;

② I promise to restrict my job consumption behavior;

③ I promise not to use the company's assets to engage in investment or consumption activities that are not related to my performance of duties; ④ I promise that the remuneration system formulated by the board of directors or the remuneration and assessment committee will be linked to the implementation of the company's supplementary return measures;

⑤ I agree that if the company plans to implement equity incentives for me in the future, the exercise conditions of the company's equity incentives will be linked to the implementation of the company's top-up return measures;

⑥After the China Securities Regulatory Commission and the Shenzhen Stock Exchange separately issue relevant regulations on measures to cover diluted immediate returns and their commitments, if the company's relevant regulations and my commitments are inconsistent with these regulations, I promise to immediately issue a supplementary commitment in accordance with the latest regulations of the China Securities Regulatory Commission and the Shenzhen Stock Exchange, and actively promote the company to make new regulations to comply with the requirements of the China Securities Regulatory Commission and the Shenzhen Stock Exchange;

⑦ I promise to earnestly implement the relevant supplementary return measures formulated by the company and any commitments I make regarding the supplementary return measures. If I violate these commitments and cause losses to the company or investors, I am willing to bear the liability for compensation to the company or investors in accordance with the law;

⑧As one of the parties responsible for the repayment measures, if I violate the above commitments or refuse to perform the above commitments, I agree to impose relevant penalties or take relevant management measures on myself in accordance with the relevant regulations and rules formulated or issued by securities regulatory agencies such as the China Securities Regulatory Commission and the Shenzhen Stock Exchange.

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Letter of commitment from shareholders holding more than 5% of the shares, directors and senior executives on participating in the issuance and subscription of convertible bonds

The company’s controlling shareholders, actual controllers, natural person shareholders holding more than 5% of the shares, directors, and senior executives commit to the following:

"1. If I have reduced my stock holdings six months before the first day of the issuance of this convertible bond (the announcement date of the prospectus), I promise not to participate in the subscription of this convertible bond issuance, nor will I entrust other entities to participate in the subscription of this convertible bond issuance.

If I have not reduced my stock holdings six months before the first day of the issuance of this convertible bond (the date of the announcement of the prospectus), I will decide whether to participate in the subscription of this convertible bond issuance based on market conditions. If the subscription is successful, I promise to strictly abide by the provisions of the Securities Law and other relevant laws and regulations on stock and convertible bond transactions, that is, from the first day of the issuance of this convertible bond (the announcement date of the prospectus) to six months after the completion of the issuance of this convertible bond, I will not reduce the directly held issuer stocks and the convertible bonds issued this time.
I guarantee that my spouse, parents, and children will strictly abide by the relevant provisions of the Securities Law and other laws and regulations on short-term trading.
I voluntarily make the above commitments and voluntarily accept the constraints of this commitment. If I, my spouse, parents, and children violate the above commitments by reducing the issuer's stocks or convertible bonds that I hold directly, all the proceeds will belong to the issuer, and I will bear the resulting legal liabilities in accordance with the law. If losses are caused to the company and other investors, I will bear the liability for compensation in accordance with the law.
If the applicable relevant laws, regulations, normative documents, policies and requirements of securities regulatory agencies change after the issuance of this commitment letter, I promise that the changed relevant laws, regulations, normative documents, policies and requirements of securities regulatory agencies will automatically apply. "

5. Directors and senior managers

(1) Basic situation

Board members

The company has a total of 9 board members, 3 of whom are independent directors. The current directors are as follows:

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Serial number Name Position Term

1 Wang Yaofang Chairman 2024.1.19-2027.1.19

2 Zhao Gang Vice Chairman 2024.1.19-2027.1.19

3 Wang Ke Director, General Manager 2024.1.19-2027.1.19

4 Zhou Xiang Director, Deputy General Manager 2024.1.19-2027.1.19

5 Jiang Chizhou Director, Deputy General Manager 2024.1.19-2027.1.19

6 Liu Jun Employee Director 2025.11.14-2027.1.19

7 Ning Ao Independent Director 2024.1.19-2027.1.19

8 Ren Shengxiang Independent Director 2024.1.19-2027.1.19

9 Gao Yuyu Independent Director 2024.1.19-2027.1.19

The resume of the company directors is as follows:

Mr. Wang Yaofang, Chinese nationality, without permanent residence abroad, was born in 1953. He has a master's degree and is a senior engineer, national licensed pharmacist, and senior economist. He began to enjoy special allowances from the State Council in 1992. From October 1970 to December 1997, he successively served as head of the trial production team, research team, director of the scientific research office, deputy director, and director of Changzhou Biochemical Pharmaceutical Factory. From December 1987 to December 2002, he successively served as director, deputy general manager, chairman and general manager of Changzhou Qianhong Biochemical Pharmaceutical Factory Co., Ltd. From December 2002 to May 2003, he served as chairman, general manager and party branch secretary of Changzhou Biochemical Qianhong Pharmaceutical Co., Ltd. From May 2003 to January 2008, he served as chairman, general manager and party branch secretary of Qianhong Co., Ltd. From January 2008 to present, he serves as the company’s chairman and party committee secretary and chairman of Qianhong Investment.

Mr. Zhao Gang, Chinese nationality, no permanent residence abroad, born in 1965, master's degree, senior economist and accountant. In August 1986, he joined Changzhou Biochemical Pharmaceutical Factory and Changzhou Qianhong Biochemical Pharmaceutical Co., Ltd. and served successively as Financial Section Member, Director of Finance Department, Assistant Factory Director, Chief Accountant, and Deputy General Manager. He joined the company in May 2003 and currently serves as director and vice chairman of the company and director of Qianhong Investment.

Mr. Wang Ke, Chinese nationality, no permanent residence abroad, born in 1983, holds a doctoral degree. He joined the company in February 2012 and has served as researcher in the new product development department, deputy director of the marketing department, and assistant to the general manager of the API business department. He is currently the director and general manager of the company and the director of Qianhong Investment.

Mr. Zhou Xiang, Chinese nationality, no permanent residence abroad, born in 1982, master's degree, licensed pharmacist, senior engineer. He joined the company in July 2008 and has served as a new drug researcher in the company's new product research and development department, deputy director of drug inspection and quality director in the quality assurance department, etc. He is currently a director and deputy general manager of the company.

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Mr. Jiang Chizhou, Chinese nationality, without permanent residence abroad, was born in 1990. He has a doctoral degree. He joined the company in July 2018 and has successively served as deputy general manager of the company’s API Division, assistant to the general manager, general manager of the API Division, and general manager of the Marketing Center. He is currently a director and deputy general manager of the company.

Mr. Liu Jun, Chinese nationality, no permanent residence abroad, born in 1967, bachelor's degree, senior engineer. He joined the company in 1989 and has served successively as technician, deputy director of R&D, director, deputy general manager, director and chairman of the board of supervisors. He is currently an employee director of the company.

Mr. Ning Ao, Chinese nationality, no permanent residence abroad, born in 1961, holds a master's degree. From December 1998 to October 2011, he successively served as researcher, director of the research institute, and general manager of the investment banking business department of Huatai Securities Co., Ltd. From October 2011 to January 2021, he served as assistant to the president, member of the executive committee, chairman of the labor union, and managing director of Huatai United Securities Co., Ltd. From January 2021 to present, he serves as an independent director of the company.

Mr. Ren Shengxiang, Chinese nationality, no permanent residence abroad, born in 1979, holds a doctoral degree. From August 2002 to present, he has served as resident physician, attending physician, deputy chief physician, and chief physician of Shanghai Pulmonary Hospital; from December 2020 to present, he has served as professor of Tongji University. Currently, he is the chief physician of Shanghai Pulmonary Hospital and a professor of Tongji University. From January 2021 to present, he serves as an independent director of the company.

Ms. Gao Yuyu, Chinese nationality, no permanent residence abroad, born in 1991, bachelor's degree, certified public accountant. From July 2013 to June 2019, he served as project assistant and project manager of Jiangsu Guorui Xingguang Tax Agents Firm Co., Ltd.; from July 2019 to December 2020, he served as assistant director of the consulting department of Tiantian Guorui Xingguang (Jiangsu) Tax Agents Firm Co., Ltd.; from January 2021 to present, he served as chief auditor of Tiantian Guorui Xingguang (Jiangsu) Tax Agents Firm Co., Ltd. From January 2024 to present, he serves as an independent director of the company.

Senior managers

The company has a total of 12 senior managers. The current senior management personnel are as follows:

Serial number Name Position Term

1 Wang Ke Director and General Manager 2024.1.19-2027.1.19 2 Zhou Xiang Director and Deputy General Manager 2024.1.19-2027.1.19 3 Jiang Chizhou Director and Deputy General Manager 2024.1.19-2027.1.19 4 Haitao Deputy General Manager 2024.1.19-2027.1.19 5 Ye Hongping Director 2024.1.19-2027.1.19 6 Zou Shaobo Director 2024.1.19-2027.1.19

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7 Xiao Aiqun Audit Director 2024.1.19-2027.1.19 8 Mei Chunwei Director 2024.1.19-2027.1.19 9 Wei Lijun Director 2024.1.19-2027.1.19 10 Yao Yi Secretary of the Board of Directors, Chief Financial Officer 2024.1.19-2027.1.19 11 Huang Jie Director 2024.1.19-2027.1.19 12 Wang Guming Director 2024.1.19-2027.1.19 The resumes of the company’s senior managers are as follows:

Mr. Wang Ke, general manager of the company, please see "(1), 1. Board of Directors Members" in this section for his resume.

Mr. Zhou Xiang, deputy general manager of the company, please see "(1), 1. Board of Directors Members" in this section for his resume.

Mr. Jiang Chizhou is the deputy general manager of the company. For details of his resume, please see "(1), 1. Board of Directors Members" in this section.

Mr. Haitao, Chinese nationality, without permanent residence abroad, was born in 1969. He has a bachelor's degree and the title of physician. From September 1993 to July 2006, he served as sales manager, director and investment manager of China Resources Sanjiu Pharmaceutical Co., Ltd.; from July 2006 to July 2009, he served as deputy general manager of Xing'an Pharmaceutical Co., Ltd.; from July 2009 to July 2012, he served as marketing director of Shanghai Desano Chemical Pharmaceutical Co., Ltd. Joined the company in July 2012 and served as the company's marketing director. He is currently the deputy general manager of the company and director of Qianhong Investment.

Ms. Ye Hongping, Chinese nationality, no permanent residence abroad, born in 1972, master's degree. He joined the company in 1999 and served successively as the general manager of the company's API Division and the General Manager of the Purchasing Center. He is currently the company director and general manager of the purchasing center.

Mr. Zou Shaobo, Chinese nationality, no permanent residence abroad, born in 1966, bachelor's degree. From August 1988 to May 1999, he served as the manager of the production assurance department of Changzhou Jianmin Pharmaceutical Factory. In May 1999, he joined the company and served successively as the director of the preparation factory and the general manager of the purchasing center. He is currently the company director and general manager of Henan Qianmu Biopharmaceutical Co., Ltd.

Ms. Xiao Aiqun, Chinese nationality, no permanent residence abroad, born in 1972, master's degree, senior accountant. From 1995 to 2007, he served as the financial section chief of Jiangsu Hengji Road and Bridge Corporation; from 2007 to 2012, he served as the financial director of Changzhou Aibei Clothing Co., Ltd.; from 2012 to 2015, he served as the financial director and deputy general manager of Changzhou Zhongfu Libaodi Composite Materials Co., Ltd. He joined the company in 2016 and has served as the company’s financial director. Currently the company’s audit director.

Mr. Mei Chunwei, Chinese nationality, no permanent residence abroad, born in 1971, bachelor's degree. 1994

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From September 2000 to June 2000, he served as workshop director of Changzhou Alcohol Factory. From July 2000 to August 2006, he served as workshop director of Changzhou Xianhe Food Brewing Co., Ltd. He joined the company in October 2006 and served successively as assistant to the general manager and director. Current company director.

Mr. Wei Lijun, Chinese nationality, no permanent residence abroad, born in 1972, holds a doctoral degree and is a senior engineer. From July 1995 to August 1999, he served as a researcher at the Liaoning Academy of Agricultural Sciences. He joined the company in July 2005 and served successively as director of the new product development department, assistant to the general manager, director of the achievement transformation management department, and chief engineer. Current company director.

Mr. Yao Yi, Chinese nationality, no permanent residence abroad, born in 1982, holds a master's degree. From July 2006 to March 2009, he served as the QA manager of Changzhou Shenma Pharmaceutical Co., Ltd.; from April 2009 to March 2010, he served as the QA supervisor of Changzhou Huasheng Pharmaceutical Co., Ltd.; from April 2010 to September 2012, he served as assistant to the general manager of Changshu Slaughtering Complete Equipment Factory Co., Ltd.; joined the company in October 2012, and has served successively as head of QC, director of the strategic development department, and securities affairs representative. He is currently the secretary and financial controller of the company’s board of directors.

Ms. Huang Jie, Chinese nationality, no permanent residence abroad, born in 1987, doctoral degree, joined the company in July 2013, and has served as product manager, assistant to the marketing department director, and assistant to the general manager. Current company director and union chairman.

Mr. Wang Guming, Chinese nationality, no permanent residence abroad, born in 1985, master's degree. He joined the company in 2012 and has served successively as staff member, assistant minister, deputy minister, minister and assistant general manager. Currently he is the company director and general manager of the production center.

(2) Part-time employment situation

The current directors and senior managers of the company hold part-time jobs in other units other than the company and its subsidiaries as follows:

Name Identity Part-time company name Part-time position Wang Yaofang Chairman Changzhou Qianhong Investment Co., Ltd. Chairman and General Manager Zhao Gang Vice Chairman Changzhou Qianhong Investment Co., Ltd. Director

Wang Ke Director, General Manager Changzhou Qianhong Investment Co., Ltd. Director

Haitao Deputy General Manager Changzhou Qianhong Investment Co., Ltd. Director

Nanjing Diwell High-end Manufacturing Co., Ltd. Independent Director Ning Ao Independent Director

Jiangsu Zhengtu Technology Co., Ltd. Independent Director

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Name Identity Part-time company name Part-time position Jiangsu Fuwei Technology Co., Ltd. Director

Shanghai Pulmonary Hospital Chief Physician Ren Shengxiang Independent Director

Haolang Chemical (Shanghai) Co., Ltd. Supervisor

Tiantian Guorui Xingguang (Jiangsu) Tax Agents Co., Ltd.

Gao Yuyu Independent Director Chief Audit Company

(3) Salary situation

The pre-tax remuneration received by the company’s directors and senior managers from the company in the past year is as follows:

Name Identity Salary (10,000 yuan) Whether Wang Yaofang receives salary from the company Chairman - No Zhao Gang Vice Chairman 52.91 Yes Wang Ke Director, General Manager 128.73 Yes Zhou Xiang Director, Deputy General Manager 87.51 Yes Jiang Chizhou Director, Deputy General Manager 86.88 Yes Liu Jun Employee Director 82.18 Yes Ning Ao Independent Director 15.00 It’s Ren Shengxiang, independent director 15.00 It’s Gao Yuyu, independent director 15.00 It’s Haitao, deputy general manager 88.93 It’s Ye Hongping, director 74.08 It’s Zou Shaobo, director 81.80 It’s Xiao Aiqun, audit director 52.48 It’s Mei Chunwei, director 75.36 It’s Wei Lijun, director 59.00 It’s Yao Yi Secretary of the Board of Directors and Chief Financial Officer 52.48 Yes Huang Jie Director 59.90 Yes Wang Guming Director 58.93 Yes

(4) Shareholdings in the company

As of the signing date of this prospectus, the direct holdings of the company’s shares by the company’s directors and senior managers are as follows:

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Unit: Stock No. Name Identity Number of direct shares held Shareholding ratio 1 Wang Yaofang Chairman 255,402,000 19.96% 2 Zhao Gang Vice Chairman 58,913,021 4.60% 3 Wang Ke Director, General Manager 85,409,600 6.67% 4 Zhou Xiang Director, Deputy General Manager 225,000 0.02% 5 Jiang Chizhou Director, Deputy General Manager 6,081,000 0.48% 6 Liu Jun Employee Director 24,059,644 1.88% 7 Ning Ao Independent Director - - 8 Ren Shengxiang Independent Director - - 9 Gao Yuyu Independent Director - - 10 Haitao Deputy General Manager - - 11 Ye Hongping Director 3,592,000 0.28% 12 Zou Shaobo Director 6,391,849 0.50% 13 Xiao Aiqun Audit Director 200,000 0.02% 14 Mei Chunwei Director 187,500 0.01% 15 Wei Lijun Director 187,500 0.01% 16 Yao Yi Secretary of the Board of Directors, Chief Financial Officer 150,000 0.01% 17 Huang Jie Director 800 <0.01% 18 Wang Guming Director 100,000 0.01%

Total 440,899,914 34.45%

There are no pledges, freezes or litigation disputes regarding the shares held by the company's directors and senior managers.

(5) Changes in the last three years

Changes in directors

Period Board members Reasons for changes

Wang Yaofang, Zhao Gang, Wang Ke, Jiang Jianping, Liu Jun, Zhou Xiang, Ning

Beginning of the reporting period -

Ao, Xu Guanghua, Ren Shengxiang

Wang Yaofang, Zhao Gang, Wang Ke, Zhou Xiang, Haitao, Jiang Chizhou, Ning

In January 2024, the company’s board of directors was re-elected by Ao, Ren Shengxiang and Gao Yuyu.

Wang Yaofang, Zhao Gang, Wang Ke, Zhou Xiang, Jiang Chizhou, Liu Jun, Ning

In November 2025, the company’s organizational structure was adjusted. Ao, Ren Shengxiang, and Gao Yuyu

The above-mentioned changes in the directors of the issuer have fulfilled necessary legal procedures and complied with relevant laws, regulations and the "Incorporated

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provisions of the Company’s Articles of Association.

Changes in supervisors

Period Members of the Supervisory Board Reasons for changes

Beginning of the reporting period Jiang Wenqun, Hua Junwei, Chen Lei

January 2024 Liu Jun, Hua Junwei, Zhang Xiaopo re-election of the company’s Supervisory Board

In November 2025, the Board of Supervisors will be abolished and the company’s organizational structure will be adjusted.

The above-mentioned changes in the issuer's supervisors have fulfilled necessary legal procedures and are in compliance with relevant laws, regulations and the Articles of Association.

Changes in senior management personnel

Period Members of senior management Reasons for changes

Wang Ke, Zhou Xiang, Haitao, Fan Yong, Ye Hongping, Zou Shaobo, Xiao

Beginning of the reporting period -

Ai Qun, Mei Chunwei, Jiang Chizhou, Wei Lijun, Yao Yi

Wang Ke, Zhou Xiang, Haitao, Jiang Chizhou, Ye Hongping, Zou Shaobo,

In January 2024, the company’s senior executives were replaced by Xiao Aiqun, Mei Chunwei, Wei Lijun, Yao Yi, Huang Jie, and Wang Guming

The above-mentioned changes in the issuer's senior management personnel have fulfilled necessary legal procedures and complied with relevant laws, regulations and the provisions of the Articles of Association.

(6) Incentives for directors, senior managers and other employees

2017 Restricted Stock Incentive Plan

On August 18, 2017, the company held the 14th meeting of the third board of directors and the 14th meeting of the third board of supervisors, and reviewed and approved the "Proposal on the Company's 2017 Restricted Stock Incentive Plan (Draft)" and its Summary, the "Proposal on the Implementation and Assessment Methods of the Company's 2017 Restricted Stock Incentive Plan", the "Proposal on the List of Incentive Objects of the Company's 2017 Restricted Stock Incentive Plan" and other related proposals. On September 22, 2017, the company held the second extraordinary shareholders' meeting of 2017 and reviewed and approved the above resolution. On October 26, 2017, the company held the third meeting of the fourth board of directors and the third meeting of the fourth board of supervisors, at which the "Proposal on Granting Restricted Stocks to Incentive Objects" was reviewed and approved.

The specific plans for this incentive plan are as follows:

(1) First grant date: October 26, 2017.

(2) Number of grants: The number of restricted stocks granted for the first time is 6.1788 million shares, accounting for the total share capital of the company.

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0.48% of the amount.

(3) Grant price: The grant price of restricted stocks is 3.03 yuan per share.

(4) Stock source: The stock source of this incentive plan is the public shares repurchased by the company.

(5) Validity period and sales restriction period of the incentive plan

①Validity period of the incentive plan:

The validity period of this incentive plan is from the date when restricted stocks are granted to the date when all restricted stocks are released from restrictions or repurchased and canceled. This incentive plan is valid for 54 months from the date of grant. The restricted stock period granted under this incentive plan is 30 months from the date of completion of restricted stock registration. The restricted stocks granted to the incentive objects under this plan may not be transferred, used to guarantee or repay debts before the restrictions are lifted.

②The sales restriction period of the incentive plan:

The unlocking period for the restricted stocks first granted under this plan and the unlocking schedule for each period are as follows:

Unlocking the sales restrictions. The quantity that can be released from the sales restrictions is limited to the time when the sales restrictions are lifted.

The first solution to the ratio of the number of statutory shares during the period is from the first trading day 30 months after the completion of registration of the first grant.

The 50% excluding lock-up period ends on the last trading day within 42 months from the date of grant;

The second solution starts from the first trading day 42 months after the first grant registration is completed.

The 50% ex-restriction period ends on the last trading day within 54 months from the date of grant.

(6) List of incentive targets and award status:

A total of 43 incentive objects were granted for the first time. The restricted stocks awarded to the incentive objects are distributed as follows:

Restricted stock granted Number of shares granted restricted stock

Name Position % of total grant registration % of total share capital before grant (10,000 shares)

proportion proportion

Zhou Xiang Director 30.00 4.86% 0.02% Xiao Aiqun Financial Director 20.00 3.24% 0.02% Core staff (41 people) 567.88 91.90% 0.44%

As of the signing date of this prospectus, the first phase of the company's 2017 equity incentive plan has been fully implemented.

The first phase of employee stock ownership plan

On August 29, 2019, the 15th meeting of the company’s fourth board of directors and the 14th meeting of the fourth board of supervisors

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The meeting reviewed and approved the "Proposal on the Company's First Employee Stock Ownership Plan (Draft) and its Summary" and other related proposals. The company's independent directors reviewed the contents of the current employee stock ownership plan and expressed their agreement. On September 25, 2019, the company’s first extraordinary shareholders’ meeting in 2019 reviewed and approved two proposals including the “Proposal on the Company’s First Employee Stock Ownership Plan (Draft) and its Summary”.

This plan (draft) is entrusted to be managed by GF Securities Asset Management (Guangdong) Co., Ltd., and the GF Yuanchi Qianhong Pharmaceutical Employee Stock Ownership Plan No. 1 single asset management plan (hereinafter referred to as "Qianhong Pharmaceutical No. 1") and GF Yuanchi Qianhong Pharmaceutical Employee Stock Ownership Plan No. 2 single asset management plan (hereinafter referred to as "Qianhong Pharmaceutical No. 2") established by GF Securities Asset Management (Guangdong) Co., Ltd. are subscribed for no more than 17 million yuan and 184.32 million yuan respectively.

The list of Qianhong Pharmaceutical No. 1 holders and the distribution of shares are as follows:

The highest subscription share accounts for the total share of the plan. The corresponding shares account for the total company serial number. Type of holder. Number of people.

(10,000 shares) Ratio Share capital ratio Management cadres at the grassroots level and above, core businesses

Key personnel, craftsmen, employee supervisors, etc. 1,700.00 8.44% 0.47% employees

The list of Qianhong Pharmaceutical No. 2 holders and the distribution of shares are as follows:

Order: The highest subscription share accounts for the total share of the plan. The corresponding shares account for the total share of the company.

Holder Position

Ratio of No. (10,000 shares) Share capital ratio

1 Wang Yaofang Chairman 6,048.00 30.04% 0.98% 2 Wang Ke Director, General Manager 6,048.00 30.04% 0.98% 3 Jiang Jianping Chairman of the Board of Supervisors 2,784.00 13.83% 0.45% 4 Liu Jun Director 1,228.00 6.10% 0.20%

director, board of directors

5 Jiang Wenqun 615.00 3.05% 0.10%

Secretary

6 Zou Shaobo Director 615.00 3.05% 0.10% 7 Fan Yong Audit Director 480.00 2.38% 0.08% 8 Xiao Aiqun Financial Director 398.00 1.98% 0.07% 9 Zhou Xiang Deputy General Manager 96.00 0.48% 0.02% 10 Ye Hongping Director 96.00 0.48% 0.02% 11 Haitao Deputy General Manager 24.00 0.12% <0.01%

Total 18,432.00 91.56% 3.00%

As of the signing date of this prospectus, the first phase of the company's employee stock ownership plan has been fully implemented.

Core employee stock ownership plan in 2022

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The company’s eighth meeting of the fifth board of directors held on August 8, 2022 reviewed and approved the “Proposal on the Company’s 2022 Core Employee Stock Ownership Plan (Draft) and its Summary” and other related proposals. The company held the first extraordinary shareholders' meeting of 2022 on August 24, 2022, and reviewed and approved the "Proposal on the Company's 2022 Core Employee Stock Ownership Plan (Draft) and its Summary" and other related proposals.

The participants and share distribution of this employee stock ownership plan are as follows:

Subscription amount Corresponding number of company shares Corresponding share serial number Holder Position

(10,000 yuan) (10,000 shares) Proportion of total share capital of the company 1 Wang Yaofang Chairman 6,037.50 1,250.00 0.98% 2 Wang Ke Director, general manager 6,037.50 1,250.00 0.98% 3 Liu Jun Director 483.00 100.00 0.08% 4 Jiang Wenqun Chairman of the Board of Supervisors 555.45 115.00 0.09% 5 Haitao Deputy General Manager 120.75 25.00 0.01% 6 Zhou Xiang Director, Deputy General Manager 144.90 30.00 0.02% 7 Zou Shaobo Director 328.44 68.00 0.05% 8 Ye Hongping Director 154.56 32.00 0.03% 9 Xiao Aiqun Financial Director 120.75 25.00 0.02% 10 Mei Chunwei Director 120.75 25.00 0.02% 11 Jiang Chizhou Director 386.40 80.00 0.06%

Total (11 people) 14,490.00 3,000.00 2.34%

As of the signing date of this prospectus, the company's 2022 core employee stock ownership plan has been fully implemented.

2025 Employee Stock Ownership Plan

The company's eleventh meeting of the sixth board of directors held on October 28, 2025 reviewed and approved the "Proposal on the Company's <2025 Employee Stock Ownership Plan (Draft)> and Summary", the "Proposal on the Company's <2025 Employee Stock Ownership Plan Management Measures>" and other proposals related to the employee stock ownership plan. The company's independent directors reviewed the contents of the current employee stock ownership plan and expressed their agreement. The company held the second extraordinary shareholders' meeting of 2025 on December 10, 2025, and reviewed and approved the "Proposal on the Company's 2025 Employee Stock Ownership Plan (Draft)> and Summary" and other related proposals.

The specific plan of this employee stock ownership plan is as follows: (1) The participants of this employee stock ownership plan are the personnel in important positions in production, operation and management of the company (including controlled subsidiaries) and the core business and technical backbone personnel who have made important contributions in the development process of the company (2) The total amount of funds raised when the employee stock ownership plan is established shall not exceed

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67.95 million yuan, with "share" as the subscription unit, and each share is 1 yuan, and the upper limit of the shares of this employee stock ownership plan is 67.95 million shares; (3) The source of funds for this employee stock ownership plan is self-raised by the participants, including but not limited to the participants' legal salary, self-owned funds, and funds obtained through other methods permitted by laws and regulations. This employee stock ownership plan does not involve the company providing financial assistance to the participants or providing guarantees for the loans of the participants. It does not involve leverage funds, and it does not involve third parties providing incentives, subsidies, subsidies, guarantees and other arrangements for the participants; (4) The price of the underlying stock transferred under the employee stock ownership plan is 4.53 yuan/share. Before the non-trading transfer of the underlying stocks purchased by the employee stock ownership plan is completed, if the company occurs ex-rights and ex-dividend events such as dividend distribution, bonus shares, capitalization of capital reserves, etc., the price of the underlying stocks purchased by the employee stock ownership plan will be adjusted; (5) The duration of the employee stock ownership plan shall not exceed 48 months, starting from the date the company's shareholders meeting approves the employee stock ownership plan. The target stocks transferred under this employee stock ownership plan will be unlocked in batches from the date the company announces the completion of the transfer of the target stocks. The lock-in periods are 24 months and 36 months respectively, and the unlocking ratios are 50% and 50% respectively. During the period of holding the underlying stocks under this employee stock ownership plan, derivative shares obtained due to the company's distribution of stock dividends, conversion of capital reserves into share capital, etc. shall comply with the above-mentioned share locking arrangements.

The participants and share distribution of this employee stock ownership plan are as follows:

Subscription share Per share held by employees Subscription share Serial number Name Position Upper limit (10,000) Number of shares required for the total share of the plan

shares) Proportion (%) (10,000 shares) 1 Zhou Xiang Director, Deputy General Manager

2 Jiang Chizhou Director, Deputy General Manager

3 Haitao Director, Deputy General Manager

4 Mei Chunwei Director

1,359 20 300 5 Wei Lijun Director

6 Yao Yi Secretary of the Board of Directors and Chief Financial Officer

7 Huang Jie Director

8 Wang Guming Director

The production, operation and management of other companies (including holding subsidiaries) are important

Position personnel and core business and technical backbone personnel who have made important contributions in the company's development process 5,436 80 1,200 (52 people in total)

Total 6,795 100 1,500

As of the signing date of this prospectus, except for the above-mentioned equity incentive plan and employee stock ownership plan, the company has not implemented other forms of equity incentives.

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6. Basic situation of the industry in which the issuer operates

(1) Industry to which the issuer belongs

The company has focused on the research and development, production and sales of two series of biochemical drugs, proteases and polysaccharides, for many years. Among them, protease varieties mainly include pancreatic kallikreinase series, asparaginase series, compound digestive enzyme capsules (Ⅱ) and elastase series; polysaccharide varieties mainly include standard heparin series products and low molecular weight heparin series products. According to the "National Economic Industry Classification (GB/T4754-2017)", the company's industry is "C27 Pharmaceutical Manufacturing". According to the "Strategic Emerging Industries Classification (2018)", the company's industry is the "4.1.2 Chemical Drugs and API Manufacturing" industry of the "Biopharmaceutical Industry".

(2) Industry authorities, industry regulatory systems, and major industry laws, regulations, and policies

Industry authorities

(1) Major domestic industry authorities and functions

The main regulatory authorities of the chemical drugs and API manufacturing industry in which the company operates include: National Medical Products Administration, National Health Commission, National Development and Reform Commission, National Ministry of Ecology and Environment, and National Medical Security Administration. The main regulatory functions of the above regulatory departments are as follows:

Serial number Department Main functions

Responsible for safety supervision and management, standard management, registration management, quality management, and post-market risk management of drugs, medical devices and cosmetics. Responsible for the management of licensed pharmacist qualifications. Responsible for organizing and guiding national medicines

Supervision and inspection of drugs, medical devices and cosmetics. Responsible for the supervision of drugs, medical devices and cosmetics1 Supervision and management

Conduct external exchanges and cooperation in the field of management and participate in the formulation of relevant international regulatory rules and standards. Responsible Bureau

Guide the work of the drug regulatory departments of provinces, autonomous regions, and municipalities directly under the Central Government. Complete other tasks assigned by the Party Central Committee and the State Council.

The main national management agency responsible for public health and family planning management. Its main responsibilities include formulating national health policies, coordinating and promoting the deepening of the reform of the medical and health system, organizing and formulating the national basic drug system, formulating and organizing the implementation of disease prevention and control plans, supervising and managing public health, medical and medical services and health emergencies, supervising health and health affairs, formulating policies and measures to deal with the aging of the population, the integration of medical and nursing care, etc.

National Development Responsible for providing macro guidance on the development planning of the pharmaceutical industry and the operation of enterprises in the industry, responsible for the establishment of industry technological transformation investment projects by the Pharmaceutical 3 and Reform Commission, supervising and managing drug prices, and promoting the implementation of national industrial policies of the National Congress.

Responsible for establishing and improving the basic system of the ecological environment; responsible for the overall coordination of major ecological and environmental issues and national ecological supervision and management; responsible for supervising and managing the implementation of national emission reduction targets; responsible for the supervision and management of the Ministry of Environmental Protection for environmental pollution prevention and control; responsible for the supervision and management of ecological environment access; responsible for ecological environment monitoring; responsible for unified supervision and law enforcement of the ecological environment.

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Serial number Department Main functions

Responsible for formulating draft laws and regulations, policies, plans and standards for medical insurance, maternity insurance, medical assistance and other medical security systems, formulating departmental regulations and organizing their implementation; organizing the formulation of unified urban and rural

Establish a dynamic adjustment mechanism for medical insurance catalogs and payment standards for drugs, medical consumables, medical services, medical service facilities, etc., and organize the implementation of the national medical standards; establish a dynamic adjustment mechanism, formulate access negotiation rules for medical insurance catalogs, and organize their implementation; organize the Security Bureau to formulate policies such as prices for drugs, medical consumables, and charges for medical service facilities; formulate bidding and procurement policies for drugs and medical consumables and supervise their implementation; formulate agreements and payment management methods for designated medical institutions and organize their implementation, and establish and improve medical security credit evaluation systems and information disclosure

Exposure system to supervise and manage medical service activities and medical expenses included in the scope of medical insurance.

(2) Major overseas industry authorities and functions

The main national and regional regulatory authorities for the company's overseas sales are mainly local pharmaceutical regulatory agencies.

The body is as follows:

Country/Region Department Key Management Responsibilities

The European Commission is the permanent executive agency of the EU, and its main responsibilities are to formulate industry regulatory regulations. The competent authorities are those of the EU countries

The European Commission and the main agencies of the member states are appointed by each member state. Their main responsibility is to deal with adverse events in the European Union.

Reports from regulatory authorities, product recalls, product classification rulings, consultations, registration of manufacturers and manufacturers’ authorized representatives in the EU, market surveillance and review of clinical studies, etc.

Food, dietary supplements, pharmaceuticals, and

U.S. Food and Drug Administration

United States Vaccines, biopharmaceutical preparations, blood preparations, medical devices, FDA

Supervision and management of sexual equipment, veterinary drugs and cosmetics.

Industry supervision system

(1) Main domestic regulatory systems

The pharmaceutical industry is closely related to the health of the general public, including the production, circulation and use of drugs.

All aspects are strictly supervised by relevant government departments. The current main regulatory system and management of my country’s pharmaceutical industry

The system is as follows:

Relevant system main content

According to the "Drug Administration Law of the People's Republic of China", the state implements a drug marketing authorization holder system for drug management. Drug marketing authorization holders are responsible for the safety, effectiveness and quality controllability of drugs throughout the entire process of drug development, production, operation and use. Drug marketing authorization holders can produce drugs on their own and market the drugs

You can also entrust a drug manufacturer to produce the drug. If you produce the drug yourself, you must obtain a drug production license; the license holder

If production is entrusted, it should be entrusted to a qualified pharmaceutical manufacturer. Through the personnel system of the State Council Drug Supervision and Administration Department

Upon approval, the drug marketing authorization holder can transfer the drug marketing authorization. The transferee should have the capabilities of quality management, risk prevention and control, liability compensation, etc. to ensure the safety, effectiveness and quality controllability of the drug, and fulfill the obligations of the drug marketing authorization holder.

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Relevant system main content

The production of new drugs or drugs with national standards must be approved by the drug regulatory department of the State Council and issued with a drug approval number. Drug manufacturers can only produce the drug after obtaining the drug approval number. Drug registration is classified and managed according to traditional Chinese medicines, chemical drugs and biological products. Chemical drug registration is classified according to innovative chemical drugs, improved new chemical drugs, generic drugs, etc. After the applicant has completed pharmaceutical, pharmacology and toxicology and drug clinical trials to support drug marketing registration, determined quality standards, completed commercial-scale production process verification, and is ready to accept drug registration verification and inspection, the applicant shall submit an application for drug marketing authorization and submit relevant research materials in accordance with the application material requirements. For generic drugs, in vitro diagnostic reagents subject to drug management, and other qualified situations, if the applicant determines that it is not necessary or impossible to conduct drug clinical trials for drug registration and meets the conditions for exemption from drug clinical trials, the applicant may directly apply for a drug marketing management system license. Generic drugs should be of the same quality and efficacy as the reference preparation. The drug registration certificate is valid for five years. During the validity period, the holder of the drug registration certificate shall continue to ensure the safety, effectiveness and quality controllability of the drugs on the market. The holder should apply for re-registration six months before the expiration of the drug registration certificate. Currently, the State Food and Drug Administration implements a registration and filing system for raw materials. Newly registered varieties need to submit raw material registration and filing materials to the drug regulatory department of the State Council. After passing the formal review, they will obtain a registration number for raw materials. After registration and filing of raw materials, they can be authorized to be cited by preparation customers for related review. After passing the related review, the preparation customer can obtain the drug marketing license. On the registration and filing platform of the State Council's drug regulatory department, the registration number of the corresponding API variety will be marked with "This raw material has been used in marketed preparations", indicating that the corresponding API can be used when the corresponding related review drug is launched.

According to the provisions of the "Drug Administration Law of the People's Republic of China", the state implements an industry entry licensing system for pharmaceutical manufacturing enterprises. To establish a pharmaceutical manufacturing enterprise in my country, it must obtain approval from the People's Drug Administration of the province, autonomous region, or municipality directly under the Central Government where the enterprise is located.

The drug supervision and administration department of the civilian government approves and issues a "Drug Production License". There is no "Drug Production License" management system

Drugs shall not be produced; the "Drug Production License" shall indicate the production scope and validity period, and shall be re-examined and issued upon expiration; the raw materials and excipients required for the production of drugs must meet medicinal requirements.

According to the "Measures for the Supervision and Administration of Drug Production", drug marketing authorization holders should establish a drug quality assurance system, perform drug marketing release responsibilities, and be responsible for the quality of the drugs for which they have obtained drug registration certificates. API manufacturers should organize production in accordance with approved production processes, strictly abide by drug production quality management regulations, and ensure that the production process continues to meet legal requirements. The drug regulatory departments of provinces, autonomous regions and municipalities directly under the Central Government shall

For regulatory needs, the management system for drug marketing authorization applicants holding drug production licenses and their entrusted production enterprises

Conduct pre-market GMP compliance inspections. The drug regulatory department shall formulate a drug inspection plan based on the risk principle, determine the list of inspected units, inspection content, inspection focus, inspection methods, inspection requirements, etc., and implement risk-level management. The annual inspection plan shall determine that a certain proportion of inspected units shall be subject to GMP compliance inspection.

According to the provisions of Articles 10 and 32 of the Drug Administration Law, drugs produced by drug manufacturers must comply with national drug standards and must be produced in accordance with national drug standards and the drug standards of the production process group approved by the State Food and Drug Administration. National drug standards refer to the quality indicators, inspection method systems and technical requirements for production processes established by the state to ensure drug quality, including the Pharmacopoeia of the People's Republic of China, drug registration standards and other drug standards. The State Food and Drug Administration organizes the formulation and revision of national drug standards, and the drug inspection agency of the State Food and Drug Administration is responsible for formulating national drug standards and reference materials.

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Relevant system main content

The General Office of the State Council issued the "Opinions on Carrying out the Consistency Evaluation of the Quality and Efficacy of Generic Drugs" (Guobanfa [2016] No. 8) on March 5, 2016, proposing to carry out the consistency evaluation of the quality and efficacy of generic drugs. Subsequently, the State Food and Drug Administration successively issued supporting policies such as the "Announcement on the Registration and Recommendation Procedures for the Release of Reference Preparations for Quality and Efficacy Consistency Evaluation of Generic Drugs" and the "Announcement on Matters Related to the Quality and Efficacy Consistency Evaluation of Generic Drugs". At the same time, the varieties that have passed the quality and efficacy consistency evaluation of generic drugs were released through batches of announcements or inclusion in the "China Marketed Drug Catalog". Consistency evaluation is of great significance to improving the overall level of consistency evaluation of my country's pharmaceutical industry, ensuring the safety and effectiveness of drugs, promoting the upgrading and structural adjustment of the pharmaceutical industry, and enhancing the international competitiveness of the pricing system. In December 2018, the State Food and Drug Administration issued the "Announcement on Matters Concerning the Consistency Evaluation of the Quality and Efficacy of Generic Drugs", which stipulates that varieties that have passed the consistency evaluation will be included in the National Essential Medicines List first, and varieties that have not passed the consistency evaluation will be gradually removed from the list. For generic drugs including essential drug varieties approved for marketing before the implementation of the new registration classification of chemical drugs, after the first variety passes the consistency evaluation, the same varieties of other drug manufacturers should complete the consistency evaluation within three years in principle. If there are more than three drug manufacturers that have passed the consistency evaluation for the same type of drugs, in principle, varieties that have not passed the consistency evaluation will no longer be used in centralized drug procurement.

It means that drug manufacturers go to distribution companies to issue invoices once, and distribution companies go to medical institutions to issue invoices once. Wholly-owned or holding commercial companies (limited to 1 commercial company in the country) and domestic general agents of overseas drugs (limited to 1 domestic general agent in the country) established by pharmaceutical manufacturers or group enterprises integrating science, industry and trade that only sell the drugs of the enterprise (group) can be regarded as production enterprises. The transfer of medicines within a pharmaceutical distribution group enterprise to a wholly-owned (holding) subsidiary or between wholly-owned (holding) subsidiaries does not count as one invoice, but a maximum of one invoice is allowed. In order to further standardize the circulation order of drugs, compress circulation links, and reduce drug prices, the Medical Reform Office of the State Council, together with eight ministries and commissions including the National Health and Family Planning Commission, jointly issued the "About the Procurement of Drugs in Public Medical Institutions" in December 2016.

Notice on the Implementation Opinions (Trial Implementation) on the Implementation of the “Two-Invoice System” in Drug Procurement in Public Medical Institutions.

Gradually implement the "two-invoice system" in product procurement.

system"

In 2017, the General Office of the State Council issued the "Several Opinions of the General Office of the State Council on Further Reforming and Improving Policies for the Production, Circulation and Use of Drugs", proposing the implementation of a two-invoice system for drug purchases and sales. Require comprehensive medical reform pilot provinces (autonomous regions and municipalities) and public hospital reform pilot cities to take the lead in implementing the two-invoice system, encourage other regions to implement the two-invoice system, and strive to promote it nationwide by 2018. At the same time, drug circulation companies and medical institutions are required to establish purchase and sales records with complete information when purchasing and selling drugs, so that the bills, accounts, goods, and payments are consistent, and the accompanying documents are accompanied by the drugs. It is proposed that enterprises selling drugs should issue invoices and sales vouchers in accordance with regulations, and actively promote the standardization and electronic management of drug purchase and sales notes.

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Relevant system main content

my country's centralized drug bidding and procurement first began in the 1990s. In 2009, the former Ministry of Health and other six ministries and commissions issued a series of documents such as the "Opinions on Further Standardizing the Centralized Procurement of Drugs in Medical Institutions", which clearly proposed the implementation of a government-led, provincial-based bidding system. The relevant drug bidding and procurement system has gradually entered the stage of standardized operation.

In February 2015, the General Office of the State Council issued the "Guiding Opinions on Improving the Centralized Procurement of Drugs in Public Hospitals" (Guobanfa [2015] No. 7), proposing for the first time "linking volume and price" and "implementing volume-based procurement"; in June of the same year, the former National Health and Family Planning Commission issued the "Guidelines for "Notice on Implementing and Improving the Guiding Opinions on Centralized Procurement of Drugs in Public Hospitals" (Guowei Yaozhengfa [2015] No. 70) states that "provincial drug procurement agencies should promptly summarize and analyze hospital drug procurement plans and procurement budgets, reasonably determine the scope of drug procurement, and implement volume-based procurement." Concentration of Drugs As a result, various provinces and pilot cities have begun to implement centralized and bulk procurement of drugs. Each province (autonomous region, municipality) must establish a procurement system to formulate a centralized drug procurement catalog, and implement open bidding, online bidding, centralized bargaining and direct online procurement (including direct implementation of government pricing) for drugs included in the centralized procurement catalog. Centralized drug procurement will help reduce drug prices, break the unreasonable mechanism of public hospitals using drugs to support medical services, and thereby reduce the drug burden of the public.

In November 2018, the fifth meeting of the Central Committee for Comprehensively Deepening Reforms reviewed and approved the "Pilot Plan for National Organization of Centralized Procurement of Drugs", which clarified the overall idea of "national organization, alliance procurement, and platform operation". In the same month, the joint procurement office composed of representatives from 11 pilot regions officially announced the "4+7 City Drug Centralized Procurement Document" on the Shanghai Sunshine Pharmaceutical Procurement Network, and piloted "volume-based procurement" in 4 municipalities (Beijing, Tianjin, Shanghai, Chongqing) and 7 pilot cities (Shenyang, Dalian, Xiamen, Guangzhou, Shenzhen, Chengdu, Xi'an).

"Good Manufacturing Practices for Pharmaceutical Products" stipulates that enterprises should conduct drug sales in drug procurement, storage, sales, transportation, etc.

Take effective quality control measures to ensure drug quality, and establish a drug traceability management system in accordance with relevant national requirements

traceability system.

(2) Main overseas regulatory systems

During the reporting period, the company's heparin API products were mainly sold in overseas markets such as the United States and EU countries.

Sales in the United States must obtain cGMP certification from the U.S. FDA, and sales in EU countries

Sales must obtain European CEP certification.

The U.S. FDA is the drug regulatory department of the United States. Its responsibility is to ensure that the United States produces or imports

of food, cosmetics, drugs, biologics, medical devices and radioactive products. Including raw materials in

Within the period, any drugs entering the U.S. market require FDA approval, and the company’s APIs are exported to the U.S.

The market needs to obtain the Drug Master File (DMF) from the US FDA and obtain approval.

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The main way for API products to enter the EU market is to pass CEP certification and obtain the corresponding CEP certificate. CEP certification is an independent quality assessment process established by the European Committee for the Quality of Medicines (EDQM) for APIs that have been included in the European Pharmacopoeia. API manufacturers can submit applications to EDQM independently and promise that their products will strictly comply with EU GMP standards during the production process. EDQM will issue a CEP certificate to the API manufacturer upon satisfactory review of documentation and possible on-site inspections. If the API used in a drug to be marketed has obtained a CEP certificate, the review agency will no longer conduct a separate assessment of the quality of the API. At the same time, API products that have obtained CEP certificates can be used for preparation production by all pharmaceutical preparation manufacturers in member countries of the European Pharmacopoeia Agreement.

Main laws, regulations and policies of the industry

(1) Main laws and regulations of the industry

Serial number Name of laws and regulations Formulating department Release time Basic regulations

State Food and Drug Administration, National Health

1 "Pharmacopoeia of the People's Republic of China" (2020 Edition) Health Commission of the People's Republic of China in December 2020

"Drug Administration Law of the People's Republic of China" (2019

2 Standing Committee of the National People’s Congress (Revised in December 2019)

"Implementation Regulations of the Drug Administration Law of the People's Republic of China"

3 State Council March 2019 Regulations

Registration management

National Market Supervision and Administration Bureau

4 "Measures for the Administration of Drug Registration" July 2020

"State Food and Drug Administration's Notice on the Development of Chemical Drug Injections"

5 Announcement on the consistency evaluation of quality and efficacy of generic drugs State Food and Drug Administration Report in May 2020》

"General Administration's Notice on Adjusting APIs, Pharmaceutical Excipients and Pharmaceutical

6 Announcement of the Food and Drug Administration on Packaging Material Review and Approval Matters in November 2017》

"The Food and Drug Administration's Notice on Promoting the Marketing of Drugs

Former National Food and Drug Administration

7 Notice on matters related to the pilot work of the license holder system August 2017 General Administration

"Know"

"General Office of the State Council's Notice on Issuing Drug Marketing Licenses"

8 Notice of the General Office of the State Council on the Pilot Plan for the Holder System in May 2016"

"The General Administration of China's National Food and Drug Administration Announces the Reform of Registration and Classification of Chemical Drugs" Former National Food and Drug Administration

9 Announcement of the Work Plan for March 2016》 General Administration of Management

"The Standing Committee of the National People's Congress on the Award

10 The State Council has the right to carry out drug marketing authorization in some places. Decision of the Standing Committee of the National People’s Congress on the Pilot System of Holder System and Related Issues in November 2015.

Production management

National Market Supervision and Administration Bureau

11 "Measures for the Supervision and Administration of Drug Production" (2020 Edition) July 2020 Bureau

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Serial number Name of laws and regulations Formulating department Release time

Former National Food and Drug Administration

12 "Regulations on the Supervision and Administration of Drug Entrusted Production" issued by the State Administration of Industry and Commerce in October 2014

"Good Manufacturing Practice for Pharmaceutical Products" (revised in 2010

13 Former Ministry of Health (ordered in March 2011)

Circulation management

"General Office of the State Council's Notice on Issuing Nationally Organized Drugs"

14 Notice of the General Office of the State Council on the Centralized Procurement and Utilization Pilot Program in January 2019"

Former National Food and Drug Administration

15 "Measures for the Administration of Drug Business Licenses" November 2017 General Administration

"General Office of the State Council's Notice on Further Reform and Improvement of Pharmaceutical

16 Several Opinions of the General Office of the State Council on Product Production, Circulation and Use Policies in February 2017"

Former Medical Reform Office, National Health Planning Office

"On the Implementation of Drug Procurement in Public Medical Institutions"

17 Committee and General Administration of Food and Drug Administration’s Implementation Opinions of the “Two-Invoice System” in December 2016 (Trial)”

Bureau and other eight departments

Former National Food and Drug Administration

18 "Pharmaceutical Distribution Quality Management Practices" July 2016 General Administration

Former National Food and Drug Administration

19 "Measures for the Administration of Drug Recalls" December 2007 General Administration

Former National Food and Drug Administration

20 "Measures for the Supervision and Administration of Drug Circulation" May 2007 General Administration

(2) Main industry policies

Serial number Policy name Formulating department Release time Purpose and related content Optimize the review and approval process for innovative drugs and strengthen clinical trials. "About comprehensively deepening drug clinical trial support and intellectual property protection, passed

Medical device regulatory reform promotes accelerated market access and full life cycle supervision1 State Council January 2025

Promote high-quality development and reform of the pharmaceutical industry, stimulate the vitality of pharmaceutical innovation, promote the national exhibition's opinions" to integrate the research and development of innovative drugs with international standards and enhance the core competitiveness of the industry.

"Deepening the medical and health system, accelerating the tasks of innovative drugs, rare disease treatment drugs, clinical 2 reform 2024 key projects, State Council June 2024 urgently needed drugs, and innovative medical devices" review and approval.

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Serial number Policy name Developing department Release time Purpose and related content

"Thirteen. Medicine" in the "encouraged category" mentioned "1. Breakthroughs and applications of core pharmaceutical technologies: membrane separation, new crystallization, chiral synthesis, enzymatic synthesis, continuous reaction and other advanced manufacturing and green low-carbon technologies of raw materials, new drug preparation technology, new biological drug delivery methods and delivery technologies, large-scale efficient cell culture and purification, "Industrial Structure Adjustment Guidance National Development and Reform 2023 12 Medicinal peptide and nucleic acid synthesis technology, antibody conjugate catalog (2024 version)" Committee Month 2. New drug development and industrialization: innovative drugs and improved new drugs with independent intellectual property rights, children's drugs, shortage drugs, drugs for rare diseases, vaccines for the prevention and treatment of major diseases, new antibody drugs, recombinant protein drugs, nucleic acid drugs, biological enzyme preparations, gene therapy and cell therapy drugs."

In order to encourage the research and creation of new drugs and meet the needs of clinical medication, the Center for Drug Evaluation will accelerate innovation by combining “early intervention, research and review” and the National Food and Drug Administration

"Linkage, rolling submission" and other valuable experiences and supervision 4 drug marketing authorization application review Bureau drug review March 2023

New tools and new work standards formed by the Management Science Action Plan (Trial)" Review Center

methods, new standards, encourage innovative research and development processes, and speed up the review and approval of innovative drug varieties. Strengthen the full life cycle management of drugs and vaccines, speed up the review and approval of drugs and medical devices for urgent clinical needs and rare disease treatment, improve drug inspection and testing and biological products (vaccines) approval 5 State Council February 2023

It is necessary to strengthen the development capabilities, optimize the traditional Chinese medicine review mechanism, accelerate the technological research and development and quality standard upgrade of chemical raw materials and traditional Chinese medicine, and improve the consistency of the quality and efficacy of generic drugs, original research drugs, and patented drugs. During the "14th Five-Year Plan" period, the average annual growth rate of operating income and total profits of the pharmaceutical industry remained above 8%, the proportion of added value in the total industry increased to about 5%, and the concentration of leading enterprises in the industry further increased. During the "14th Five-Year Plan" period, all "Notice on the issuance of the "14th Five-Year Plan" industrial and information industry R&D investment increased by more than 10% annually; 6 Ministry of Information Technology, etc. of the Pharmaceutical Industry Development Plan from February 2022 to 2025, 9 departments accounted for a further increase in the proportion of the industry's operating revenue increase. Five major projects were proposed, including the industrialization project of innovative medical products, the technical research project of pharmaceutical industrialization, the supply guarantee project of vaccines and shortage drugs, the product quality upgrade project, and the green and low-carbon project of the pharmaceutical industry.

"The 14th Five-Year Plan" National Drug National Drug Review and Approval System Reform Continues to Deepen, Approving December 2021

Supervision and management of safety and promotion of high-quality development. A batch of innovative drugs that are urgently needed for clinical use will be expedited to be released soon.

Development Plan" Innovative drugs with clinical value are on the market.

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Serial number Policy name Developing department Release time Purpose and related content

By 2025, bioenergy will develop steadily, and the "14th Five-Year Plan" Bioeconomy National Development and Reform 2021 12 Bio-based materials will replace traditional chemical raw materials, and the Biotechnology Development Plan will replace traditional chemical processes with biological processes.

The Anti-Monopoly Committee of the State Council and the Anti-competition Rules of the State Council further clarified market competition in the field of raw materials to prevent and stop competition in the field of raw materials in November 2021.

The 9th meeting will focus on the monopolistic behavior of the Monopoly Committee in the field of APIs and safeguard market competition in the field of APIs.

Antitrust Guidelines will strive for order and protect consumer interests and social public interests.

By 2025, develop a number of high value-added and high-growth varieties, break through a number of green and low-carbon technological equipment, cultivate a number of internationally competitive leading companies, and create a number of globally influential "About Promoting the Production of Raw Materials Pharmaceuticals National Development and Reform

Industrial clusters and production bases in October 2021. API 10 high-quality development implementation committee, industry and

"Notice on Major Cases of Industrial Innovation Development and Advanced Manufacturing Level" Ministry of Information Technology

The country's green and low-carbon development capabilities have been significantly improved, and the resilience of the supply system has been significantly enhanced, providing strong support for the development of the pharmaceutical industry and forging a distinctive long board for international competition and cooperation.

Focusing on the new generation of information technology, biotechnology, new energy, new materials, high-end equipment, new energy vehicles, green environmental protection and aerospace, "The People's Republic of China

Strategic emerging industries such as marine equipment and accelerating the development of the national economy and society

National People's Innovation and Application of Key Core Technologies, Enhancement Elements 11 Fourteenth Five-Year Plan and March 2021

Congress ensures capabilities and cultivates and strengthens new industrial development drivers. The 2035 long-term goal outline

Can. Promote the integration of biotechnology and information technology》

Innovate and accelerate the development of biomedicine, biological breeding, biomaterials, bioenergy and other industries to make the bioeconomy bigger and stronger.

Adhere to the people's health as the center, accelerate the establishment of a multi-level medical security system that covers the entire population, coordinates urban and rural areas, has clear rights and responsibilities, provides appropriate protection, and is sustainable, promotes the high-quality coordinated development of medical security and pharmaceutical services, and promotes the implementation of the Healthy China strategy. By 2025, the medical security system will be more mature and finalized, and by 2030, the medical security system will be fully 12 February 2020.

"Opinions on System Reform" State Council has comprehensively built basic medical insurance as the main body. The opinions pointed out: Do a good job in the acceptance and review of the consistency evaluation of the quality and efficacy of generic drugs, support the development and use of high-quality generic drugs by improving medical insurance payment standards and drug bidding and procurement mechanisms, and promote the substitution of generic drugs; improve the monitoring, early warning and hierarchical response system for shortages of drugs.

Industry and letter

By 2025, APIs will basically achieve the goals of the Park Information and Chemical Department, Production

and create a batch of centralized production of APIs. "Promoting the greening of API industry, Ministry of Environment,

13 January 2020 Base; Guiding Opinions on Effectively Improving Technical Levels and Breaking through 20 Color Developments" National Health

More than one green key common technology has basically fulfilled the requirements of the National Health Commission and the National

Substitute green production technology in the current industry.

National Food and Drug Administration

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Serial number Policy name Developing department Release time Purpose and related content

According to this industry classification, the "Strategic Emerging Industries Classification" under the biopharmaceutical industry National Statistics 2018 November

14 of the chemical drugs and API manufacturing belong to the war category (2018)》 Bureau Month

strategic emerging industries.

It is proposed to promote the research and development of generic drugs, improve the quality and efficacy of generic drugs, and improve the ability to ensure drug supply. Demand-oriented, encourage the imitation of drugs that are clinically necessary, have proven efficacy and are in short supply, and encourage the imitation of drugs needed for the prevention and treatment of major infectious diseases and the treatment of rare diseases, as well as drugs needed to deal with public health emergencies. It is proposed to strengthen the imitation of "Regulations of the General Office of the State Council"

Drug technology research will encourage the reform of generic drug items and improve the supply of generic drugs

15 Guarantee and usage policies for key chemicals and biological drugs included in the list State Council April 2018

Research on key common technologies is included in relevant national scientific opinions (State Council [2018] 20

technology plan; in accordance with the encouragement of new drug creation and encouragement number)

The principle of equal emphasis on generic drug research and development will improve the intellectual property system. Implement patent quality improvement projects and cultivate more core intellectual property rights, original intellectual property rights, and high-value intellectual property rights for pharmaceuticals. Accelerate the pace of internationalization of drug research and development, registration, and marketing, and support companies in developing international production capacity cooperation.

It is further proposed to promote the innovation of chemical drugs and the development of high-end preparations, and accelerate the "Thirteenth Five-Year Plan" national strategy for innovative traditional Chinese medicines.

Research and development to realize the development regulations of original emerging industries of drugs for the prevention and treatment of major diseases December 2016

16 State Council Innovation. Promote major diseases and plans for clinical shortages" (National Development [2016] June 67

Drug numbers for multiple diseases, rare diseases, childhood diseases, etc.)

New drug research and development, industrialization and quality upgrading of drugs.

It is proposed to promote the development of the pharmaceutical industry, improve the collaborative innovation system of government, industry, academia and research, and promote pharmaceutical innovation, transformation and upgrading. Strengthen patented drugs, new traditional Chinese medicines, new preparations, high-end medical devices and other "Healthy China 2030" Central Committee of the Communist Party of China, 2016 October 2016 Central Committee of the Communist Party of China, "Outline of Planning for Building Innovation Capacity and Promoting the Treatment of Major Diseases" State Council to achieve generic listing of drugs with expired patents. Vigorously develop new varieties of biological drugs, chemical drugs, high-quality traditional Chinese medicines, high-performance medical devices, new excipient packaging materials and pharmaceutical equipment, and promote the industrialization of major drugs.

Clarify the scope of objects for consistency evaluation of generic drugs: the General Office of the State Council’s General Office of the State Council’s Regulation on the Pre-Marketing of Generic Drugs before the Implementation of the New Registration Classification of Generic Drugs.

Consistency evaluation must be carried out for all purposes of consistency evaluation of efficacy; the determination of the reference system shall be based on the drug selection principles; and it is clearly stipulated that drug manufacturers should in principle use in vivo bioequivalence testing methods to conduct consistency evaluation.

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(3) Industry competition landscape and issuer’s market position

Industry competition pattern and market concentration

(1) Heparin industry

Heparin API

Heparin API is mainly extracted from the mucosa of pig small intestine and can be directly used to make standard heparin preparations, or further processed into low-molecular-weight heparin API, and finally made into low-molecular-weight heparin preparations for use in various clinical treatment fields. With the aging of the population, the market demand for clinical antithrombotic drugs is rapidly expanding, and the global demand for heparin APIs is growing steadily. The global heparin API market is showing an overall growth trend. According to Market Growth Reports data, global heparin API sales revenue will be approximately US$3.335 billion in 2024, and is expected to reach US$9.798 billion in 2033, with a compound annual growth rate of 12.72%. Due to high consumption of pork, my country is the main producer of heparin APIs in the world. According to QYResearch, my country accounts for more than 65% of the global heparin API production market. Four of the world's top five companies are located in China, namely Hepalink, Jianyou Co., Ltd., Qianhong Pharmaceutical and Dongcheng Pharmaceutical.

In the domestic market, major heparin API manufacturers include Hepalink, Jianyou Pharmaceutical, Dongcheng Pharmaceutical, Qianhong Pharmaceutical and Changshan Pharmaceutical, and the competitive landscape is relatively stable.

Sales volume of APIs of major domestic heparin companies from 2019 to 2024 (calculated by sales volume)

Data source: public information

In the future, as the quality control of heparin raw materials and preparations by drug regulatory authorities becomes increasingly strict and companies demand further control over the quality and cost of upstream traceable crude heparin, it is expected that companies with sufficient supply of upstream traceable crude heparin and the ability to cover the entire heparin industry chain will be able to meet the growing demand

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market demand and has obvious competitive advantages.

Heparin preparations

Heparin preparations are mainly divided into standard heparin preparations and low molecular weight heparin preparations, which are widely used in clinical practice as key drugs for anticoagulation therapy. According to Frost & Sullivan, the global heparin preparation market size will be US$5.268 billion in 2021 and is expected to reach US$6.64 billion in 2024, with a compound annual growth rate of 6%. Data from Morentropy Pharmaceuticals shows that the sales of terminal heparin drugs in my country's hospitals reached 13.729 billion yuan in 2021. Since then, affected by changes in centralized procurement policies and medical insurance fee controls, the sales of terminal heparin drugs in hospitals have declined, reaching 9.271 billion yuan in 2024. In the future, as the centralized procurement pressure clears and clinical demand becomes rigid, sales of heparin drugs will tend to rebound.

Hospital terminal heparin drug sales in my country from 2019 to 2024 (100 million yuan)

Data source: Morentropy Pharmaceutical Data

The molecular weight of standard heparin preparations is usually 3,000-30,000D. It is mainly suitable for thrombosis or embolic diseases, disseminated intravascular coagulation caused by various causes, hemodialysis, extracorporeal membrane oxygenation, extracorporeal circulation, catheterization, microvascular surgery and other operations, as well as the anticoagulation treatment of certain blood specimens or equipment. Standard heparin can form a ternary complex with antithrombin and thrombin, directly inactivating thrombin, thereby quickly blocking thrombosis. Low-molecular-weight heparin has a shorter molecular chain and mainly exerts an anticoagulant effect by inactivating factor At the same time, standard heparin preparations with lower molecular weight heparins are more cost-effective and are suitable for use in areas with limited medical resources or in patients with chronic diseases who require long-term anticoagulation.

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Still has definite application value. Currently, the company's heparin sodium injection and heparin sodium sealed tube injection are mainly sold in the domestic market, and maintain a leading position in the domestic standard heparin medication market. Other major manufacturers include Fosun Wanbang (Jiangsu) Pharmaceutical Group, Chengdu Haitong Pharmaceutical, Shanghai Pharmaceuticals No. 1 Biochemical Pharmaceuticals, etc.

Sales volume of heparin sodium injection in Chinese public hospitals in 2024 Corporate landscape

Data source: minai.com

Low molecular weight heparin preparations generally have higher safety and wider clinical applications than standard heparin preparations. According to Frost & Sullivan, the proportion of low-molecular-weight heparin preparations in global heparin preparation market sales is expected to exceed 88% in 2025, becoming the mainstream of heparin preparations and occupying a major market share. The most common clinical low-molecular-weight heparin preparation companies have all covered them, including enoxaparin sodium, nadroparin calcium and dalteparin sodium. Among them, enoxaparin preparations account for the largest market share. Because of its wider clinical indications and more significant clinical therapeutic effects, it is expected to replace other low-molecular-weight heparin preparations globally. Europe is the world's largest market for enoxaparin preparations, accounting for about 50%. China is one of the fastest growing markets. As more enoxaparin generics are put into the domestic market and doctors' awareness of the importance of anticoagulation therapy continues to increase, it is expected to reach US$698 million in 2025.

my country's enoxaparin sodium also occupies a major share of the heparin preparation market as a representative of low molecular weight heparin preparations. According to Morentropy Consulting data, enoxaparin sodium’s domestic market share will be approximately 24.46% in 2023, ranking first. Domestic heparin competition landscape in 2023

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Data source: MoreEntropy Consulting

Note: In addition to enoxaparin sodium, nadroparin calcium, dalteparin sodium, etc., the low-molecular-weight heparins on the market in my country also have varieties that do not distinguish between processes, activity ratios, and molecular weights. They are collectively referred to as "low-molecular-weight heparin calcium" or "low-molecular-weight heparin sodium" according to the calcium salt or sodium salt respectively.

The overall competitive landscape of the domestic enoxaparin market is relatively stable. In 2023, Sanofi, Jianyou and Hepalink will together account for approximately 70% of the market share. Sanofi, as the original research company, occupies the largest market share. However, with the advancement of domestic centralized procurement policies, it has shown a downward trend in recent years. According to statistics from Morontropy Consulting, as enoxaparin sodium was included in the eighth batch of national centralized procurement and Sanofi failed to win the bid, the market share of domestic enterprises' enoxaparin sodium products will gradually increase. Qianhong Pharmaceutical currently covers the most common clinical low-molecular-weight heparin preparations, including enoxaparin sodium, nadroparin calcium and dalteparin sodium. Among them, enoxaparin preparations account for the largest sales. In 2023, this product won the bid for the eighth batch of national centralized procurement.

Competitive landscape of domestic enoxaparin sodium in 2023

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Data source: MoreEntropy Consulting

(2) Pancreatic kallikrein industry

Pancreatic kallikrein, also known as kallikrein or kallikrein clinically, is a serine protease widely present in human tissues and body fluids. Its pharmacological essence is a powerful vasodilator, which mainly exerts biological effects through the kallikrein-kinin system. After entering the blood circulation, the enzyme quickly decomposes to produce active substances such as bradykinin and kinin, which can dilate blood vessels, reduce blood viscosity, inhibit platelet aggregation, etc., thereby effectively improving microcirculatory disorders.

Based on the above mechanism, pancreatic kallikrein is mainly used clinically to treat peripheral vascular disease and microcirculation disorders caused by diabetes. It selectively expands the diseased microarteries and capillaries in diabetic patients, improves tissue blood perfusion, and alleviates ischemia and hypoxia. Therefore, it has a clear therapeutic effect on various complications of diabetes (such as diabetic nephropathy, retinopathy, and peripheral neuropathy).

In addition, thanks to its significant vasodilation and microcirculation improvement effects, the clinical application of pancreatic kallikreinogenase has also been extended to other fields. In the auxiliary treatment of hypertension, the drug plays an auxiliary antihypertensive effect by relaxing peripheral blood vessels and reducing peripheral resistance. In terms of male infertility, the "Expert Consensus on the Clinical Application of Pancreatic Kininogenase in Male Infertility (2018 Edition)" points out that pancreatic kallikrein can provide an ideal microenvironment for spermatogenic cells by increasing testicular blood flow, improving the structure and interstitial nutrition of seminiferous tubules, promoting nucleic acid synthesis and glucose absorption in testicular tissue, thereby increasing the number of spermatocytes, promoting sperm production, and increasing the number of sperm.

In summary, pancreatic kallikreinogenase, as a vasodilator with the core function of improving microcirculation, not only has outstanding effects on diabetes-related microvascular complications, but also shows clear therapeutic value in diseases with microcirculatory disorders such as male infertility and auxiliary blood pressure reduction. According to data from Minai.com, the sales of pancreatic kininogenase in urban public hospitals in my country have increased from 610 million yuan in 2019 to 679 million yuan in 2024, with a compound annual growth rate of 2.16%.

Pancreatic kininogenase sales in urban public hospitals in China from 2019 to 2024 (unit: 100 million yuan)

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Data source: minai.com

In 2024, among the company's protease products, pancreatic kallikrein preparation (trade name: Yikai) will continue to maintain its leading share in the domestic market, occupying the first place in the segment for many consecutive years. Yikai series products are available in two dosage forms: enteric-coated tablets and injections. This product complies with the national treatment guidelines for chronic complications of diabetes and implements the marketing strategy of hospital multi-department expansion and academic promotion of the injection market. Sales in sample hospitals have remained high. According to Minai.com data, the company's pancreatic kininogenase products ranked first in the domestic market with a sales share of 60.23% in 2024, and other companies such as Dingxin Pharmaceutical (subsidiary of Xinghao Pharmaceutical), Livzon Pharmaceutical (subsidiary of Livzon Group), Kangnuo Pharmaceutical, etc. occupy the remaining market share.

Corporate landscape of pancreatic kallikreinogenase sales amount in Chinese public hospitals in 2024

Data source: minai.com

Issuer’s market position

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(1) Heparin products

Heparin API

Heparin API is a special API made from crude heparin extracted and processed from the small intestinal mucosa of healthy pigs and further purified. my country has the richest pig resources in the world and has the congenital conditions for sufficient supply of heparin raw materials. It is the world's largest exporter of heparin raw materials. The company is committed to building the most complete heparin industry chain, and the upstream projects of the heparin industry chain have started construction. The company firmly implements a scientific and reasonable production, supply and marketing coordination mechanism, accurately grasps the international market ecological environment and strategic opportunities under the influence of the heparin industry cycle, and deeply cultivates strategic key customers and the development of new potential markets such as the "One Belt and One Road". Heparin sodium API has always remained at the forefront of export sales of domestic enterprises. The company's domestic market sales volume of heparin API in 2024 ranked fourth.

Heparin preparations

As a high-end product in the heparin value chain, heparin preparations have a huge market size in China and even around the world. According to Frost & Sullivan, the global heparin preparation market size will be US$5.268 billion in 2021 and is expected to reach US$6.64 billion in 2024, with a compound annual growth rate of 6%. The company has a complete product line of heparin preparations, among which standard heparin sodium injection is the company's key product. The company takes advantage of the integration of raw materials and preparations, uses multi-channel promotion methods to strengthen market coverage, and continues to maintain its leading position in the national market share; heparin sodium sealed tube injection relies on its excellent The anticoagulant and anti-infective functions have been promoted and developed in many departments, and sales have continued to grow; the company's low-molecular-weight heparin series product enoxaparin sodium successfully won the bid for the eighth batch of national centralized procurement. The company will promptly seize the opportunity of the centralized procurement policy, seize market share by rapidly increasing volume, and gradually develop into an important profit growth point.

(2) Protease series products

Pancreatic kallikrein preparation

With the aging of my country's population and changes in lifestyle, diabetes has changed from a rare disease to an epidemic, and is showing an upward trend. According to the latest data released by IDF, as of 2021, there are approximately 537 million patients worldwide, and the number of people with diabetes aged 20-79 in my country has reached 141 million, making it the world's largest country with diabetes, of which type 2 diabetes accounts for more than 90%. As the number of domestic diabetes cases increases and the penetration rate of diagnosis and treatment increases, the size of the diabetes drug market will continue to grow. Microcirculation disorder is one of the important pathophysiological bases for the occurrence of chronic complications of diabetes, and early intervention can help prevent and treat diabetes and its vascular complications.

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Pancreatic kallikreinogenase, as a drug to improve microcirculation, was once again selected into the "China Guidelines for the Prevention and Treatment of Type 2 Diabetes (2020 Edition)" and has been widely used in the treatment of diabetes-related chronic complications. The company's pancreatic kininogenase enteric-coated tablets (Yikai), as a microcirculation dilator, were selected into the "Expert Consensus on the Prevention and Treatment of Diabetic Nephropathy (2014 Edition)", "Expert Consensus on the Diagnosis and Treatment of Diabetic Neuropathy (2021 Edition)" and "Expert Consensus on Clinical Medication for Diabetic Microcirculatory Disorders (2021)" edited by the Microvascular Complications Group of the Diabetes Branch of the Chinese Medical Association. Edition)", "Guidelines for the Diagnosis and Treatment of Andrological Diseases (2022 Edition)", "Multidisciplinary Chinese Expert Consensus on Diabetes and Male Dysfunction (2022 Edition)", "National Grassroots Guidelines for the Diagnosis and Treatment of Diabetic Neuropathy (2024 Edition)" and many other expert consensus and treatment guidelines. The company's Yikai series products comply with the national treatment guidelines for chronic complications of diabetes and implement the marketing strategy of multi-department expansion in hospitals and academic promotion of the injection market, and their market share and sales continue to increase.

Compound digestive enzyme preparation

In recent years, as the pace of life and work of Chinese residents has accelerated, digestive system diseases caused by factors such as irregular diet and work and rest have been on the rise year by year. According to data from Yaozhi.com, the sales of digestive system disease drugs in domestic sample hospitals increased from 141.717 billion yuan in 2016 to 159.666 billion yuan in 2021, with a compound growth rate of 2.41% during the period. Compound Digestive Enzyme Capsules (II) (Yimei) is a new generation of digestive enzyme drugs developed by the company. It uses the inherent enzyme system in the organism and is in line with the dietary structure characteristics of the Chinese people. It is double-coated, directional released, fast-acting, and highly safe. In addition to strengthening hospital brand development, Yimei series products also actively explore a new OTC strategic cooperative marketing model with Germany's Bayer Pharmaceuticals, continuously improving brand awareness and market competitiveness, and becoming another blockbuster enzyme brand product of the company.

Elastase preparation

Elastase is a basic clinical drug for metabolic syndrome and cardiovascular and cerebrovascular diseases. It is mainly used for type II and IV hyperlipidemia (especially suitable for type II), atherosclerosis, fatty liver, and diabetic nephropathy. The company's elastase enteric-coated tablets (Yigan) are a high-tech industrialization demonstration variety of biochemical enzymes produced using advanced technologies such as ultrafiltration and affinity chromatography. It has significant effects in regulating lipid metabolism, improving blood vessel elasticity, protecting the liver, kidneys and heart and brain, and is safe from pure biological extraction. In the current new era of chronic disease medical treatment, Yigan products are committed to using biological enzyme activation therapy promotion programs to create retail and three-terminal investment products. They have broad market prospects and development potential, and will become another new profit growth point for the company.

The company’s competitive advantages

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(1) Competence advantages of the entire industry chain

The company has a complete source quality control system. It has established a joint venture subsidiary through joint investment with Muyuan Food Co., Ltd. (hereinafter referred to as "Muyuan Food Co., Ltd."). It relies on Muyuan Co., Ltd.'s domestic pig breeding and slaughtering resource advantages, and combines its own expertise in the fields of crude heparin products, heparin raw materials and heparin preparations. With the professional production technology and quality management experience in the field, we will build the world's leading biopharmaceutical base for the comprehensive utilization of pig by-products, which can produce crude heparin, heparin APIs, low-molecular-weight heparin APIs and preparations and other related products, ensuring adequate supply and reliable quality of upstream raw materials to the greatest extent. At the same time, the company has high-level production and processing capabilities for heparin raw materials and preparations in the industry and a good marketing network. The product layout fully covers the three mainstream low-molecular-weight heparin varieties of enoxaparin sodium, dalteparin sodium, and nadroparin calcium. All of them have passed the national drug consistency evaluation, ensuring that the products are traceable from source to production, and the entire industry chain has obvious advantages.

(2) Technical quality management advantages

The company is a national high-tech enterprise and has been awarded the title of National, Provincial and Municipal Drug Quality Integrity Demonstration Enterprise for many consecutive years. It has formed large-scale production capabilities integrating core technologies such as modern molecular membrane ultrafiltration, molecular affinity chromatography, molecular structure chelation, and virus inactivation for protease drugs and polysaccharide drugs, and has established an industrialized production technology platform. The company has nearly 80,000 square meters of high-level preparation production workshops and quality inspection centers that comply with European and American GMP standards. It has a high-quality professional technical quality management team and a complete production technology quality management system. The company has its own unique control method for enoxaparin sodium, which has the largest sales among low-molecular-weight heparins. In addition to using common organic solvent precipitation methods to select molecular fragments during the molecular weight fragment screening process after heparin sodium is cracked, the company uses anion chromatography principles to strictly screen and control molecular fragments based on the declared patent, so that the final molecular weight distribution of the product remains highly consistent with the original product, resulting in better anti-thrombotic effects and lower bleeding risks. The internal control quality standards of many of the company's key products have been upgraded to national drug quality standards. The main drugs exported have passed the GMP certification of the US FDA, EU CEP, Germany, Japan, Australia and other countries. It also participated in the international standard revision of the USP heparin sodium API, and has certain competitive advantages among domestic and foreign peers.

(3) Talent advantages

Since its listing, the company has introduced a large number of young and promising talents with high academic qualifications and specialization from home and abroad. As of the end of September 2025, the company has nearly 20 PhDs and more than 80 masters. Personnel with college degrees or above account for more than 89% of the company's total employees, who are widely distributed in the company's marketing, technology, and management teams.

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The team has formed a stable talent echelon system, laying a solid talent foundation for the company's future strategic development and operational management needs.

(4) Advantages of marketing model

After years of accumulation, the company has established a diversified business model for domestic preparation sales with self-operated sales business as the main body and simultaneous promotion of investment and channels. In foreign markets, it has established a number of solid distribution networks for raw materials and preparation products in Europe, the United States, Japan and other countries through technical and trade cooperation. The company has long-term, stable and reliable cooperative relationships with customers. Among its peers, it has demonstrated the company's competitive strength and advantages of professional marketing team, product structure and diversified sales market.

Main competitors

(1) Hepalink (002399.SZ)

Founded in Shenzhen in 1998, Hepalink is a leading multinational pharmaceutical company with an A+H dual financing platform. Its main business covers the heparin industry chain, biomacromolecule CDMOs and the investment, development and commercialization of innovative drugs. Its main products and services include enoxaparin sodium preparations, heparin sodium and enoxaparin sodium APIs, as well as macromolecular drug CDMO services. In the field of heparin industry chain, Hepalink's main products include enoxaparin sodium preparations and heparin API, enoxaparin sodium API, and heparin sodium injection.

(2) Jianyou Shares (603707.SH)

Jianyou Co., Ltd. is a pharmaceutical company integrating drug R&D, production and sales. It actively deploys in the fields of chemical drugs and biological drugs, and has established a rich product pipeline covering cardiovascular, neurological, anesthetics, anti-tumor preparations, surgical auxiliary products and other high value-added sterile injections. It is a supplier of many types of injections in the global market. In terms of sterile injection business, its products mainly include low molecular weight heparin preparations, anti-tumor preparations and other high value-added sterile injections. In terms of heparin raw materials, Jianyou Co., Ltd. has established long-term and stable supply relationships with major global heparin preparation manufacturers including Pfizer, Gland, Sanofi, etc.

(3) Dongcheng Pharmaceutical (002675.SZ)

Dongcheng Pharmaceutical is a large pharmaceutical enterprise group covering the four major fields of biochemical raw materials, preparations, nuclear drugs and general health, integrating drug research and development, production and sales. In terms of raw materials, Dongcheng Pharmaceutical is a professional heparin API manufacturer and a global supplier of chondroitin sulfate (pharmaceutical grade and dietary supplement grade); in terms of preparations, Dongcheng Pharmaceutical mainly includes nadroparin calcium for injection, nadroparin calcium injection, hydrocortisone sodium succinate for injection, etc.

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(4) Changshan Pharmaceutical (300255.SZ)

Changshan Pharmaceutical mainly develops, produces and sells drugs for the treatment of cardiovascular and cerebrovascular diseases. Its products are exported to Europe, America, the CIS, Southeast Asia and other regions. Changshan Pharmaceutical is one of the few leading companies in China that has a complete heparin product industry chain and is able to engage in the R&D, production and sales of crude heparin, heparin bulk drugs and heparin preparations. The main heparin products include: crude heparin, heparin sodium bulk drugs, Heparin sodium injection, low molecular weight heparin calcium API and low molecular weight heparin calcium injection, enoxaparin sodium API and enoxaparin sodium injection, nadroparin calcium API and nadroparin calcium injection, dalteparin sodium API and dalteparin sodium injection. (5) Xinghao Pharmaceutical (920017.BJ)

Xinghao Pharmaceutical is an innovative enterprise engaged in R&D and industrialization services of high-end pharmaceutical preparations. Focusing on the research and development of specialty and high-end pharmaceutical preparations, based on independently developed core technologies, we build a technology platform under GMP conditions, and carry out integrated services of drug manufacturing and CMC/CMO through the technology platform. The main products of Xinghao Pharmaceutical include: pancreatic kininogenase for injection, compound digestive enzyme capsules, piracetam (water injection and powder injection), octreotide acetate (water injection and powder injection), methylcobalamin tablets, tiopronin for injection, etc.

(6) Livzon Group (000513.SZ)

Livzon Group is a comprehensive enterprise group integrating pharmaceutical research and development, production and sales. The products cover preparation products, raw materials and intermediates, diagnostic reagents and equipment, covering many treatment fields such as digestive tract, assisted reproduction, mental illness and tumor immunity, and have formed a relatively complete product cluster. The main products include: Livzon Guangle (pancreatic kallikreinogenase), Yilian (ilaprazole enteric-coated tablets and ilaprazole sodium for injection), Livzon Dele (bismuth potassium citrate) series products, Libei Le (rabeprazole sodium enteric-coated capsules), Weisanlian (bismuth potassium citrate tablets/tinidazole tablets/clarithromycin tablets), etc.

Industry entry barriers

(1) Policy barriers to entry

The pharmaceutical industry is directly related to the health and vital interests of the people. Therefore, our country has strict constraints on the research and development, production, and sales of pharmaceutical industry companies through relevant laws, regulations, and industry standards. During the research and development process of new drugs, the company must strictly abide by relevant management regulations and carry out the research and development process of related drugs in accordance with the "Measures for the Administration of Drug Registration", "Good Clinical Practice for Drug Clinical Trials" and other policies and regulations until the final application for listing; at the same time, the company must obtain a "Drug Production License" issued by the drug regulatory department before it can carry out relevant production activities; in the sales process, pharmaceutical distribution companies must obtain a "Drug Production License" issued by the drug regulatory department.

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issued the "Pharmaceutical Distribution License" and strictly abide by the "Pharmaceutical Distribution Quality Management Standards" and other management measures. The 2019 new version of the "Drug Administration Law of the People's Republic of China" incorporates the drug marketing authorizer system, which also marks that my country attaches great importance to the management of the entire process of pharmaceutical product R&D, production, and sales.

For new entrants to the industry, it is very difficult to obtain all the above-mentioned relevant qualification certifications and requires a lot of time and resources. Companies that entered the industry earlier have obvious first-mover advantages. Therefore, there are strict policy barriers to entry in the pharmaceutical industry.

(2) Technical barriers

The pharmaceutical industry is technology-intensive and talent-intensive, and requires relevant practitioners to have the ability to integrate multi-technology and comprehensive application capabilities of multi-disciplinary theoretical knowledge. The entire cycle of drugs from research and development to launch requires companies to have extremely high production standards and strict operating procedures. In terms of production, pharmaceutical production has the characteristics of high cleanliness in the production workshop, complicated process routes, careful verification of equipment parameters, and strict quality control standards. It requires production personnel and quality control personnel to have high professionalism, standardized operating procedures, and rich experience. In terms of research and development, new drug research and development has the characteristics of long cycle, high investment and high uncertainty. It is difficult for new entrants to master core competitive R&D technologies and production processes in the short term, so the pharmaceutical industry has high technical barriers.

(3) Financial barriers

In order to maintain the advancement of technology and the market competitiveness of products, pharmaceutical companies need to continue to invest in research and development, which requires a large amount of funds. From conducting market research, determining research directions, design and development, clinical research to formal product marketing and sales, companies need to pay higher labor costs and invest higher R&D expenses; in addition, they also need relatively abundant financial support during the marketing process of new products. New enterprises with small operating scale and limited financing channels may not be able to form sufficient market competitiveness due to insufficient financial strength.

(4) Brand barriers

The pharmaceutical industry is directly related to people's lives and health. Therefore, doctors are often very cautious when choosing drugs to treat diseases. They usually prefer products with high brand awareness, long time in the market, and accurate drug efficacy. They will also be more loyal to frequently used products, forming strong brand stickiness. Pharmaceutical companies need to invest a lot of money and time in the early stage to carry out strategic layout and expand the market, in order to gain widespread market recognition for the safety and effectiveness of their products and form long-term and stable customer cooperation relationships. The company always attaches great importance to improvement

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Market share and brand influence. The "Yikai" series products comply with the national treatment guidelines for chronic complications of diabetes and implement the marketing strategy of multi-department multi-indication expansion and market academic promotion. The market share and sales volume continue to rise; in addition to strengthening hospital brand development, "Yimei" products are actively exploring OTC cooperation with Germany's Bayer Pharmaceuticals. The new model of strategic cooperation has continuously improved brand awareness and market competitiveness, and sales have further increased; heparin sodium injection and tube sealing solutions have continued to expand market share and maintained a leading position in the national market share; enoxaparin series products have promptly seized the policy opportunities of national centralized procurement, led by rapid volume increases to seize market share, and gradually developed into an important profit growth point. It is usually difficult for new entrants to the industry to form their own brand influence, credibility and customer base in the short term through simple advertising investment and other conventional marketing methods, which also constitutes an important industry barrier for new entrants.

(4) The correlation between the issuer’s industry and the upstream and downstream industries and the development status of the upstream and downstream industries

Heparin raw materials and preparations

Heparin has a complex structure and cannot be completely obtained through chemical synthesis. The schematic diagram of the overall heparin industry chain is as follows:

The upstream of the heparin industry chain is mainly the pig breeding industry, slaughtering industry and crude heparin processing industry. Enterprises need to obtain pig small intestinal mucosa from pig breeding, slaughtering and processing enterprises, and separate the crude heparin through adsorption methods such as resin. The price changes of crude heparin will directly affect the production and sales of heparin raw materials, and indirectly affect the business performance of the enterprise. The middle reaches of the industrial chain are heparin API manufacturers, which further purify the upstream crude heparin products, remove impurities, obtain standard heparin APIs, and depolymerize them to obtain a series of low-molecular-weight heparin APIs; downstream companies in the industrial chain are responsible for producing heparin and its derivative drugs required for clinical treatment, mainly injection products. Standard heparin APIs can be used to produce standard heparin preparations or be used in related medical devices. Various low-molecular-weight heparin APIs will be used to produce corresponding low-molecular-weight heparin preparations. The downstream market demand side has a greater impact on the price of heparin.

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Heparin API has periodic properties. In 2008, adverse drug reactions occurred in the United States with heparin sodium produced by the American company Baxter. After the "Baxter Incident", the strengthening of FDA regulatory requirements led to an increase in industry entry thresholds, which put greater pressure on small and medium-sized API companies and new entrants, causing the price of heparin APIs to rise. As advantages continue to accrue to leading companies such as Qianhong Pharmaceutical, the industry structure gradually stabilizes. Around 2015, my country's first round of heparin API cycle basically ended. Beginning in 2016, affected by domestic supply-side reforms and overseas demand, heparin prices began a second growth cycle. Since 2020, heparin prices have been rising due to the impact of African swine fever and global public health emergencies. Since 2022, the impact of global public health events has gradually weakened, overseas demand has gradually weakened, and heparin prices have fallen rapidly. As of October 2023, heparin prices have quickly fallen back to US$4,805/kg, which is basically the same as the heparin price level in 2018. Although the price margin has not yet fully emerged, it is already in the end range of the second round of heparin cycle. Affected by prices, the sales volume of heparin APIs by major domestic heparin API manufacturers in 2023 will be 9.03 trillion units, a year-on-year decrease of 27.44%. In 2024, heparin prices will fluctuate, with the export price in December 2024 being US$3,992/kg and the export price in September 2025 being US$4,576/kg, an increase of 14.61%. The price of heparin API will be in a relatively stable stage in 2025, which is expected to benefit heparin API manufacturers.

my country's heparin and its salts since 2011: average export price: current month's value (unit: US dollars/kg)

Data source: Tonghuashun iFind, General Administration of Customs export data

Pancreatic kallikreinogenase

The upstream of the pancreatic kallikrein enzyme preparation products produced by the company is the pig breeding industry and the enzyme preparation primary product processing industry. During the reporting period, the company's purchase price of pig pancreas powder remained stable, and the cost fluctuation was not significant. In terms of downstream market demand, this product is a vasodilator, which can improve microcirculation. It is mainly used for microcirculatory disorders, such as nephropathy, peripheral neuropathy, retinopathy, fundus disease and ischemic cerebrovascular disease caused by diabetes. It can also be used

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For adjuvant treatment of hypertension. As the global population ages, the number of patients with diseases such as diabetes and hypertension continues to grow globally, and the demand for pancreatic kallikreinogenase at home and abroad continues to increase. It is expected that the demand in the downstream market will continue to maintain a steady growth trend.

7. Information about the issuer’s main business

(1) The issuer’s main business

Main business situation

The company is a high-tech biochemical pharmaceutical enterprise integrating R&D, production and sales. It has focused on the subdivision of polysaccharide and protease drugs for many years and has become a leading enterprise in this field. Among them, the protease varieties mainly include pancreatic kallikreinogenase series, compound digestive enzyme capsules (II), asparaginase series, elastase, etc.; the polysaccharide varieties mainly include heparin sodium API, standard heparin preparations, low molecular weight heparin series varieties, etc., which are sold in more than 20 provinces and cities across the country and international markets such as Europe, America, and Asia. The company is also one of the few domestic pharmaceutical manufacturers with the ability to trace the entire heparin industry chain from pig small intestine sources, heparin crude products, heparin APIs and preparations. After Henan Qianmu is put into production, it is also one of the few domestic heparin manufacturers that can trace the product back to the upstream pig breeding link, which helps to further ensure high quality and controllable source quality and effectively enhance industry competitiveness. The company’s product layout is shown in the figure below:

Main products and services

The company's main products are as follows:

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Category Main varieties Preparation trade name Diagram Main uses

This series mainly includes standard heparin sodium API, heparin sodium injection and heparin sodium sealed tube injection. Heparin sodium injection is used to prevent and treat thrombosis or embolic diseases (such as myocardial infarction, thrombophlebitis, pulmonary embolism, etc.), and disseminated intravascular coagulation caused by various reasons. Heparin sodium series is also used for hemodialysis, extracorporeal circulation, Changsheng Qianhong®

Column: Anticoagulation treatment during catheterization, microvascular surgery and other operations and certain blood specimens or equipment. Heparin sodium sealing injection is used to maintain the lumen of intravenous injection devices (such as indwelling needles and catheters) unobstructed. It can be used after placing the injection device intravenously, after each medication, and after each blood collection.

This series mainly includes enoxaparin sodium API and enoxaparin sodium injection. For the prevention of venous thromboembolic disease (prevention of intravenous thrombosis), especially thrombosis associated with polysaccharides in orthopedic or general surgical procedures; treatment of established enoxaparin

Class Qianhong Yinuo® Deep vein thrombosis, with or without pulmonary embolism series

embolism, clinical symptoms are not serious, excluding pulmonary embolism requiring surgery or thrombolytic agent treatment; treatment of unstable angina pectoris and non-Q wave myocardial infarction, combined with aspirin; used in hemodialysis extracorporeal circulation to prevent and treat thrombosis. This series mainly includes dalteparin sodium API and dalteparin sodium injection. For the treatment of acute deep vein thrombosis. To prevent acute renal failure or chronic renal insufficiency, patients with dalteparin sodium should undergo hemodialysis and blood Qianhong Yida®

Series Coagulation in extracorporeal circulation during filtration; treatment of unstable coronary artery disease such as unstable angina and non-Q-wave myocardial infarction. Prevention of thrombosis associated with surgery.

This series mainly includes nadroparin calcium API and nadroparin calcium injection. nadroparin

Qianhong Yina® is used in venous thrombosis calcium series in surgery.

Develop moderate or high risk conditions to prevent venous thromboembolic disease.

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Category Main varieties Preparation trade name Diagram Main uses

This series of preparations mainly includes pancreatic kininogenase for injection and pancreatic kininogenase enteric-coated tablets, which are vasodilators and can improve the circulation of micropancreatic kininogen. Mainly used for microcirculatory disorders Yikai®

Enzyme series can treat obstructive diseases, such as nephropathy, peripheral neuropathy, retinopathy, fundus disease and ischemic cerebrovascular disease caused by diabetes. It can also be used as an auxiliary treatment for hypertension. This product is a pellet fixed-point release preparation, a compound digestive

Digestive aid, mainly used for appetite deficiency enzyme capsules Qianhong Yimei®

Asthenia, indigestion, for hospital prescriptions and (II)

Protein OTC bispan drug.

Enzymes: This series of preparations is mainly asparaginase (Esch) for injection, which is suitable for the treatment of acute lymphoblastic leukemia, acute asparaginase

Changsheng® Myeloid Leukemia, Acute Mononuclease Series

Cellular leukemia, chronic lymphocytic leukemia, Hodgkin's disease and non-Hodgkin's disease lymphoma, melanoma, etc. This product is an elastase enteric-coated tablet, clinically used elastase system for type II and IV hyperlipidemia (especially Qianhongyigan®

Column is suitable for type II), atherosclerosis, fatty liver, and diabetic nephropathy.

(2) The issuer’s main business model

Sales model

(1) Domestic diversified sales model

The company's domestic diversified model mainly targets the domestic sales of heparin preparations and protease preparations. The main products participate in the drug bidding and procurement of various provinces (autonomous regions and municipalities) through self-operated sales models. After winning the bid, a sales contract will be signed with a pharmaceutical distribution company with corresponding business qualifications, nationwide or regional coverage, and good warehousing, distribution, and payment collection capabilities. The hospital will submit corresponding drug procurement needs to the distribution company through the procurement platform. , the distribution company issues corresponding purchase orders to the company based on its own inventory status and on the basis of the framework contract signed with the company. The company then supplies the products to the corresponding distribution companies, which use their distribution network to sell drugs to end customers such as hospitals to ensure timely distribution of products to meet corresponding clinical use needs. In some remote areas, the company will select high-quality local dealers and adopt the investment agency model to sell products to the dealers, and the other parties will assist in the marketing and promotion of the products and sales into the hospital. In addition, some of the company's enzyme products will adopt channel retail and OTC models to complete terminal market sales through commercial channel promotion.

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(2) Overseas direct sales model

The company's direct sales model mainly targets the overseas sales of heparin APIs and preparations. Its main exported products have passed GMP certifications from the US FDA, EU CEP, Germany, Japan, Australia and other countries, giving it a competitive advantage among domestic and foreign peers. Through its own professional international marketing team, the company has established marketing networks in the United States, Germany, France, Italy, Japan and other countries, and its sales targets are mainly well-known foreign pharmaceutical companies.

Procurement model

The company has established a quality-centered procurement system and formulated systems such as the "Procurement Management Measures", "Tendering Management Measures", and "Regulations on the Intensive Management Model of Production, Supply and Marketing of Strategic Products" to standardize procurement management, ensure procurement quality, ensure material supply, reduce procurement costs, improve procurement efficiency, and ensure the stable operation of the company's procurement services.

The company's procurement business department is mainly the procurement center. The materials purchased mainly include raw materials, packaging materials, equipment, software, labor protection office supplies, accessories, reagents and consumables and other mechanical materials.

Procurement methods mainly include bidding, price comparison, and negotiation. If it meets the requirements of the "Tendering Management Measures", commercial bidding will be carried out in accordance with regulations. Other materials will be purchased in the form of price comparison and negotiation.

In terms of the procurement of GMP-related materials such as raw materials and packaging materials, the production center formulates production and packaging plans based on the sales plan, generates demand plans for raw materials, auxiliary materials, and packaging materials. The warehouse combines the inventory to form a purchase application form. After receiving the approved purchase application, the procurement center selects qualified suppliers from the "Approved/Designated Supplier Catalog" based on the supplier's quotation to execute the purchase. For other materials, the demand department submits the demand plan on a monthly basis, and the procurement specialist conducts price comparison and negotiation. The supplier is determined after comprehensive consideration of factors such as quality, price, delivery date, etc., and a purchase contract is signed after internal approval procedures. The supplier delivers the goods as agreed in the purchase order. The company receives the goods and handles the inspection and storage procedures in accordance with relevant regulations. The quality department conducts inspections in accordance with regulations. After passing the goods, the procurement center pays the supplier in accordance with the terms of the contract.

In terms of supplier management, we mainly follow three cycles of supplier development, auditing and evaluation to ensure the sustainable development of the supply chain.

(1) Supplier development: The procurement center conducts systematic analysis and planning for supplier development every year. In order to reduce dependence on a single supplier and improve the company's bargaining power, the company generally has no less than three main raw material and packaging material suppliers. For materials that are used for the first time or change suppliers, the materials will be quality-checked in accordance with the company's quality standards.

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Quantity inspection; for changes in suppliers of key materials, the company needs to conduct multi-batch product process verification and stability inspections, and the purchasing relationship can be determined only after passing the product.

(2) Supplier audit: Conduct regular on-site audits of qualified suppliers of GMP-related materials.

(3) Supplier evaluation: The Procurement Center organizes an annual evaluation of suppliers whose annual purchase amount exceeds a certain amount every year, and conducts a comprehensive evaluation from the aspects of quality level, price level, after-sales service, etc.; if there is an unexpected quality situation, the supplier will be evaluated and assessed immediately, and a decision will be made. Screening will be carried out based on the assessment results. Excellent suppliers will increase their purchasing volume, average suppliers will reduce their purchasing volume and focus on coaching. The poor ones will be included in the backend or directly eliminated, and then continue to develop new suppliers and select high-quality suppliers.

Production mode

The company adopts a production model based on sales, and has formulated a complete quality system, strict management standards, precise operating procedures and other rules and regulations, achieving standardization, programming and institutionalization of all production links, and achieving automation and intelligence of some production links to ensure the smooth progress of production activities.

The company's marketing center provides the next month's sales plan to the production center at the end of each month, and the production center formulates the next month's production plan based on production capacity, inventory and raw material supply. If the original sales plan is adjusted due to temporary new orders, the company's production center will formulate an incremental production plan to meet product sales needs. In accordance with national GMP requirements, the production center organizes production in strict accordance with the approved product production process and GMP production post standard operating requirements. During the production process, each batch of products is quality controlled and managed by the Quality Assurance Department to ensure that the production process and product quality comply with national standards and customer requirements.

R&D model

The company has always adhered to technological innovation and established a complete innovation system for product research and development and achievement transformation. While focusing on independent innovation, it actively promotes industry-university-research cooperation with well-known domestic universities and medical institutions to expand technological innovation channels. The company has established in-depth cooperative relationships with Ruijin Hospital Affiliated to Shanghai Jiao Tong University School of Medicine, Beijing Tiantan Hospital Affiliated to Capital Medical University, and China Pharmaceutical University to jointly promote clinical and non-clinical research on new targeted anti-tumor drugs in the form of a research consortium. It also cooperates with the National Glycoengineering Technology Research Center of Shandong University to jointly conduct research on consistency evaluation of low molecular weight heparin. The company itself consists of large molecule drug R&D platform Zhonghong Research Institute, small molecule drug R&D platform Innoshengkang and Qianhong Pharmaceutical New Drug Achievements Transformation Platform, forming a trinity of product R&D and achievement transformation R&D platforms. The details are as shown in the following table:

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Main research

Serial number R&D platform Main work

direction

It has a protein research center, an antibody development center, a drug modification center, and an analysis center.

Multiple R&D centers such as macromolecular drug quality control center can develop long-acting protein drugs, gene 1 Zhonghong Research Institute

Biopharmaceutical research and development, engineering recombinant protein drugs, therapeutic human antibody drugs, molecular diagnostic kits and many other studies.

Small molecule drugs have established API R&D platforms, drug preparation technology R&D platforms and quality research 2 Innoshengkang

Biopharmaceutical R&D platform specializes in the research of small molecule kinase inhibitors and anti-cancer targeted drugs. It is mainly based on the achievement transformation management team that specializes in the research of industrial transformation technology of scientific research achievements, and is matched with the production quality process technology research team to carry out continuous

New drug results

3 Qianhong Pharmaceutical Technology innovation and quality upgrade, equipped with high-efficiency wet mixing granulator, crushing and transformation

Granulators, dissolution apparatus and other equipment can complete the small-scale production of chemical drug solid preparations.

Experimental and pilot-scale preparation research.

In order to ensure the formation of a competitive R&D system, standardize the company's drug R&D and technology improvement from project establishment to implementation.

Management of implementation, acceptance and completion to ensure the research quality of the project and effectively control R&D risks. The company has established the "Research

"Develop Project Management System" and carry out work in accordance with relevant systems. The company's R&D project management is divided into project establishment,

There are four stages: project implementation, project acceptance and project delivery. The details are as shown in the following table:

Serial number R&D link Main work

According to the different sources of the project, the person in charge of the corresponding R&D system will organize relevant personnel (if necessary, the 1 project establishment and R&D director will assign relevant department personnel) to conduct systematic due diligence on demand projects (including independent R&D projects and transfer projects) and complete a due diligence report.

The project leader advances the project process in strict accordance with the established process management documents, and organizes regular R&D meetings according to the project communication plan to monitor the progress of each research content and promptly resolve 2 problems encountered during project implementation.

The project leader evaluates and issues evaluation reports for R&D projects that are not completed as planned, and conducts phased summaries of the projects.

The project leader summarizes and analyzes the content, results and innovations of the completed research, explains the cost accounting and economic benefit forecast during the research and development process, and completes a written summary of the project research and proposes 3 project acceptances

Acceptance application. The R&D Decision-making Committee will decide whether to finalize the projects that are to pass the acceptance inspection.

According to the project objectives, the project leader will prepare the project results information into a handover list, which will be delivered by 4 projects

The project recipient signs the receipt to confirm the handover.

(3) Main business conditions

Sales situation and major customers during the reporting period

(1) Capacity utilization of the company’s main products

Product Type Project Unit January-September 2025 2024 2023 2022

Production capacity: 10,000 pieces/grain/tablet 67,402.50 89,870.00 89,870.00 89,870.00

Preparation output: 10,000 pieces/grain/tablet 49,579.62 61,551.72 60,481.54 67,916.67

Capacity utilization - 73.56% 68.49% 67.30% 75.57%

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Product Type Project Unit January-September 2025 2024 2023 2022 Production Capacity 100 million units 27,982.50 37,310.00 37,310.00 37,310.00 API Production 100 million units 24,856.09 24,575.89 31,053.26 29,978.94

Capacity utilization - 88.83% 65.87% 83.23% 80.35%

Note: The production capacity is the actual production capacity calculated by the company after comprehensively considering the scale and scheduling of existing production personnel, production line debugging time, price conversion, etc., and is not the company's limit production capacity.

(2) Production and sales rates of the company’s main products

Product Type Project Unit January-September 2025 2024 Year 2023 Year 2022 Output 10,000 pieces/tablet/tablet 49,579.62 61,551.72 60,481.54 67,916.67 Preparation Sales Volume 10,000 pieces/tablet/tablet 54,935.62 66,143.24 56,828.97 65,212.47

Production and sales rate - 110.80% 107.46% 93.96% 96.02%

Output billion units 24,856.09 24,575.89 31,053.26 29,978.94 Self-use volume billion units 5,707.63 7,857.97 8,909.46 7,949.94 API

Sales volume billion units 19,309.37 18,581.71 17,031.74 23,407.20

Production and sales rate - 100.65% 107.58% 83.54% 104.59%

Note: Production and sales rate of API = (self-use amount + sales volume)/output

(3) Major customers during the reporting period

During the reporting period, the company’s top five customers were as follows:

Unit: Wan Yuanxu, accounting for the main business

Period Customer name Sales revenue Main product number Proportion of revenue

1 First place 17,598.71 14.52% Preparation

2 Second place 13,441.36 11.09% Preparation

2025 3 Third place 10,653.15 8.79% API January to September

4 Fourth place 9,882.75 8.15% Preparation

5 fifth place 7,213.19 5.95% API

Total 58,789.15 48.50% /

1 First place 24,249.34 15.91% Preparation

2 Second place 16,287.89 10.69% Preparation

3 Third place 15,702.87 10.30% API in 2024

4 Fourth place 13,757.31 9.03% preparation

5 fifth place 7,310.27 4.80% preparation

Total 77,307.68 50.73% /

2023 1 First place 26,287.03 14.53% Preparation

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Preface Accounting for main business

Period Customer name Sales revenue Main product number Proportion of revenue

2 Second place 17,411.34 9.62% API 3 Third place 16,462.30 9.10% Preparation 4 Fourth place 16,322.51 9.02% Preparation 5 Fifth place 15,062.92 8.33% API

Total 91,546.09 50.60% /

1 First place 38,585.58 16.76% API 2 Second place 27,918.18 12.13% Preparation

3 Third place 18,498.14 8.03% API in 2022

4 Fourth place 18,463.23 8.02% Preparation 5 Fifth place 15,824.62 6.87% API

Total 119,289.75 51.81% /

During the reporting period, the company's controlling shareholders, actual controllers, directors, senior managers and core technical personnel, major related parties or shareholders holding more than 5% of the company's shares have no relationship with the company's above-mentioned customers, nor do they have any interest in them.

Procurement status and major customers during the reporting period

(1) Procurement of main raw materials

During the reporting period, the company’s procurement of main raw materials was as follows:

Unit: 10,000 yuan

January to September 2025 2024 2023 2022 projects

Amount Proportion Amount Proportion Amount Proportion Amount Proportion Crude heparin 31,360.52 73.49% 32,078.75 71.52% 90,424.63 86.24% 126,652.47 86.94% Other raw and auxiliary materials 6,307.29 14.78% 5,488.91 12.24% 7,735.98 7.38% 10,095.89 6.93% Packaging 2,848.45 6.68% 4,544.83 10.13% 3,775.76 3.60% 6,113.37 4.20% Others 2,154.61 5.05% 2,738.65 6.11% 2,911.77 2.78% 2,820.98 1.94%

Total 42,670.88 100.00% 44,851.14 100.00% 104,848.14 100.00% 145,682.71 100.00%

The company's raw material procurement mainly includes crude heparin, other raw and auxiliary materials, packaging, etc., of which crude heparin accounts for a large proportion. From 2022 to 2024, the company's purchase amount will show a downward trend, mainly due to the decline in the market price of crude heparin, and some suppliers have adopted a stockpiling strategy. The company's purchase unit price and purchase quantity of crude heparin have shown a downward trend. From 2022 to 2024, the company's purchase of other raw and auxiliary materials will show a downward trend, mainly due to: On the one hand, with the completion of the Hubei Qianhong crude trypsin production line, the company's external purchases of crude trypsin will increase.

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The quantity gradually decreased; on the other hand, the market price of crude trypsin showed a downward trend during the reporting period, and the company's average purchase unit price decreased. From January to September 2025, the company's purchase of other raw and auxiliary materials increased, mainly because the company purchased a certain amount of raw and auxiliary materials such as pig intestines as the subsidiary Henan Qianmu went into production.

(2) Main energy procurement situation

During the reporting period, the main energy consumption and price changes of the company's production are as follows:

Category Consumption January-September 2025 2024 2023 Total electricity bill in 2022 (10,000 yuan) 1,617.70 1,854.82 1,912.03 1,834.20 Electricity consumption (10,000 kWh) 2,317.77 2,657.98 2,750.51 2,663.66Average unit price (yuan/kWh) 0.70 0.70 0.70 0.69Total water fee (10,000 yuan) 148.56 169.62 185.63 173.30Water Water consumption (10,000 tons) 31.33 33.01 35.85 34.05Average unit price (yuan/ton) 4.74 5.14 5.18 5.09 Total steam (10,000 yuan) 621.80 867.56 830.90 813.54 Steam Steam consumption (10,000 tons) 2.14 2.70 2.70 2.44 Average unit price (yuan/ton) 290.53 320.79 307.86 333.53 The energy required for the company's production is mainly electricity, water, steam, etc. The supply of such energy is continuous and stable, matching the company's production and operation conditions.

(3) Major suppliers during the reporting period

During the reporting period, the company’s top five raw material suppliers were as follows:

Unit: Ten thousand yuan period Serial number Supplier name Purchase amount Proportion 1 First place 5,456.93 12.79% 2 Second place 5,347.40 12.53% 3 Third place 2,788.72 6.54% January to September 2025

4 Fourth place 2,342.31 5.49% 5 Fifth place 1,935.43 4.54%

Total 17,870.78 41.88%

1 First place 3,519.78 7.85% 2 Second place 3,092.95 6.90% 2024

3 Third place 2,671.03 5.96% 4 Fourth place 2,650.70 5.91%

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Period Serial number Supplier name Purchase amount Proportion 5 Fifth place 2,274.12 5.07%

Total 14,208.60 31.68%

1 First place 20,769.31 19.81% 2 Second place 7,693.51 7.34% 3 Third place 5,915.57 5.64% 2023

4 Fourth place 5,615.38 5.36% 5 Fifth place 4,257.46 4.06%

Total 44,251.22 42.21%

1 First place 34,188.37 23.47% 2 Second place 9,705.99 6.66% 3 Third place 8,581.04 5.89% 2022

4 Fourth place 8,440.22 5.79% 5 Fifth place 8,199.31 5.63%

Total 69,114.92 47.44%

During the reporting period, the company's controlling shareholders, actual controllers, directors, senior managers and other core technical personnel, major related parties or shareholders holding more than 5% of the issuer company's shares had no relationship with the company's above-mentioned suppliers, nor did they hold any interest in them.

(4) Existing business development arrangements and future development strategies

After years of development, the company has become a leading manufacturer and operator of polysaccharide and protease drugs in the domestic biochemical pharmaceutical industry. The company has always adhered to the development strategy of "focusing on the field of biomedicine, leading the core competitiveness with innovative drugs, insisting on the coordinated development of enzyme preparations and heparin products, and adhering to the dual cycle of domestic and foreign markets", making full use of the advantages of the Chinese market, resources and costs, and is committed to producing safer, more effective and more economical pharmaceutical products for the majority of patients.

In the future, the company will continue to delve into the field of biopharmaceutical industry, seize the opportunities of the national centralized procurement policy, give full play to the advantages of integrating APIs and preparations, further strengthen market coverage, and continue to maintain its leading position in the national market share of its products. At the same time, the company will further increase its investment in the research and development of new drugs, continue to promote the clinical trial process of innovative drug products under development, further enrich the company's existing product line layout, cultivate new economic growth points for future development, and make greater contributions to my country's pharmaceutical industry.

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8. Technical information related to products or services

(1) R&D investment

During the reporting period, the company’s R&D investment accounted for the proportion of operating income as follows:

Unit: 10,000 yuan

Project January to September 2025 2024 2023 2022 R&D investment 9,649.97 15,087.55 13,725.94 10,117.60 Expensed amount 6,986.41 10,444.72 9,708.34 8,831.10

Capitalized amount 2,663.56 4,642.83 4,017.59 1,286.49

Operating income 121,501.50 152,624.28 181,426.89 230,354.78 Proportion 7.94% 9.89% 7.57% 4.39%

(2) Important patents, non-patented technologies and their applications

During the reporting period, please refer to "3. Patents" of "(2) Main intangible assets" of "9. Main fixed assets and intangible assets" in this section for the authorized patented technologies developed by the company.

(3) Technical personnel situation

As of September 30, 2025, the company had 207 technical personnel, accounting for 20.18% of the company's total headcount.

9. Main fixed assets and intangible assets

(1) Main fixed assets

As of the end of the reporting period, the specific situation of the fixed assets of the issuer and its subsidiaries is as follows:

Unit: 10,000 yuan

Category Original value Accumulated depreciation Impairment provision Book value Newness rate Houses and buildings 49,875.34 20,924.57 - 28,950.78 58.05% Machinery and equipment 44,646.60 28,385.19 247.74 16,013.67 35.87% Transportation 673.23 459.25 - 213.98 31.78% Electronic equipment 8,736.59 7,591.03 3.64 1,141.92 13.07% Other equipment 4,055.91 3,437.08 6.10 612.73 15.11%

Total 107,987.68 60,797.11 257.48 46,933.09 43.46%

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Owned houses and buildings

As of the signing date of this prospectus, please refer to "Appendix 1: Land use rights and buildings for which the issuer has obtained property rights certificates" of this prospectus for the information on the buildings and buildings owned by the issuer and its subsidiaries.

Main production equipment

As of the end of the reporting period, the original value of the issuer and its subsidiaries' machinery and equipment was RMB 446.466 million, with an overall newness rate of 35.87%. They mainly include centrifuges, chromatography systems, freeze-dryers, etc. used in the production of raw materials, as well as filling machines, light inspection machines, packaging lines and other equipment used in the production of preparations. They are mainly distributed in the parent company Qianhong Pharmaceutical.

(2) Main intangible assets

As of the end of the reporting period, the intangible assets of the issuer and its subsidiaries were as follows:

Unit: 10,000 yuan

Item Original value Accumulated amortization Book value Land use rights 12,838.88 2,420.32 10,418.56 Trademark rights 144.36 144.36 - Non-patented technology 4,378.39 4,251.47 126.92 Software 1,870.48 1,615.82 254.66

Total 19,232.12 8,431.98 10,800.14

Land use rights

As of September 30, 2025, for the land use rights owned by the company and its subsidiaries, please refer to "Appendix 1: Land use rights and buildings for which the issuer has obtained property rights certificates" in this prospectus.

Trademark

As of September 30, 2025, the company and its subsidiaries owned a total of 269 registered trademarks. For details, please refer to "Attachment 2: Domestic Registered Trademarks of the Issuer" in this prospectus.

Patent

As of September 30, 2025, the company and its subsidiaries owned a total of 137 domestic patents. For details, please refer to "Schedule 3: Issuer's Domestic Authorized Patents" in this prospectus, and 20 overseas patents. For details, please refer to "Schedule 4: Issuer's Authorized Patents Abroad" in this prospectus.

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As of September 30, 2025, the company and its subsidiaries owned a total of 12 copyrights. For details, please refer to "Schedule 5: Copyrights" in this prospectus.

10. Major asset restructuring in the past three years (or since listing)

Not applicable.

11. Overseas operations and overseas assets

Except for Qianhong Hong Kong, a subsidiary established by the company in Hong Kong, China, the company does not own assets overseas and does not operate overseas.

12. Dividend distribution during the reporting period

During the reporting period, the company implemented a total of three dividends. The company's retained undistributed profits are mainly used for the company's daily production and operations to support the implementation of the company's development strategy and sustainable development. Since its listing, the company has implemented cash dividends in accordance with the provisions of the Articles of Association.

For the company’s dividend distribution policy and cash dividends in the past three years, please refer to “V. System and Implementation of the Company’s Profit Distribution Policy and Cash Dividend Policy” in the “Notice on Important Matters” in this prospectus.

Whether there has been any default or delay in payment of principal and interest in corporate bonds or other debts that have been publicly issued in the past three years

In the past three years, the company has not publicly issued corporate bonds, and there has been no default on other debts or delays in payment of principal and interest.

Whether the average distributable profits in the past three years are sufficient to pay one year’s interest on corporate bonds?

In 2022, 2023 and 2024, the company's net profits attributable to the owners of the parent company (the lower before and after deducting non-recurring gains and losses) are 258.2034 million yuan, 143.4821 million yuan and 268.9992 million yuan respectively. The average distributable profit in the past three years is 223.5616 million yuan. According to the total amount of funds raised in this issuance and reference

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According to the recent issuance interest rate level in the convertible corporate bond market, the company's average distributable profits in the past three years are enough to pay one year's interest on corporate bonds.

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Section 5 Financial Accounting Information and Management Analysis

The financial data selected in this chapter, unless otherwise stated, are quoted from the company's audited financial reports in 2022, 2023 and 2024 and the unaudited financial statements from January to September 2025. Investors who want to learn more about the company's financial status, operating results, etc., please read the full text of the relevant financial reports and audit reports.

The judgment criteria for major events or importance levels related to financial accounting information in this section are as follows: the company judges its importance based on the nature and amount of financial accounting information based on the industry stage and business characteristics in which it is located. In terms of nature, the company mainly considers factors such as whether the matter is a daily activity and whether it significantly affects the company's financial status, operating results and cash flow. In terms of amount, the company selects 5% of the pre-tax profit from regular business in the current period as a major matter standard, or the amount does not meet the above standards but is a related matter that the company considers to be important.

1. Audit opinions

The company's 2022, 2023 and 2024 financial reports have been audited by Gongzheng Tianye Accounting Firm (Special General Partnership), and a standard unqualified audit report has been issued (Su Gong W [2023] A442 No., Su Gong W [2024] A623 No., Su Gong W [2025] A347 No.). The financial data from January to September 2025 are unaudited.

2. Financial statements

(1) Consolidated financial statements

Consolidated balance sheet

Unit: 10,000 yuan

Project 2025.9.30 2024.12.31 2023.12.31 2022.12.31

Current assets:

Monetary funds 43,928.47 43,994.54 57,622.55 40,925.67 Trading financial assets 61,044.35 27,382.72 7,198.34 6,747.59 Notes receivable 256.40 264.20 689.93 596.41 Accounts receivable 24,922.03 25,438.76 22,503.18 56,508.04

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Project 2025.9.30 2024.12.31 2023.12.31 2022.12.31

Receivables financing 2,861.36 1,721.65 4,358.58 6,182.12 Prepayments 3,999.88 1,171.88 390.09 2,767.10 Other receivables 2,212.34 2,323.78 1,690.40 248.49 Inventory 38,297.38 42,681.26 60,201.05 53,648.34Non-current assets due within one year 15,192.27 19,289.79 6,494.83 - Other current assets 1,031.08 5,101.52 1,448.72 1,104.65

Total current assets 193,745.55 169,370.11 162,597.68 168,728.41

Non-current assets:

Debt investment 9,330.73 15,543.17 19,724.14 15,143.75 Long-term equity investment 353.40 465.28 597.82 534.45 Fixed assets 46,933.09 50,234.69 55,308.41 56,228.63Construction in progress 7,802.98 6,124.85 818.91 5,410.16Intangible assets 10,800.14 10,932.49 11,313.86 10,086.15Development expenditure 14,322.62 11,659.07 7,016.23 3,767.20Goodwill 1,113.51 1,113.51 1,113.51 1,113.51Long-term deferred expenses 1,896.35 2,144.80 2,360.27 2,265.56Deferred income tax assets 5,798.80 7,525.60 9,052.68 10,148.73 Other non-current assets 9,451.67 7,930.54 6,704.64 7,167.31

Total non-current assets 107,803.30 113,674.02 114,010.47 111,865.44 Total assets 301,548.85 283,044.13 276,608.14 280,593.85

Current liabilities:

Short-term borrowings - 2,002.19 5,562.27 10,009.54 Accounts payable 5,929.03 8,863.79 4,117.64 4,597.21 Contract liabilities 533.26 967.71 970.59 1,558.01 Employee compensation payable 2,723.50 3,542.01 3,885.55 4,305.87Taxes payable 1,251.12 768.39 633.16 279.64Other payables 1,336.84 1,346.83 795.70 1,026.11Other current liabilities 4,597.03 4,847.88 4,616.17 6,045.56

Total current liabilities 16,370.79 22,338.80 20,581.09 27,821.95

Non-current liabilities:

Deferred income 8,844.00 8,646.05 8,184.55 8,935.30 Deferred income tax liabilities 371.45 402.21 451.65 495.77

Total non-current liabilities 9,215.45 9,048.26 8,636.20 9,431.07

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Project 2025.9.30 2024.12.31 2023.12.31 2022.12.31 Total liabilities 25,586.25 31,387.06 29,217.29 37,253.02

Owner's Equity:

Share capital 127,980.00 127,980.00 127,980.00 127,980.00 Capital reserve 4,142.20 4,165.38 4,165.38 3,628.87 Less: treasury shares 17,086.38 17,086.38 3,009.36 -Other comprehensive income -202.08 -241.85 35.57 -6.48 Surplus reserve 32,721.06 32,721.06 28,923.64 27,411.39 Undistributed profits 127,531.08 104,206.05 87,397.87 86,021.65 Total owners’ equity attributable to the parent company 275,085.89 251,744.26 245,493.10 245,035.42 Minority shareholders’ equity 876.72 -87.20 1,897.75 -1,694.60

Total owners’ equity 275,962.60 251,657.06 247,390.85 243,340.83 Total liabilities and owners’ equity 301,548.85 283,044.13 276,608.14 280,593.85

Consolidated income statement

Unit: 10,000 yuan

Project January-September 2025 2024 2023 2022

1. Total operating income 121,501.50 152,624.28 181,426.89 230,354.78

Including: operating income 121,501.50 152,624.28 181,426.89 230,354.78

2. Total operating costs 91,888.58 123,275.22 166,604.52 199,121.39

Including: Operating costs 51,379.13 68,906.71 102,933.35 141,457.89 Taxes and surcharges 1,677.23 2,370.81 2,040.29 1,710.13 Sales expenses 22,385.18 30,454.25 39,385.69 42,176.06Administrative expenses 9,480.90 12,317.87 13,176.06 12,365.73R&D expenses 6,986.41 10,444.72 9,708.34 8,831.10Financial expenses -20.27 -1,219.15 -639.21 -7,419.52Including: Interest expense 43.62 138.65 592.64 523.44Interest income 738.54 996.11 1,129.81 564.20Plus: other income 1,355.97 1,318.25 2,419.51 1,028.49 investment income (losses are filled in with "-"

950.05 1,152.97 800.45 -468.88 columns)

Gains from changes in fair value (losses calculated as

373.89 235.95 77.14 10.01 Fill in the column with "-")

Credit impairment losses (losses are marked with “-”

11,519.84 7,891.84 1,742.75 -Fill in No. 1,509.87)

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Items January to September 2025 2024 2023 Asset impairment losses in 2022 (losses are represented by “-”

-309.23 -1,961.61 -51.82 (fill in the numbers)

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

1.86 - 2,535.05 (Fill in No. 5,759.33)

3. Operating profit (loss is represented by “-”

43,814.53 39,638.85 20,435.65 36,000.65

(Fill in the number)

Add: Non-operating income 1.99 113.15 35.09 73.12Minus: Non-operating expenses 36.66 168.10 118.40 40.73

4. Total profit (total loss equal to

43,779.87 39,583.90 20,352.35 36,033.04

Fill in the column with "-" sign)

Less: Income tax expense 6,966.51 6,265.64 2,485.14 4,041.96

5. Net profit (net loss is represented by “-”

36,813.36 33,318.25 17,867.20 31,991.08

(Fill in the number)

(1) Classification by business continuity

Net profit from continuing operations (net loss

36,813.36 33,318.25 17,867.20 31,991.08 (please fill in with "-")

Net profit from discontinued operations (net loss

- - -Fill in the columns with "-")

(2) Classification according to ownership ownership

Net profit attributable to shareholders of the parent company

38,322.63 35,603.20 18,186.07 32,341.44 profit (net loss is listed with "-")

Profit and loss of minority shareholders (net loss

-1,509.27 -2,284.95 -318.87 -350.36 (please fill in the column with "-")

6. Other comprehensive income, net of tax

39.78 -277.42 42.05 -229.46

(1) Attributable to shareholders of the parent company

39.78 -277.42 42.05 -229.46 Other comprehensive income, net of tax

(2) Others belonging to minority shareholders

- - - His comprehensive income, net of tax

7. Total comprehensive income 36,853.14 33,040.83 17,909.25 31,761.62

(1) Attributable to the owners of the parent company

Total comprehensive income of 38,362.40 35,325.78 18,228.12 32,111.97

(2) Comprehensive assets attributable to minority shareholders

-1,509.27 -2,284.95 -318.87 -350.36 Total income

8. Earnings per share:

(1) Basic earnings per share (yuan/share) 0.31 0.28 0.14 0.25

(2) Diluted earnings per share (yuan/share) 0.31 0.28 0.14 0.25

Consolidated cash flow statement

Unit: 10,000 yuan

Project January-September 2025 2024 2023 2022

1. Cash flow generated from operating activities

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Item January to September 2025 2024 2023 Cash received from selling goods and providing services in 2022 127,780.09 167,692.74 229,182.15 222,989.20 Tax refunds received 16.62 111.70 4,628.92 5,445.81 Other cash received related to operating activities 2,882.35 3,286.44 2,510.54 1,940.25

Subtotal of cash inflow from operating activities 130,679.07 171,090.88 236,321.61 230,375.25

Cash paid for purchasing goods and receiving services 52,179.86 49,560.99 112,916.64 170,145.15 Cash paid to and for employees 17,150.39 19,444.28 19,998.83 21,465.66 Various taxes and fees paid 11,119.76 15,177.14 9,145.34 8,100.36 Other cash payments related to operating activities 21,094.38 35,437.56 40,928.00 37,811.47

Subtotal of cash outflows from operating activities 101,544.39 119,619.97 182,988.81 237,522.64

Net cash flow generated from operating activities 29,134.67 51,470.91 53,332.80 -7,147.39

2. Cash flow generated from investing activities

Cash received from investment recovery - 6,339.09 - 3,378.25 Cash received from investment income 1,556.54 605.65 143.29 365.08 Disposal of fixed assets, intangible assets and other long-term assets

1,350.00 3,230.01 11.05 Net cash from asset recovery

Other cash received related to investing activities 126,061.08 20,269.83 15,780.41 46,247.30 Subtotal of cash inflows from investing activities 127,617.62 28,564.57 19,153.71 50,001.68 Purchase and construction of fixed assets, intangible assets and other long-term assets

7,628.80 9,063.83 10,033.17 7,098.85 Cash paid for assets

Cash paid for investment - 14,365.64 10,451.68 15,520.03 Cash paid to acquire subsidiaries and other business units

- - 166.72 net cash

Other cash payments related to investing activities 134,139.03 37,458.00 16,178.55 46,214.00 Subtotal cash outflow from investing activities 141,767.83 60,887.47 36,663.40 68,999.61 Net cash flow generated from investing activities -14,150.21 -32,322.90 -17,509.69 -18,997.93

3. Cash flow generated from financing activities

Cash received from investment 2,450.00 300.00 4,250.00 - Including: subsidiaries received investment from minority shareholders

2,450.00 300.00 4,250.00 - Cash

Cash received from borrowings - 469.00 43,550.90 46,127.37 Cash received from other financing activities - - - 14,490.00 Subtotal of cash inflows from financing activities 2,450.00 769.00 47,800.90 60,617.37 Cash paid to repay debts 2,000.00 4,010.35 48,000.00 44,000.00 Cash for distribution of dividends, profits or payment of interest

15,092.94 15,152.18 15,878.86 15,515.69 gold

Other cash payments related to financing activities - 14,077.02 3,009.36 -

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Project January to September 2025 2024 2023 Subtotal cash outflow from financing activities in 2022 17,092.94 33,239.55 66,888.22 59,515.69 Net cash flow generated from financing activities -14,642.94 -32,470.55 -19,087.32 1,101.69

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

-407.60 -184.77 -159.61 4,188.70

influence

Net increase in cash and cash equivalents -66.07 -13,507.31 16,576.18 -20,854.93 Add: balance of cash and cash equivalents at the beginning of the period 43,994.54 57,501.85 40,925.67 61,780.59
Balance of cash and cash equivalents at the end of the period 43,928.47 43,994.54 57,501.85 40,925.67

(2) Financial statements of the parent company

Balance sheet of the parent company

Unit: 10,000 yuan

Project 2025.9.30 2024.12.31 2023.12.31 2022.12.31

Current assets:

Monetary funds 34,648.79 37,276.40 50,734.97 40,048.77 Trading financial assets 53,545.52 17,043.74 1,092.55 - Notes receivable 256.40 264.20 689.93 596.41 Accounts receivable 24,922.15 25,843.87 22,710.11 56,663.11 Receivables financing 2,861.36 1,721.65 4,358.58 6,182.12 Prepayments 25,218.83 15,810.94 5,103.22 4,256.94Other receivables 2,346.77 2,843.85 1,784.98 2,857.75Inventories 35,317.76 41,339.47 59,903.25 52,738.12Non-current assets due within one year 15,192.27 19,289.79 6,494.83 - Other current assets - 4,510.04 1,386.86 1,075.63

Total current assets 194,309.84 165,943.95 154,259.29 164,418.84

Non-current assets:

Debt investment 9,330.73 15,543.17 19,724.14 15,143.75 Long-term equity investment 13,914.07 11,364.07 11,164.07 9,403.73 Fixed assets 44,267.74 47,850.57 52,747.28 51,732.96Construction in progress 2,139.08 2,215.55 704.41 5,405.26Intangible assets 8,474.36 8,609.85 8,910.76 9,142.23Development expenditure 17,810.59 15,619.21 11,517.96 14,296.21 Long-term deferred expenses 1,896.35 2,144.80 2,360.27 2,265.56 Deferred income tax assets 5,258.22 6,972.55 8,511.96 8,616.77

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Project 2025.9.30 2024.12.31 2023.12.31 2022.12.31

Other non-current assets 6,877.64 6,726.15 6,699.60 7,128.31

Total non-current assets 109,968.78 117,045.91 122,340.46 123,134.79 Total assets 304,278.62 282,989.86 276,599.75 287,553.64

Current liabilities:

Short-term borrowings - - 3,559.92 8,007.09Accounts payable 2,822.34 5,212.35 3,240.78 3,815.53Contract liabilities 196.65 967.71 956.66 1,558.00Employee compensation payable 2,143.45 2,656.38 3,166.69 3,641.73Taxes payable 1,151.91 611.74 448.08 227.16Other payables 549.36 579.22 569.28 840.85Other current liabilities 4,568.22 4,815.99 4,596.51 5,999.54

Total current liabilities 11,431.94 14,843.40 16,537.93 24,089.91

Non-current liabilities:

Deferred income 7,078.30 7,440.35 8,184.55 8,543.85 Deferred income tax liabilities 349.21 367.67 438.40 494.30

Total non-current liabilities 7,427.51 7,808.03 8,622.95 9,038.16 Total liabilities 18,859.45 22,651.42 25,160.88 33,128.07

Owner's Equity:

Share capital 127,980.00 127,980.00 127,980.00 127,980.00Capital reserve 3,438.75 3,438.75 3,438.75 3,241.01 Less: treasury shares 17,086.38 17,086.38 3,009.36 - Surplus reserve 32,721.06 32,721.06 28,923.64 27,411.39 Undistributed profits 138,365.74 113,285.01 94,105.84 95,793.16

Total owners’ equity 285,419.17 260,338.44 251,438.87 254,425.57 Total liabilities and owners’ equity 304,278.62 282,989.86 276,599.75 287,553.64

Income statement of the parent company

Unit: 10,000 yuan

Project January-September 2025 2024 2023 2022

1. Operating income 120,961.49 152,615.94 181,312.96 230,081.26

Less: Operating costs 51,477.62 69,098.14 103,253.65 141,494.35 Taxes and surcharges 1,663.93 2,350.04 1,976.40 1,740.32 Sales expenses 22,353.68 30,399.14 39,292.72 42,060.96

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Project January-September 2025 2024 2023 2022 Management expenses 8,595.21 11,421.30 12,329.09 11,463.38 Research and development expenses 3,434.45 5,463.95 4,771.17 8,408.33Financial expenses -200.47 -966.40 -739.75 -7,250.37Including: Interest expense - 58.77 512.89 461.89Interest income 727.43 936.89 1,106.08 559.94Plus: other income 1,000.79 1,233.33 1,876.49 880.30 Investment income (losses are listed with "-") 1,059.60 1,329.00 739.63 -1,216.23 Income from changes in fair value (losses are marked with "-"

227.87 43.74 - - columns)

Credit impairment loss (losses are listed with "-") 11,055.32 6,965.26 490.23 -2,445.71 Asset impairment losses (losses are listed with "-") - -309.23 -6,961.59 -51.06 Asset disposal income (losses are listed with "-") 1.86 - 0.02 5,756.68

Operating profit (losses are listed with "-") 46,982.51 44,111.87 16,574.44 35,088.27Add: non-operating income 0.02 112.03 8.07 73.12Minus: non-operating expenses 35.30 161.62 116.85 39.67
Total profits (total losses are listed with "-") 46,947.23 44,062.28 16,465.66 35,121.72 Less: income tax expenses 6,868.89 6,088.09 1,343.12 3,856.66
Net profit (net loss is listed with "-") 40,078.33 37,974.18 15,122.53 31,265.06

(1) Net profit from continuing operations (net loss is represented by “-”

40,078.33 37,974.18 15,122.53 31,265.06 (please fill in the list)

(2) Net profit from discontinued operations (net loss is represented by “-”

- - - fill in the numbers)

Other comprehensive income, net of tax - - - -

6. Total comprehensive income 40,078.33 37,974.18 15,122.53 31,265.06

Cash flow statement of the parent company

Unit: 10,000 yuan

Project January-September 2025 2024 2023 2022

1. Cash flow generated from operating activities

Cash received from selling goods and providing services 126,785.48 167,627.41 228,884.13 223,726.78 Tax refunds received 16.45 111.70 4,628.92 5,419.63 Cash received from other operating activities 1,522.76 1,336.62 2,201.20 1,745.71

Subtotal of cash inflow from operating activities 128,324.69 169,075.73 235,714.25 230,892.12

Cash paid for purchasing goods and receiving services 46,767.30 58,111.83 116,077.48 169,260.50 Cash paid to and for employees 14,205.56 16,568.35 18,025.44 18,638.50

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Item January-September 2025 2024 2023 Various taxes and fees paid in 2022 10,821.45 14,927.77 8,489.16 7,963.96 Cash paid for other operating activities 25,614.90 32,766.96 39,516.53 42,940.08 Subtotal cash outflow from operating activities 97,409.22 122,374.91 182,108.61 238,803.04 Net cash flow generated from operating activities 30,915.47 46,700.83 53,605.64 -7,910.92

2. Cash flow generated from investing activities

Cash received from recovery of investment - 6,339.09 - 4,420.25 Cash received from investment income 1,555.57 668.68 36.51 169.97 Disposal of fixed assets, intangible assets and other long-term assets

- 0.47 Net cash amount recovered from assets in period 6.62

Other cash received related to investing activities 113,410.61 11,848.37 - 26,547.60 Subtotal of cash inflows from investing activities 114,966.18 18,856.13 36.98 31,144.44 Purchase and construction of fixed assets, intangible assets and other long-term assets

6,078.72 6,666.41 6,393.02 6,408.55 Cash paid for assets

Cash paid for investment - 14,365.64 10,366.88 15,000.00 Cash paid to acquire subsidiaries and other business units

2,550.00 - 1,750.00 - Net cash

Other cash payments related to investing activities 124,474.73 25,000.00 1,092.55 26,800.00 Subtotal cash outflow from investing activities 133,103.45 46,032.05 19,602.45 48,208.55 Net cash flow generated from investing activities -18,137.27 -27,175.92 -19,565.47 -17,064.11

3. Cash flow generated from financing activities

Cash received from borrowings - - 43,550.90 44,569.37 Cash received from other financing activities - - - 14,490.00 Subtotal of cash inflows from financing activities - - 43,550.90 59,059.37 Cash paid to repay debt - 3,541.35 48,000.00 44,000.00 distributed dividends, profits or paid interest

14,997.60 15,074.95 15,799.00 15,456.05 Cash

Payment of other cash related to financing activities - 14,077.02 3,009.36 - Subtotal of cash outflows from financing activities 14,997.60 32,693.31 66,808.36 59,456.05 Net cash flow generated from financing activities -14,997.60 -32,693.31 -23,257.46 -396.68

4. Exchange rate changes on cash and cash equivalents

-408.21 -184.77 -201.91 4,419.88

influence

Net increase in cash and cash equivalents -2,627.61 -13,353.17 10,580.80 -20,951.82 Add: balance of cash and cash equivalents at the beginning of the period 37,276.40 50,629.57 40,048.77 61,000.59
Balance of cash and cash equivalents at the end of the period 34,648.79 37,276.40 50,629.57 40,048.77

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(3) Basis for preparation of financial statements, scope and changes of consolidated financial statements

Basis for preparation of financial statements

The company is based on going concern, based on actual transactions and events, and in accordance with the "Accounting Standards for Business Enterprises - Basic Standards" promulgated by the Ministry of Finance and specific accounting standards, application guidelines, explanations and other relevant regulations for recognition and measurement, and prepares financial statements on this basis.

Scope and changes of consolidated financial statements

During the reporting period, the subsidiaries included in the consolidated financial statements are as follows:

Whether to be included in the scope of consolidated financial statements

Subsidiary name

2025.9.30 2024.12.31 2023.12.31 2022.12.31

Qianhong Biochemical Pharmaceuticals

Yes Yes Yes Yes (Hubei) Co., Ltd.

Jiangsu Zhonghong Bioengineering Drug Innovation

Yes Yes Yes Yes Research Institute Co., Ltd.

Changzhou Innoshengkang Biomedicine

Yes Yes Yes Yes Technology Co., Ltd.

Changzhou Qianhong Health Technology Co., Ltd.

Yes Yes Yes Yes Ltd.

Changzhou Qianhong Biotechnology Co., Ltd.

Yes Yes Yes -Company

Jiangsu Jinghong Biomedical Technology

Yes Yes Yes Yes A company limited by shares

Qianhong (Hong Kong) Technology Development

Yes Yes Yes Yes Limited

Henan Qianmu Biopharmaceutical Co., Ltd.

Yes Yes Yes -Company

Changzhou Qianhong Biotechnology Co., Ltd. and Henan Qianmu Biopharmaceutical Co., Ltd. were established in 2023 and were included in the scope of consolidated statements in the year of establishment.

3. Main financial indicators

(1) Main financial indicators

Project 2025.9.30 2024.12.31 2023.12.31 2022.12.31

Current ratio (times) 11.83 7.58 7.90 6.06 Quick ratio (times) 9.50 5.67 4.98 4.14 Asset-liability ratio (consolidated) 8.48% 11.09% 10.56% 13.28%

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Asset-liability ratio (parent company) 6.20% 8.00% 9.10% 11.52%

Net assets per share attributable to the company’s shareholders (yuan/share) 2.15 1.97 1.92 1.91

Project January-September 2025 2024 2023 2022

Accounts receivable turnover rate (times) 4.52 5.99 4.36 4.57

Inventory turnover rate (times) 1.26 1.32 1.79 3.02

Interest coverage ratio (times) 1,004.58 286.50 35.34 69.84

Cash flow from operating activities per share (yuan/share) 0.23 0.40 0.42 -0.06

Net cash flow per share (yuan/share) -0.00 -0.11 0.13 -0.16

Note: The calculation method of the above financial indicators is as follows:

(1) Current ratio = current assets/current liabilities

(2) Quick ratio = (current assets - inventory) / current liabilities

(3) Asset-liability ratio = (total liabilities/total assets) × 100%

(4) Net assets per share attributable to the company’s shareholders = Equity attributable to shareholders of the parent company/Total equity at the end of the period

(5) Accounts receivable turnover rate = operating income/average balance of accounts receivable

(6) Inventory turnover rate = operating cost/average inventory balance

(7) Interest coverage ratio = (total profit + interest expense) / interest expense

(8) Cash flow from operating activities per share = net cash flow generated from operating activities / total equity at the end of the period

(9) Net cash flow per share = net increase in cash and cash equivalents/total equity at the end of the period

(10) The above-mentioned accounts receivable turnover rate, inventory turnover rate, cash flow from operating activities per share, and net cash flow per share from January to September 2025 are 9-month related data and have not been annualized.

(2) Return on net assets and earnings per share

The company complies with the China Securities Regulatory Commission's "Information Disclosure and Preparation Rules for Companies Publicly Offering Securities No. 9 - Net

Calculation and Disclosure of Return on Assets and Earnings Per Share" "Explanatory Notice on Information Disclosure of Companies that Issue Securities to the Public"

The return on equity and earnings per share required to be calculated according to Report No. 1 - Non-recurring Profit and Loss are as follows:

Project January-September 2025 2024 2023 Basic earnings per share in 2022

0.31 0.28 0.14 0.25 excluding extraordinary (yuan/share)

Diluted earnings per share before financial gains and losses

0.31 0.28 0.14 0.25 (yuan/share)

Weighted average net profit before non-recurring gains and losses

14.50 14.73 7.47 14.36 Return on assets (%)

basic earnings per share

0.22 0.21 0.11 0.20 excluding extraordinary (yuan/share)

Diluted earnings per share after temporary gains and losses

0.22 0.21 0.11 0.20 (yuan/share)

Weighted average net profit after deducting extraordinary gains and losses

10.26 11.13 5.89 11.46 Return on assets (%)

Note: The calculation formula for the above indicators is as follows:

Weighted average return on equity =P0÷(E0+NP÷2+Ei×Mi÷M0–Ej×Mj÷M0±Ek×Mk÷M0)

Among them: P0 corresponds to the net profit attributable to the company's common shareholders and the net profit attributable to the company's common shareholders after deducting non-recurring gains and losses; NP is the net profit attributable to the company's common shareholders; E0 is the net profit attributable to the company's common shareholders

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The opening net assets of The cumulative number of months at the end of the reporting period; Mj is the cumulative number of months from the month after the decrease in net assets to the end of the reporting period; Ek is the increase or decrease in net assets attributable to the company's common shareholders due to other transactions or events; Mk is the cumulative number of months from the month after the increase or decrease in other net assets occurs to the end of the reporting period.

Basic earnings per share =P0÷S=P0÷(S0+S1+Si×Mi÷M0–Sj×Mj÷M0-Sk)

Among them: P0 is the net profit attributable to the company's common shareholders or the net profit attributable to common shareholders after deducting non-recurring gains and losses; S is the weighted average number of common shares outstanding; S0 is the total number of shares at the beginning of the reporting period; S1 is the number of shares increased due to the conversion of public reserve funds into share capital or stock dividend distribution during the reporting period; Si is the number of shares increased during the reporting period due to the issuance of new shares or debt-for-equity swaps; Sj is the number of shares reduced due to repurchase during the reporting period; Sk is the number of shares reduced during the reporting period; M0 is the number of months in the reporting period; Mi is the cumulative number of months from the month after the increase in shares to the end of the reporting period; Mj is the cumulative number of months from the month after the reduction in shares to the end of the reporting period.

Diluted earnings per share = P1 ÷ (S0 + S1 + Si × Mi ÷ M0 – Sj × Mj ÷ M0 – Sk + the weighted average number of common shares increased by warrants, share options, convertible bonds, etc.)

Among them, P1 is the net profit attributable to the company's common shareholders or the net profit attributable to the company's common shareholders after deducting non-recurring gains and losses, and takes into account the impact of dilutive potential common shares, and adjusts it in accordance with the "Accounting Standards for Business Enterprises" and relevant regulations. When calculating diluted earnings per share, the company should consider the impact of all dilutive potential ordinary shares on the net profit attributable to the company's common shareholders or the net profit attributable to the company's common shareholders after deducting non-recurring gains and losses and the weighted average number of shares, and include the diluted earnings per share in descending order of dilution degree until the diluted earnings per share reaches the minimum value.

(3) Detailed statement of non-recurring gains and losses

Unit: 10,000 yuan

Item January-September 2025 2024 2023 Profit and loss from non-current asset disposal in 2022 (including accrued

-4.77 -3.84 2,526.39 5,759.85 Offset portion of asset impairment provision)

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

Closely related to regular business operations and in compliance with national policies

566.49 322.80 1,092.40 1,012.12 Regulations, enjoyment according to determined standards, and benefits to the company

Except for government subsidies that have a lasting impact on profits and losses)

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

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

Changes in fair value of assets and financial liabilities 1,435.81 1,306.37 904.25 394.94 Gains and losses and disposal of financial assets and financial liabilities

profit and loss

Impairment standards for accounts receivable that are individually tested for impairment

11,382.53 8,755.81 - - To be transferred back

Other non-operating income other than the above items and

-28.04 -51.11 -74.65 48.25Expenditure

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

- - 484.31 mesh

Subtotal 13,352.03 10,330.04 4,448.39 7,699.48

Less: Income tax impact 1,927.15 1,514.54 666.84 1,083.43

Less: Profit and loss of minority shareholders 207.20 112.21 -56.31 94.95

Total 11,217.68 8,703.28 3,837.86 6,521.10

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4. Changes in accounting policies and changes in accounting estimates

(1) Changes in important accounting policies

Implement the "Interpretation No. 15 of Accounting Standards for Business Enterprises"

In December 2021, the Ministry of Finance issued the "Notice on Issuing the Accounting Standards Interpretation No. 15" (Financial Accounting [2021] No. 35) (hereinafter referred to as "Standard Interpretation No. 15"), which stipulates the accounting treatment of external sales of products or by-products produced before the fixed assets reach the intended usable state or during the research and development process, relevant presentations on centralized management of funds, judgments on loss-making contracts, etc. According to the requirements of Interpretation No. 15 of the Code, the company has implemented the provisions on "Accounting Treatment for External Sales of Products or By-Products Produced before Fixed Assets Reach the Predetermined Usable Condition or During the Research and Development Process" and "Judgment on Loss-making Contracts" and "Judgment on Loss-making Contracts" from January 1, 2022, based on the actual situation. The implementation of this provision has not had a significant impact on the company's financial status and operating results.

Implement the "Interpretation No. 16 of Accounting Standards for Business Enterprises"

In November 2022, the Ministry of Finance issued the "Notice on Issuing the Accounting Standards Interpretation No. 16" (Cai Kuai [2022] No. 31, hereinafter referred to as "Standard Interpretation No. 16"). The Standard Interpretation No. 16 No. 16 stipulates that for a single transaction that is not a business merger, affects neither accounting profits nor taxable income (or deductible losses) when the transaction occurs, and the initial recognition of assets and liabilities results in equal amounts of taxable temporary differences and deductible temporary differences, the taxable temporary differences and deductible temporary differences arising from the initial recognition of assets and liabilities shall be determined in accordance with Accounting Standards for Business Enterprises No. 18 No. - Income Tax" and other relevant regulations, the corresponding deferred income tax liabilities and deferred income tax assets are recognized when the transaction occurs. For the above-mentioned transactions that occurred between the beginning of the earliest period for the presentation of financial statements when the above provisions are first implemented and the implementation date of this interpretation, the enterprise shall adjust the cumulative impact to the opening retained earnings and other related financial statement items for the earliest period for presentation of the financial statements in accordance with the above provisions. The above accounting treatment regulations will be effective from January 1, 2023. The implementation of this provision has not had a significant impact on the company's financial status and operating results.

Implement the "Interpretation No. 17 of Accounting Standards for Business Enterprises"

In October 2023, the Ministry of Finance issued the "Notice on Issuing the Accounting Standards Interpretation No. 17 for Business Enterprises" (Financial Accounting [2023] No. 21, hereinafter referred to as "Standard Interpretation No. 17"). The main contents of Standard Interpretation No. 17 involve the division of current liabilities and non-current liabilities, the disclosure of supplier financing arrangements, and the accounting treatment of sale and leaseback transactions. The above accounting treatment regulations will be effective from January 1, 2024. Implementation of this provision has not been

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Have a significant impact on the company's financial condition and operating results.

Implement the "Interpretation No. 18 of Accounting Standards for Business Enterprises"

In December 2024, the Ministry of Finance issued the "Notice on the Issuance of Accounting Standards Interpretation No. 18" (Financial Accounting [2024] No. 24, hereinafter referred to as "Standard Interpretation No. 18"). The main content of Standard Interpretation No. 18 involves the subsequent measurement of investment properties held as basic projects under the floating charge method and the accounting treatment of guarantee-type quality guarantees that are not individual performance obligations. The above accounting treatment regulations will be effective from January 1, 2024. The implementation of this provision has not had a significant impact on the company's financial status and operating results.

(2) Changes in important accounting estimates

During the reporting period, the company had no significant changes in accounting estimates.

(3) Correction of major accounting errors in previous periods

During the reporting period, the company had no correction of major accounting errors in previous periods.

5. Financial status analysis

(1) Analysis of asset composition and changes

At the end of each reporting period, the company’s assets were composed as follows:

Unit: 10,000 yuan

2025.9.30 2024.12.31 2023.12.31 2022.12.31

Project

Amount Proportion Amount Proportion Amount Proportion Amount Proportion Current assets 193,745.55 64.25% 169,370.11 59.84% 162,597.68 58.78% 168,728.41 60.13%Non-current assets 107,803.30 35.75% 113,674.02 40.16% 114,010.47 41.22% 111,865.44 39.87%

Total assets 301,548.85 100.00% 283,044.13 100.00% 276,608.14 100.00% 280,593.85 100.00%

At the end of each reporting period, the company's total assets were RMB 2,805,938,500, RMB 2,766,081,400, RMB 2,830,441,300, and RMB 3,015,488,500 respectively. The company's asset scale remained stable.

From the perspective of asset composition, the company's assets account for a relatively high proportion of current assets, accounting for 60.13%, 58.78%, 59.84% and 64.25% of the total assets in each period. The company's assets have good liquidity. At the end of each reporting period, the company's non-current assets were RMB 1,118,654,400, RMB 1,140,104,700, RMB 1,136,740,200, and RMB 1,078,033,000 respectively, accounting for 39.87%, 41.22%, 40.16%, and 35.75% of the total assets respectively. The scale and proportion of the company's non-current assets were generally relatively stable.

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Analysis of current assets and changes

At the end of each reporting period, the composition of the company’s current assets is as follows:

Unit: 10,000 yuan

2025.9.30 2024.12.31 2023.12.31 2022.12.31

Project

Amount Proportion Amount Proportion Amount Proportion Amount Proportion Monetary funds 43,928.47 22.67% 43,994.54 25.98% 57,622.55 35.44% 40,925.67 24.26% Trading finance

61,044.35 31.51% 27,382.72 16.17% 7,198.34 4.43% 6,747.59 4.00%

Notes receivable 256.40 0.13% 264.20 0.16% 689.93 0.42% 596.41 0.35% Accounts receivable 24,922.03 12.86% 25,438.76 15.02% 22,503.18 13.84% 56,508.04 33.49% Receivables financing 2,861.36 1.48% 1,721.65 1.02% 4,358.58 2.68% 6,182.12 3.66% Prepayments 3,999.88 2.06% 1,171.88 0.69% 390.09 0.24% 2,767.10 1.64% Other receivables 2,212.34 1.14% 2,323.78 1.37% 1,690.40 1.04% 248.49 0.15% Inventory 38,297.38 19.77% 42,681.26 25.20% 60,201.05 37.02% 53,648.34 31.80% Due within one year

15,192.27 7.84% 19,289.79 11.39% 6,494.83 3.99% - -Non-current assets

Other current assets 1,031.08 0.53% 5,101.52 3.01% 1,448.72 0.89% 1,104.65 0.65%

Total current assets 193,745.55 100.00% 169,370.11 100.00% 162,597.68 100.00% 168,728.41 100.00%

At the end of each reporting period, the company's current assets were RMB 1,687.2841 million, RMB 1,625.9768 million, and RMB 1,625.9768 million respectively.

1,693,701,100 yuan and 1,937,455,500 yuan, mainly composed of monetary funds, trading financial assets, accounts receivable

It consists of payment and inventory.

(1) Monetary funds

At the end of each reporting period, the details of the company’s monetary funds are as follows:

Unit: 10,000 yuan

Project 2025.9.30 2024.12.31 2023.12.31 2022.12.31

Cash on hand 1.81 0.56 1.66 14.64

Bank deposits 43,393.73 43,993.93 57,620.89 40,857.77

Other monetary funds 532.92 0.05 0.00 53.25

Total 43,928.47 43,994.54 57,622.55 40,925.67

At the end of each reporting period, the company's monetary funds were RMB 409.2567 million, RMB 576.2255 million, and RMB 576.2255 million, respectively.

439.9454 million yuan and 439.2847 million yuan. The company's monetary funds are mainly bank deposits.

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(2) Trading financial assets

At the end of each reporting period, the company’s trading financial assets details are as follows:

Unit: 10,000 yuan

Project 2025.9.30 2024.12.31 2023.12.31 2022.12.31

Financial products 32,537.08 27,382.72 7,198.34 6,747.59 Foreign exchange swap 28,507.27 - - -

Total 61,044.35 27,382.72 7,198.34 6,747.59

At the end of each reporting period, the company's trading financial assets amounted to RMB 67.4759 million, RMB 71.9834 million, RMB 273.8272 million and RMB 610.4435 million respectively. During the reporting period, the amount of the company's trading financial assets increased, mainly because the company increased its purchases of low-risk bank wealth management products and foreign exchange swaps in order to improve the efficiency of fund use and reduce and prevent exchange rate risks. The company's trading financial assets mainly include low-risk bank financial products, government bond reverse repurchases, foreign exchange swaps, etc.

(3) Notes receivable and receivable financing

At the end of each reporting period, the company’s notes receivable and receivable financing details are as follows:

Unit: 10,000 yuan

Project 2025.9.30 2024.12.31 2023.12.31 2022.12.31

Notes receivable 256.40 264.20 689.93 596.41 Accounts receivable financing 2,861.36 1,721.65 4,358.58 6,182.12

Total 3,117.76 1,985.85 5,048.51 6,778.53

At the end of each reporting period, the total book value of the company's notes receivable and receivable financing were 67.7853 million yuan, 50.4851 million yuan, 19.8585 million yuan, and 31.1776 million yuan respectively, accounting for 4.02%, 3.10%, 1.17%, and 1.61% of current assets respectively, which is a relatively low proportion. During the reporting period, when the company had transactions with customers, part of the payment was settled by bills, mainly bank acceptance bills.

(4) Accounts receivable

①Analysis of the scale of accounts receivable

At the end of each reporting period, the company’s accounts receivable details are as follows:

Unit: 10,000 yuan

Project 2025.9.30 2024.12.31 2023.12.31 2022.12.31

Book balance of accounts receivable 26,562.19 27,237.44 23,697.96 59,604.54 Bad debt provision 1,640.16 1,798.68 1,194.78 3,096.49

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Project 2025.9.30 2024.12.31 2023.12.31 2022.12.31

Book value of accounts receivable 24,922.03 25,438.76 22,503.18 56,508.04

At the end of each reporting period, the book values of the company's accounts receivable were 565.0804 million yuan and 225.0318 million yuan respectively.

yuan, 254.3876 million yuan and 249.2203 million yuan, accounting for 33.49%, 13.84%, and 13.84% of current assets respectively.

15.02% and 12.86%. In 2023, as the impact of global public health events weakens, the market will

The demand for goods has declined, coupled with the impact of falling product prices, the company's balance of accounts receivable at the end of the period was due to the current income

decrease by falling. In 2024, due to the extension of the payment collection cycle of some customers, the balance of accounts receivable at the end of the period will be higher than the previous year.

There was an increase at the end of the year.

②Analysis of aging of accounts receivable and bad debt provisions

At the end of each reporting period, the aging status of the company's accounts receivable is as follows:

Unit: 10,000 yuan

2025.9.30 2024.12.31 2023.12.31 2022.12.31

Aging

Amount Proportion Amount Proportion Amount Proportion Amount Proportion Within 1 year 25,811.79 97.17% 26,528.42 97.40% 23,227.55 98.01% 59,587.50 99.97% Of which: Within 2 months 14,586.37 54.91% 13,450.76 49.38% 15,339.66 64.73% 35,820.81 60.10%

2 months to 1 year 11,225.42 42.26% 13,077.66 48.01% 7,887.89 33.29% 23,766.69 39.87% 1 to 2 years 497.70 1.87% 442.05 1.62% 453.38 1.91% 17.04 0.03% 2 to 3 years 252.70 0.95% 266.97 0.98% 17.04 0.07% - - More than 3 years - - - - - - - -

Subtotal 26,562.19 100.00% 27,237.44 100.00% 23,697.96 100.00% 59,604.54 100.00%

Less: Provision for bad debts 1,640.16 - 1,798.68 - 1,194.78 - 3,096.49 -

Total 24,922.03 - 25,438.76 - 22,503.18 - 56,508.04 -

At the end of each reporting period, the company's accounts receivable balance aged within one year accounted for 99.97%,

98.01%, 97.40%, 97.17%, the overall aging of the company’s accounts receivable is shorter.

During the reporting period, the company accrued bad debt provisions for accounts receivable based on combinations of credit risk characteristics, and there was no single

If the amount of an item is significant and bad debt provisions are made individually, the company has fully made provision for bad debts in accordance with the corresponding proportion.

Prepare. At the end of each reporting period, the company's bad debt provisions for accounts receivable are as follows:

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Unit: 10,000 yuan

2025.9.30 2024.12.31 2023.12.31 2022.12.31

Aging

Accounts receivable Accounts receivable Accounts receivable Accounts receivable Provision for bad debts Provision for bad debts Provision for bad debts Provision for bad debts

Balance Balance Balance Balance Within 1 year 25,811.79 1,414.27 26,528.42 1,576.78 23,227.55 1,095.58 59,587.50 3,093.09 Of which: Within 2 months 14,586.37 291.73 13,450.76 269.02 15,339.66 306.79 35,820.81 716.42 2 months to 1 year 11,225.42 1,122.54 13,077.66 1,307.77 7,887.89 788.79 23,766.69 2,376.67 1 to 2 years 497.70 99.54 442.05 88.41 453.38 90.68 17.04 3.41 2 to 3 years 252.70 126.35 266.97 133.48 17.04 8.52 - - More than 3 years - - - - - - - -

Total 26,562.19 1,640.16 27,237.44 1,798.68 23,697.96 1,194.78 59,604.54 3,096.49

③Analysis of the top five accounts receivable

At the end of each reporting period, the details of the company’s top five customers with accounts receivable balance are as follows:

Unit: RMB 10,000 Serial number Unit name Relationship with company Balance Percentage

2025.9.30

1 First place, unrelated party 8,930.61 33.62% 2 Second place, unrelated party 3,347.15 12.60% 3 Third place, unrelated party 2,424.43 9.13% 4 Fourth place, unrelated party 2,418.75 9.11% 5 Fifth place, unrelated party 1,902.90 7.16%

Total 19,023.84 71.62%

2024.12.31

1 First place, unrelated party 9,621.04 35.32% 2 Second place, unrelated party 2,780.50 10.21% 3 Third place, unrelated party 1,814.31 6.66% 4 Fourth place, unrelated party 1,656.12 6.08% 5 Fifth place, unrelated party 1,608.79 5.91%

Total 17,480.77 64.18%

2023.12.31

1 First place, unrelated party 6,984.79 29.47% 2 Second place, unrelated party 2,993.23 12.63% 3 Third place, unrelated party 2,070.39 8.74% 4 Fourth place, unrelated party 2,042.11 8.62%

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Serial number Unit name Relationship with the company Balance Percentage 5 Fifth place Non-related parties 1,416.88 5.98%

Total 15,507.41 65.44% 2022.12.31

1 First place, unrelated party 14,287.66 23.97% 2 Second place, unrelated party 11,484.62 19.27% 3 Third place, unrelated party 7,190.58 12.06% 4 Fourth place, unrelated party 5,051.56 8.48% 5 Fifth place, unrelated party 4,003.27 6.72%

Total 42,017.68 70.49%

Note: The above amounts of accounts receivable have been calculated based on the consolidated caliber under common control.

At the end of each reporting period, the balances of the company's top five customers accounted for 70.49%, 65.44%, 64.18% and 71.62% of the total accounts receivable respectively. During the reporting period, the company's top five debtors were all long-term or important partners of the company. There were no shareholders or other related parties holding more than 5% of the company's shares, and their credit status was good.

(5) Advance payment

At the end of each reporting period, the company’s prepayment details are as follows:

Unit: 10,000 yuan

2025.9.30 2024.12.31 2023.12.31 2022.12.31

Project

Amount Proportion Amount Proportion Amount Proportion Amount Proportion Within 1 year 3,996.02 99.90% 1,167.50 99.63% 359.68 92.20% 2,716.36 98.17% 1 to 2 years 0.59 0.01% 3.38 0.29% 1.00 0.26% 22.95 0.83% 2 to 3 years 3.27 0.08% 1.00 0.09% 1.80 0.46% 21.59 0.78% More than 3 years - - 0.01 0.00% 27.61 7.08% 6.20 0.22%

Total 3,999.88 100.00% 1,171.88 100.00% 390.09 100.00% 2,767.10 100.00%

At the end of each reporting period, the company's prepayments amounted to RMB 27.671 million, RMB 3.9009 million, RMB 11.7188 million, and RMB 39.9988 million respectively, accounting for 1.64%, 0.24%, 0.69%, and 2.06% of the current assets at the end of each period, respectively. The proportions are relatively low, and they are mainly prepayments to suppliers for raw material purchases. At the end of each reporting period, the company's prepaid accounts aged within one year accounted for 98.17%, 92.20%, 99.63% and 99.90% respectively. The aging is relatively short, which is in line with its own production and operation characteristics.

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(6) Other receivables

At the end of each reporting period, the company's other receivables are specifically composed as follows:

Unit: 10,000 yuan

Project 2025.9.30 2024.12.31 2023.12.31 2022.12.31

Overdue financial management principal and interest receivable 16,165.37 27,547.90 36,303.71 36,303.71 Reserve fund 493.44 556.33 250.24 148.10 Personal income tax deducted - - 3.07 - Security deposit and deposit 2,100.01 2,119.52 135.52 162.52 Various current accounts paid - - 1,350.00 -Others 17.65 25.27 68.85 105.91

Subtotal 18,776.47 30,249.03 38,111.40 36,720.25

Less: Bad debt provision 16,564.13 27,925.25 36,421.00 36,471.76

Total 2,212.34 2,323.78 1,690.40 248.49

At the end of each reporting period, the book values of the company's other receivables were RMB 2.4849 million, RMB 16.9040 million, RMB 23.2378 million, and RMB 22.1234 million respectively, mainly including overdue financial management principal and interest, margins, and deposits receivable. Among them, the overdue financial management principal and interest receivable are as follows: Some of the trust financial management products purchased by the company from Anxin Trust Co., Ltd. (now renamed Jianyuan Trust Co., Ltd., referred to as "Jianyuan Trust") in 2018 were overdue and unpaid in 2019. The company filed a lawsuit with the court. By the end of 2020, the total principal and interest was 415.8021 million yuan, and full bad debt provisions were made based on the project conditions at that time. As of September 30, 2025, there was still a total of RMB 161.6537 million in principal and interest from trust financing that had not been recovered. Out of prudence, the company made a full provision for bad debts. The company has been negotiating collections with Jianyuan Trust to minimize the investment losses. At the end of 2024, the company's deposit and deposit balance increased significantly mainly because the company signed the "Reorganization Investment Agreement on Changzhou Fangyuan Pharmaceutical Co., Ltd." with the bankruptcy administrator of Changzhou Fangyuan Pharmaceutical Co., Ltd. in October 2024, and paid a deposit of 20 million yuan as agreed in the agreement.

(7) Inventory

At the end of each reporting period, the details of the company’s inventory book value composition are as follows:

Unit: 10,000 yuan

2025.9.30 2024.12.31 2023.12.31 2022.12.31

Project

Amount Proportion Amount Proportion Amount Proportion Amount Proportion Raw materials 17,817.98 46.53% 14,804.72 34.69% 9,057.15 15.04% 22,301.50 41.57% Work in progress 9,978.19 26.05% 10,742.86 25.17% 22,963.13 38.14% 17,233.48 32.12%

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2025.9.30 2024.12.31 2023.12.31 2022.12.31

Project

Amount Proportion Amount Proportion Amount Proportion Amount Proportion Inventory goods 9,574.87 25.00% 16,013.19 37.52% 27,541.85 45.75% 10,982.81 20.47% Packaging 926.34 2.42% 1,120.48 2.63% 638.92 1.06% 3,130.55 5.84%

Total 38,297.38 100.00% 42,681.26 100.00% 60,201.05 100.00% 53,648.34 100.00%

The company's inventory mainly consists of raw materials, inventory goods and work in progress. At the end of each reporting period, the book values of the company's inventories were 536.4834 million yuan, 602.0105 million yuan, 426.8126 million yuan and 382.9738 million yuan respectively, accounting for 31.80%, 37.02%, 25.20% and 19.77% of the current assets at the end of each period respectively. At the end of 2024, the decrease in the book value of the company's inventory was mainly due to the decrease in work in progress and inventory of goods in the current period.

At the end of each reporting period, the company conducts depreciation tests on inventories and makes provision for depreciation of inventories whose book value is lower than their net realizable value. At the end of each reporting period, the company’s inventory depreciation provisions were as follows:

Unit: 10,000 yuan

2025.9.30 2024.12.31 2023.12.31 2022.12.31

Project

Balance Provision for decline in price Balance Provision for decline in price Balance Provision for decline in price Balance Provision for decline in price Raw materials 17,862.16 44.18 14,848.90 44.18 9,096.35 39.20 22,336.84 35.34 Work in progress 9,991.80 13.61 11,055.76 312.89 22,991.75 28.62 17,259.28 25.80Inventory goods 9,574.87 - 16,013.19 - 28,716.04 1,174.18 10,983.31 0.50Packaging 926.34 - 1,120.48 - 638.92 - 3,130.55 -

Total 38,355.17 57.79 43,038.33 357.07 61,443.05 1,242.00 53,709.97 61.63

At the end of each reporting period, the company's inventory depreciation provisions were RMB 616,300, RMB 12,420,000, RMB 3,570,700, and RMB 577,900 respectively, accounting for the proportions of the inventory balance at the end of each period. 0.11%, 2.02%, 0.83% and 0.15%. The company conducts a comprehensive inventory of the inventory on the balance sheet date, reasonably estimates the net realizable value of the inventory and makes full provision for inventory devaluation.

(8) Non-current assets due within one year

At the end of each reporting period, the details of the company’s non-current assets due within one year are as follows:

Unit: 10,000 yuan

Project 2025.9.30 2024.12.31 2023.12.31 2022.12.31

Debt investments due within one year 15,192.27 19,289.79 6,494.83 -

Total 15,192.27 19,289.79 6,494.83 -

At the end of each reporting period, the company's non-current assets due within one year were RMB 0, 64,948,300, RMB 192,897,900 and RMB 151,922,700 respectively, mainly large certificates of deposit/time deposits due within one year.

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(9) Other current assets

At the end of each reporting period, the company's other current assets amounted to RMB 11.0465 million, RMB 14.4872 million, and RMB 14.4872 million respectively.

51.0152 million yuan and 10.3108 million yuan, accounting for 0.65%, 0.89%, and 0.89% of current assets at the end of each period respectively.

3.01% and 0.53%, accounting for relatively low amounts, mainly for income tax to be deducted, value-added tax, income vouchers, and amortization fees

Use wait.

Analysis of composition and changes of non-current assets

At the end of each reporting period, the composition of the company's non-current assets is as follows:

Unit: 10,000 yuan

2025.9.30 2024.12.31 2023.12.31 2022.12.31

Project

Amount Proportion Amount Proportion Amount Proportion Amount Proportion Debt investment 9,330.73 8.66% 15,543.17 13.67% 19,724.14 17.30% 15,143.75 13.54% Long-term equity investment 353.40 0.33% 465.28 0.41% 597.82 0.52% 534.45 0.48%Fixed assets 46,933.09 43.54% 50,234.69 44.19% 55,308.41 48.51% 56,228.63 50.26%Construction in progress 7,802.98 7.24% 6,124.85 5.39% 818.91 0.72% 5,410.16 4.84% Intangible assets 10,800.14 10.02% 10,932.49 9.62% 11,313.86 9.92% 10,086.15 9.02% Development expenses 14,322.62 13.29% 11,659.07 10.26% 7,016.23 6.15% 3,767.20 3.37%Goodwill 1,113.51 1.03% 1,113.51 0.98% 1,113.51 0.98% 1,113.51 1.00% Long-term deferred expenses 1,896.35 1.76% 2,144.80 1.89% 2,360.27 2.07% 2,265.56 2.03% Deferred income tax assets 5,798.80 5.38% 7,525.60 6.62% 9,052.68 7.94% 10,148.73 9.07% Other non-current assets 9,451.67 8.77% 7,930.54 6.98% 6,704.64 5.88% 7,167.31 6.41%

Total non-current assets 107,803.30 100.00% 113,674.02 100.00% 114,010.47 100.00% 111,865.44 100.00%

At the end of each reporting period, the company's non-current assets amounted to RMB 1,118,654,400 and RMB 1,140,104,700 respectively.

Yuan, 1,136.7402 million Yuan and 1,078.033 million Yuan, the overall balance is relatively stable, mainly composed of fixed assets, debt

Investment, intangible assets, development expenditures, etc.

(1) Debt investment

At the end of each reporting period, the company’s debt investment details are as follows:

Unit: 10,000 yuan

Project 2025.9.30 2024.12.31 2023.12.31 2022.12.31

Certificate of deposit/time deposit 9,330.73 15,543.17 19,724.14 15,143.75

Total 9,330.73 15,543.17 19,724.14 15,143.75

At the end of each reporting period, the book values of the company's debt investments were 151.4375 million yuan and 197.2414 million yuan respectively.

1-1-130

There is no impairment of RMB 155,431,700 and RMB 93,307,300, and the debt investment is a certificate of deposit/time deposit.

(2) Long-term equity investment

During the reporting period, the company’s long-term equity investment was an investment in associated enterprises. The book value of long-term equity investment and its changes are as follows:

Unit: 10,000 yuan

Investee 2025.9.30 2024.12.31 2023.12.31 2022.12.31

Jiangsu Jingsen Biomedical New Materials Technology Co., Ltd. 241.37 219.07 259.84 320.18 Aosheng Medical Co., Ltd. 112.04 246.22 337.98 214.26

Total 353.40 465.28 597.82 534.45

At the end of each reporting period, the book values of the company's long-term equity investments were RMB 5.3445 million, RMB 5.9782 million, RMB 4.6528 million and RMB 3.5340 million respectively, accounting for a relatively low proportion of non-current assets. Changes in book value were mainly due to investment gains and losses in associates, additional investments, etc.

(3) Fixed assets

At the end of each reporting period, the composition of the company’s fixed assets is as follows:

Unit: RMB 10,000 Period Category Original value of fixed assets Accumulated depreciation Impairment provision Book value Proportion Houses and buildings 49,875.34 20,924.57 - 28,950.78 61.69% Machinery and equipment 44,646.60 28,385.19 247.74 16,013.67 34.12% Transportation tools 673.23 459.25 - 213.98 0.46%

2025.9.30

Electronic equipment 8,736.59 7,591.03 3.64 1,141.92 2.43% Other equipment 4,055.91 3,437.08 6.10 612.73 1.31%

Total 107,987.68 60,797.11 257.48 46,933.09 100.00%

Houses and buildings 49,875.34 19,243.04 - 30,632.30 60.98% Machinery and equipment 43,844.90 26,010.63 247.74 17,586.52 35.01% Transportation 572.62 479.48 - 93.14 0.19%

2024.12.31

Electronic equipment 8,634.09 7,457.57 3.82 1,172.70 2.33% Other equipment 4,050.16 3,294.03 6.10 750.03 1.49%

Total 106,977.11 56,484.76 257.66 50,234.69 100.00%

Houses and buildings 49,875.34 16,956.58 - 32,918.76 59.52%

2023.12.31

Machinery and equipment 43,014.40 22,826.13 247.74 19,940.53 36.05%

1-1-131

Period Category Original value of fixed assets Accumulated depreciation Impairment provision Book value Proportion Transportation 532.54 460.96 - 71.58 0.13% Electronic equipment 8,517.45 7,091.44 3.82 1,422.19 2.57% Other equipment 4,023.14 3,061.69 6.10 955.35 1.73%

Total 105,962.87 50,396.80 257.66 55,308.41 100.00%

Houses and buildings 52,572.59 15,826.30 - 36,746.28 65.35% Machinery and equipment 37,700.32 20,886.09 272.79 16,541.44 29.42%

Transportation 529.23 441.16 - 88.07 0.16%

2022.12.31

Electronic equipment 8,404.30 6,766.02 7.21 1,631.06 2.90% Other equipment 4,136.06 2,908.16 6.13 1,221.77 2.17%

Total 103,342.49 46,827.74 286.13 56,228.63 100.00%

At the end of each reporting period, the book values of the company's fixed assets were RMB 562.2863 million, RMB 553.0841 million, RMB 502.3469 million and RMB 469.3309 respectively. Ten thousand yuan, the amount is relatively stable, accounting for 50.26%, 48.51%, 44.19% and 43.54% of the non-current assets at the end of each period, mainly houses and buildings, machinery and equipment, which are the main components of the company's non-current assets and are consistent with the company's business model and industry characteristics.

(4) Projects under construction

At the end of each reporting period, the composition of the company’s projects under construction is as follows:

Unit: 10,000 yuan

Project 2025.9.30 2024.12.31 2023.12.31 2022.12.31

Hubei new factory 5,663.90 3,907.12 103.65 - Etimicin sulfate construction project 1,928.58 534.30 - - Equipment installation project 197.26 1,676.43 351.38 2,205.37 Glass pipeline production project - - 356.88 77.98 Yunhe Road Factory Phase II Construction Project - - - 3,119.81 Others 13.24 7.00 7.00 7.00

Total 7,802.98 6,124.85 818.91 5,410.16

At the end of each reporting period, the book value of the company's projects under construction was RMB 54.1016 million, RMB 8.1891 million, RMB 61.2485 million, and RMB 78.0298 million respectively, accounting for 4.84%, 0.72%, 5.39%, and 7.24% of the non-current assets at the end of each period, which were relatively small. At the end of 2023, the company's balance of projects under construction declined, mainly due to the conversion of the second phase construction project of the Yunhe Road factory area into fixed assets. At the end of 2024, the company's balance of projects under construction increased, mainly because the company increased its investment and construction of new plants in Hubei and began to promote the etimicin sulfate construction project.

1-1-132

To.

(5) Intangible assets

At the end of each reporting period, the composition of the company’s intangible assets is as follows:

Unit: RMB 10,000 Period Category Original book value Cumulative amortization Book value Proportion Land use rights 12,838.88 2,420.32 10,418.56 96.47% Trademark rights 144.36 144.36 - - 2025.9.30 Non-patented technology 4,378.39 4,251.47 126.92 1.18% Software 1,870.48 1,615.82 254.66 2.36%

Total 19,232.12 8,431.98 10,800.14 100.00%

Land use rights 12,838.88 2,238.34 10,600.54 96.96% Trademark rights 144.36 144.36 - - 2024.12.31 Non-patented technology 4,378.39 4,233.05 145.34 1.33% Software 1,731.87 1,545.26 186.61 1.71%

Total 19,093.51 8,161.01 10,932.49 100.00%

Land use rights 12,838.88 1,981.01 10,857.88 95.97% Trademark rights 144.36 136.70 7.67 0.07% 2023.12.31 Non-patented technology 4,378.39 4,196.98 181.41 1.60% Software 1,724.08 1,457.18 266.90 2.36%

Total 19,085.71 7,771.86 11,313.86 100.00%

Land use rights 11,230.01 1,880.55 9,349.46 92.70% Trademark rights 144.36 128.17 16.19 0.16% 2022.12.31 Non-patented technology 4,378.39 3,965.60 412.79 4.09% Software 1,561.66 1,253.96 307.70 3.05%

Total 17,314.42 7,228.28 10,086.15 100.00%

At the end of each reporting period, the book value of the company's intangible assets was 100.8615 million yuan, 113.1386 million yuan, 109.3249 million yuan and 108.0014 million yuan respectively, accounting for 9.02%, 9.92%, 9.62% and 10.02% of the non-current assets at the end of each period, mainly land use rights, non-patented technologies, various software and trademark rights. During the reporting period, the company's intangible assets were in good condition, there were no signs of impairment of related assets, and no provision for impairment of intangible assets was made.

1-1-133

(6) Development expenditure

At the end of each reporting period, the company’s development expenditure details are as follows:

Unit: 10,000 yuan

Project 2025.9.30 2024.12.31 2023.12.31 2022.12.31

QHRD107 project 6,989.78 5,785.79 3,175.34 1,853.57 QHRD106 project 4,955.94 3,968.56 2,477.75 1,325.95 Other projects 2,376.90 1,904.72 1,363.14 587.68

Total 14,322.62 11,659.07 7,016.23 3,767.20

At the end of each reporting period, the book values of the company's development expenditures were 37.672 million yuan, 70.1623 million yuan, 116.5907 million yuan and 143.2262 million yuan respectively, accounting for 3.37%, 6.15%, 10.26% and 13.29% of the non-current assets at the end of each period respectively. As the company continues to invest in drug research and development, development expenditures have also grown steadily.

(7) Goodwill

At the end of each reporting period, the book value of the company's goodwill was 11.1351 million yuan, accounting for about 1% of non-current assets. The proportion is relatively low. It is the premium generated by the company's acquisition of control rights of Innoshengkang under non-common control in 2016. The company's goodwill has no signs of impairment and no impairment provisions are required.

(8) Long-term deferred expenses

At the end of each reporting period, the company's long-term deferred expenses were RMB 22.6556 million, RMB 23.6027 million, RMB 21.448 million and RMB 18.9635 million respectively, accounting for 2.03%, 2.07%, 1.89% and 1.76% of non-current assets at the end of each period respectively. The proportions are relatively low and are mainly related to various public engineering projects and factory line renovation projects. (9) Deferred income tax assets

At the end of each reporting period, the company's deferred income tax assets amounted to RMB 101.4873 million, RMB 90.5268 million, RMB 75.256 million, and RMB 57.988 million respectively. The company's deferred income tax assets were mainly caused by deductible temporary differences caused by bad debt provisions, deferred income, etc.

(10) Other non-current assets

At the end of each reporting period, the company's other non-current assets comprised the following:

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Unit: 10,000 yuan

Project 2025.9.30 2024.12.31 2023.12.31 2022.12.31

Purchase payment for South Plaza Garden commercial residence 6,400.13 6,400.13 6,400.13 6,400.13 Prepaid equipment payment 3,048.08 1,526.95 301.04 763.71 Others 3.47 3.47 3.47 3.47

Total 9,451.67 7,930.54 6,704.64 7,167.31

At the end of each reporting period, the company's other non-current assets amounted to RMB 71,673,100, RMB 67,046,400, RMB 79,305,400, and RMB 94,516,700 respectively, mainly consisting of house purchase payments, prepaid equipment payments, etc. Among them, the purchase payments for South Square Garden commercial residences were compensation for the demolition of the company's factory located on Wuqing North Road by the Changzhou Tianning District Construction Bureau. At the end of 2024 and the end of September 2025, the company's other non-current assets increased, mainly due to the increase in prepaid equipment payments for the company's new Hubei plant and etimicin sulfate construction project.

(2) Analysis of liability composition and changes

At the end of each reporting period, the company's liability composition is as follows:

Unit: 10,000 yuan

2025.9.30 2024.12.31 2023.12.31 2022.12.31

Project

Amount Proportion Amount Proportion Amount Proportion Amount Proportion Current liabilities 16,370.79 63.98% 22,338.80 71.17% 20,581.09 70.44% 27,821.95 74.68%Non-current liabilities 9,215.45 36.02% 9,048.26 28.83% 8,636.20 29.56% 9,431.07 25.32%

Total liabilities 25,586.25 100.00% 31,387.06 100.00% 29,217.29 100.00% 37,253.02 100.00%

At the end of each reporting period, the company's total liabilities were RMB 372.5302 million, RMB 292.1729 million, RMB 313.8706 million and RMB 255.8625 million respectively. During the reporting period, the company's liabilities were mainly current liabilities. In 2023, the company repaid part of its short-term borrowings, thereby reducing the scale of current liabilities and total liabilities.

Analysis of current liabilities and changes

At the end of each reporting period, the company's current liabilities are composed as follows:

Unit: 10,000 yuan

2025.9.30 2024.12.31 2023.12.31 2022.12.31

Project

Amount Proportion Amount Proportion Amount Proportion Amount Proportion Short-term borrowings - - 2,002.19 8.96% 5,562.27 27.03% 10,009.54 35.98%Accounts payable 5,929.03 36.22% 8,863.79 39.68% 4,117.64 20.01% 4,597.21 16.52% Contract liabilities 533.26 3.26% 967.71 4.33% 970.59 4.72% 1,558.01 5.60% Employee benefits payable 2,723.50 16.64% 3,542.01 15.86% 3,885.55 18.88% 4,305.87 15.48%

1-1-135

2025.9.30 2024.12.31 2023.12.31 2022.12.31

Project

Amount Proportion Amount Proportion Amount Proportion Amount Proportion Taxes payable 1,251.12 7.64% 768.39 3.44% 633.16 3.08% 279.64 1.01% Other payables 1,336.84 8.17% 1,346.83 6.03% 795.70 3.87% 1,026.11 3.69% Other current liabilities 4,597.03 28.08% 4,847.88 21.70% 4,616.17 22.43% 6,045.56 21.73%

Total current liabilities 16,370.79 100.00% 22,338.80 100.00% 20,581.09 100.00% 27,821.95 100.00%

At the end of each reporting period, the company's current liabilities were RMB 278.2195 million, RMB 205.8109 million, RMB 223.3888 million and RMB 163.7079 million respectively, mainly consisting of short-term loans, accounts payable, employee salaries payable and other current liabilities.

(1) Short-term borrowing

At the end of each reporting period, the company's short-term borrowings were RMB 100.0954 million, RMB 55.6227 million, RMB 20.0219 million and RMB 00,000 respectively. The overall decrease was mainly due to the company adjusting its financial structure and repaying short-term borrowings.

(2) Accounts payable

At the end of each reporting period, the company’s accounts payable status is as follows:

Unit: 10,000 yuan

Project 2025.9.30 2024.12.31 2023.12.31 2022.12.31

Operating payables 3,924.75 3,934.72 2,091.03 1,306.47 Engineering payables 2,004.28 4,929.07 2,026.61 3,290.74

Total 5,929.03 8,863.79 4,117.64 4,597.21

At the end of each reporting period, the company's accounts payable amounted to RMB 45.9721 million, RMB 41.1764 million, RMB 88.6379 million and RMB 59.2903 million respectively, accounting for 16.52%, 20.01%, 39.68% and 36.22% of current liabilities at the end of each period respectively. They were mainly composed of operating payables and project payables.

(3) Contract liabilities

At the end of each reporting period, the company's contract liabilities were RMB 15.5801 million, RMB 9.7059 million, RMB 9.6771 million and RMB 5.3326 million respectively, all of which were payment for goods, accounting for 5.60%, 4.72%, 4.33% and 3.26% of current liabilities at the end of each period respectively, which was a relatively low proportion.

(4) Employee compensation payable

At the end of each reporting period, the company’s employee remuneration payables are as follows:

1-1-136

Unit: 10,000 yuan

Project 2025.9.30 2024.12.31 2023.12.31 2022.12.31

Short-term compensation 2,723.50 3,542.01 3,885.55 4,305.76 Post-employment benefits - defined contribution plan - - - 0.12

Total 2,723.50 3,542.01 3,885.55 4,305.87

At the end of each reporting period, the company's employee remuneration payables were RMB 43.0587 million, RMB 38.8555 million, RMB 35.4201 million, and RMB 27.235 million respectively, mainly short-term remuneration, including wages, bonuses, allowances and subsidies, as well as labor union funds and employee education funds.

(5) Taxes payable

At the end of each reporting period, the company's tax payable amounts were 2.7964 million yuan, 6.3316 million yuan, 7.6839 million yuan and 12.5112 million yuan respectively, mainly including value-added tax, real estate tax, corporate income tax, etc.

(6) Other payables

At the end of each reporting period, the company's other payables are as follows:

Unit: 10,000 yuan

Project 2025.9.30 2024.12.31 2023.12.31 2022.12.31

Security deposit (including warranty deposit) 1,050.72 1,074.80 540.71 541.42Talent development fund 180.92 90.42 90.92 98.42Others 105.21 181.61 164.07 386.27

Total 1,336.84 1,346.83 795.70 1,026.11

At the end of each reporting period, the company's other payable amounts were RMB 10.2611 million, RMB 7.9570 million, RMB 13.4683 million and RMB 13.3684 million respectively, mainly including deposits (including warranty deposits), talent development funds, etc. (7) Other current liabilities

At the end of each reporting period, the company's other current liabilities are as follows:

Unit: 10,000 yuan

Project 2025.9.30 2024.12.31 2023.12.31 2022.12.31

Utilities payable 295.52 66.87 19.76 135.86 Market development fees payable, etc. 4,251.10 3,587.17 4,186.39 4,751.68 Freight payable - 28.30 2.52 95.68 Other expenses payable 3.63 906.42 245.13 566.57 Output tax to be transferred - 112.80 93.62 200.59

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Transferred but not terminated recognition should be

46.79 146.32 68.76 295.18 Collect bills

Total 4,597.03 4,847.88 4,616.17 6,045.56

At the end of each reporting period, the company's other current liabilities amounted to RMB 60.4556 million, RMB 46.1617 million, RMB 48.4788 million, and RMB 45.9703 million respectively, which specifically consisted of water and electricity charges payable, market development fees payable, freight charges payable, other expenses payable, output tax to be transferred, notes receivable that have been transferred but not derecognized at the end of the period, etc.

Analysis of non-current liabilities and changes

At the end of each reporting period, the composition of the company's non-current liabilities is as follows:

Unit: 10,000 yuan

2025.9.30 2024.12.31 2023.12.31 2022.12.31

Project

Amount Proportion Amount Proportion Amount Proportion Amount Proportion Deferred income 8,844.00 95.97% 8,646.05 95.55% 8,184.55 94.77% 8,935.30 94.74% Deferred income tax liabilities 371.45 4.03% 402.21 4.45% 451.65 5.23% 495.77 5.26%

Total non-current liabilities 9,215.45 100.00% 9,048.26 100.00% 8,636.20 100.00% 9,431.07 100.00%

At the end of each reporting period, the company's non-current liabilities were RMB 94.3107 million, RMB 86.3620 million, RMB 90.4826 million and RMB 92.1545 million respectively, consisting of deferred income and deferred income tax liabilities.

(1) Deferred income

At the end of each reporting period, the company's deferred income amounts were 89.353 million yuan, 81.8455 million yuan, 86.4605 million yuan and 88.440 million yuan respectively, which were various government subsidies received by the company.

(2) Deferred income tax liabilities

At the end of each reporting period, the company's deferred income tax liabilities were 4.9577 million yuan, 4.5165 million yuan, 4.0221 million yuan and 3.7145 million yuan respectively, accounting for 5.26%, 5.23%, 4.45% and 4.03% of the non-current liabilities at the end of each period, which was relatively low.

(3) Solvency analysis

The company’s main solvency indicators

During the reporting period, the company’s main solvency indicators were as follows:

Project 2025.9.30 2024.12.31 2023.12.31 2022.12.31

Current ratio (times) 11.83 7.58 7.90 6.06

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Project 2025.9.30 2024.12.31 2023.12.31 2022.12.31

Quick ratio (times) 9.50 5.67 4.98 4.14 Asset-liability ratio (consolidated) 8.48% 11.09% 10.56% 13.28% Asset-liability ratio (parent company) 6.20% 8.00% 9.10% 11.52%

Project January-September 2025 2024 2023 2022 Profit before interest, tax, depreciation and amortization (10,000 yuan) 48,893.30 46,710.14 28,241.79 43,387.67 Interest coverage multiple (times) 1,004.58 286.50 35.34 69.84 Note: The calculation formula for the above financial indicators is as follows:

(1) Current ratio = current assets/current liabilities

(2) Quick ratio = (current assets - inventory) / current liabilities

(3) Asset-liability ratio = (total liabilities/total assets) × 100%

(4) Profit before interest, tax, depreciation and amortization = net profit + income tax + interest expense + depreciation + amortization

(5) Interest coverage ratio = (total profit + interest expense) / interest expense

At the end of each reporting period, the company's current ratios were 6.06 times, 7.90 times, 7.58 times and 11.83 times respectively, and the quick ratios were 4.14 times, 4.98 times, 5.67 times and 9.50 times respectively. The current ratios and quick ratios are reasonable and continuously rising, and are compatible with the existing production and operation model. Overall, the company's liquid assets are in good shape and it has good short-term solvency.

At the end of each reporting period, the company's consolidated asset-liability ratios were 13.28%, 10.56%, 11.09% and 8.48% respectively, remaining within a reasonable range. In each reporting period, the company's profits before interest, taxes, depreciation and amortization were 433.8767 million yuan, 282.4179 million yuan, 467.1014 million yuan and 488.933 million yuan respectively, which mainly came from the profits of the main business, and the company has strong profitability. In each period of the reporting period, the company's interest coverage ratios were 69.84 times, 35.34 times, 286.50 times and 1,004.58 times respectively. During the reporting period, the company's overall short-term borrowing amount was small, the interest expenses incurred were low, the interest coverage ratio was high, and the company had strong interest solvency.

In summary, the company's debt level is reasonable, its profitability is strong, and it has good debt solvency.

Comparative analysis of relevant indicators with listed companies in the same industry

During the reporting period, the debt repayment indicators of the company and comparable companies in the same industry are as follows:

Securities code Company abbreviation 2025.9.30 2024.12.31 2023.12.31 2022.12.31

Current ratio (times)

002399.SZ Hepalink 2.39 2.60 2.13 2.22 603707.SH Jianyou Co., Ltd. 2.46 3.41 2.35 3.07 002675.SZ Dongcheng Pharmaceutical 1.71 1.46 1.27 1.33

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300255.SZ Changshan Pharmaceutical 0.87 0.91 1.18 2.18 920017.BJ Xinghao Pharmaceutical 5.40 5.24 4.80 3.58 000513.SZ Livzon Group 2.25 2.15 2.14 2.30

Average 2.51 2.63 2.31 2.45Issuer 11.83 7.58 7.90 6.06

Quick ratio (times)

002399.SZ Hepalink 1.24 1.14 0.79 0.99 603707.SH Jianyou Co., Ltd. 1.35 1.63 1.01 0.99 002675.SZ Dongcheng Pharmaceutical 1.33 1.10 0.81 0.88 300255.SZ Changshan Pharmaceutical 0.31 0.28 0.33 0.82 920017.BJ Xinghao Pharmaceutical 5.07 4.91 4.49 3.21 000513.SZ Livzon Group 2.03 1.89 1.88 2.02

Average 1.89 1.83 1.55 1.49Issuer 9.50 5.67 4.98 4.14

Asset-liability ratio (consolidated)

002399.SZ Hepalink 27.46% 29.64% 37.57% 40.39% 603707.SH Jianyou Shares 34.50% 31.78% 39.12% 38.39% 002675.SZ Dongcheng Pharmaceutical 41.35% 37.79% 33.24% 35.40% 300255.SZ Changshan Pharmaceutical 68.26% 66.04% 60.85% 49.40% 920017.BJ Xinghao Pharmaceutical 16.36% 16.68% 17.64% 21.20% 000513.SZ Livzon Group 37.37% 39.05% 41.04% 39.93%

Average 37.55% 36.83% 38.24% 37.45%Issuer 8.48% 11.09% 10.56% 13.28%

Note: The data comes from Wind and relevant company announcements.

At the end of each reporting period, the company's current ratio and quick ratio were generally higher than the average of comparable companies in the same industry, reflecting that the company's short-term solvency is generally good. During the reporting period, the company's asset-liability ratio was lower than the average of comparable companies in the same industry. The company's overall asset-liability structure was relatively reasonable and it had good solvency.

(4) Operational capability analysis

Indicators of the company’s main asset turnover capacity

During the reporting period, the company’s main asset turnover capacity indicators are as follows:

Project January-September 2025 2024 2023 Accounts receivable turnover rate in 2022 (times) 4.52 5.99 4.36 4.57

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Inventory turnover rate (times) 1.26 1.32 1.79 3.02 Note: The calculation formula of the above financial indicators is as follows (the data from January to September 2025 is not annualized):

(1) Accounts receivable turnover rate = operating income/average balance of accounts receivable

(2) Inventory turnover rate = operating cost/average inventory balance

In each reporting period, the company's accounts receivable turnover rates were 4.57 times, 4.36 times, 5.99 times and 4.52 times respectively, and the inventory turnover rates were 3.02 times, 1.79 times, 1.32 times and 1.26 times respectively. During the reporting period, the company's accounts receivable turnover rate was relatively stable; since 2023, due to price fluctuations of main raw materials, the company's operating costs have shown a downward trend, and the inventory turnover rate has declined. Overall, the company's accounts receivable management capabilities and payment collection are good, and its asset turnover is good.

Comparative analysis of relevant indicators with listed companies in the same industry

During the reporting period, the comparison between the company and comparable listed companies in the same industry is as follows:

Unit: Sub-Security Code Company Abbreviation January-September 2025 2024 2023 2022

Accounts receivable turnover rate

002399.SZ Hepalink 3.23 4.22 3.61 4.31 603707.SH Jianyou Co., Ltd. 3.00 4.61 4.52 4.06 002675.SZ Dongcheng Pharmaceutical 2.08 3.09 3.66 3.81 300255.SZ Changshan Pharmaceutical 2.27 3.94 4.36 6.55 920017.BJ Xinghao Pharmaceutical 6.39 7.56 7.35 6.77 000513.SZ Livzon Group 4.27 5.67 5.36 5.66

Average 3.54 4.85 4.81 5.19Issuer 4.52 5.99 4.36 4.57

Inventory turnover rate

002399.SZ Hepalink 0.55 0.52 0.50 0.82 603707.SH Jianyou Co., Ltd. 0.45 0.45 0.37 0.33 002675.SZ Dongcheng Pharmaceutical 1.58 1.82 1.72 2.01 300255.SZ Changshan Pharmaceutical 0.37 0.43 0.46 0.55 920017.BJ Xinghao Pharmaceutical 2.26 3.25 3.07 3.00 000513.SZ Livzon Group 1.60 1.76 1.94 2.30

Average 1.13 1.37 1.34 1.50Issuer 1.26 1.32 1.79 3.02

Data source: Data comes from Wind and relevant company announcements. The above financial indicators from January to September 2025 are not annualized, and the comparable company's accounts receivable and inventory from January to September 2025 have not disclosed book balances, so the book value is used for calculations.

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During each reporting period, the average accounts receivable turnover rates of comparable companies in the same industry were 5.19, 4.81, 4.85 and 3.54 respectively. The company's accounts receivable turnover rates were 4.57, 4.36, 5.99 and 4.52 respectively. The average inventory turnover rates of comparable companies in the same industry were 1.50, 1.34, 1.37 and 1.13 respectively. The company's inventory turnover rates were 3.02, 3.02, 1.37 and 1.13 respectively. 1.79, 1.32 and 1.26. Overall, there is no significant difference in the company's accounts receivable turnover rate and inventory turnover rate compared with comparable companies in the same industry.

(5) Financial investment

Recognition standards for financial investment

According to the "Registration and Management Measures for the Securities Issuance of Listed Companies", if a listed company applies to issue securities to unspecified objects, except for financial enterprises, it does not have a large amount of financial investment at the end of the most recent period.

According to the provisions of the "Opinions on the Application of Relevant Provisions of Articles 9, 10, 11, 13, 40, 57 and 60 of the Measures for the Administration of Securities Issuance Registration of Listed Companies - Opinions on the Application of Securities and Futures Laws No. 18":

(1) Financial investment includes but is not limited to: investment financial business; investment in financial business by non-financial enterprises (excluding investments in group financial companies where the shareholding ratio has not increased before and after investment); equity investment unrelated to the company's main business; investment in industrial funds and merger and acquisition funds; borrowing funds; entrusted loans; purchase of financial products with large income fluctuations and high risks, etc. (2) Industrial investment in the upstream and downstream of the industrial chain for the purpose of acquiring technology, raw materials or channels, mergers and acquisitions investment for the purpose of acquisition or integration, borrowing funds and entrusted loans for the purpose of expanding customers and channels, if they are in line with the company's main business and strategic development direction, they are not defined as financial investments. (3) If a listed company and its subsidiaries participate in a financial company, the requirements of this article shall apply; if a listed company and its subsidiaries participate in financial companies, this article shall not apply; operating financial business refers to the inclusion of financial business income in consolidated statements. (4) Due to historical reasons, financial investments formed through establishment, policy reorganization, etc. that are difficult to liquidate in the short term are not included in the calculation of financial investments. (5) A large amount means that the amount of financial investment held or planned to be held by the company exceeds 30% of the net assets attributable to the parent company in the company's consolidated statements (excluding the amount of investment in quasi-financial businesses within the scope of the consolidated statements).

The company’s financial investment at the end of the latest period

As of September 30, 2025, the company's financial statement items that may involve financial investments are listed below:

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Unit: The amount of financial investment in RMB 10,000 accounts for the book value of the project. The amount of financial investment

Proportion of net assets of shareholders of the parent company Trading financial assets 61,044.35 - - Non-profit assets due within one year

15,192.27 - -Current assets

Other current assets 1,031.08 - - Debt investment 9,330.73 - - Long-term equity investment 353.40 241.37 0.09% Other non-current assets 9,451.67 - -

Total 96,403.51 241.37 0.09%

(1) Trading financial assets

As of the end of the reporting period, the company's trading financial assets were RMB 610.4435 million, mainly due to the company's cash management of part of the funds and the reduction and prevention of exchange rate risks. The purchased low-risk bank wealth management products, treasury bond reverse repurchases, foreign exchange swaps, etc. are not financial investments.

(2) Non-current assets due within one year

As of the end of the reporting period, the company's non-current assets due within one year amounted to RMB 151.9227 million, which were mainly certificates of deposit/time deposits due within one year and were not financial investments.

(3) Other current assets

As of the end of the reporting period, the company's other current assets amounted to RMB 10.3108 million, mainly for value-added tax to be transferred and expenses to be amortized, and are not financial investments.

(4) Debt investment

As of the end of the reporting period, the book value of the company's debt investments was RMB 93.3073 million, which were large-denomination certificates of deposit/time deposits and did not exist as financial investments.

(5) Long-term equity investment

As of the end of the reporting period, the company's long-term equity investment was investment in associated enterprises. The details are as follows: Unit: 10,000 yuan

Invested unit Amount

Jiangsu Jingsen Biomedical New Materials Technology Co., Ltd. 241.37 Aosheng Medical Co., Ltd. 112.04

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Invested unit Amount

Total 353.40 1) Jiangsu Jingsen Biomedical New Materials Technology Co., Ltd.

Jiangsu Jingsen Biomedical New Materials Technology Co., Ltd. is mainly engaged in the research and development of nanobionics and new materials. The company does not have close ties or relevant cooperation arrangements with the issuer's main business. It does not belong to industrial investment around the upstream and downstream of the industrial chain for the purpose of acquiring technology, raw materials or channels. It is a financial investment. 2) Aosheng Medical Co., Ltd.

Aosheng Medical Co., Ltd. is mainly engaged in pharmaceutical research and development business, which is related to the company's main business and is not a financial investment.

(6) Other non-current assets

As of the end of the reporting period, the book value of the company's other non-current assets was 94.5167 million yuan, which mainly consisted of the purchase price of the South Square Garden commercial residence (compensation for the demolition of the Wuqing North Road factory building), prepaid equipment payment, etc., and was not a financial investment.

To sum up, as of the end of the reporting period, the company had no large financial investments.

6. Analysis of operating results

(1) Operating income

Composition of operating income

During the reporting period, the composition of the company’s operating income is as follows:

Unit: 10,000 yuan

January-September 2025 2024 2023 2022 projects

Amount Proportion Amount Proportion Amount Proportion Amount Proportion Main business income 121,225.69 99.77% 152,385.11 99.84% 180,909.64 99.71% 230,242.09 99.95% Other business income 275.81 0.23% 239.17 0.16% 517.25 0.29% 112.69 0.05%

Total 121,501.50 100.00% 152,624.28 100.00% 181,426.89 100.00% 230,354.78 100.00%

During the reporting period, the company focused on its main business, and its main business income accounted for more than 99% of its operating income.

Main business income by product category

During the reporting period, the company’s main business income was divided by product categories as follows:

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Unit: 10,000 yuan

January-September 2025 2024 2023 2022 Product Name

Amount Proportion Amount Proportion Amount Proportion Amount Proportional preparation series 81,218.99 67.00% 107,908.32 70.81% 111,450.25 61.61% 118,151.83 51.32% API series 39,382.26 32.49% 44,339.61 29.10% 69,202.81 38.25% 111,679.65 48.51%Others 624.45 0.52% 137.18 0.09% 256.58 0.14% 410.60 0.18%

Total 121,225.69 100.00% 152,385.11 100.00% 180,909.64 100.00% 230,242.09 100.00%

During the reporting period, the company's main business income was mainly from the preparation series. The sales income in each period of the reporting period was 1.1815183 million yuan, 1.1145025 million yuan, 1.0790832 million yuan and 812.1899 million yuan respectively, accounting for 51.32%, 61.61%, 70.81% and 67.00% respectively. The income scale is relatively stable. In each reporting period, the company's API series revenue was 1,116.7965 million yuan, 692.0281 million yuan, 443.3961 million yuan and 393.8226 million yuan respectively. From 2022 to 2024 showed a downward trend in 2020, mainly because: on the one hand, as a widely used anticoagulant drug in clinical practice, the market demand for heparin sodium API increased significantly during the global public health incident. Therefore, the company’s API sales revenue in 2022 will be higher. The impact of the incident will gradually disappear at the end of 2022, and customers in the downstream industry will enter a destocking cycle. From 2023 to 2024, the downstream market demand will be relatively weak, and the sales volume of the company's API products will decline; on the other hand, during the reporting period, the market price of heparin was in a downward range, and the sales unit price of the company's API products showed a downward trend. From January to September 2025, with the end of destocking by downstream industry customers, downstream market demand has picked up, and the market price of heparin APIs has gradually stopped falling and stabilized, and the company's API revenue has shown a growth trend.

Main business income distributed by region

During the reporting period, the company’s main business income by region was as follows:

Unit: 10,000 yuan

January to September 2025 2024 2023 2022 projects

Amount Proportion Amount Proportion Amount Proportion Amount Proportion Domestic sales 89,491.19 73.82% 117,174.05 76.89% 125,200.72 69.21% 130,697.17 56.77% Foreign sales 31,734.50 26.18% 35,211.06 23.11% 55,708.92 30.79% 99,544.91 43.23%

Total 121,225.69 100.00% 152,385.11 100.00% 180,909.64 100.00% 230,242.09 100.00%

During the reporting period, the company's main business income was mainly domestic sales, accounting for 56.77%, 69.21%, 76.89% and 73.82% in each period. The company's export revenue in 2022 was 995.4491 million yuan, accounting for 43.23% of the main business revenue, which is relatively high. This is mainly due to the influence of international supply and demand. The sales volume and sales unit price of heparin sodium API are both relatively high.

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Seasonal fluctuations in operating income

During the reporting period, the company’s operating income quarterly distribution is as follows:

Unit: 10,000 yuan

January to September 2025 2024 2023 2022 projects

Amount Proportion Amount Proportion Amount Proportion Amount Proportion First quarter 45,088.03 37.11% 46,110.15 30.21% 60,821.89 33.52% 55,222.05 23.97% Second quarter 41,089.12 33.82% 39,449.44 25.85% 44,853.72 24.72% 58,466.53 25.38% Third quarter 35,324.35 29.07% 35,200.71 23.06% 40,918.52 22.55% 51,194.32 22.22% Fourth quarter - - 31,863.98 20.88% 34,832.76 19.20% 65,471.87 28.42%

Total 121,501.50 100.00% 152,624.28 100.00% 181,426.89 100.00% 230,354.78 100.00%

During the reporting period, the company's revenue in each quarter basically remained balanced and stable, with sales fluctuating in some quarters.

Mainly affected by the market conditions of heparin sodium API, overall the company's operating income does not have obvious quarterly fluctuations.

Rhythmic fluctuation characteristics.

(2) Operating costs

Composition of operating costs

During the reporting period, the composition of the company’s operating costs was as follows:

Unit: 10,000 yuan

January to September 2025 2024 2023 2022 projects

Amount Proportion Amount Proportion Amount Proportion Amount Proportion Main business costs 51,374.50 99.99% 68,888.15 99.97% 102,901.56 99.97% 141,445.81 99.99% Other business costs 4.62 0.01% 18.56 0.03% 31.79 0.03% 12.09 0.01%

Total 51,379.13 100.00% 68,906.71 100.00% 102,933.35 100.00% 141,457.89 100.00%

During the reporting period, the company’s operating costs were RMB 1,414.5789 million, RMB 1,029.3335 million, and RMB 689.0671 respectively.

million and 513.7913 million yuan, mainly based on main business costs. The changing trend of operating costs and operating income

The change trend is consistent.

Main business costs by product category

During the reporting period, the company’s main business costs were divided by product categories as follows:

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Unit: RMB 10,000 January to September 2025 2024 2023 Product name in 2022

Amount Proportion Amount Proportion Amount Proportion Amount Proportional preparation series 24,396.46 47.49% 41,199.79 59.81% 42,887.58 41.68% 45,597.13 32.24% API series 26,537.25 51.65% 27,638.05 40.12% 59,952.63 58.26% 95,826.91 67.75%Others 440.80 0.86% 50.31 0.07% 61.35 0.06% 21.77 0.02%

Total 51,374.50 100.00% 68,888.15 100.00% 102,901.56 100.00% 141,445.81 100.00%

During the reporting period, the company's main business costs mainly consisted of the costs of the preparation series and API series, which matched the company's revenue structure.

(3) Gross profit and gross profit margin

Comprehensive gross profit composition and gross profit margin analysis

During the reporting period, the company’s comprehensive gross profit and gross profit margin were as follows:

Unit: 10,000 yuan project January-September 2025 2024 2023 2022

Operating income 121,501.50 152,624.28 181,426.89 230,354.78 Operating costs 51,379.13 68,906.71 102,933.35 141,457.89

Gross profit 70,122.38 83,717.57 78,493.54 88,896.89 Gross profit margin 57.71% 54.85% 43.26% 38.59%

During the reporting period, the company’s gross profit composition was as follows:

Unit: RMB 10,000 January-September 2025 2024 2023 2022 Project

Amount Proportion Amount Proportion Amount Proportion Amount Proportion Gross profit from main business 69,851.19 99.61% 83,496.96 99.74% 78,008.08 99.38% 88,796.28 99.89% Gross profit from other businesses 271.19 0.39% 220.61 0.26% 485.46 0.62% 100.61 0.11%

Comprehensive gross profit 70,122.38 100.00% 83,717.57 100.00% 78,493.54 100.00% 88,896.89 100.00%

During the reporting period, the company's gross profit mainly came from the gross profit of its main business, accounting for more than 99% in each period.

Analysis of gross profit margin of main business

During the reporting period, the gross profit ratio of the company's main business by product category is as follows:

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Unit: 10,000 yuan

January-September 2025 2024 2023 2022 Product Name

Amount Proportion Amount Proportion Amount Proportion Amount Proportional preparation series 56,822.53 81.35% 66,708.53 79.89% 68,562.67 87.89% 72,554.70 81.71% API series 12,845.01 18.39% 16,701.56 20.00% 9,250.18 11.86% 15,852.75 17.85% Others 183.65 0.26% 86.87 0.10% 195.24 0.25% 388.83 0.44%

Total 69,851.19 100.00% 83,496.96 100.00% 78,008.08 100.00% 88,796.28 100.00%

In each period of the reporting period, the gross profit amount of the company's preparation series was 725.547 million yuan, 685.6267 million yuan, 667.0853 million yuan and 568.2253 million yuan respectively, accounting for 81.71%, 87.89%, 79.89% and 81.35% of the company's main business gross profit respectively, and is the main source of the company's gross profit.

During the reporting period, the gross profit margin of the company's main business by product category and the proportion of each product's revenue in the main business revenue are as follows:

January to September 2025 2024 2023 2022

Project

Gross profit margin Revenue share Gross profit margin Revenue share Gross profit margin Revenue share Gross profit margin Revenue share Preparation series 69.96% 67.00% 61.82% 70.81% 61.52% 61.61% 61.41% 51.32% API series 32.62% 32.49% 37.67% 29.10% 13.37% 38.25% 14.19% 48.51%Others 29.41% 0.52% 63.32% 0.09% 76.09% 0.14% 94.70% 0.18%

Total 57.62% 100.00% 54.79% 100.00% 43.12% 100.00% 38.57% 100.00%

In each period of the reporting period, the gross profit margin of the company's preparation series was 61.41%, 61.52%, 61.82% and 69.96% respectively, which remained stable overall. The gross profit margin of the preparation series increased from January to September 2025, mainly due to the decrease in the purchase price of crude heparin and the completion of the Hubei Qianhong crude trypsin production line. The company's production costs of heparin preparations and pancreatic kallikrein preparation series products decreased. In each period of the reporting period, the gross profit margins of the company's API series were 14.19%, 13.37%, 37.67% and 32.62% respectively. The gross profit margin increased significantly in 2024, mainly due to the significant drop in the purchase price of crude heparin and the subsequent decrease in the cost of the API series products.

In each period of the reporting period, the company's main business gross profit margins were 38.57%, 43.12%, 54.79% and 57.62% respectively, with a larger increase in 2024. The main reason is that the decline in the purchase price of crude heparin has caused a significant increase in the gross profit margin of API series products, and the revenue share of preparation series products with higher gross profit margins has increased.

Gross profit margin of comparable companies in the same industry

During the reporting period, the company’s comprehensive gross profit margin compared with comparable companies in the same industry is as follows:

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Securities code Securities abbreviation January to September 2025 2024 2023 2022 002399.SZ Hepalink 31.53% 33.26% 33.06% 32.61% 603707.SH Jianyou shares 39.48% 43.21% 48.40% 52.38% 002675.SZ Dongcheng Pharmaceutical 50.26% 47.14% 44.87% 42.94% 300255.SZ Changshan Pharmaceutical 15.91% 16.10% 22.50% 44.42% 920017.BJ Xinghao Pharmaceutical 70.16% 69.65% 74.13% 75.11% 000513.SZ Livzon Group 66.39% 65.45% 64.08% 64.68%

Average 45.62% 45.80% 47.84% 52.02%Issuer 57.71% 54.85% 43.26% 38.59%

During the reporting period, the company’s gross profit margins were 38.59%, 43.26%, 54.85% and 57.71%. The average of comparable companies in the same industry is on a downward trend, while the company's comprehensive gross profit margin is on an upward trend. This is mainly because the market price of crude heparin and other raw materials was at a high level at the beginning of the reporting period. Some comparable companies in the same industry have made large reserves of crude heparin. Based on the company's judgment of market conditions, the inventory scale is much smaller than that of the same industry. Compared with the company; as the market price of crude heparin fell sharply during the reporting period, the market price of heparin raw materials also dropped. Comparable companies in the same industry had larger inventory scales and higher average costs, which led to a greater decline in gross profit margins. However, the company's high-priced inventory at the beginning of the reporting period was small. As the purchase price of crude heparin dropped, the average cost of raw materials dropped significantly, so the gross profit margin increased.

(4) Expenses during the period

During the reporting period, the company’s period expenses and their proportion to operating income are as follows:

Unit: 10,000 yuan

January to September 2025 2024 2023 2022 projects

Amount Proportion Amount Proportion Amount Proportion Amount Proportion Selling expenses 22,385.18 18.42% 30,454.25 19.95% 39,385.69 21.71% 42,176.06 18.31% Administrative expenses 9,480.90 7.80% 12,317.87 8.07% 13,176.06 7.26% 12,365.73 5.37%R&D expenses 6,986.41 5.75% 10,444.72 6.84% 9,708.34 5.35% 8,831.10 3.83%Financial expenses -20.27 -0.02% -1,219.15 -0.80% -639.21 -0.35% -7,419.52 -3.22%

Total 38,832.22 31.96% 51,997.70 34.07% 61,630.88 33.97% 55,953.37 24.29%

During the reporting period, the company's total expenses were 559.5337 million yuan, 616.3088 million yuan, 519.9770 million yuan and 388.3222 million yuan respectively, accounting for 24.29%, 33.97%, 34.07% and 31.96% of the current operating income respectively.

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Sales expenses

During the reporting period, the company’s sales expenses details are as follows:

Unit: 10,000 yuan

January to September 2025 2024 2023 2022 projects

Amount Proportion Amount Proportion Amount Proportion Amount Proportion Market development fee 16,027.80 71.60% 22,617.80 74.27% 30,111.86 76.45% 32,023.51 75.93% Salary and surcharges 6,297.71 28.13% 7,654.28 25.13% 9,155.70 23.25% 9,936.61 23.56%Others 59.68 0.27% 182.17 0.60% 118.12 0.30% 215.94 0.51%

Total 22,385.18 100.00% 30,454.25 100.00% 39,385.69 100.00% 42,176.06 100.00%

In each period of the reporting period, the company's sales expenses were 421.7606 million yuan, 393.8569 million yuan, 304.5425 million yuan and 223.8518 million yuan respectively, accounting for 18.31%, 21.71%, 19.95% and 18.42% of the current operating income respectively, mainly composed of market development fees, wages and surcharges. In each period of the reporting period, the company's market development expenses were RMB 320.2351 million, RMB 301.1186 million, RMB 226.1780 million and RMB 160.278 million respectively, showing a downward trend. This was mainly due to the fact that some of the company's products were included in the scope of centralized procurement and the marketing activities of corresponding products decreased.

The company's sales expense ratio compared with peers in the industry is as follows:

Securities code Securities abbreviation January to September 2025 2024 2023 2022 002399.SZ Hepalink 7.08% 7.37% 9.50% 7.24% 603707.SH Jianyou Shares 9.76% 7.14% 10.70% 12.17% 002675.SZ Dongcheng Pharmaceutical 15.82% 14.46% 15.49% 15.80% 300255.SZ Changshan Pharmaceutical 2.26% 8.73% 33.52% 26.26% 920017.BJ Xinghao Pharmaceutical 33.58% 35.10% 45.09% 48.05% 000513.SZ Livzon Group 28.57% 27.55% 28.95% 30.78%

Average 16.18% 16.73% 23.88% 23.38%Issuer 18.42% 19.95% 21.71% 18.31%

During each reporting period, there was no significant difference between the company's sales expense ratio and the average of comparable companies in the same industry.

Management expenses

During the reporting period, the company’s administrative expenses details are as follows:

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Unit: 10,000 yuan

January to September 2025 2024 2023 2022 projects

Amount Proportion Amount Proportion Amount Proportion Amount Proportional salary and surcharges 3,667.20 38.68% 5,036.48 40.89% 4,451.29 33.78% 4,168.87 33.71% Social entertainment expenses 1,424.95 15.03% 1,982.02 16.09% 2,080.36 15.79% 2,027.04 16.39% Depreciation and amortization 1,182.97 12.48% 1,791.71 14.55% 2,670.48 20.27% 2,486.56 20.11% Material consumption 311.44 3.28% 482.50 3.92% 517.58 3.93% 529.09 4.28% Maintenance expenses 226.13 2.39% 414.62 3.37% 419.93 3.19% 439.00 3.55% Union funds 191.47 2.02% 244.54 1.99% 273.68 2.08% 284.45 2.30% Others 2,476.73 26.12% 2,366.02 19.21% 2,565.00 19.47% 1,993.22 16.12% Equity incentive expenses - - - - 197.73 1.50% 437.49 3.54%

Total 9,480.90 100.00% 12,317.87 100.00% 13,176.06 100.00% 12,365.73 100.00%

During the reporting period, the company’s administrative expenses were RMB 123.6573 million, RMB 131.7606 million, and RMB 123.1787 million respectively.

million and 94.809 million yuan, accounting for 5.37%, 7.26%, 8.07% and 8.07% of the current operating income respectively.

7.80%, mainly including wages and surcharges, social entertainment expenses, depreciation and amortization, material consumption, and maintenance expenses

Wait. During the reporting period, the company's various administrative expenses remained basically stable, matching the company's operating conditions.

Research and development expenses

During the reporting period, the company’s R&D expenses are detailed as follows:

Unit: 10,000 yuan

January to September 2025 2024 2023 2022 projects

Amount Proportion Amount Proportion Amount Proportion Amount Proportion Personnel labor costs 2,089.83 29.91% 2,839.45 27.19% 2,099.76 21.63% 2,835.04 32.10% Direct input costs 1,115.61 15.97% 2,443.09 23.39% 2,014.25 20.75% 2,029.23 22.98% Depreciation and amortization 1,025.80 14.68% 1,406.67 13.47% 1,090.45 11.23% 954.68 10.81% Commissioned external research

2,488.17 35.61% 3,331.46 31.90% 4,286.82 44.16% 2,815.35 31.88% Development expenses

Other expenses 267.02 3.82% 424.05 4.06% 217.07 2.24% 196.79 2.23%

Total 6,986.41 100.00% 10,444.72 100.00% 9,708.34 100.00% 8,831.10 100.00%

In each reporting period, the company’s R&D expenses were RMB 88.311 million, RMB 97.0834 million, and RMB 104.4472 million respectively.

million and 69.8641 million yuan, showing an overall upward trend, mainly composed of personnel costs, direct investment costs, depreciation and amortization, and entrusted external research and development costs. Commissioned external research and development expenses in 2023

The increase was mainly due to the fact that many of the company's R&D projects entered the first or second phase of clinical trials that year.

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The cost of outsourcing clinical trials increases.

Financial expenses

During the reporting period, the company’s financial expenses details are as follows:

Unit: 10,000 yuan

Item January-September 2025 2024 2023 2022 Interest expense 43.62 138.65 592.64 519.02 Less: Interest income 738.54 996.11 1,129.81 564.20 Exchange gains and losses 661.43 -372.62 -126.19 -7,401.60 Bank handling fee 13.21 10.93 24.14 22.85 Bank acceptance discount interest - - - 4.42

Total -20.27 -1,219.15 -639.21 -7,419.52

In 2022, the company's financial expenses were -74.1952 million yuan, mainly due to the company's export revenue of 995.4491 million yuan that year. The revenue was large and mainly settled in U.S. dollars. However, the exchange rate of the U.S. dollar against the RMB showed an overall upward trend that year, so a foreign currency exchange income of 74.016 million yuan was generated.

(5) Analysis of other items in the income statement

Other income

During the reporting period, the details of the company’s other income are as follows:

Unit: 10,000 yuan

Project January to September 2025 2024 2023 Transfer of deferred income in 2022 556.50 744.20 1,150.75 456.92 Related to the company’s daily operations

584.19 322.80 708.45 552.74 Other government subsidies

VAT super deduction and others

215.29 233.73 534.20 - Tax exemption

Others - 17.52 26.11 18.83

Total 1,355.97 1,318.25 2,419.51 1,028.49

The company's other income mainly comes from deferred income and government subsidies related to the company's daily operations. The company's deferred income transfer amount in 2023 is relatively high, mainly because Hubei Qianhong transferred its land, real estate and production line at No. 18 Xihuan 3rd Road, Zhongxiang Economic Development Zone. The project basic platform construction funds related to the above assets, the land transfer Jin Zhongxiang Municipal Government's part and other government subsidy projects totaled 3.8395 million yuan in deferred income, all of which were transferred to other income in the current period. From January to September 2023, 2024 and 2025, the company's additional VAT deduction and other tax exemption amounts are 5.342 million yuan, 2.3373 million yuan and 2.1529 million yuan,

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Mainly according to the Ministry of Finance and the State Administration of Taxation's "Announcement on the Additional Deduction Policy for Value-Added Tax for Advanced Manufacturing Enterprises" (Ministry of Finance and State Administration of Taxation Announcement No. 43 of 2023), from January 1, 2023 to December 31, 2027, advanced manufacturing enterprises are allowed to deduct an additional 5% of the deductible input tax for the current period to deduct the value-added tax payable. The company complies with the relevant deduction policies.

Investment income

During the reporting period, the details of the company’s investment income are as follows:

Unit: 10,000 yuan

Project January-September 2025 2024 2023 2022 Long-term equity investment accounted for by equity method

-111.88 82.54 -21.42 -853.81 capital income

Measured at fair value and changes in

Financial assets included in current profits and losses 718.67 834.27 790.60 375.07 Investment income during the holding period

Disposals are measured at fair value and their

Financial changes included in current profit and loss 343.26 236.16 36.51 9.86 Investment income from assets

Financing discount of receivables - - -5.23 -

Total 950.05 1,152.97 800.45 -468.88

In each period of the reporting period, the company's investment income amounted to -4.6888 million yuan, 8.0045 million yuan, 11.5297 million yuan and 9.5005 million yuan respectively. The overall amount was small. Among them, the investment income from financial assets measured at fair value and whose changes were included in the current profit and loss during the holding period were 3.7507 million yuan, 7.9060 million yuan, 8.3427 million yuan and 7.1867 million yuan respectively. Ten thousand yuan, mainly the income from purchasing financial products. In 2022, the company's long-term equity investment income calculated using the equity method was -8.5381 million yuan, which was mainly due to losses from the investment in Aosheng Medical.

Income from changes in fair value

During the reporting period, the company's gains from changes in fair value were RMB 100,100, RMB 771,400, RMB 2,359,500, and RMB 3,738,900 respectively. The amounts were relatively small, mainly due to changes in the fair value of financial products.

Credit impairment losses

During the reporting period, the details of the company’s credit impairment losses are as follows:

Unit: 10,000 yuan

Item January to September 2025 2024 2023 Bad debt losses on accounts receivable in 2022 158.52 -603.90 1,901.72 -1,530.44 Bad debt losses on other receivables 11,361.33 8,495.74 -158.97 20.56

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Project January-September 2025 2024 2023 2022

Total 11,519.84 7,891.84 1,742.75 -1,509.87

In each reporting period, the company's credit impairment losses were -15.0987 million yuan, 17.4275 million yuan, 78.9184 million yuan and 115.1984 million yuan respectively, of which 2024 and 2025 1-9 The monthly amount is relatively large, mainly because the company received redemption payments from the Anxin Ruiying No. 64 working capital loan collective fund trust plan and the Anxin Chuangying No. 51 specific asset income rights financial product, and reversed the bad debt losses of other receivables accrued in the previous period of RMB 87,558,100 and RMB 113,825,300 that year.

Asset impairment losses

During the reporting period, the details of the company’s asset impairment losses are as follows:

Unit: 10,000 yuan

Item January to September 2025 2024 2023 Loss on inventory depreciation in 2022 - -309.23 -1,193.05 -27.01 Impairment loss on fixed assets - - - -24.81 Impairment loss on development expenses - - -768.56 -

Total - -309.23 -1,961.61 -51.82

In 2023, the company's asset impairment losses were relatively large, of which inventory depreciation losses were -11.9305 million yuan, mainly because the market prices of crude heparin and APIs in the company's inventory fell significantly that year, for which the company made provision for inventory depreciation; development expenditure impairment losses were -7.6856 million yuan, due to the suspension of the company's QHRD102 research and development project, and all costs corresponding to the capitalization of R&D expenditures were transferred to the current profit and loss.

Asset disposal income

During the reporting period, the details of the company’s asset disposal income are as follows:

Unit: 10,000 yuan

Project January to September 2025 2024 2023 Income from fixed asset disposal in 2022 1.86 - 1,950.49 5,759.33 Income from disposal of intangible assets - - 584.56 -Total 1.86 - 2,535.05 5,759.33

In 2022, the company's asset disposal income of 57.5933 million yuan was compensation for the demolition of the company's factory building on Wuqing North Road. In 2023, the company's income from the disposal of fixed assets was 19.5049 million yuan, and the income from the disposal of intangible assets was 5.8456 million yuan. This was due to the asset disposal generated by the subsidiary Hubei Qianhong's transfer of all land, real estate and production lines located at No. 18 Xihuan 3rd Road, Zhongxiang Economic Development Zone to Hubei Zhongruixiang Industrial Investment Group Co., Ltd.

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Purchase income.

Non-operating income

During the reporting period, the details of the company’s non-operating income are as follows:

Unit: 10,000 yuan

Project January-September 2025 2024 2023 Gains from fixed asset scrapping in 2022 1.86 - - 4.27 Accounts payable that do not need to be paid - 112.79 27.00 39.13 Others 0.14 0.37 8.09 29.72

Total 1.99 113.15 35.09 73.12

During the reporting period, the company's overall non-operating income was small, mainly formed by clearing accounts payable that did not need to be paid.

Non-operating expenses

During the reporting period, the details of the company’s non-operating expenses are as follows:

Unit: 10,000 yuan

Project January to September 2025 2024 2023 Loss on scrapping of fixed assets in 2022 6.63 3.84 8.65 3.76 Donation expenses 29.09 128.68 100.00 14.50 Others 0.94 35.58 9.74 22.47

Total 36.66 168.10 118.40 40.73

During the reporting period, the company's overall non-operating expenditures were relatively small, mainly donation expenditures.

(6) Non-recurring profit and loss analysis

During the reporting period, the company’s non-recurring profits and losses are as follows:

Unit: 10,000 yuan

Item January-September 2025 2024 2023 Profit and loss from non-current asset disposal in 2022 (including accrued

-4.77 -3.84 2,526.39 5,759.85 Offset portion of asset impairment provision)

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

Closely related to regular business operations and in compliance with national policies

566.49 322.80 1,092.40 1,012.12 Regulations, enjoyment according to determined standards, and benefits to the company

Except for government subsidies that have a lasting impact on profits and losses)

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Project January-September 2025 2024 2023 2022 Except for effective arrangements related to the company’s normal business operations

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

Changes in fair value of assets and financial liabilities 1,435.81 1,306.37 904.25 394.94 Gains and losses and disposal of financial assets and financial liabilities

profit and loss

Impairment standards for accounts receivable that are individually tested for impairment

11,382.53 8,755.81 - - To be transferred back

Other non-operating income other than the above items and

-28.04 -51.11 -74.65 48.25Expenditure

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

- - 484.31 mesh

Subtotal 13,352.03 10,330.04 4,448.39 7,699.48

Less: Impact of income tax 1,927.15 1,514.54 666.84 1,083.43 Less: Profit and loss of minority shareholders 207.20 112.21 -56.31 94.95

Total 11,217.68 8,703.28 3,837.86 6,521.10

During the reporting period, the company's non-recurring profits and losses mainly came from the proceeds from the disposal of non-current assets, government subsidies included in the current profits and losses, and the reversal of impairment provisions for receivables that were separately tested for impairment. The profits and losses from the disposal of non-current assets in 2022 and 2023 are relatively high, mainly due to the compensation for the demolition of the company's Wuqing North Road factory building and the income from the disposal of fixed assets generated by the subsidiary's transfer of the land, property and production line at No. 18 Xihuan 3rd Road, Zhongxiang Economic Development Zone. The reversal amount of the impairment provision for receivables for which the company conducted separate impairment tests in 2024 and January-September 2025 was relatively high, mainly due to the payment received from the Anxin Ruiying No. 64 Working Capital Loan Collective Fund Trust Plan and the Anxin Chuangying No. 51 Specific Asset Income Rights Financial Product.

7. Cash flow analysis

(1) Cash flow analysis from operating activities

During the reporting period, the company’s cash flow from operating activities was as follows:

Unit: 10,000 yuan

Item January to September 2025 2024 2023 Cash received from selling goods and providing services in 2022 127,780.09 167,692.74 229,182.15 222,989.20 Tax refunds received 16.62 111.70 4,628.92 5,445.81 Received other cash related to operating activities

2,882.35 3,286.44 2,510.54 1,940.25 gold

Subtotal of cash inflow from operating activities 130,679.07 171,090.88 236,321.61 230,375.25

Cash for purchasing goods and receiving services 52,179.86 49,560.99 112,916.64 170,145.15

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Project January-September 2025 2024 2023 2022 Payments to and for employees

17,150.39 19,444.28 19,998.83 21,465.66 cash

Various taxes and fees paid 11,119.76 15,177.14 9,145.34 8,100.36 Payment of other cash related to operating activities

21,094.38 35,437.56 40,928.00 37,811.47 gold

Subtotal of cash outflows from operating activities 101,544.39 119,619.97 182,988.81 237,522.64

Net cash flow from operating activities 29,134.67 51,470.91 53,332.80 -7,147.39

In each reporting period, the company's cash inflows from operating activities were RMB 2,303,752,500, RMB 2,363,216,100, RMB 1,710,908,800, and RMB 1,306,790,700 respectively, mainly coming from cash received from selling goods and providing services.

In each period of the reporting period, the company's cash outflows from operating activities were RMB 2,375,226,400, RMB 1,829,888,100, RMB 1,196,199,700, and RMB 1,015,443,900 respectively. They were mainly cash payments for purchasing goods and receiving labor services. The amounts in each period of the reporting period were RMB 1,701,451,500, and RMB 1,129,166.64 respectively. million, 495.6099 million yuan and 521.7986 million yuan, showing a downward trend from 2022 to 2024. This is mainly due to the continuous decline in the price of crude heparin, the main raw material purchased by the company. During the reporting period, the heparin industry was generally in the destocking stage, and the number of crude heparin purchased by the company also decreased.

(2) Cash flow analysis of investing activities

During the reporting period, the company’s cash flows from investing activities were as follows:

Unit: 10,000 yuan

Project January to September 2025 2024 2023 Cash received from investment recovery in 2022 - 6,339.09 - 3,378.25 Cash received from investment income 1,556.54 605.65 143.29 365.08 Disposal of fixed assets, intangible assets and others

1,350.00 3,230.01 11.05 Net cash received from long-term assets

7,628.80 9,063.83 10,033.17 7,098.85 Cash paid for long-term assets

Cash paid for investment - 14,365.64 10,451.68 15,520.03 Payment for acquiring subsidiaries and other business units

- - Net cash of 166.72

Other cash payments related to investing activities 134,139.03 37,458.00 16,178.55 46,214.00 Subtotal of cash outflows from investing activities 141,767.83 60,887.47 36,663.40 68,999.61

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Project January to September 2025 2024 2023 Net cash flow generated from investing activities in 2022 -14,150.21 -32,322.90 -17,509.69 -18,997.93

During the reporting period, the company received other cash related to investment activities of RMB 462.473 million, RMB 157.8041 million, RMB 202.6983 million, and RMB 1.2606108 million, and paid other cash related to investing activities of RMB 462.140 million, RMB 161.7855 million. Ten thousand yuan, 374.580 million yuan and 1,341.3903 million yuan, mainly related to the purchase and redemption of structured deposits, treasury bond reverse repurchase and other products; the cash received by the company from the recovery of investment was 33.7825 million yuan, 0 million yuan, 63.3909 million yuan and 0 million yuan respectively, and the cash paid for investment was 155.2003 million yuan and 104.5168 million yuan respectively. Ten thousand yuan, 143.6564 million yuan and 0 Ten thousand yuan, mainly due to the purchase and maturity redemption of long-term time deposits; the cash paid by the company for the purchase and construction of fixed assets, intangible assets and other long-term assets were 70.9885 million yuan, 100.3317 million yuan, 90.6383 million yuan and 76.2880 million yuan respectively, mainly due to capital investment in the second phase construction project of the company's Yunhe Road factory area and the construction of the subsidiary Hubei Qianhong New Factory.

(3) Cash flow analysis of financing activities

During the reporting period, the company’s cash flow from financing activities was as follows:

Unit: 10,000 yuan

Project January-September 2025 2024 2023 Cash received from investment in 2022 2,450.00 300.00 4,250.00 - Including: Subsidiary absorbs investment from minority shareholders

2,450.00 300.00 4,250.00 - Cash received

Cash received from borrowings - 469.00 43,550.90 46,127.37 Cash received from other financing activities - - - 14,490.00 Subtotal of cash inflows from financing activities 2,450.00 769.00 47,800.90 60,617.37 Cash paid to repay debts 2,000.00 4,010.35 48,000.00 44,000.00 Distribution of dividends, profits or payment of interest

15,092.94 15,152.18 15,878.86 15,515.69 in cash

Payment of other cash related to financing activities - 14,077.02 3,009.36 - Subtotal of cash outflows from financing activities 17,092.94 33,239.55 66,888.22 59,515.69 Net cash flow generated from financing activities -14,642.94 -32,470.55 -19,087.32 1,101.69

In 2022 and 2023, the company will receive larger amounts of cash from borrowings and repay debts, mainly from the borrowing and repayment of short-term bank borrowings. In 2022, the company received 144.9 million yuan in cash related to other financing activities, mainly due to the company's transfer of treasury shares to the 2022 core employee stock ownership plan. In 2024, the company paid 140.7702 million yuan in cash related to other financing activities, which was mainly the share repurchase payment paid for the repurchase of shares through centralized bidding.

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8. Capital expenditure analysis

(1) Major capital expenditures during the reporting period

During the reporting period, the company's major capital expenditures mainly focused on its main business. In each period of the reporting period, the cash paid by the company for the purchase and construction of fixed assets, intangible assets and other long-term assets were 70.9885 million yuan, 100.3317 million yuan, 90.6383 million yuan and 76.2888 million yuan respectively, mainly due to the capital investment for the second phase construction project of the company's Yunhe Road factory area and the construction of the subsidiary Hubei Qianhong New Factory. During the reporting period, the company's capital expenditures did not involve cross-industry investments.

(2) foreseeable major capital expenditure plans in the future

As of September 30, 2025, the company's foreseeable major capital expenditures in the future are mainly investment expenditures for investment projects with funds raised from this issuance. For details, please refer to "Section 7 Utilization of Funds Raised from this Issuance" of this prospectus. Apart from this, the company has no other foreseeable major capital expenditures.

9. Analysis of technological innovation

(1) Technological advancement and specific performance

Technology Main application

Main technologies Technical advantages Technical sources

Platform: Digestive enzyme preparations for indigestion used by product companies

The dosage form was improved to overcome the shortcomings of the existing technology and invented a

Compound digestive enzyme with higher enzyme release rate and better therapeutic effect

agent. The company's compound digestive enzyme capsule (II) is the first compound digestive enzyme capsule in China.

A new generation of digestive drugs, integrated with pepsin and trypsin independently developed enzyme production and release technology

enzymes, pancreatic amylase, pancreatic lipase and other enzymes inherent in the organism

system, the prescription is determined according to the characteristics of the Chinese people’s dietary structure, and is in production

Polysaccharide uses pellet multi-layer coating technology to achieve directional release in the body

It can be delivered in a timely manner, with clear target, fast onset of effect and high safety.

The company uses online near-infrared analysis technology to establish intelligent

PAT (Pharmaceuticals

Production model, precise control of the process, and realization of enzyme biological activity preservation and compound elimination

production process

The processing retention volume is increased to 85%, the coating rate is increased to 80%, and the drug is independently developed and enzymatically produced.

Intelligent control

The critical quality attributes (enzyme biological activity) of the process materials provide the basis for the enterprise's biopharmaceuticals

manufacturing) technology

The platform has laid a solid foundation for cost reduction and efficiency improvement.

Compared with traditional alcohol fractionation precipitation, ultrafiltration membrane separation, and separation

Traditional methods such as subsieving and gel filtration chromatography, this technology improves

a preparation

The preparation process of enoxaparin sodium is by converting enoxaparin sodium into

Enoxaparin Enoxaparin is adjusted to alkaline room temperature for decolorization, then adjusted back to neutral, and then independently developed

Improvement of sodium: Anion exchange chromatography method is used for sodium, which can well control the low

technology

The molecular weight of molecule heparin sodium is such that the molecular weight can be less than 1%

Precise control within. On the basis of specific anion exchange chromatography

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Technology Mainly should be the main technology Technical advantages Technology source platform Used products, with specific synthesis conditions and processing methods in the preparation steps

method, which can increase the yield to more than 50%, and this method can

Enoxaparin sodium product with high purity and high activity can be prepared.

Product quality is significantly higher than the current EP pharmacopoeia standard.

This technology is a novel powder direct compression technology, which contains

Low-moisture microcrystalline cellulose formula, used together with pancreatic kininogenase

It can improve the stability of pancreatic kininogenase and affect pancreatic kinin

Proenzyme has a significant protective effect, as follows: pancreatic kinin

As an active protease, proenzyme has a large number of

Contains low water

hydroxyl and amino groups. When these groups encounter low-moisture microcrystalline fibers,

microcrystalline fiber

When substances with similar molecular weights such as vitamins are used, weak pancreatic kinins and vitamin prescriptions can be produced.

The mutual attraction (hydrogen bonding) of protease, thus weakening the self-developed powder of protease directly

The structural changes of the body improve the thermal stability; at the same time, the agent joint pressing technology

Low-moisture microcrystalline cellulose is just right for large molecular proteins

technique

white is anchored, using this weak adsorption force to reduce the protein

The qualitative structural change also ensures the stability of pancreatic kallikreinogenase titer.

Qualitative. Therefore, this technology effectively improves the company’s pancreatic kininogen

The product quality of enzyme enteric-coated tablets has significantly reduced the quality caused by the process.

batches with unqualified quantities and increase annual production levels.

Heparin raw materials from different species, including the composition and content of impurities

There are significant differences in the structural sequences of sugars, so the quality of the products

Quantity stability is greatly affected. Currently recommended by the US FDA

Ruminant gene detection in pig-derived crude heparin only requires certain

Heparin sodium, raw material species attributes, and in accordance with the detection methods of the United States Pharmacopoeia, heterologous gene detection

The detection limit for the drug egg source is 2 ppm. The company independently screened ruminants and pigs for independent research and development.

The specific primers and fluorescent probes of the white zymogen detection technology have been developed.

The timed quantitative fluorescence-PCR method of materials and drugs is used for heparin and medicinal eggs

Species identification in white enzyme raw materials can be ensured by this method.

The detection limit of source genes reaches 0.1ppm, which is more accurate than the current method in the United States.

20 times more accurate, ensuring the safety and reliability of raw material sources.

The company focuses on the structural characteristics of polysaccharide molecules, such as molecular weight distribution,

Side chain modification groups, charge level, intermolecular forces, etc.

Design highly specific chromatography techniques such as size exclusion, high

Polysaccharides can be used for ion exchange, macroporous resin adsorption, reverse phase adsorption, etc.

The production of industrial grade industrial products is based on the fine separation and purification of polysaccharide crude extracts, achieving the goal of

Technology: Independent high-purity production. Precisely control molecules during the 30kg-scale chromatography process.

Research and develop low molecular production technology, quantity and distribution range, and the yield reaches more than 50%, divided into

Identification technology Heparin polysaccharide drug sub-quantity control accuracy is within 1%. Through leading domestic and foreign

Technology: Carry out technical cooperation with professional sugar structure research institutions that are capable of identifying mechanical structures, and carry out

Structural cooperation technology uses nuclear magnetic resonance, liquid chromatography-mass spectrometry and other technologies to establish

Polysaccharide drug structure identification technology that meets FDA standards, and

Verification project product enoxaparin sodium and original drug Sanofi "gram

match” structure.

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Technology Main technologies Technical advantages Technology source platform Used products This technology is innovatively used in the preparation of enzyme preparations, reducing the need for wet methods

During the granulation process, the influence of hot and humid environment on enzyme activity is obvious.

Significantly reduces the loss of enzyme activity during the production process, thus improving

High product quality and save input of raw materials; eliminate or reduce pancreatic kinin dry granulation

The amount of liquid binder used in the wet granulation process is reduced, thereby reducing the amount of liquid binder used in the wet granulation process. Independently developed original enzyme tableting method.

The low hydrophobicity of the drug helps to improve the dissolution of the drug; compared with the direct compression of powder, the range of excipients that can be used is wider.

wider, and the requirements for environmental humidity are reduced, it can be allowed

Allows for a larger scope, making industrial production more convenient.

For different proteins or peptide molecules, the company will scientifically screen

Choose the most suitable PEG with specific structure and suitable molecular weight range

modifier. Through the company's PEG modification technology, not only can

Oita significantly improves immunogenicity, increases half-life, and basically

QHRD10 sub-drug is long-acting and retains the activity of the original protein, which did not occur after polyethylene glycol modification.

Wukaihua PEG modification has obvious activity changes, and the PEG modification agent is independently developed in masking the antigenic epitope.

QHRD21 uses flat decoration technology without affecting the enzyme activity center. in some projects

In Taichung, the company creatively uses polymers containing multiple reactive groups.

Ethylene glycol modifiers combine multiple subunits on a single multi-subunit protein

covalently bond to prevent inter-subunit depolymerization of multi-subunit proteins,

It maintains its biological activity and is a leading technology at home and abroad.

By analyzing the CDK targets and

The structure of the ATP binding site and the preliminary design of the main compound

structure, and then synthesized thousands of them through chemical synthesis

compounds, and assay the binding activity of these compounds to kinases

test, and initially screened out hundreds of candidates that responded to CDK9 kinase

compound. Next, human kinase inhibition trials will be carried out to evaluate

Small points are related to the inhibition results of different family proteins in the human body, thereby screening

Highly selective QHRD11 sub-drug has produced dozens of compounds with higher selectivity. Later, for these few

Protein kinase 0, Wu Kai conducted in vitro pharmacodynamic studies on tumor cells with ten compounds to identify several compounds that were effective at the cellular level in vitro, and then tested the compounds independently.

Development technology 7 units were used to conduct preliminary in vitro pharmacokinetics and animal in vivo pharmacokinetics

Metabokinetic studies to determine the oral bioavailability of about 3

higher compounds, and finally in tumor xenograft animal models

In vivo drug efficacy studies and animal in vivo toxicity studies, drug efficacy and

The 1-2 compounds with the best safety results are called leads

compounds, conduct subsequent more comprehensive preclinical research evaluations, and

Finally, one candidate compound was obtained.

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(2) Ongoing research and development projects and their progress

The main R&D projects and progress the company is engaged in are as follows:

Category Drug Name Target Indications Latest Clinical Progress Product Description The first domestically approved drug currently in IIa status

Acute myeloid clinical high-selection QHRD107 CDK Phase 9 clinical trial supplement

Leukemia, CDK9 inhibition in full stage

new drug

Small molecule drugs New structure of cells currently in IIa cyclin-dependent glioblastoma

QHRD110 CDK4/6 Phase 1 Clinical Trial Stage Kinase-Dependent Tumor

New CDK4/6 inhibitor drugs

Currently in IIb acute ischemia with new structures

QHRD106 Kininogen Long-acting pancreatic kinin-induced stroke in phase 1 clinical trial

Segment proenzyme drugs

endogenous

Macromolecule drugs using polyethylene glycol long hormone deficiency

Currently in phase II N-terminal site-directed modification QHRD211 caused by hGHR deficiency

Clinical trial stage of long-acting recombinant human

growth hormone growth slow

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(3) Mechanisms and arrangements for maintaining continuous technological innovation

Have a complete R&D organizational structure with strong innovation capabilities

The company is a high-tech biochemical pharmaceutical enterprise integrating R&D, production and sales. It has always adhered to scientific and technological innovation. Through years of accumulation, it currently has subsidiaries including Zhonghong Research Institute, a biopharmaceutical macromolecule R&D platform, Innoshengkang, a small molecule drug innovation platform, and Qianhong Pharmaceutical's new drug achievement transformation platform. It has formed a trinity of product R&D and achievement transformation R&D platforms, and has received major special support from the country's "Twelfth Five-Year Plan". Zhonghong Research Institute has multiple R&D centers including a protein innovation center, an antibody development center, a drug modification center, and an analysis and quality control center. It is equipped with various modern R&D equipment required for the R&D of biopharmaceuticals such as AKTA™ chromatography, liquid chromatography-mass spectrometry, molecular interaction instruments, and semi-automatic central control fiber systems. It can carry out research on long-acting protein drugs, genetically engineered recombinant protein drugs, therapeutic human antibody drugs, molecular diagnostic kits, etc. Innoshengkang specializes in the research of anti-cancer targeted drugs with small molecule kinase inhibitors. Currently, it has established a complete pre-clinical pharmaceutical research platform for anti-tumor chemical drug compound screening, including an API R&D platform, a drug preparation technology R&D platform and a quality research platform. Equipped with 1L-50L reaction kettle, high and low temperature coolant circulation system, microwave synthesizer, and 1L-20L rotary evaporation system, it can complete separation and purification systems from milligram level to hundreds of grams level, and can complete small-scale and pilot-scale preparation research of chemical drugs. Qianhong Pharmaceutical's new drug achievement transformation platform is equipped with high-efficiency wet mixing granulators, crushing and granulating machines, dissolution apparatus and other equipment, which can complete small-scale and pilot-scale preparation research of chemical drug solid preparations.

Have a multi-disciplinary R&D talent team with comprehensive backgrounds

The company has established a team of outstanding scientific research and technical personnel with multi-disciplinary backgrounds. Their professional backgrounds cover molecular biology, pharmacy, clinical medicine and other fields. They have rich experience in process improvement of protease and polysaccharide drugs and the research and development of innovative drugs. They also have a deep understanding of the current overall industry development trends. As of September 30, 2025, the company had a total of 207 technical personnel, accounting for 20.18% of the company's employees. A high-level technical personnel team has always been an important guarantee for the company's continuous technological innovation capabilities.

Implement fair and effective scientific and technological innovation reward policies

The company has formulated the "Technological Innovation Reward Management Measures" to reward employees who have made important contributions to the company's technological innovation activities and encourage employees to actively participate in technological innovation activities to improve the company's innovation capabilities and competitiveness. Based on the actual characteristics of its own operations, the company mainly divides innovation types into four major dimensions: new drug research and development, technological innovation, technological improvement and other innovations, covering all aspects of the company's research and development, production and operations, fully

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Mobilize and unleash the enthusiasm and creativity of the R&D and technical teams, effectively enhancing the team's overall innovation awareness.

Pay attention to industry-university-research cooperation and have strong cooperative research and development resources.

The company always attaches great importance to industry-university-research cooperation with well-known universities and medical institutions, giving full play to its own industrialization advantages and the scientific research advantages of academic and medical institutions to jointly promote the exploration and development of related research and development fields. For example, the company has jointly promoted the clinical research of new targeted anti-tumor drugs with Ruijin Hospital Affiliated to Shanghai Jiao Tong University, jointly established a full-time professional master's degree training base with China Pharmaceutical University and jointly conducted research on the immunogenicity of low molecular weight heparin biological products, and cooperated with the National Glycoengineering Technology Research Center of Shandong University to jointly carry out research on the consistency evaluation of low molecular heparin, etc., all of which have achieved good results.

10. Major guarantees, arbitration, litigation, other contingencies and major subsequent events

(1) Major guarantee matters

As of the signing date of this prospectus, the company and its subsidiaries have no external guarantees.

(2) Litigation or arbitration matters that may have a significant impact on the issuer

The issuer’s lawsuits that have been concluded but have a significant impact on the issuer are as follows:

(2020) Shanghai 74 Minchu No. 3

In 2018, the issuer purchased the Anxin Chuangying No. 51 Specific Asset Income Rights Collective Fund Trust Plan (hereinafter referred to as "Chuangying No. 51") financial product, which expires on December 29, 2019. Since December 2019, this financial product has been overdue. The issuer filed a lawsuit with the Shanghai Financial Court regarding the dispute over the beneficial rights transfer agreement with Jianyuan Trust under Chuangying No. 51.

On August 13, 2025, the issuer and Jianyuan Trust reached a settlement and signed a "Settlement Agreement." According to the "Settlement Agreement", on the day when the agreement was signed, Jianyuan Trust paid a settlement of RMB 56,994,275.53 to the issuer, which is the remaining portion of the investment principal amount under Chuangying No. 51 of RMB 170 million minus the paid principal of trust funds and trust income totaling RMB 56,011,448.94. 50%; at the same time, in accordance with the agreement, the issuer submitted an application to withdraw the lawsuit to the Shanghai Financial Court for the case corresponding to the financial product, irrevocably applied to the Shanghai Financial Court to make a ruling to allow it to withdraw the lawsuit, and transferred the 62,862,549.50 trust beneficial rights under Chuangying No. 51 to Jianyuan Trust. After the transfer is completed, the issuer still enjoys the remaining 62,862,549.50 trust beneficial rights under Chuangying No. 51.

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On August 13, 2025, the Shanghai Financial Court issued the "(2020) Shanghai 74 Minchu No. 3-2" Civil Ruling, ruling to allow the company to withdraw the lawsuit.

(2020) Shanghai 74 Minchu No. 5

In 2018, the issuer purchased the Anxin Ruiying No. 64 Working Capital Loan Collective Fund Trust Plan (hereinafter referred to as "Ruiying No. 64") financial product. The expiration date of this financial product is August 15, 2019. Since August 2019, this financial product has been overdue. The issuer filed a lawsuit with the Shanghai Financial Court regarding the dispute over the beneficial rights transfer agreement with Jianyuan Trust under Ruiying No. 64.

On September 30, 2024, the issuer and Jianyuan Trust reached a settlement and signed the "Settlement Agreement." According to the "Settlement Agreement", on the day when the agreement was signed, Jianyuan Trust paid a settlement of 85 million yuan to the issuer, which is the principal amount of investment under Ruiying No. 64 of 17,000 50% of RMB 10,000; at the same time, in accordance with the agreement, the issuer submitted an application to withdraw the lawsuit to the Shanghai Financial Court for the case corresponding to the financial product, irrevocably applied to the Shanghai Financial Court to make a ruling to allow it to withdraw the lawsuit, and transferred the trust beneficiary rights corresponding to RMB 85 million to Jianyuan Trust. After the transfer is completed, the issuer still enjoys the remaining 85 million trust beneficiary rights under Ruiying No. 64.

On September 30, 2024, the Shanghai Financial Court issued the "(2020) Shanghai 74 Minchu No. 5" Civil Ruling, ruling to allow the company to withdraw the lawsuit.

As of the signing date of this prospectus, except for the above-mentioned lawsuits, the company has no other unsettled or foreseeable litigation or arbitration matters that may have a greater impact on the financial status, operating results, reputation, business activities, future prospects, etc.

(3) Other contingencies

As of the signing date of this prospectus, the company has no other contingencies.

(4) Major post-period events

As of the signing date of this prospectus, the company has no major subsequent events that affect its normal operating activities.

11. Impact of this issuance

(1) Changes or integration plans in the listed company’s business and assets

After the completion of this issuance, with the implementation of investment projects with raised funds, the company's business and asset scale will be further expanded. The investment projects raised by funds raised this time are carried out around the company’s existing main business. The company’s main business

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The business has not changed, and there is no integration plan for business and assets resulting from the issuance of convertible bonds to unspecified objects.

(2) Changes in the control structure of listed companies

After the issuance is completed, the controlling ownership structure of the listed company will not change.

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Section 6 Compliance Operation and Independence

Legal compliance status of the issuer and its directors, senior managers, controlling shareholders, and actual controllers during the reporting period

(1) The issuer’s illegal activities and penalties during the reporting period

The issuer and its domestic holding subsidiaries received administrative penalties during the reporting period as follows:

(1) Administrative Penalty No. 01005 of Jishi City Supervision and Inspection Penalty [2025]

According to the "Administrative Penalty Decision" issued by the Jilin Municipal Market Supervision and Administration Bureau on May 28, 2025 (Jilin City Jianji Penalty [2025] No. 01005), in order to seek trading opportunities, for every box of Yingchun Community Health Service Center in Dongfeng Street, Changchun Automobile Economic and Technological Development Zone, the company's business representative paid cash to the person in charge of the health service center for each box of pancreatic kallikrein enteric-coated tablets purchased. 1.50 yuan, the total amount from November 2023 to October 2024 is 14,700.00 yuan. According to the "Jilin Provincial Rules for the Application of Administrative Penalty Discretion in Market Supervision and Management"

According to the provisions of Article 337 of Section 11 of Chapter 2, the company is in a relatively minor violation of the law. In accordance with Article 28 of the "Administrative Punishment Law of the People's Republic of China" and Article 19 of the "Anti-Unfair Competition Law of the People's Republic of China", it was decided to impose the following penalties on the company: ordered to correct illegal acts, confiscated illegal gains of 176,852.00 yuan, and fined 400,000.00 yuan. The company has paid the above-mentioned fine in full within the time limit specified in the above-mentioned "Administrative Penalty Decision".

On August 13, 2025, the Jilin Municipal Administration for Market Regulation issued the "Confirmation Letter on Matters Related to Changzhou Qianhong Biochemical Pharmaceutical Co., Ltd.", which reads: "1. As of the date of this confirmation letter, Qianhong Pharmaceutical has issued an "Administrative Penalty Decision" (Jilin City Supervision and Inspection Penalty [2025] 01005 No.) has been implemented, and the fines and confiscations have been paid in full and in a timely manner. The above-mentioned administrative penalties have been implemented. 2. In accordance with the provisions of Article 337 of Chapter 2 of the "Jilin Provincial Market Supervision and Administration Administrative Penalty Discretionary Rules", the penalty decision made by our bureau (Jilin City Supervision and Inspection Punishment [2025] 01005. No.), the illegal behavior of Qianhong Pharmaceutical in this case is relatively minor. 3. From January 1, 2022 to the date of issuance of this confirmation letter, except for the penalty decision made by our bureau (Jishi Jianji Punishment [2025] 01005), Qianhong Pharmaceutical and its related personnel have not been subject to administrative punishment within the jurisdiction of our bureau.”

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On October 31, 2025, the Changzhou Xinbei District Supervisory Committee issued a "Certificate", which states: "Since January 1, 2022, Changzhou Qianhong Biochemical Pharmaceutical Co., Ltd. and its related entities (including but not limited to branches/subsidiaries) and related personnel (including but not limited to actual controllers, directors, supervisors, senior managers, and sales personnel) have not been commissioned by me to investigate due to suspected official violations and crimes, and there is no record of official violations or crimes."

In response to the aforementioned administrative penalties, the issuer's actual controllers, directors, supervisors and senior managers who served before the cancellation of the board of supervisors issued a "Letter of Statement", the main content of which is as follows: "1. I have never participated in the above-mentioned commercial bribery behavior, and I am not aware that the business representative involved has promoted Qianhong Pharmaceutical products through bribery. 2. Since I have been working at Qianhong Pharmaceutical, I have not used any single-handedly to promote Qianhong Pharmaceutical products. 3. Since I have been employed at Qianhong Pharmaceutical, I have not been subject to any administrative penalties or criminal penalties for commercial bribery or other acts, nor have I been investigated by judicial authorities for suspected crimes or investigated by competent administrative authorities for suspected violations of laws and regulations. "

According to the company's explanation and after checking the China Enforcement Information Disclosure Network (http://zxgk.court.gov.cn), China Trial Process Information Disclosure Network (https://splcgk.court.gov.cn/gzfwww), 12309 China Procuratorate Network (https://prewww.12309.gov.cn) and other websites, the company has not been involved in subsequent criminal proceedings. After the above-mentioned administrative penalties were issued, the company improved its internal control mechanism against commercial bribery and unfair competition, strengthened the "Anti-Fraud Management System" and other relevant internal control management regulations, and improved the restraint mechanism on the behavior of sales personnel.

(2) Changguan Shen Jian Fei Zi [2022] Administrative Penalty No. 0004

According to the "Administrative Penalty Decision" issued by the Changzhou Customs of the People's Republic of China (hereinafter referred to as "Changzhou Customs") on June 8, 2022 (Changguan Shen Jianfei Zi [2022] No. 0004), due to work negligence, the company caused false declarations of the prices of export goods, which affected the accuracy of customs statistics and violated the provisions of Article 24, Paragraph 1, of the Customs Law of the People's Republic of China, which constituted a violation. In view of the fact that the illegal facts in this case were discovered by the company during self-inspection and reported to the customs on its own initiative, the punishment may be reduced in accordance with the law. "Administrative Punishment Law of the People's Republic of China"

Article 32, Item (3), Article 15, "Regulations of the People's Republic of China on the Implementation of Customs Administrative Punishments"

Item (1), Article 16, decided to impose the following administrative penalties on the company: a fine of RMB 0.05 million. The company has paid the above-mentioned fine in full within the time limit specified in the above-mentioned "Administrative Penalty Decision".

In response to the above penalties, the company has paid the corresponding fines and confiscations on time and in full as required, and has regulated the relevant illegal activities, which have been rectified. The above-mentioned illegal acts are illegal to the extent of

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Milder cases do not constitute major illegal acts, and the penalties imposed do not constitute major administrative penalties. They will not have a major adverse impact on the company's production and operations, nor will they pose a substantial obstacle to this issuance.

(2) Legal compliance of the issuer’s directors, senior managers, controlling shareholders, and actual controllers

During the reporting period, Wang Ke, the issuer's shareholder and director, failed to stop buying shares of listed companies and perform information disclosure obligations in a timely manner in accordance with the relevant provisions of the "Measures for the Administration of Acquisitions of Listed Companies". He received a warning letter from the Jiangsu Supervision Bureau of the China Securities Regulatory Commission and a supervisory letter from the Listed Company Management Department of the Shenzhen Stock Exchange. The relevant situation and corrective measures are explained as follows:

Description of the situation

(1) "Jiangsu Securities Regulatory Bureau's Decision on Taking Measures to Issue Warning Letters to Wang Ke" ([2025] No. 154)

On September 8, 2025, the Jiangsu Supervision Bureau of the China Securities Regulatory Commission issued the "Jiangsu Securities Regulatory Bureau's Decision on Taking Measures to Issue a Warning Letter to Wang Ke" ([2025] No. 154) (hereinafter referred to as the "Warning Letter") (hereinafter referred to as the "Warning Letter") to Wang Ke. The main content is as follows: "After investigation, on June 11, 2025, you On the same day, you increased your holdings of 9.6 million shares of Changzhou Qianhong Biochemical Pharmaceutical Co., Ltd. through block transactions, with a transaction amount of 84.096 million yuan. After this increase, the total shareholding ratio of you and the person acting in concert, Wang Yaofang, increased from 24.91% to 25.66%. When the total shareholding ratio of you and the person acting in concert reached the 25% mark, you did not disclose it in time and stopped trading as late as June 20, 2025. Ricai disclosed the "Detailed Equity Change Report" and the "Informative Announcement on the Equity Changes of the Acting Concert Persons of the Actual Controller and the Announcement of the Shareholding Increase Plan". The above-mentioned behavior violated the provisions of paragraphs 1 and 2 of Article 13 of the "Measures for the Administration of Acquisitions of Listed Companies" (CSRC Order No. 227). According to the "Measures for the Administration of Acquisitions of Listed Companies" (CSRC Order No. 227). No. 75), our Bureau has decided to take administrative supervision measures against you by issuing a warning letter and record it in the integrity file of the securities and futures markets. You should take this as a warning, earnestly learn lessons, effectively strengthen your study of securities laws and regulations, fulfill your information disclosure obligations in accordance with the law, strictly regulate securities trading, prevent such violations from happening again, and submit a written report to our Bureau within 10 working days from the date of receipt of this decision.”

(2) "Letter on the Supervision of Wang Ke" (Company Department Supervision Letter [2025] No. 156)

On September 11, 2025, the Second Department of Listed Company Management of the Shenzhen Stock Exchange issued a "Letter on the Supervision of Wang Ke" (Company Department Supervision Letter [2025] No. 156) (hereinafter referred to as the "Supervision Letter") to Wang Ke. The main content is as follows: "It has been found that, as a concerted action person of Wang Yaofang, the actual controller of Changzhou Qianhong Biochemical Pharmaceutical Co., Ltd. (hereinafter referred to as the company), on June 11, 2025 Increase holdings of company shares through block transactions

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9.6 million shares, with a shareholding increase ratio of 0.75%. The total shareholding ratio of you and Wang Yaofang, a person acting in concert, increased from 24.91% to 25.66%. When your total shareholding ratio with Wang Yaofang, a person acting in concert, reached 25%, you failed to stop buying shares of listed companies and perform information disclosure obligations in a timely manner in accordance with the relevant provisions of the "Administrative Measures for Acquisitions of Listed Companies". Your above-mentioned behavior violates the provisions of Article 1.4, Article 3.4.1, Paragraph 1, and Article 3.4.2, Paragraph 1 of our Stock Listing Rules (2025 Revision). Our firm hopes that you will learn lessons seriously and prevent such incidents from happening. At the same time, I would like to remind you: Shareholders of listed companies should be honest and trustworthy, operate in a standardized manner, buy and sell the stocks of listed companies in a legal and compliant manner in accordance with national laws, regulations, the Exchange’s Stock Listing Rules and relevant regulations, and fulfill their information disclosure obligations conscientiously and timely. "

Corrective measures

After receiving the above-mentioned "Warning Letter" and "Supervision Letter", the company, its shareholder and director Wang Ke took a series of rectification measures to ensure that subsequent information disclosure is standardized. The specific rectification measures are as follows:

(1) Submit a written report

The company and its shareholder and director Wang Ke have submitted a "Report on the Implementation of the Jiangsu Securities Regulatory Bureau's Decision to Take Measures to Issue a Warning Letter against Wang Ke" to the Jiangsu Supervision Bureau of the China Securities Regulatory Commission within 10 working days from the date of receipt of the "Warning Letter".

(2) Strengthen personnel training and management and enhance compliance awareness

The company and its shareholder and director Wang Ke attach great importance to the matters involved in the "Warning Letter" and "Supervisory Letter", deeply reflect on the issues pointed out in the "Warning Letter" and "Supervisory Letter", and strictly follow the regulatory requirements of the Jiangsu Supervision Bureau of the China Securities Regulatory Commission and the Shenzhen Stock Exchange to fully learn lessons and take warnings. At the same time, Effectively strengthen the study of the "Measures for the Administration of Information Disclosure of Listed Companies", "Measures for the Administration of Acquisitions of Listed Companies" and related laws, regulations, rules and normative documents, effectively improve the awareness of norms and the ability to perform duties, improve the company's standard operation level and the quality of information disclosure, and prevent such incidents from happening again.

In addition, the company further urges the company's directors, senior managers, shareholders holding more than 5% of the shares and persons acting in concert to strengthen in-depth study and systematic training of securities laws, regulations, rules and normative documents such as the "Measures for the Administration of Information Disclosure of Listed Companies" and "Measures for the Administration of Acquisitions of Listed Companies", strictly implement the spirit and requirements of a series of new regulations that have been introduced recently, and further improve the implementation of the company's "Information Disclosure Management System" and other internal governance rules and regulations, continue to strengthen corporate governance and standardized operations, and continuously improve key

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Employees' awareness of compliance and duty performance, effectively protecting the legitimate rights and interests of the company and all shareholders, and promoting the company's sustainable, high-quality and healthy development.

According to the "Securities and Futures Law Application Opinion No. 18", "major illegal acts" refer to acts that violate laws, administrative regulations or rules and are subject to criminal penalties or serious administrative penalties. The above-mentioned "Warning Letter" and "Supervision Letter" do not constitute administrative penalties, do not constitute major illegal acts, and will not constitute substantial obstacles to this issuance.

Capital occupation and guarantees for controlling shareholders, actual controllers and other companies controlled by them during the reporting period

During the reporting period, the company's funds were not occupied by the controlling shareholder, actual controller and other enterprises controlled by it, nor were there any guarantees for the controlling shareholder, actual controller and other enterprises controlled by it.

3. Competition within the industry

(1) Horizontal competition between the company, its controlling shareholders, actual controllers and the companies they control

Serial number Company name Business scope Main business: industrial investment; project investment; entrusted management of private equity investment funds, from

investment management and related consulting services; asset management (except finance,

1 Qianhong Investment (equity investment insurance); trade agent. (Projects that require approval according to law must be approved by relevant ministries.

Business activities can only be carried out after approval from the department)

The main business of Qianhong Investment is equity investment business, and there is no horizontal competition relationship with the company.

Wang Ke, the company's controlling shareholder and actual controller acting in concert, does not control any company and is not involved in horizontal competition.

(2) Relevant agreements and commitments to avoid horizontal competition

The company's controlling shareholder and actual controller Wang Yaofang issued the "Commitments on Horizontal Competition, Related Transactions, and Capital Occupation" at the time of the company's initial public offering. The commitments are as follows:

"Since the establishment of Changzhou Qianhong Biochemical Pharmaceutical Co., Ltd. (hereinafter referred to as the "Issuer") to the present

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During the subsequent existence of the issuer, I have not engaged in and will not engage in it directly or indirectly in the future. I have also urged my wholly-owned and controlled subsidiaries and other enterprises not to engage in any business or activity that constitutes competition with the issuer, including but not limited to the development, production and sales of any products that are the same or similar to those developed, produced and sold by the issuer. I am also willing to bear liability for the economic losses caused to the issuer due to violation of the above commitments. "

(3) The impact of this issuance on the company’s horizontal competition

The company’s controlling shareholder and actual controller Wang Yaofang will not compete with the company due to this issuance.

4. Related parties and related transactions

(1) Related parties and related relationships

According to the provisions of laws, regulations and normative documents such as the Company Law, Accounting Standards for Business Enterprises No. 36 - Related Party Disclosure, Shenzhen Stock Exchange Stock Listing Rules, as of the signing date of this prospectus, the company's main related parties and related relationships are as follows:

Related parties Related relationships

Controlling shareholders and actual controllers

Wang Yaofang, the controlling shareholder, actual controller and chairman of the company

Wang Ke, the actual controller of the company acting in concert, director and general manager

Other shareholders who directly or indirectly hold more than 5% of the company's shares

The company’s shareholders and vice chairman, Zhao Gang and his persons acting in concert, Zhao Ren, Zhao Gangyi, CCB Fund-Zhao Renyi-Jianxin Xinxiang No. 1 Single Asset Management Plan

Plan to hold a total of 6.39% of the company’s shares

The company’s holding subsidiaries and joint-stock companies

Qianhong (Hubei) Company’s wholly-owned subsidiary

Jiangsu Zhonghong The company's holding subsidiary, the company holds 59.01% of its equity Innoshengkang The company's holding subsidiary, the company holds 65.00% of its equity Qianhong Biology The company's holding subsidiary, the company holds 71.43% of its equity Henan Qianmu The company's holding subsidiary, the company holds 51.00% of its equity Qianhong Great Health The company's holding subsidiary, the company holds 70.00% of its equity Qianhong Hong Kong The company's wholly-owned subsidiary

The company's holding subsidiary, Jiangsu Zhonghong holds 99.00% of its equity, Jinghong Biotech

The company holds 1% of its shares

Aosheng Medical is an associate of the company, in which the company holds 37.55% of the shares.

Jingsen Biotech's associate company, Jiangsu Zhonghong holds 70.00% of its equity.

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Related parties: Related companies have no control over them

The company's associates, Jingsen Biotechnology holds 100.00% of its equity, Jingsen Tang

The company has no control over it

Other enterprises controlled or exerted significant influence by the actual controller

Wang Yaofang, the controlling shareholder and actual controller, serves as the chairman and general manager of Qianhong Investment

of enterprises

Other related parties

Zhao Gang Director

Zhou Xiang Director, Deputy General Manager

Jiang Chizhou Director, Deputy General Manager

Liu Jun Employee Director

Ning Ao Independent Director

Ren Shengxiang Independent Director

Gao Yuyu Independent Director

Haitao Deputy General Manager

Xiao Aiqun Audit Director

Zou Shaobo Director

Ye Hongping Director

Mei Chunwei Director

Wei Lijun Director

Huang Jie Director

Wang Guming Director

Yao Yi, Secretary of the Board of Directors and Chief Financial Officer

Jiangsu Fuwei Technology Co., Ltd. Independent director Ning Ao serves as a director of the company Changzhou Junbo Education Information Consulting Co., Ltd. An enterprise controlled by employee director Liu Jun’s spouse. Issuer shareholder Zhao Gang’s mother holds 50% of the shares and is responsible for executing company affairs Changzhou Jiangtao Hydraulic Parts Manufacturing Co., Ltd.

company of directors

Jiangsu Chenmao New Materials Technology Development Co., Ltd.

Haolang Chemical (Shanghai) Co., Ltd., a company in which the spouse of the issuer's director Ye Hongping serves as a senior manager, a company in which the issuer's independent director Ren Shengxiang holds 50% of the shares, and a company in which the issuer's audit director Xiao Aiqun's daughter-in-law and father serve as a senior manager Hunan Haiou Environmental Protection Technology Co., Ltd.

of enterprises

The issuer’s audit director Xiao Aiqun’s daughter-in-law’s father serves as director and senior manager of Hunan Jibu Environmental Protection Technology Co., Ltd.

management company

Historical related parties during the reporting period

Hua Junwei, former supervisor of the issuer, resigned in November 2025. Zhang Xiaopo, former supervisor of the issuer, resigned in November 2025.

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Related parties Related relationships

Jiang Jianping, former director of the issuer (retired on January 19, 2024) Former independent director of the issuer (resigned on January 19, 2024) Xu Guanghua

any)

The issuer’s former independent director (left Ronghua on January 28, 2021

any)

The issuer’s former independent director (left Shao Rong on January 28, 2021

any)

The issuer’s former independent director (left Zhang Jiwen on January 28, 2021

any)

The issuer’s former chairman of the supervisory board (Jiang Wenqun on January 19, 2024

leaving office)

Zhang Zhuqing, former supervisor of the issuer (resigned on January 28, 2021) Chen Lei, former supervisor of the issuer (resigned on January 19, 2024) Former audit director of the issuer (resigned on January 19, 2024) Fan Yong

any)

Changzhou Hualian Medical Equipment Group Co., Ltd. A company in which the spouse of the issuer’s former supervisor Hua Junwei serves as a senior manager Changzhou Deheng Machinery Co., Ltd. A company in which the issuer’s former supervisor Jiang Wenqun’s spouse serves as a senior manager In addition to the above related parties, the company’s related parties also include company directors, senior managers, close family members of natural person shareholders who hold more than 5% of the company’s shares, as well as company directors, senior managers, and holding companies Other enterprises in which natural person shareholders with more than 5% of the shares or close family members of such persons control, jointly control, exert significant influence, or serve as directors (except independent directors) or senior managers.

(2) Related transactions

Judgment standards and basis for major related transactions

According to relevant provisions such as the "Shenzhen Stock Exchange Stock Listing Rules", "Articles of Association", "Related Transaction Management System" and other relevant regulations, the judgment standards and basis for the company's major related transactions are as follows: transactions between the company and related parties with an amount of more than 30 million yuan and accounting for more than 5% of the company's latest audited net assets (except for the company's donation of cash assets and provision of guarantees).

Major related transactions

During the reporting period, the company had no major related transactions.

General related transactions

During the reporting period, the summary of the company’s related-party transactions is as follows:

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Unit: 10,000 yuan

Related party transaction content January to September 2025 2024 2023 Regular related transactions in 2022

Qianhong Investment Rental housing 0.66 - 0.33 0.33 Jingsen Biotechnology Rental housing 1.38 1.38 2.05 2.12 Jingsen Tang Rental housing 0.74 0.74 0.43 -

Procurement of R&D services

Jingsen Biotech 160.00 95.00 50.00 -Service

Procurement of R&D services

Aosheng Medical 210.35 832.08 1,202.56 842.03

service

key managers

Remuneration paid 442.77 1,154.81 1,255.85 1,444.80 employees

Occasional related party transactions

Qianhong Investment Equity transfer - - - 166.72 Jiangsu Zhonghong Related guarantee - - - - Total general related transactions 815.90 2,084.01 2,511.22 2,456.00 (1) Recurring related transactions

During the reporting period, the company's recurring related transactions were mainly remuneration payments to key management personnel. The amounts in each period of the reporting period were RMB 14.448 million, RMB 12.5585 million, RMB 11.5481 million and RMB 4.4277 million respectively, which remained stable overall. In each period of the reporting period, the company purchased R&D services from Aosheng Medical in amounts of RMB 8.4203 million, RMB 12.0256 million, RMB 8.3208 million, and RMB 2.1035 million respectively, mainly entrusting it to conduct clinical trial research; the amount of R&D services purchased from Jingsen Biotech was RMB 8.4203 million, RMB 12.0256 million, RMB 8.3208 million, and RMB 2.1035 million respectively. RMB 00,000, RMB 500,000, RMB 950,000 and RMB 1.60 million, mainly due to the subsidiary Jiangsu Zhonghong entrusting Jingsen Biotech to assist it in the development of the injection microneedle preparation process. In addition, the company also rents houses from related parties Qianhong Investment, Jingsen Biotechnology and Jingsen Tang, with relatively small amounts.

(2) Occasional related transactions

In 2022, Qianhong Investment transferred 8.00% of its equity in Jinghong Biotech to Jiangsu Zhonghong for a transfer consideration of 1.6672 million yuan.

During the reporting period, the company provided guarantees to its holding subsidiary Jiangsu Zhonghong, details are as follows:

Unit: Ten Thousand Yuan Order Guaranteed Creditor's Rights As of the end of the reporting period,

Guaranteed party Secured party Guaranteed claim period

No. Maximum amount No Completed 1 Qianhong Pharmaceutical Jiangsu Zhonghong 2,000.00 2021.06.07-2022.06.07 Yes

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Preface Guaranteed creditor's rights As of the end of the reporting period,

Guaranteed party Secured party Guaranteed claim period

No. Maximum amount No Completed 2 Qianhong Pharmaceutical Jiangsu Zhonghong 2,000.00 2022.06.02-2023.05.27 Yes

3 Qianhong Pharmaceutical Jiangsu Zhonghong 2,000.00 2023.05.19-2024.05.16 Yes

4 Qianhong Pharmaceutical Jiangsu Zhonghong 2,000.00 2024.05.30-2025.05.21 Yes

Except for the above circumstances, the Company has no other incidental related transactions.

Balances with related parties during the reporting period

At the end of each reporting period, the company had no receivables or payables from related parties.

Necessity of related-party transactions and fairness of transaction prices

During the reporting period, the amount of the company's related-party transactions was relatively small. Related-party transactions mainly included the remuneration of key management personnel, leasing houses from related parties, purchasing research and development services, providing guarantees, etc. The above-mentioned related-party transactions are normal needs for the company's business development and production operations, and are commercially reasonable and necessary.

The company's related transactions are all priced according to market prices or agreed prices, and the transaction prices are fair. There are no related transactions between the company and related parties that harm the interests of the company and the company's shareholders, and there are no situations where the company's profits are manipulated through related transactions.

Procedures for performing related transactions and relevant opinions of independent directors

(1) Implementation procedures for related-party transactions

The issuer has clearly stipulated in the Articles of Association, the Rules of Procedure for the Shareholders Meeting, the Rules of Procedure for the Board of Directors, and the Related Party Transaction Management System on the approval authority of the Board of Directors and the Shareholders Meeting on related transaction matters, the abstention of related directors and related shareholders from voting when reviewing related transactions, etc., which ensures the legality and openness, fairness and impartiality of the decision-making process for related transactions, and can effectively regulate related transactions.

From 2022 to 2024, except for the remuneration payment of key management personnel that has been reviewed and approved by the annual shareholders' meeting, other daily related transactions and occasional related transactions between the issuer and related parties have not been submitted to the board of directors or shareholders' meeting for review as annual daily related transactions. However, for each related transaction, they have not met the standards that need to be submitted to the board of directors for review and disclosure. In accordance with the provisions of the "Articles of Association" and the "Related Transaction Management System", the fairness of related transactions will be reviewed by the board of directors and approved by the chairman of the board.

On April 17, 2025, the company held the eighth meeting of the sixth board of directors, which reviewed and approved the "About 2025

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"Annual Proposal on Estimating Daily Related Transactions of the Company", it is expected that the total amount of daily related transactions between the company and its holding subsidiary Jiangsu Zhonghong with related companies Qianhong Investment, Jingsen Biotech, and Aosheng Medical in 2025 will not exceed 8.8671 million yuan. The transaction content is mainly the provision of house rentals and the receipt of research and development services.

(2) Opinions of independent directors

In 2022 and 2023, according to the company's then-effective "Independent Director Work System" and the "Articles of Association", there are no related transactions that require prior approval by independent directors.

In January 2024, the company revised the "Working System for Independent Directors" to clarify that related-party transactions that should be disclosed should be submitted to the board of directors for review with the consent of more than half of all independent directors. Therefore, the related-party transactions in 2024 did not meet the standards for disclosure, and the independent directors did not review them.

On April 17, 2025, the company held the eighth meeting of the sixth board of directors, which reviewed and approved the "About "Proposal on Estimating the Company's Daily Related Transactions in 2025", the company's independent directors expressed special opinions on this proposal, believing that the daily related transactions between the company and related parties fall within the scope of normal business and research and development, and can make full use of the technical advantages of related companies to better promote the company's new drug research and development process; the transaction price is fair, reflecting openness, fairness, and In accordance with the principle of fairness, there will be no transfer of benefits to related parties or misappropriation of the company's interests through related transactions, no harm to the interests of the company, shareholders, especially small and medium shareholders, and no impact on the company's independence; the company's business will not become dependent on related parties due to the above-mentioned transactions, in line with the relevant regulations of the China Securities Regulatory Commission and the Shenzhen Stock Exchange.

The impact of related-party transactions on the company’s financial status and operating results

During the reporting period, the overall scale of the company's related-party transactions was small and had no significant impact on the company's financial status and operating conditions.

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Section 7 Use of funds raised this time

1. Use plan of funds raised this time

(1) Purpose and amount of funds raised this time

The funds raised from this convertible bond shall not exceed RMB 1,000,000,000 (including the principal amount). The net proceeds after deducting issuance expenses will be used to invest in the following projects:

Unit: Ten Thousand Yuan Order Planned to Use Raised Funds

Project name Total project investment

Total 103,923.49 100,000.00

Before the funds raised from this issuance of convertible corporate bonds are in place, the company will first invest through its own or self-raised funds according to the actual progress of the investment project with raised funds, and replace the raised funds in accordance with the procedures stipulated in relevant laws and regulations after the funds are in place.

If the actual funds raised in this issuance (after deducting issuance expenses) are less than the total amount of funds to be invested in this issuance, the company's board of directors will arrange the specific use of the funds raised according to the importance and urgency of the purpose of the funds raised. The shortfall will be solved with its own funds or self-raised methods. The use of funds raised in this issuance and the specific arrangements will be adjusted based on the comprehensive judgment of regulatory authorities on specific projects, changes in market conditions, changes in implementation conditions of investment projects with raised funds, etc., and without exceeding the scale of funds raised in this issuance reviewed and approved by the shareholders' meeting.

(2) The investment project complies with national industrial policies and the main business of investment

The investment projects are in line with industrial policies and sector positioning

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In terms of supporting and promoting the sustained and rapid development of the biochemical drug industry, the "14th Five-Year Plan for National Economic and Social Development of the People's Republic of China and the Outline of Long-term Goals for 2035" released in March 2021 clearly proposes to promote the integration and innovation of biotechnology and information technology, accelerate the development of biomedicine, biological breeding, biomaterials, bioenergy and other industries, and make the bioeconomy bigger and stronger. The "14th Five-Year Plan for the Development of the Pharmaceutical Industry" issued in January 2022 requires consolidating the manufacturing advantages of APIs, accelerating the development of a number of new varieties of specialty APIs with large market potential and high technical thresholds, as well as new product types such as nucleic acids and peptides, and promoting the extension of the API industry to higher value chains. The "14th Five-Year Plan for the Development of the Pharmaceutical Industry in Hubei Province" issued by Hubei Province aims to make up for shortcomings, improve the system, promote the coordinated development of pharmaceutical industry parks through innovation leadership and linked development, optimize the allocation of regional resources, strengthen the characteristics of the park, and improve the ability to undertake high-end projects. By 2025, the key links and service supporting facilities of the pharmaceutical industry will be more complete, a number of key core technologies will be broken through, a number of original achievements will be produced, and the industrial innovation strength, industrial scale, agglomeration effect, and development ecology will be comprehensively leading. In addition, it also proposed measures to accelerate digital transformation and upgrading, promote the construction of a green pharmaceutical manufacturing system, increase policy support, optimize the development environment, and consolidate talent support.

The successive introduction of policies at the national and local levels not only provide policy support for the biochemical drug industry, but also provide good external conditions for the innovative development and internationalization of the industry, continue to promote the high-quality development of the pharmaceutical industry, and contribute to the smooth implementation of the company's investment project. The investment projects with funds raised this time are mainly used for innovative drug research and development projects, the first phase construction project of Hubei Zhongxiang API production base and supplementing working capital, not in industries with overcapacity or restricted or eliminated industries. Under the active promotion of national policies, the market share of the pharmaceutical industry in my country will be further expanded in the future, and the market size will continue to grow, which will also provide a solid foundation and guarantee for the smooth implementation of the investment projects raised this time and the realization of investment returns.

Regarding the relationship between the investment direction of raised funds and the main business

The company's current fundraising projects are innovative drug research and development projects, the first phase construction project of Hubei Zhongxiang API production base and supplementary working capital. The funds raised this time are mainly invested in the main business.

The relationship between the company’s current fundraising projects and its main business is as follows:

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Hubei Zhongxiang API Production Base

Projects Innovative drug research and development project Phase I construction project to supplement working capital

Yes. Through the construction of this project,

Is it a right to expand the company’s raw material pharmaceutical production?

Existing businesses (including energy, will form a high-end anti-thrombotic

Products, services, technologies 2.50 tons of drugs (heparinoid), 125 tons of crude trypsin, medicinal eggs

Expansion of production of 75 billion units of white enzyme

Ability.

Is it right? Yes. Purchase and upgrade related products

Upgrade production facilities and equipment of existing business to improve production efficiency.

yes. The company's current main products are polysaccharides and protease drugs. This project plans to invest the raised funds in QHRD107 capsules, a new drug for acute myeloid leukemia and acute ischemic stroke.

Is it a base? Yes. This time the company will add liver

The new Chinese medicine QHRD106 injection will be added to the existing business in crude protein and pancreatic kininogen.

and endogenous growth hormone deficiency. Not suitable for other application areas. Enzyme (PEGylation) production capacity

Expansion of new drugs for slow growth in children.

Clinical research and development of QHRD211 injection. After the project is successfully developed, the company will realize the production and sales of new products in related indication fields.

yes. Through the construction of this project,

Is it right?

Companies can produce heparin themselves

Upstream and downstream of the industrial chain

Crude product for further preparation No Not applicable (cross/vertical)

Heparin API and heparin preparation

extend

agent or sold.

Whether it is a cross-border

No No Not applicable to main business investment

Others - - -

2. Details of the investment projects with funds raised this time

(1) Innovative drug research and development projects

Project Overview

This project plans to use the raised funds of 410 million yuan for new drugs for acute ischemic stroke.

QHRD106 injection phase III clinical research and marketing registration project, new drug for acute myeloid leukemia

Phase IIb clinical research and marketing registration project of QHRD107 capsules and endogenous growth hormone deficiency

Phase III clinical research and marketing registration project of QHRD211 injection, a new drug for children with slow growth, to

Accelerate the advancement of clinical trials of the company's independent innovative drug pipeline, laying the foundation for the subsequent marketing and registration process of products under development

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Solid foundation.

The implementation entity of this project is the company, and the total investment in the project is 419.2349 million yuan.

Feasibility of project construction

(1) Project construction complies with national policies to encourage development direction

The pharmaceutical industry is an important industry related to the national economy and people's livelihood, economic development and national security. It is also an important foundation for building a healthy China. In order to enhance the innovation capabilities of my country's pharmaceutical industry and accelerate the realization of high-quality development, the Chinese government has successively promulgated a number of industry support policies in recent years. For example, the "Key Tasks for Deepening the Reform of the Medical and Health System in 2024" released in 2024 proposed to speed up the review and approval of innovative drugs, rare disease treatment drugs, urgently needed clinical drugs, and innovative medical devices; the "14th Five-Year Plan for the Development of the Pharmaceutical Industry" released in 2022 stated that "the industry's R&D investment will increase by more than 10% annually on average; by 2025 "In 2020, the proportion of new sales of innovative products in the industry's operating revenue will further increase" is one of the development goals during the 14th Five-Year Plan period, and accelerating product innovation and industrialization technology breakthroughs will be a key task, and enterprises will be encouraged to increase investment and develop innovative products around unmet clinical needs. Enterprises are supported to base on local resources and advantages, face the global market, and carry out research and development layout with a focus on new targets and new mechanism drugs; in addition, the introduction of the new version of the "Drug Registration Management Measures" in 2020 proposes to establish a drug registration system for accelerated marketing and support clinical value-oriented drug innovation. For eligible drug registration applications, applicants can apply for breakthrough therapy drugs, conditional approval, priority review and approval, and special approval procedures. During the process of drug development and registration, the drug regulatory authorities and their professional and technical institutions provide necessary policy and technical support such as technical guidance, communication, priority allocation of resources, and shortening of review time limits. The country's strong support for R&D and innovation in the pharmaceutical field has created good policy conditions for the smooth implementation of this project.

(2) Strong technical research and development capabilities lay the foundation for project implementation

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New drug achievement transformation platform for preparation and industrial production research, etc. Each platform has a clear division of labor and jointly provides support for the efficient development of the company's R&D projects. Through unremitting scientific research and innovation, as of September 30, 2025, the company has obtained a total of 137 domestic patent authorizations of various types, including 110 domestic invention patents, 19 utility model patents, and 8 appearance patents. In addition, the company has also carried out and completed a number of major national, provincial and municipal projects, including "Preclinical Research on the New Targeted Anti-tumor Drug QHRD107" and "Changzhou Qianhong International Biomedical Innovation Drug Incubation Base", and has achieved rich scientific research results. The company's strong technical research and development capabilities can provide good technical support for the smooth implementation of this research and development project.

(3) A complete R&D management system and an excellent R&D team provide institutional guarantee and talent support for project development.

A scientific and complete R&D management system is the foundation of the company's technological innovation and the prerequisite for ensuring the transformation of technological achievements. After years of development, the company has gradually established and improved an R&D innovation management system that matches the company's development stage. In order to ensure that the company's research and development results can be transformed to the greatest extent, the company has established a number of clear rules and regulations such as the "Implementation Rules for the Management of Intellectual Property Declaration and Publication of Scientific Papers" and "Confidentiality Management Regulations" in terms of project establishment, talent incentives, and protection of technological achievements, which provide institutional guarantees for the implementation of this project. In addition, the company also actively carries out industry-university-research cooperation in key areas, and has established in-depth cooperative relationships with Ruijin Hospital Affiliated to Shanghai Jiao Tong University School of Medicine, Beijing Tiantan Hospital Affiliated to Capital Medical University, China Pharmaceutical University and other institutions to strengthen technology and talent exchanges and cooperation. At present, the company has established a ladder-type scientific research talent team with appropriate proportions of professional structure, knowledge structure and age structure. The members have educational backgrounds in biomedicine and their working experience is also related to biomedicine. They have rich experience in drug research and development and industrialization, and have strong R&D and innovation capabilities. The company's perfect institutional system and excellent talent team provide a solid guarantee for the smooth implementation of this R&D project.

Necessity of project construction

(1) Promote the company’s progress in new drug research and development to further meet patients’ broader clinical drug needs

Through the implementation of investment projects with funds raised this time, the company will increase investment in research and development and continue to promote clinical research on core pipelines to speed up the product development process, further enhance the company's product ability to cover unmet clinical needs, and provide patients with more treatment options. At the same time, the implementation of this project will help speed up the speed and efficiency of clinical trials and reviews, thereby effectively improving the industrialization process of the company's innovative drugs under development and further enhancing the market competitiveness of the company's core products under development in the future.

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① QHRD106 injection

According to Frost & Sullivan statistics, the number of acute ischemic stroke cases in my country has increased to 4.286 million in 2024. With the aging of society and the acceleration of urbanization, the prevalence of unhealthy lifestyles among residents, the risk factors of acute ischemic stroke are generally exposed, and the burden of disease is increasing explosively. Against this background, the market prospects for acute ischemic stroke-related therapeutic drugs are promising. The company urgently needs to conduct clinical research on innovative drugs that can treat acute ischemic stroke, accelerate the registration and launch of drugs, and provide high-quality drug options for patients to meet market demand.

QHRD106 injection is a long-acting pancreatic kininogenase drug whose main indication is acute ischemic stroke. Through the bradykinin B2 receptor, it reduces the expression of high mobility protein B1 (HMGB1) at the infarction site, which is significantly related to the release of inflammatory factors and the destruction of the blood-brain barrier. It inhibits the release of inflammatory factors to reduce the damage to neurons at the infarction site, thereby improving the prognosis of acute ischemic stroke. This product has completed Phase I clinical trials and is currently in Phase IIb clinical trials. The company will then continue to conduct Phase III confirmatory clinical trials for this product.

② QHRD107 capsules

Leukemia is a malignant blood tumor that not only seriously threatens the patient's health, but also has a long treatment cycle and requires multiple medications, which will bring a greater financial burden to the patient's family. However, the current clinical complete cure rate of leukemia is still low. Acute myeloid leukemia is one of the types of leukemia with a high incidence rate and poor prognosis. Due to its large cytogenetic heterogeneity and the presence of multiple gene mutations, clinical treatment is very difficult. According to Frost & Sullivan statistics, the number of acute myeloid leukemia patients in my country is expected to reach 34,000 in 2030.

QHRD107 capsule is a highly selective protein kinase inhibitor whose main indication is acute myeloid leukemia. It mainly modulates the activity of RNA polymerase II (RNAPII) by specifically blocking cyclin-dependent kinase 9 (CDK9), inhibits RNAPII transcription, thereby reducing the expression of various oncogenes including MCL-1 and inducing apoptosis of tumor cells. This product has completed Phase I clinical trials and is currently in Phase IIa clinical trials. The company will then continue to conduct Phase IIb clinical trials for this product.

③ QHRD211 injection

Growth hormone deficiency is one of the main causes of dwarfism in my country. According to the "Expert Consensus on Clinical Practice for Assessment and Management of Children's Physical Development", the incidence rate of growth hormone deficiency in China is approximately

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1/4,000~1/10,000. Currently, recombinant human growth hormone products for the treatment of growth hormone deficiency on the Chinese market mainly include short-acting powder injections, short-acting water injections, and long-acting water injections. Short-acting growth hormone products require daily injections, which is inconvenient to treat. Many patients have low medication compliance and are prone to missed injections and even premature termination of treatment, which in turn leads to poor treatment effects.

QHRD211 injection is a long-acting recombinant human growth hormone whose main indication is slow growth in children caused by endogenous growth hormone deficiency. It uses polyethylene glycol N-terminal site-specific modification of long-acting recombinant human growth hormone, and its quality is more controllable. The good pharmacokinetic characteristics and biological activity support a dosing frequency of once every 10 days, and the same therapeutic effect can be shown at a lower dose than the long-acting growth hormone already on the market. At the same time, the longer dosing interval can reduce the number of dosing by nearly 30%. It is expected to be highly competitive after it is launched. This product has completed Phase I clinical trials and is currently in Phase II clinical trials. The company will then continue to conduct Phase III clinical trials for this product.

(2) Respond to national policy development requirements and enhance the company’s industry status and competitive advantages

This investment project is in line with the industrial direction encouraged by the state and is in line with national industrial policies such as the "Healthy China 2030" Planning Outline, the Guiding Opinions of the General Office of the State Council on Promoting the Healthy Development of the Pharmaceutical Industry, and the 14th Five-Year Plan for National Economic and Social Development of the People's Republic of China and the Outline of Long-term Goals for 2035.

Through the implementation of this innovative drug research and development project, the company will further enhance its research and development capabilities, enhance the company's industry status and the competitiveness of its product system, thereby creating favorable conditions for the company's sustainable development.

Project investment budget

The total investment in this project is 419.2349 million yuan, and the amount of raised funds planned to be invested is 410.000 million yuan. Unit: 10,000 yuan jointly (or pairs

Product Clinical Expenses Clinical Drug Expenses Other Expenses Total

(photo) drug procurement

QHRD106 14,400.00 - 43.68 1,208.20 15,651.88 QHRD107 7,200.00 1,241.60 69.12 1,591.47 10,102.19 QHRD211 10,080.00 3,480.00 1,278.72 1,330.70 16,169.42

Total 31,680.00 4,721.60 1,391.52 4,130.37 41,923.49

Estimated implementation time and overall schedule

The implementation period of this project is planned to be 2.5 years. The details are as follows:

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Product Indications Implementation Period Planned Implementation Content

QHRD106 Acute ischemic stroke 2.5 years Phase III clinical study and registration application QHRD107 Acute myeloid leukemia 2.5 years Phase IIb clinical study and registration application

Caused by endogenous growth hormone deficiency

QHRD211 2.5 years Phase III clinical study and application for registration in children with slow growth

Project economic benefit evaluation

This project does not directly generate economic benefits. By increasing the research and development of innovative drugs, it will help lay a good foundation for the company to continue to enrich its product pipeline and further solve the unmet clinical drug needs of the majority of patients. At the same time, through continuous R&D investment, the company will cultivate a group of technical backbones and industry experts to enhance the company's overall R&D strength.

Project approval, land, environmental protection and other related matters

This project is a new drug research and development project and does not involve project land use, project filing and environmental assessment approval procedures.

The use of funds raised this time for R&D investment

(1) Main contents of R&D projects

①QHRD106 injection

QHRD106 is a long-acting pancreatic kallikreinogenase drug with a new structure prepared by the company based on the research on the existing drug kallikrein. Through screening of modifier types and optimization of modification methods, it selected linear monomethoxypolyethylene glycol succinimidyl propionate (10kDa) to randomly modify single-component pancreatic kallikreinogenase (KLK1-b). Based on the principle of "quality by design", QHRD106 with a new structure avoids the impact of PEG molecular modification on the active center of kallikreinase through sufficient screening of modification methods and modifiers, allowing the modified drug to retain its biological activity. At the same time, the modification extends the half-life of the drug and significantly reduces immunogenicity. In clinical applications, it can reduce the frequency of dosing, reduce patient pain, improve patient compliance, and reduce the probability of adverse reactions such as allergies.

Mechanism study results show that QHRD106 injection reduces the expression of high mobility protein B1 (HMGB1) at the infarction site by activating bradykinin B2 receptors. HMGB1 is significantly related to the release of inflammatory factors and the destruction of the blood-brain barrier. HMGB1 The reduction in expression significantly inhibits the release of inflammatory factors, reduces the damage to neurons at the infarction site, significantly reduces the necrosis rate of neurons at the infarction site, and also inhibits the destruction of the blood-brain barrier, reduces the damage caused by peripheral factors to the brain through the blood-brain barrier, and improves the prognosis of acute ischemic stroke.

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②QHRD107 capsules

QHRD107 is an oral targeted anti-cancer drug. It was selected from thousands of candidate compounds and is highly selective for the cyclin-dependent kinase 9 (CDK9) target. It is a drug molecule with great potential to treat acute myeloid leukemia. Kinase inhibitors work by competitively binding with ATP to the ATP-binding domain of CDKs. The sequences of the ATP-binding domains of different CDKs are highly conserved. Therefore, the development of highly selective protein kinase inhibitors has always been a bottleneck that is difficult to break through in basic research in the development of new drugs. Developed by the company through its own patented technology, QHRD107 breaks through this difficulty and greatly improves the specificity of the target. By specifically blocking CDK9, it regulates the activity of RNAP II and inhibits RNAP II transcription, thereby reducing the expression of multiple oncogenes including MCL-1 and inducing apoptosis of tumor cells. The structure, mechanism of action and target of this compound are completely new, and the company has an exclusive patent on it.

③QHRD211 injection

(2) Technical feasibility

In terms of R&D hardware, the company has continuously invested a large amount of money to enhance R&D capabilities since its establishment, and has gradually established a complete product R&D and achievement transformation innovation system: including a biomedical macromolecule R&D platform, a small molecule drug innovation platform, and a new drug achievement transformation platform. It has more than 18,000 square meters of R&D space, and has built a nearly 6,000 square meter achievement transformation pilot center. In addition, the company is also equipped with more than 1,000 pieces (sets) of R&D and pilot equipment such as molecular interaction instruments, semi-automatic central control fiber systems, high and low temperature coolant circulation systems, microwave synthesizers, 1L-20L rotary evaporation systems, high performance liquid chromatographs, high performance liquid chromatography and high resolution mass spectrometers, high efficiency wet mixing granulators, dissolution apparatus, etc., providing good hardware support for all stages of preclinical research and clinical research of the company's new drug development.

In terms of R&D team, the company has a team of excellent scientific researchers and technicians with multi-disciplinary backgrounds. Their professional backgrounds cover the fields of molecular biology, pharmacy, clinical medicine and other fields. They have rich experience in process improvement of proteases and polysaccharides and the research and development of innovative drugs. They also have an understanding of the current overall industry development trends.

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With a deep understanding. As of September 30, 2025, the company has a total of 207 technical personnel, accounting for 20.18% of the company's employees, which provides an important guarantee for the company's continuous technological innovation capabilities.

(3) Current R&D investment and progress, R&D results achieved or expected to be achieved

The research and development process of the company's innovative drug pipeline is mainly divided into the following stages: project establishment, preclinical research, applying for clinical trial approval, obtaining clinical trial approval, completing clinical trials (Phase I, II, III), and applying for new drug listing. At present, all R&D work for QHRD106, QHRD107 and QHRD211 has not been completed. As of September 30, 2025, the R&D progress and expected R&D results of each innovative drug pipeline are as follows: Preface Current R&D investment and expected R&D results

Pipeline Code Indications Product Description

No. Progress The development has a completely new structure

Acute ischemic brain phase IIb clinical trial stage

1 QHRD106 long-acting pancreatic kallikreinogenase

stroke section

medicine

The first approved clinical trial in China completed clinical trials and provided

Acute myeloid leukemia Phase IIa clinical trial to fill the bed with high selectivity Submit drug marketing authorization 2 QHRD107

New CDK9 inhibitors in the disease-filled stage have applied for and obtained registration approval documents for endogenous growth hormone drugs in the R&D category using polyethylene glycol N.

Long term site-specific modification at the end of phase II clinical trials caused by hormone deficiency

3 QHRD211

Children's growth retardation period Recombinant growth hormone

slow factor

(4) Estimated future capitalization of R&D expenses

According to the capitalization conditions of the company’s R&D projects, QHRD106, QHRD107 and QHRD211 The projects are all R&D of new drugs that need to undergo drug clinical trials before they can be declared for production. The premise is to obtain clinical trial approval from the State Food and Drug Administration as the starting point of capitalization. After review and approval by the company's R&D decision-making committee, the research expenses incurred before obtaining the clinical approval will be included in the current period as expenses. Development expenses that meet the capitalization conditions and occur after clinical approval is obtained and before the R&D project obtains production approval are included in development expenses - capitalized expenses in the current period. During this period, those that do not meet the capitalization conditions are included in R&D expenses. When the R&D project obtains production approval, the capitalized expenses are transferred to intangible assets. The research and development expenses invested in the above three projects using raised funds in the future will all be capitalized.

(2) Phase I construction project of Hubei Zhongxiang API production base

Project Overview

This project plans to complete the construction of the first phase of the "Hubei Zhongxiang API Production Base", and create a biopharmaceutical manufacturing base with efficient production capacity, strong competitiveness, and excellent products in the context of opportunities in the big health industry to ensure that

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Ensure the company’s supply stability of raw materials. After the project is completed, it will have an annual production capacity of approximately 600 billion units of crude heparin, 2.50 tons of high-end anti-thrombotic drugs (heparinoid), 125 tons of crude trypsin, and 75 billion units of pharmaceutical protease.

The implementation entity of this project is Hubei Qianhong, a wholly-owned subsidiary of the company. The total investment of the project is 330 million yuan, and the estimated construction period is 30 months.

Feasibility of project construction

(1) The project is in line with the direction of national policy support

The biopharmaceutical industry in which the company is located is an important industry related to the national economy and people's livelihood, and is also one of the most active strategic emerging industries in the world today. The report of the 20th National Congress of the Communist Party of China proposed to "deepen the reform of the medical and health system and promote the coordinated development and governance of medical insurance, medical care, and medicine." With the comprehensive advancement of the construction of a healthy China, population growth, accelerated aging, continuous improvement of the medical insurance system, and enhanced residents' paying ability, the people's increasing health needs are gradually being released, which continues to promote the consumption of pharmaceutical products. my country's pharmaceutical industry has entered a stage of rapid development.

Against this background, in order to ensure the high-quality development of the biopharmaceutical industry, the national and local levels have issued a series of pharmaceutical industry policies to encourage clinical value-oriented innovation and strive to promote the high-quality development of the biopharmaceutical industry. The "14th Five-Year Plan for National Economic and Social Development of the People's Republic of China and the Outline of Long-term Goals for 2035" regards biotechnology as a strategic emerging industry, and clearly proposes to promote the integration and innovation of biotechnology and information technology, accelerate the development of biomedicine, biological breeding, biomaterials, bioenergy and other industries, and make the bioeconomy bigger and stronger. At the same time, Hubei Province and Zhongxiang City have successively issued the "14th Five-Year Plan for the Development of the Health Industry in Hubei Province" and the "14th Five-Year Plan for National Economic and Social Development of Zhongxiang City and the Outline of Long-term Goals for 2035", which clearly stated that the province's health security level will continue to improve, the public health emergency management system will gradually improve, and the supply capacity of health products will continue to increase. Hubei will become a national center for healthy consumption, and efforts will be made to cultivate the biopharmaceutical industry. This project is the first pharmaceutical production project in the Zhongxiang Biomedical Industrial Park. Upon completion, the project will comply with relevant domestic, European and American pharmaceutical regulatory requirements, and will serve as a good example for the construction of the Zhongxiang Biomedical Industrial Park.

(2) The demand for the company’s API products is increasing and the market prospects are good

With the development of the world economy, the growth of the global population, the intensification of population aging, the increase in the incidence of chronic diseases and the improvement of people's health awareness, as well as the improvement of the economic development level of emerging countries and the medical security of various countries,

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With the continuous improvement of the system, the scale of the global API market continues to grow, and China has always occupied an important position in the API market relying on its cost advantage. With the country's strong policy support, China has now become the world's largest API production base. API products can not only effectively meet domestic demand, but are also sold in large quantities to the international market. APIs are exported to nearly 200 countries and regions around the world. The export volume has ranked first in the world for many years, occupying an extremely important position in the global pharmaceutical industry chain. The global API market will reach US$185.9 billion in 2022, a year-on-year increase of approximately 5%.

my country has the richest pig resources in the world and has the congenital conditions for sufficient supply of heparin raw materials. It is the world's largest exporter of heparin raw materials. As the global population continues to age, it is expected that the global population over 65 years old will reach 775 million in 2024, and the incidence of chronic diseases and cardiovascular diseases will also increase. The increase in the size of the obese population and the year-by-year increase in pharmaceutical demand in emerging markets will promote the continued increase in clinical demand for anticoagulants/antithrombosis.

The company's enzyme products, pancreatic kallikreinogenase, compound digestive enzymes, and elastase, are mainly indicated for diabetic complications, digestive system diseases, hyperlipidemia, atherosclerosis and other diseases. The medicinal protease raw materials required for their production have broad market prospects and development potential as the number of downstream sick people continues to grow. According to data released by IDF, as of 2021, there are approximately 537 million patients worldwide. The number of people with diabetes aged 20-79 in my country has reached 141 million, making it the world's largest country with diabetes. As the number of domestic diabetes cases increases and the penetration rate of diagnosis and treatment increases, the size of the diabetes drug market will continue to grow. As the pace of life and work of Chinese residents accelerates, digestive system diseases caused by factors such as irregular diet and irregular work and rest are also on the rise year by year. According to data from Yaozhi.com, sales of digestive system disease drugs in domestic sample hospitals increased from 141.717 billion yuan in 2016 to 159.666 billion yuan in 2021, with a compound growth rate of 2.41% during the period. Due to the gradual increase in the pressure of social life and changes in eating habits, the number of patients with atherosclerosis and hyperlipidemia in my country has gradually increased, which has promoted the accelerated growth of the market demand for elastase products.

(3) The company’s advanced production management experience and talent reserve help project implementation

The company is a national high-tech enterprise. It has formed large-scale production capabilities integrating core technologies such as modern molecular membrane ultrafiltration, molecular affinity chromatography, molecular structure chelation, and virus inactivation for protease drugs and polysaccharide drugs, and has established an industrialized production technology platform. The company has a high-quality professional technical quality management team and a relatively complete production technology quality management system. It has been awarded the title of National, Provincial and Municipal Drug Quality Integrity Demonstration Enterprise for many years in a row. The internal control quality standards of many of the company's key products have been upgraded to national

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Drug quality standards; the main drugs exported have passed the GMP certification of the US FDA, EU CEP, Germany, Japan, Australia and other countries, and also participated in the international standard revision of the USP heparin sodium API, giving it a competitive advantage among domestic and foreign peers. At the same time, the company always attaches great importance to talent training and the important role of talents in corporate development and production and operation management. It makes full use of the flexible mechanism of listed companies to introduce, train and retain outstanding talents, laying a solid foundation for improving the company's core competitiveness.

In summary, the company's advanced production management experience and talent reserve will provide a solid foundation for the implementation of this API production base construction project.

Necessity of project construction

(1) Relying on the company’s advanced technological advantages, based on Hubei’s comprehensive health industry layout, expanding the company’s upstream industrial layout and enhancing comprehensive competitiveness

The company is a well-known manufacturer and operator of polysaccharides and protease drugs in the domestic biochemical pharmaceutical industry. Its current main products include pancreatic kininogenase series, heparin sodium and low molecular weight heparin series, compound digestive enzyme preparations, and asparaginase series. The production technology and quality level have reached advanced levels.

By investing RMB 330 million in the first phase construction project of the Hubei Zhongxiang API Production Base in Zhongxiang Economic Development Zone, Jingmen City, Hubei Province, the company will build a biopharmaceutical manufacturing base with efficient production capacity, strong competitiveness and excellent products under the background of opportunities in the big health industry. It will further expand and extend the company's core product industrial chain layout and significantly expand its own pharmaceutical production capacity, effectively strengthening the company's own modern production capabilities.

(2) Seize the market development opportunities for API products, ensure the stable supply of drugs in my country, and promote the steady development of the drug market in my country

Since 2010, my country has become the world's largest API production base. It can not only effectively meet domestic demand, but also sell large quantities to the international market. APIs are exported to nearly 200 countries and regions around the world. The export volume has ranked first in the world for many years, occupying an extremely important position in the global pharmaceutical industry chain.

At present, my country's API industry has shown a situation in which a hundred flowers are blooming and a hundred schools of thought are contending. The implementation of pharmaceutical reform policies such as the consistency evaluation of generic drug quality and efficacy, centralized drug procurement in bulk, and the API registration system are accelerating the development of the API industry in a high-quality direction. In the future, as Chinese API companies gradually transform from primary and mid-level competitors to high-level competitors in global APIs, they will have more opportunities to participate in the R&D and production of global blockbuster innovative drugs. This will also bring new business opportunities to Chinese API companies, which will accelerate the growth of the API industry to a certain extent.

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In order to seize market development opportunities for API products, the company plans to deploy the first phase construction project of Hubei Zhongxiang API production base in Zhongxiang. After the project is completed, it will have an annual production capacity of approximately 600 billion units of crude heparin, 2.50 tons of high-end anti-thrombotic drugs (heparinoid), 125 tons of crude trypsin, and 75 billion units of medicinal protease.

(3) Further improve the production capacity and quality of raw materials and strive to provide patients with higher quality and safer drugs.

With the aging of our society, unhealthy lifestyles, and environmental changes, the number of people with diseases such as diabetes and chronic kidney disease has greatly increased in my country and even around the world, resulting in a rising demand for related drugs. As the current global heparin industry chain destocking comes to an end and domestic centralized procurement increases, the number of people suffering from cardiovascular and cerebrovascular diseases and diabetes continues to increase. The existing factory area is difficult to meet the needs of further expansion of industry scale. Therefore, it is necessary to build new factories to increase production capacity. Against this background, this project plans to purchase a heparin series product production line, a medicinal protease drug production line, and a crude trypsin raw material production line, and continue to improve the level of production hardware facilities to increase production capacity and ensure quality control. The construction of this project will further leverage the company's advantages in the integration of APIs and preparations, integrate APIs and downstream preparations, achieve independent supply of some APIs, make full use of the production base with significant cost advantages, and provide the market with more and better APIs produced by Qianhong by creating a more price-competitive product pipeline to further meet the drug needs of patients.

Project investment budget

The total planned investment amount of this project is 330 million yuan, and the planned raised capital amount is 300 million yuan. The investment details are as follows:

Unit: RMB 10,000 Serial number Total investment composition Investment amount Proportion 1 Construction investment 32,138.71 97.39% 1.1 Construction project fee 13,895.37 42.11% 1.2 Equipment purchase fee 14,701.00 44.55% 1.3 Installation project fee - - 1.4 Other project construction costs 2,062.87 6.25% 1.5 Reserve fee 1,479.46 4.48% 2 Interest during construction period - - 3 Preparing working capital 861.29 2.61%

Total 33,000.00 100.00%

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Estimated implementation time and overall schedule

According to the requirements of the project construction plan, the construction period of this project is 30 months. The project progress plan includes preliminary preparation, civil decoration construction, equipment procurement and installation, equipment debugging, personnel recruitment and training, etc. Based on the actual situation of the project, the specific progress is formulated as follows:

month

Serial number Construction content

3 6 9 12 15 18 21 24 27 30

1 Preliminary preparation * *

2 Civil decoration construction * * * * * *

3 Equipment procurement and installation * * * * * * 4 Equipment commissioning * * * 5 Personnel recruitment and training * *

Project economic benefit evaluation

The products of this project are mainly for self-use, and the economic benefits are not separately calculated.

Project approval, land, environmental protection and other related matters

This project is planned to be implemented on its own land, located at Fushui Road, Economic Development Zone, Zhongxiang City, Hubei Province. The company has obtained the E (2023) Zhongxiang City Real Estate Rights No. 0008307 "Real Estate Rights Certificate" issued by the Ministry of Natural Resources of the People's Republic of China.

This project has obtained the "Hubei Province Fixed Asset Investment Project Registration Certificate" issued by the Zhongxiang Municipal Administrative Approval Bureau (registration and registration project code: 2211-420881-89-01-613252). The "Approval on the Environmental Impact Report of the Changzhou Qianhong Pharmaceutical API Production Base Project of Qianhong Biochemical Pharmaceutical (Hubei) Co., Ltd." (Jinghuan Shen [2023] No. 66) issued by the Jingmen Municipal Ecological Environment Bureau has been obtained; the "Opinions of the Zhongxiang Municipal Administrative Approval Bureau on the Energy Conservation Review of the Changzhou Qianhong Pharmaceutical API Production Base Project" (Zhongshenfa Zi [2024] No. 63) issued by the Zhongxiang Municipal Administrative Approval Bureau.

(3) Supplement working capital

Project Overview

The company plans to use 290 million yuan of the funds raised this time to supplement working capital to meet the company's daily production and operation capital needs, reduce financial risks, and consolidate the company's industry position and competitive advantages.

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Feasibility of project construction

(1) The use of funds raised from this issuance to supplement working capital complies with laws and regulations

Part of the funds raised this time will be used to supplement working capital, which complies with the regulations on the use of raised funds in the "Registration and Management Measures for Securities Issuance of Listed Companies" and related normative documents, and the plan is feasible. After the raised funds are in place, the company's financial strength will be further enhanced, which can effectively resist the liquidity pressure caused by the company's further expansion of business activities, which is in the interests of the company and all shareholders.

(2) The company has a complete corporate governance structure and internal control system

The company has established a modern enterprise system with the corporate governance structure as the core, and continues to optimize and improve in daily operations and management activities, establishing and improving a standardized corporate governance system and a complete internal control system. In terms of the management of raised funds, the company has established a "Raised Funds Management System" in accordance with relevant regulations, which clearly stipulates the storage, use, purpose change, management and supervision of raised funds in special accounts. After the funds raised from the issuance of convertible corporate bonds to unspecified objects are received, the company, directors and senior managers will continue to supervise the normal use of the company's raised funds and effectively prevent risks in the use of raised funds.

Necessity of project construction

(1) Supplement working capital to meet the needs of the company’s rapid business development

The biopharmaceutical R&D and manufacturing industry in which the company operates is a typical technology- and capital-intensive industry. In recent years, against the background of the rapid development of my country's biochemical drug industry, the company's main business scale has expanded, and it is expected that the company's business scale will still maintain rapid growth in the future. In order to meet business development needs, continue to ensure the smooth progress of production and continue to improve R&D capabilities, the company must strengthen its own capital reserves.

(2) The need to further optimize the financial structure and resist operating risks

The company's business is currently in a stage of rapid growth and requires a large amount of financial support. It is difficult to meet the company's growing working capital needs solely relying on internal operating accumulation. Part of the funds raised from this issuance of convertible corporate bonds to unspecified objects will be used to supplement the company's working capital. Once the funds are raised, it can effectively alleviate the pressure on capital demand caused by the expansion of the company's operating activities, enhance the company's financial strength, optimize the financial structure, and further ensure the healthy, rapid and sustainable development of the company's business.

The rationality of supplementing the scale of working capital

The composition of the company’s non-capital expenditures and supplementary working capital in this fundraising project is as follows:

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Unit: 10,000 yuan

Planned use of raised funds Planned use of raised funds Central African serial number Project name Total project investment

Investment amount Capital expenditure amount 1 Innovative drug research and development project 41,923.49 41,000.00 -Hubei Zhongxiang API production

2 33,000.00 30,000.00 - Phase I construction project of the base

3 Supplementary working capital 29,000.00 29,000.00 29,000.00

Total 103,923.49 100,000.00 29,000.00

As can be seen from the table above, of the amount of funds planned to be invested in the company's current fundraising project, the amount of non-capital expenditures and supplementary working capital is 290 million yuan, accounting for 29.00% of the amount of funds planned to be invested, not exceeding 30%, which complies with the requirements of relevant laws and regulations.

The business prospects of this fundraising project and its relationship with the issuer’s existing business and development strategy

The company is a leading enterprise in the biochemical pharmaceutical subdivision of the domestic biopharmaceutical industry. It leads the company's core competitiveness with innovative drugs. Its main products are two series of biochemical drugs, proteases and polysaccharides. After deducting the issuance expenses, the funds raised by the company from this issuance to unspecified objects will be mainly used for innovative drug research and development projects, the first phase construction project of Hubei Zhongxiang API production base and to supplement working capital, which are closely related to the research and development, production and sales of biopharmaceutical products that the company is mainly engaged in.

The "Innovative Drug R&D Project" is the company's focus on the current unmet clinical needs, leading the company's core competitiveness with innovative drugs, increasing investment in the current innovative drug pipeline R&D to accelerate the clinical trials of the company's independent innovative drug pipeline, and laying a solid foundation for accelerating the subsequent marketing and registration process of products under development; "Hubei Zhongxiang API Production The "Phase I Base Construction Project" is the company's plan to build a biopharmaceutical manufacturing base with efficient production capacity, strong competitiveness and excellent products under the background of opportunities in the big health industry. Through the implementation of this project, it will expand the production capacity of related APIs, alleviate the company's production capacity bottleneck, and lay a production capacity foundation to ensure the company's sustained and rapid future business development.

The investment projects raised this time are all invested in the company's main business and are carried out around the company's current main business, which is conducive to improving the company's profitability sustainability, industry influence and core competitiveness.

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4. The issuer’s implementation capabilities and how to solve the funding gap

(1) The issuer’s implementation capabilities

The company already has all the conditions to implement fundraising projects in terms of personnel, technology and market:

Talent reserve

Since its establishment, the company has always attached great importance to the introduction and training of outstanding talents. Over the years, the company has established a team of technical backbones with multi-disciplinary backgrounds such as biochemical engineering, pharmacy, and medicine, profound industry insights, and rich practical experience, as well as a team of technical workers who are proficient in production technology. As of September 30, 2025, the company had a total of 1,026 employees, including 303 production personnel, 400 sales personnel, and 207 technical personnel. The company's current reserve of various professional talents and scientific and complete talent management mechanism can provide solid human resource guarantee for the implementation of investment projects.

Technical reserves

The company is a national-level high-tech enterprise. After years of independent innovation and industry-university-research cooperation, it now has full industry chain capabilities from early discovery of drugs to late-stage development and large-scale production, and finally commercialization. The company has excellent technical reserves and drug research and development capabilities. Through continuous investment in R&D funds and the introduction of high-level talents, the company has gradually established a complete product research and development and achievement transformation innovation system, including: capable of developing long-acting protein drugs, genetically engineered recombinant protein drugs, therapeutic human antibody drugs, and molecular diagnostic tests. A biopharmaceutical macromolecule R&D platform that specializes in the research of small molecule targeted anti-tumor drugs and can complete small-scale and pilot-scale preparation research of chemical drugs; and a new drug achievement transformation platform that can complete pilot-scale preparation of clinical samples of new drugs and industrial production research, etc. Each platform has a clear division of labor and jointly provides support for the efficient development of the company's R&D projects. Through unremitting scientific research and innovation, as of September 30, 2025, the company has obtained a total of 137 domestic patent authorizations of various types, including 110 domestic invention patents, 19 utility model patents, and 8 appearance patents. In addition, the company has also carried out and completed a number of major national, provincial and municipal-level projects, including "Preclinical Research on the New Targeted Anti-tumor Drug QHRD107" and "Changzhou Qianhong International Biomedical Innovation Drug Incubation Base", and has achieved rich scientific research results.

Market reserves

After more than 20 years of development, the company has become the leading manufacturer and operator of protease and polysaccharide drugs in China.

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In the industry, the company has always attached great importance to product quality, has strict product quality control procedures, and always follows the principle of "voluntariness, equality, and mutual benefit". It has accumulated many high-quality customers across the country and maintained good strategic partnerships. The company has now established a professional sales team and established stable cooperative relationships with more than 30 pharmaceutical marketing companies with national GSP certification in major economically developed areas in the country. It has formed a complete sales network covering the country, covering thousands of hospitals. At the same time, the company has built multiple stable marketing networks for APIs and preparation products in overseas markets such as the United States, Germany, France, Italy, and Japan, and implemented the strategic goal of attaching equal importance to the export of APIs and high value-added products and product transformation and upgrading, which fully demonstrates the company's international marketing capabilities and overseas market reserves.

(2) Solutions to the funding gap

The total investment amount of the "Innovative Drug Research and Development Project" and "Hubei Zhongxiang API Production Base Phase I Construction Project" in this fundraising project is 749.2349 million yuan. The planned investment amount of the raised funds is 710.000 million yuan. The remaining funds required will be raised by the company itself.

5. The impact of the use of funds raised this time on the issuer’s operating results and financial status

(1) The impact of this issuance on the company’s operations and management

The use of funds raised from this issuance is in line with relevant national industrial policies, industry development trends and the company's strategic development direction, which will help further enhance the company's API and preparation production capabilities, while accelerating the research and development process of its own innovative drug pipeline, broadening the company's pipeline layout, effectively resisting market risks, enhancing the company's long-term profitability and comprehensive competitiveness, achieving the company's long-term sustainable development, and safeguarding the long-term interests of shareholders.

(2) The impact of this issuance on the company’s financial status

After the funds raised from the issuance of convertible corporate bonds to unspecified objects are received, the company's asset size has increased and its financial strength has been improved, which can help the company's sustainable development. Before the convertible corporate bonds are converted into shares, the company's financial costs in using raised funds are low and the risk of interest repayment is small. After this convertible corporate bond enters the conversion period, if most of the convertible corporate bonds issued this time are converted into company stocks, the company's net assets will increase accordingly. However, since project construction and efficiency output require a certain period of time, there may be a risk of shareholders' current returns being diluted in the short term.

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Section 8 Use of previous funds raised

Since the company's initial public offering of shares in 2011, it has not raised funds through the issuance of securities to unspecified objects or specific objects (including supporting financing for major asset restructuring), allotment of shares, issuance of convertible corporate bonds, etc. The company's last raised funds were all in place in February 2011, five fiscal years have passed since then. Therefore, according to the provisions of the "Guidelines for the Application of Supervisory Rules - Issuance No. 7", the company's issuance of convertible corporate bonds to unspecified objects does not need to prepare a report on the use of previously raised funds, and does not need to hire an accounting firm with securities and futures-related business qualifications to issue an assurance report on the use of previously raised funds.

The company's initial listing raised a total of RMB 1,280,000,000. After deducting issuance expenses of RMB 65,180,940, the actual net raised funds were RMB 1,214,819,060. According to the purpose of the raised funds disclosed in the company's "Initial Public Offering Prospectus", the funds raised from the initial public offering are mainly used to invest in the construction of the following projects: 1. Heparin API and preparation expansion project; 2. Pancreatic kallikreinogenase API and preparation expansion project; 3. Asparaginase API and preparation expansion project; 4. Biomedical technology R&D center construction project; 5. Marketing network construction project. The main changes are as follows:

First, changes in the implementation location of investment projects with raised funds

The company made a resolution at the 16th meeting of the first board of directors held on April 13-14, 2011, to construct three preparation projects: "Heparin API and Preparation Expansion Project", "Pancreatic Kallikreinogenase API and Preparation Expansion Project", and "Asparaginase API and Preparation Expansion Project". The location was changed to Changzhou Life and Health Industrial Park (formerly known as Changzhou Biomedical Industrial Park) for implementation; the "Biomedical Technology R&D Center Construction Project" was changed to a "Joint Venture Research Institute Construction Project", and its implementation location was changed to Changzhou Life and Health Industrial Park (formerly known as Changzhou Biomedical Industrial Park) for implementation. The 2010 Annual General Meeting of Shareholders held on May 9, 2011 reviewed and approved the "Proposal on Establishing a Joint Venture Research Institute and Changing the Implementation Subject, Implementation Method and Implementation Location of the Biomedical Technology R&D Center Construction Project of the Fund-raising Project". The company made a resolution at the 2013 Annual Shareholders Meeting held on April 4, 2014, to change the "Marketing Network Construction Project" to the "Marketing and Administrative Management Center Project" and change the address of part of the construction content of this project to Changzhou Life and Health Industrial Park (formerly known as Changzhou Biomedicine Industrial Park) for implementation.

Second, adjustments to the implementation methods of investment projects with raised funds

The company held the 16th meeting of the first board of directors on April 13 and 14, 2011 and the 2011

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The 2010 Annual General Meeting of Shareholders held on May 9, 2010 made a resolution to change the "Biomedical Technology R&D Center Construction Project" to a "Joint Venture Research Institute Construction Project". The implementation entity was changed from the company alone to a joint implementation between the company and the joint venture research institute - Jiangsu Zhonghong Bioengineering Drug Innovation Research Institute Co., Ltd. (hereinafter referred to as "Jiangsu Zhonghong"). The board of directors reviewed and approved the project investment amount planning as follows: With the original project total investment unchanged, after re-planning the investment project amount, the company will use the raised investment project funds of approximately RMB 68.5 million to build houses and public systems, etc., and lease them to joint venture research institutes and other uses. The remaining project proceeds of approximately US$5 million (or equivalent in RMB) will be used as investment in the joint venture company, and the joint venture company will be responsible for using the funds to purchase instruments and equipment and other matters. In 2011, the company completed its investment obligation for Jiangsu Zhonghong in two installments. The registered capital was US$9.8 million and the paid-in capital was US$9.8 million. The company held 59% of the equity of Jiangsu Zhonghong. The company made a resolution at the 2013 Annual General Meeting of Shareholders held on April 4, 2014, to change the "Marketing Network Construction Project" to the "Marketing and Administrative Management Center Project", use the super-raised funds of 35 million yuan to increase investment in project construction, and adjust the completion time to September 30, 2015; and agreed to use the remaining funds of the API expansion project to give priority to the construction of preparation projects, and use the super-raised funds of 80 million yuan and 16 million yuan to increase the investment gap in the construction of the preparation part of the raised investment project and the investment gap in the purchase of land respectively.

In the past five years, the company has not raised funds through the issuance of securities to unspecified objects or specific objects (including supporting financing for major asset restructuring), allotment of shares, issuance of convertible corporate bonds, etc.

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Section 9 Statement

1. Statement by the issuer and all directors and senior managers

The company and all directors and senior managers promise that the contents of this prospectus are true, accurate and complete and do not contain false records, misleading statements or major omissions. They will fulfill their commitments in accordance with the principle of good faith and assume corresponding legal responsibilities.

Signed by all directors:

_______ _ _________

Wang Yaofang Wang Ke Zhao Gang

_______ _ _________

Liu Jun Zhou Xiang Jiang Chizhou

_______ _ _________

Ning Ao Ren Shengxiang Gao Yuyu

Signature of senior management not serving as directors:

_______ _ _________

Hai Tao Ye Hongping Zou Shaobo

______ _ _________

Xiao Aiqun Mei Chunwei Wei Lijun

______ _ _________

Yao Yi Huang Jie Wang Guming

Changzhou Qianhong Biochemical Pharmaceutical Co., Ltd. Year Month Day

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2. Statement of the issuer’s controlling shareholder and actual controller

I promise that the contents of this prospectus are true, accurate and complete, and that there are no false records, misleading statements or major omissions. I will fulfill my commitments in accordance with the principle of good faith and bear corresponding legal responsibilities. Controlling shareholder and actual controller:

Wang Yaofang

year month day

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3. Sponsor’s statement

The Company has verified the prospectus and confirmed that the contents of this prospectus are true, accurate and complete, and that there are no false records, misleading statements or major omissions, and shall assume corresponding legal responsibilities.

Project co-organizer:

Zhang Xiaoqing

Sponsor representative:

Diao Guijun Zhuang Chen

Legal representative (or authorized representative):

Jiang Yu

Huatai United Securities Co., Ltd. Year Month Day

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I have carefully read all the contents of the prospectus of Changzhou Qianhong Biochemical Pharmaceutical Co., Ltd., confirmed that there are no false records, misleading statements or major omissions in the prospectus, and bear corresponding legal responsibility for the authenticity, accuracy, completeness and timeliness of the prospectus.

General Manager of the Sponsor:

Ma Xiao

Chairman of the sponsoring institution (or authorized representative):

Jiang Yu

Huatai United Securities Co., Ltd. Year Month Day

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4. Issuer’s lawyer’s statement

Our firm and the handling lawyers have read the prospectus and confirmed that there is no conflict between the contents of the prospectus and the legal opinion issued by our firm. Our firm and our handling lawyers have no objection to the content of the legal opinions quoted by the issuer in the prospectus, confirm that there are no false records, misleading statements or major omissions in the prospectus due to the reference to the above content, and bear corresponding legal liability.

Handling lawyer:

Dai Wendong Shi Wenwen

Li Zong

Law Firm Leader:

Zhang Liguo

Beijing Guofeng Law Firm Year Month Day

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5. Statement of the accounting firm undertaking the audit business for this issuance

The Firm and the signing certified public accountants have read the prospectus and confirmed that there is no conflict between the contents of the prospectus and the audit report and other documents issued by the Firm. Our firm and the signing certified public accountants have no objection to the content of the audit report and other documents cited by the issuer in the prospectus, confirm that there are no false records, misleading statements or major omissions in the prospectus due to the reference to the above content, and bear corresponding legal liability.

Signing CPA:

Wang Wenkai Diao Hongyan

Accounting firm manager:

Zhang Caibin

Gongzheng Tianye Accounting Firm (Special General Partnership) Year Month Day

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6. Statement of the institution undertaking bond credit rating business for this issuance

This institution and the signing credit rating personnel have read the prospectus and confirmed that there is no contradiction between the content of the prospectus and the credit rating report issued by this institution. This agency and the signing credit rating personnel have no objection to the content of the credit rating report quoted by the issuer in the prospectus, confirm that there are no false records, misleading statements or major omissions in the prospectus due to the reference to the above content, and bear corresponding legal liability.

Signature credit rating personnel:

Xu Ningyi Zeng Lili

Head of rating agency:

Zhang Jianwen

China Securities Pengyuan Credit Rating Co., Ltd. Year Month Day

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7. Statement of the Audit Committee

The Company's Audit Committee promises that the contents of this prospectus are true, accurate and complete, and that there are no false records, misleading statements or major omissions. It will fulfill its commitments in accordance with the principle of good faith and assume corresponding legal responsibilities. Signed by all members of the Audit Committee:

_______ _ _________

Gao Yuyu Ning Ao Zhao Gang

Audit Committee of Changzhou Qianhong Biochemical Pharmaceutical Co., Ltd. Year Month Day

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8. Statement of the Board of Directors

If this issuance dilutes the current returns, the issuer's board of directors shall make commitments in accordance with the relevant regulations of the State Council and the China Securities Regulatory Commission and implement specific measures to make up for the returns.

Changzhou Qianhong Biochemical Pharmaceutical Co., Ltd. Board of Directors Year Month Day

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Section 10 Documents for Inspection

(1) The issuer’s financial reports and audit reports for the past three years, as well as the most recent financial report;

(2) The issuance sponsorship letter, issuance sponsorship work report and due diligence report issued by the sponsor;

(3) Legal opinions and lawyer work reports;

(4) Credit rating report;

(5) Other important documents related to this issuance.

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Schedule:

Appendix 1: Land use rights and buildings for which the issuer has obtained property rights certificates

Preface Nature/use of rights

Rights holder Warrant number Location address Area (㎡) Rights type Purpose Period/expiration date Other rights number Rights type

Chang Guoyong (2008) No. New Taipei District Yangtze River China State-owned Construction Use

1 Qianhong Pharmaceutical 72,927.30 Transferred industrial 2051.06.27 No change No. 0256544 Road 90 land use rights

Building area used for state-owned construction land

Su (2021) Changzhou City House Ownership/Right: 101,750 square meters

119,974.21㎡/ supporting facilities/works

2 Qianhong Pharmaceutical Real Estate No. 518, Yunhe Road, for state-owned construction, self-built houses/transfer, use period until 2068.10.24; no land area

No. 0052900 Land use rights 146,540 square meters, 248,290 square meters used

Deadline until 2063.01.16

Chang Guoyong (2008) No. 14, Yijing Mingyuan, for state-owned construction

3 Qianhong Pharmaceutical 16.10 Transfer of residential land 2075.12.04 No. 0259432 Room 201, Unit A Land use rights

Chang Guoyong (2008) No. 14, Yijing Mingyuan, for state-owned construction

4 Qianhong Pharmaceutical 13.60 Transfer of residential land 2075.12.04 No. 0259425 Room 202, Unit A Land use rights

Chang Guoyong (2008) No. 14, Yijing Mingyuan, for state-owned construction

5 Qianhong Pharmaceutical 16.10 Transfer of residential land 2075.12.04 No. 0259414 Room 301, Unit A Land use rights

Chang Guoyong (2008) No. 14, Yijing Mingyuan, for state-owned construction

6 Qianhong Pharmaceutical 13.60 Transfer of residential land 2075.12.04 No. 0259426 Room 302, Unit A Land use rights

Chang Guoyong (2008) No. 14, Yijing Mingyuan, for state-owned construction

7 Qianhong Pharmaceutical 16.10 Transfer of residential land 2075.12.04 No. 0259412 Room 401, Unit A Land use rights

Chang Guoyong (2008) No. 14, Yijing Mingyuan, for state-owned construction

8 Qianhong Pharmaceutical 13.60 Transfer of residential land 2075.12.04 No. 0259429 Room 402, Unit A Land use rights

Chang Guoyong (2008) No. 14, Yijing Mingyuan, for state-owned construction

9 Qianhong Pharmaceutical 16.10 Transfer of residential land 2075.12.04 No. 0259422 Room 501, Unit A Land use rights

1-1-215

Preface Nature/use of rights

Rights holder Warrant number Location address Area (㎡) Rights type Purpose Period/expiration date Other rights number Rights type

Chang Guoyong (2008) No. 14, Yijing Mingyuan, for state-owned construction

10 Qianhong Pharmaceutical 13.60 Transfer of residential land 2075.12.04 No. 0259431 Room 502, Unit A Land use right

Chang Guoyong (2011) No. 82, Shunyuan New Village, for state-owned construction

11 Qianhong Pharmaceutical 12.40 Transfer of residential land 2073.02.17 No. 0497281 Room 302, Unit A Land use right

Chang Guoyong (2015) No. 82, Shunyuan New Village, for state-owned construction

12 Qianhong Pharmaceutical 19.00 Transfer of residential land 2073.02.17 No. 14673 Room 602, Unit C Land use rights

Chang Guoyong (2009) No. 22, Hongmei East Village, for state-owned construction

13 Qianhong Pharmaceutical 21.50 allocated residential land 2070.01.09 No. 0347311 Room 101, Unit A Land use right

Chang Guoyong (2009) No. 22, Hongmei East Village, for state-owned construction

14 Qianhong Pharmaceutical 20.30 Allocation of residential land 2070.01.09 No. 0347301 Room 501, Unit C Land use rights

Chang Guoyong (2008) No. 12, Taoyuan Village No. 2, for state-owned construction

15 Qianhong Pharmaceutical 41.70 allocated residential land - No. 0256052 Room 101 land use rights

Chang Guoyong (2008) No. 12, Taoyuan Village No. 2, for state-owned construction

16 Qianhong Pharmaceutical 33.40 allocated residential land - No. 0256057 Room 102 land use rights

Hubei (2023) Zhongxiang City Jiuli Hui, Zhongxiang City

For state-owned construction

17 Hubei Qianhong Real Estate No. Fushui Road North, Zuxiang 114,288.36 Transferred Industrial Land 2023.06.19-2073.06.19 No land use rights

No. 0008307 Side

Changfang Warrant Certificate No. Changjiang Middle, New Taipei District

18 Qianhong Pharmaceutical 20,258.82 House ownership - - - N/A No. 00049294 No. 90 Road

Changfang Warrant Certificate No. 14, Yijing Mingyuan

19 Qianhong Pharmaceutical 153.93 House ownership - - - None No. 00049304 Room 201, Unit A

Changfang Warrant Certificate No. 14, Yijing Mingyuan

20 Qianhong Pharmaceutical 129.96 House ownership - - - None No. 00049305 Room 202, Unit A

Changfang Warrant Certificate No. 14, Yijing Mingyuan

21 Qianhong Pharmaceutical 153.93 House ownership - - - None No. 00049306 Room 301, Unit A

Changfang Warrant Certificate No. 14, Yijing Mingyuan

22 Qianhong Pharmaceutical 129.96 House ownership - - - None No. 00049307 Room 302, Unit A

1-1-216

Preface Nature/use of rights

Rights holder Warrant number Location address Area (㎡) Rights type Purpose Period/expiration date Other rights number Rights type

Changfang Warrant Certificate No. 14, Yijing Mingyuan

23 Qianhong Pharmaceutical 153.93 House ownership - - - N/A No. 00049308 Room 401, Unit A

Changfang Warrant Certificate No. 14, Yijing Mingyuan

24 Qianhong Pharmaceutical 129.96 House ownership - - - None No. 00049309 Room 402, Unit A

Changfang Warrant Certificate No. 14, Yijing Mingyuan

25 Qianhong Pharmaceutical 153.93 House ownership - - - N/A No. 00049310 Room 501, Unit A

Changfang Warrant Certificate No. 14, Yijing Mingyuan

26 Qianhong Pharmaceutical 129.96 House ownership - - - None No. 00049311 Room 502, Unit A

Changfang Quanzheng Xinzi No. 82, Shunyuan New Village

27 Qianhong Pharmaceutical 87.94 House ownership - - - None No. 00524053 Room 302, Unit A

Changfang Quanzheng Xinzi No. 82, Shunyuan New Village

28 Qianhong Pharmaceutical 134.46 House ownership - - - None No. 00648588 Room 602, Unit C

Changfang Warrant No. 22, Hongmei East Village

29 Qianhong Pharmaceutical 73.58 House ownership - - - None No. 00248698 Room 101, Unit A

Changfang Warrant No. 22, Hongmei East Village

30 Qianhong Pharmaceutical 69.43 House ownership - - - None No. 00248697 Room 501, Unit C

Chang Fang Quan Zheng Zi No. 12, Taoyuan Village No. 2

31 Qianhong Pharmaceutical 89.23 House Ownership - - - None No. 00248699 Room 101

Chang Fang Quan Zheng Zi No. 12, Taoyuan Village No. 2

32 Qianhong Pharmaceutical 71.48 House Ownership - - - None No. 00248700 Room 102

Appendix 2: Issuer’s domestic registered trademarks

Serial number Trademark pattern Rights holder Registration number Approved goods/category Validity period How to obtain

1 Qianhong Pharmaceutical 12083441 5 2024.12.07-2034.12.06 Acquired by inheritance

1-1-217

Serial number Trademark pattern Rights holder Registration number Approved goods/categories Validity period Acquisition method 2 Qianhong Pharmaceutical 12000527 35 2024.06.28-2034.06.27 Original acquisition 3 Qianhong Pharmaceutical 10465993 5 2023.07.07-2033.07.06 Succession acquisition 4 Qianhong Pharmaceutical 66995711 30 2023.06.21-2033.06.20 Original acquisition 5 Qianhong Pharmaceutical 66988257 9 2023.06.21-2033.06.20 Original acquisition 6 Qianhong Pharmaceutical 66982473 5 2023.06.14-2033.06.13 Original acquisition 7 Qianhong Pharmaceutical 67003176 3 2023.06.14-2033.06.13 Original acquisition 8 Qianhong Pharmaceutical 67003181 3 2023.06.14-2033.06.13 Original acquisition 9 Qianhong Pharmaceutical 66988266 30 2023.06.14-2033.06.13 Original acquisition 10 Qianhong Pharmaceutical 66991200 5 2023.06.14-2033.06.13 Original acquisition 11 Qianhong Pharmaceutical 62510684 32 2022.10.28-2032.10.27 Original acquisition

1-1-218

Serial number Trademark pattern Rights holder Registration number Approved goods/category Validity period Acquisition method 12 Qianhong Pharmaceutical 62417821 5 2022.07.28-2032.07.27 Original acquisition 13 Qianhong Pharmaceutical 62414941 30 2022.07.28-2032.07.27 Original acquisition 14 Qianhong Pharmaceutical 62397076 29 2022.07.28-2032.07.27 Original acquisition 15 Qianhong Pharmaceutical 62397344 32 2022.07.28-2032.07.27 Original acquisition 16 Qianhong Pharmaceutical 62218286 32 2022.07.28-2032.07.27 Original acquisition of 17 Qianhong Pharmaceutical 60594693 5 2022.07.28-2032.07.27 Original acquisition of 18 Qianhong Pharmaceutical 61958657 5 2022.07.21-2032.07.20 Original acquisition of 19 Qianhong Pharmaceutical 61981805 30 2022.07.21-2032.07.20 Original acquisition 20 Qianhong Pharmaceutical 61964083 29 2022.07.21-2032.07.20 Original acquisition 21 Qianhong Pharmaceutical 60571215 30 2022.07.21-2032.07.20 Original acquisition

1-1-219

Serial number Trademark pattern Rights holder Registration number Approved goods/category Validity period Acquisition method 22 Qianhong Pharmaceutical 60565553 29 2022.05.07-2032.05.06 Original acquisition 23 Qianhong Pharmaceutical 59786200 30 2022.03.21-2032.03.20 Original acquisition 24 Qianhong Pharmaceutical 59806575 29 2022.03.21-2032.03.20 Original acquisition 25 Qianhong Pharmaceutical 59795886 5 2022.03.21-2032.03.20 Original acquisition 26 Qianhong Pharmaceutical 49537547 5 2021.05.07-2031.05.06 Original acquisition 27 Qianhong Pharmaceutical 40810201 3 2020.12.21-2030.12.20 Original acquisition 28 Qianhong Pharmaceutical 1404375 5 2020.06.07-2030.06.06 Original acquisition 29 Qianhong Pharmaceutical 5622463 5 2019.11.14-2029.11.13 Original acquisition 30 Qianhong Pharmaceutical 1265274 5 2019.04.21-2029.04.20 Original acquisition 31 Qianhong Pharmaceutical 4804517 5 2019.02.14-2029.02.13 Original acquisition 32 Qianhong Pharmaceutical 4804516 5 2019.02.14-2029.02.13 Original acquisition

1-1-220

Serial number Trademark pattern Rights holder Registration number Approved goods/category Validity period Acquisition method 33 Qianhong Pharmaceutical 4619377 36 2018.12.07-2028.12.06 Original acquisition 34 Qianhong Pharmaceutical 4619378 43 2018.12.07-2028.12.06 Original acquisition 35 Qianhong Pharmaceutical 4619376 5 2018.09.21-2028.09.20 Original acquisition 36 Qianhong Pharmaceutical 1081333 5 2017.08.21-2027.08.20 Original acquisition 37 Qianhong Pharmaceutical 4036828 5 2017.01.21-2027.01.20 Original acquisition 38 Qianhong Pharmaceutical 4036827 5 2017.01.21-2027.01.20 Original acquisition 39 Qianhong Pharmaceutical 4036826 5 2017.01.14-2027.01.13 Original acquisition 40 Qianhong Pharmaceutical 3853167 5 2016.04.21-2036.04.20 Original acquisition 41 Qianhong Pharmaceutical 3853168 5 2016.04.21-2036.04.20 Original acquisition 42 Qianhong Pharmaceutical 15019528 5 2015.08.14-2035.08.13 Original acquisition 43 Qianhong Pharmaceutical 15015422 5 2015.08.14-2035.08.13 Original acquisition 44 Qianhong Pharmaceutical 15015493 5 2015.08.14-2035.08.13 Original acquisition

1-1-221

Serial number Trademark pattern Rights holder Registration number Approved goods/category Validity period Acquisition method 45 Qianhong Pharmaceutical 15015456 5 2015.08.14-2035.08.13 Original acquisition

Hubei Runhong Biological Sciences

46 9018633 18 2022.01.28-2032.01.27 Original acquisition

Technology Co., Ltd.

47 Qianhong Health 81002762 3 2025.05.21-2035.05.20 Original acquisition 48 Qianhong Health 80995591 3 2025.05.21-2035.05.20 Original acquisition

1-1-222

Serial number Trademark pattern Rights holder Registration number Approved goods/categories Validity period Acquisition method 49 Qianhong Great Health 80996797 3 2025.03.14-2035.03.13 Original acquisition 50 Qianhong Great Health 77436684 3 2024.09.07-2034.09.06 Original acquisition 51 Qianhong Health 77415872 3 2024.09.07-2034.09.06 Original acquisition 52 Yingnuoshengkang 55293500 42 2022.03.07-2032.03.06 Original acquisition 53 Yingnuoshengkang 50053163 5 2021.05.14-2031.05.13 Original acquisition 54 Yingnuoshengkang 50040379 42 2021.05.14-2031.05.13 Original acquisition 55 Jiangsu Zhonghong 83098218 5 2025.09.21-2035.09.20 Original acquisition

1-1-223

Serial number Trademark pattern Rights holder Registration number Approved goods/category Validity period Obtaining method 56 Jiangsu Zhonghong 84355391 5 2025.09.07-2035.09.06 Original acquisition 57 Jiangsu Zhonghong 84074906 5 2025.09.07-2035.09.06 Original acquisition 58 Jiangsu Zhonghong 82328817 5, 10 2025.08.21-2035.08.20 Original acquisition 59 Jiangsu Zhonghong 83592353 5 2025.08.21-2035.08.20 Original acquisition 60 Jiangsu Zhonghong 83577482 5 2025.08.14-2035.08.13 Original acquisition 61 Jiangsu Zhonghong 83563288 5 2025.08.07-2035.08.06 Original acquisition 62 Jiangsu Zhonghong 83555525 5 2025.07.28-2035.07.27 Original acquisition 63 Jiangsu Zhonghong 83116109 5 2025.07.07-2035.07.06 Original acquisition

1-1-224

Serial number Trademark pattern Rights holder Registration number Approved goods/category Validity period Obtaining method 64 Jiangsu Zhonghong 83116105 5 2025.07.07-2035.07.06 Original acquisition 65 Jiangsu Zhonghong 81556964 5 2025.06.21-2035.06.20 Original acquisition 66 Jiangsu Zhonghong 82666367 5, 10 2025.06.14-2035.06.13 Original acquisition 67 Jiangsu Zhonghong 82303909 5, 10 2025.06.14-2035.06.13 Original acquisition 68 Jiangsu Zhonghong 82301260 5 2025.06.14-2035.06.13 Original acquisition of 69 Jiangsu Zhonghong 82301572 5 2025.06.14-2035.06.13 Original acquisition of 70 Jiangsu Zhonghong 82332127 5, 10 2025.06.07-2035.06.06 Original acquisition of 71 Jiangsu Zhonghong 82317025 10 2025.06.07-2035.06.06 Original acquisition 72 Jiangsu Zhonghong 82308343 5, 10 2025.06.07-2035.06.06 Original acquisition 73 Jiangsu Zhonghong 82318107 5 2025.06.07-2035.06.06 Original acquisition 74 Jiangsu Zhonghong 82319791 5 2025.06.07-2035.06.06 Original acquisition 75 Jiangsu Zhonghong 81939141 5 2025.06.07-2035.06.06 Original acquisition 76 Jiangsu Zhonghong 81929483 5 2025.05.21-2035.05.20 Original acquisition

1-1-225

Serial number Trademark pattern Rights holder Registration number Approved goods/categories Validity period Obtaining method 77 Jiangsu Zhonghong 81943931 5 2025.05.07-2035.05.06 Original acquisition 78 Jiangsu Zhonghong 81950930 5 2025.05.07-2035.05.06 Original acquisition 79 Jiangsu Zhonghong 81905649 5 2025.04.28-2035.04.27 Original acquisition 80 Jiangsu Zhonghong 81574891 5 2025.04.21-2035.04.20 Original acquisition 81 Jiangsu Zhonghong 81559535 5 2025.04.21-2035.04.20 Original acquisition 82 Jiangsu Zhonghong 81566486 5 2025.04.21-2035.04.20 Original acquisition 83 Jiangsu Zhonghong 11296248 5 2025.04.14-2035.04.13 Original acquisition 84 Jiangsu Zhonghong 79997330 5, 10 2025.01.21-2035.01.20 Original acquisition 85 Jiangsu Zhonghong 79997328 5, 10 2025.01.21-2035.01.20 Original acquisition 86 Jiangsu Zhonghong 80000093 5, 10 2025.01.21-2035.01.20 Original acquisition 87 Jiangsu Zhonghong 79728537 5, 10 2025.01.21-2035.01.20 Original acquisition 88 Jiangsu Zhonghong 13301412 5 2025.01.21-2035.01.20 Original acquisition 89 Jiangsu Zhonghong 13301310 5 2025.01.21-2035.01.20 Original acquisition

1-1-226

Serial number Trademark pattern Rights holder Registration number Approved goods/categories Validity period Acquisition method 90 Jiangsu Zhonghong 13301374 5 2025.01.21-2035.01.20 Original acquisition 91 Jiangsu Zhonghong 79748349 5, 10 2025.01.14-2035.01.13 Original acquisition 92 Jiangsu Zhonghong 76816411 5 2024.10.14-2034.10.13 Original acquisition 93 Jiangsu Zhonghong 74768744 5, 10 2024.04.14-2034.04.13 Original acquisition 94 Jiangsu Zhonghong 76902023 5 2024.09.07-2034.09.06 Original acquisition 95 Jiangsu Zhonghong 76900482 10 2024.09.07-2034.09.06 Original acquisition 96 Jiangsu Zhonghong 76926733 5, 10 2024.08.21-2034.08.20 Original acquisition 97 Jiangsu Zhonghong 77098971 5, 10 2024.08.14-2034.08.13 Original acquisition 98 Jiangsu Zhonghong 76852001 5 2024.08.07-2034.08.06 Original acquisition 99 Jiangsu Zhonghong 76849226 10 2024.08.07-2034.08.06 Original acquisition 100 Jiangsu Zhonghong 74723620 5, 10 2024.04.21-2034.04.20 Original acquisition

1-1-227

Serial number Trademark pattern Rights holder Registration number Approved goods/category Validity period Acquisition method 101 Jiangsu Zhonghong 74758993 5, 10 2024.04.07-2034.04.06 Original acquisition 102 Jiangsu Zhonghong 74707033 5, 10 2024.04.07-2034.04.06 Original acquisition 103 Jiangsu Zhonghong 74569970 5 2024.04.07-2034.04.06 Original acquisition 104 Jiangsu Zhonghong 74566122 5 2024.04.07-2034.04.06 Original acquisition 105 Jiangsu Zhonghong 74567252 5 2024.04.07-2034.04.06 Original acquisition 106 Jiangsu Zhonghong 72140521 5, 10 2024.02.14-2034.02.13 Original acquisition 107 Jiangsu Zhonghong 72140763 3, 5, 10 2024.02.07-2034.02.06 Original acquisition 108 Jiangsu Zhonghong 71278222 5, 36 2024.01.28-2034.01.27 Original acquisition 109 Jiangsu Zhonghong 71256545 5, 36 2024.01.07-2034.01.06 Original acquisition 110 Jiangsu Zhonghong 11296454 5 2023.12.28-2033.12.27 Original acquisition 111 Jiangsu Zhonghong 72125853 3, 5, 10 2023.12.14-2033.12.13 Original acquisition

1-1-228

Serial number Trademark pattern Rights holder Registration number Approved goods/category Validity period Obtaining method 112 Jiangsu Zhonghong 72104145 5 2023.12.14-2033.12.13 Original acquisition 113 Jiangsu Zhonghong 72115739 5 2023.12.14-2033.12.13 Original acquisition 114 Jiangsu Zhonghong 72059883 5 2023.12.07-2033.12.06 Original acquisition 115 Jiangsu Zhonghong 71406305 5 2023.12.07-2033.12.06 Original acquisition 116 Jiangsu Zhonghong 72040127 5 2023.11.21-2033.11.20 Original acquisition 117 Jiangsu Zhonghong 71404869 5 2023.11.21-2033.11.20 Original acquisition 118 Jiangsu Zhonghong 71406285 5 2023.11.07-2033.11.06 Original acquisition 119 Jiangsu Zhonghong 71390613 5 2023.11.07-2033.11.06 Original acquisition 120 Jiangsu Zhonghong 71400700 5 2023.11.07-2033.11.06 Original acquisition 121 Jiangsu Zhonghong 71403442 5 2023.11.07-2033.11.06 Original acquisition 122 Jiangsu Zhonghong 71384346 5 2023.11.07-2033.11.06 Original acquisition 123 Jiangsu Zhonghong 71403483 5 2023.11.07-2033.11.06 Original acquisition 124 Jiangsu Zhonghong 71385955 5 2023.11.07-2033.11.06 Original acquisition 125 Jiangsu Zhonghong 71403489 5 2023.11.07-2033.11.06 Original acquisition 126 Jiangsu Zhonghong 71407600 5 2023.11.07-2033.11.06 Original acquisition

1-1-229

Serial number Trademark pattern Rights holder Registration number Approved goods/category Validity period Obtaining method 127 Jiangsu Zhonghong 71390100 5 2023.11.07-2033.11.06 Original acquisition 128 Jiangsu Zhonghong 71386138 5 2023.11.07-2033.11.06 Original acquisition 129 Jiangsu Zhonghong 71389305 5 2023.11.07-2033.11.06 Original acquisition 130 Jiangsu Zhonghong 71369059 5, 10 2023.11.07-2033.11.06 Original acquisition 131 Jiangsu Zhonghong 71364233 5, 10 2023.10.28-2033.10.27 Original acquisition 132 Jiangsu Zhonghong 71374628 5, 10 2023.10.28-2033.10.27 Original acquisition 133 Jiangsu Zhonghong 71357773 5 2023.10.28-2033.10.27 Original acquisition 134 Jiangsu Zhonghong 71374637 5, 10 2023.10.28-2033.10.27 Original acquisition 135 Jiangsu Zhonghong 71360240 5, 10 2023.10.28-2033.10.27 Original acquisition 136 Jiangsu Zhonghong 71354018 5. 10 2023.10.28-2033.10.27 Original acquisition 137 Jiangsu Zhonghong 71357762 5 2023.10.28-2033.10.27 Original acquisition 138 Jiangsu Zhonghong 71370193 5 2023.10.28-2033.10.27 Original acquisition 139 Jiangsu Zhonghong 71373056 5, 10 2023.10.28-2033.10.27 Original acquisition 140 Jiangsu Zhonghong 71360273 5 2023.10.28-2033.10.27 Original acquisition

1-1-230

Serial number Trademark pattern Rights holder Registration number Approved goods/categories Validity period Obtaining method 141 Jiangsu Zhonghong 71370159 5, 10 2023.10.28-2033.10.27 Original acquisition 142 Jiangsu Zhonghong 71370182 5 2023.10.28-2033.10.27 Original acquisition 143 Jiangsu Zhonghong 71360239 5, 10 2023.10.28-2033.10.27 Original acquisition 144 Jiangsu Zhonghong 71349447 5, 10 2023.10.28-2033.10.27 Original acquisition 145 Jiangsu Zhonghong 70676821 5. 10 2023.10.21-2033.10.20 Original acquisition 146 Jiangsu Zhonghong 70678783 5. 10 2023.10.14-2033.10.13 Original acquisition 147 Jiangsu Zhonghong 70693382 5. 10 2023.10.14-2033.10.13 Original acquisition 148 Jiangsu Zhonghong 70575723 5 2023.10.14-2033.10.13 Original acquisition 149 Jiangsu Zhonghong 70611299 5, 10 2023.10.07-2033.10.06 Original acquisition 150 Jiangsu Zhonghong 70605158 5, 10 2023.10.07-2033.10.06 Original acquisition 151 Jiangsu Zhonghong 70613642 5 2023.09.21-2033.09.20 Original acquisition 152 Jiangsu Zhonghong 70620952 10 2023.09.21-2033.09.20 Original acquisition 153 Jiangsu Zhonghong 70592885 10 2023.09.21-2033.09.20 Original acquisition 154 Jiangsu Zhonghong 70620940 10 2023.09.21-2033.09.20 Original acquisition

1-1-231

Serial number Trademark pattern Rights holder Registration number Approved goods/category Validity period Obtaining method 155 Jiangsu Zhonghong 70598533 10 2023.09.21-2033.09.20 Original acquisition 156 Jiangsu Zhonghong 70603072 5 2023.09.14-2033.09.13 Original acquisition 157 Jiangsu Zhonghong 10531616 42 2023.05.28-2033.05.27 Original acquisition 158 Jiangsu Zhonghong 10531592 5 2023.05.28-2033.05.27 Original acquisition 159 Jiangsu Zhonghong 9953265 42 2023.05.21-2033.05.20 Original acquisition 160 Jiangsu Zhonghong 9953261 42 2023.05.07-2033.05.06 Original acquisition 161 Jiangsu Zhonghong 9953247 5 2023.04.28-2033.04.27 Original acquisition 162 Jiangsu Zhonghong 9953274 42 2023.04.28-2033.04.27 Original acquisition 163 Jiangsu Zhonghong 9953231 5 2023.04.28-2033.04.27 Original acquisition 164 Jiangsu Zhonghong 65974047 5 2023.01.07-2033.01.06 Original acquisition 165 Jiangsu Zhonghong 9953183 5 2022.11.14-2032.11.13 Original acquisition 166 Jiangsu Zhonghong 61692806 5 2022.06.28-2032.06.27 Original acquisition 167 Jiangsu Zhonghong 61681800 5 2022.06.21-2032.06.20 Original acquisition

1-1-232

Serial number Trademark pattern Rights holder Registration number Approved goods/category Validity period Obtaining method 168 Jiangsu Zhonghong 61684249 5 2022.06.21-2032.06.20 Original acquisition 169 Jiangsu Zhonghong 61684273 5 2022.06.21-2032.06.20 Original acquisition 170 Jiangsu Zhonghong 61681811 5 2022.06.21-2032.06.20 Original acquisition 171 Jiangsu Zhonghong 61488614 5 2022.06.14-2032.06.13 Original acquisition 172 Jiangsu Zhonghong 61488604 5 2022.06.07-2032.06.06 Original acquisition 173 Jiangsu Zhonghong 61501082 5 2022.06.07-2032.06.06 Original acquisition 174 Jiangsu Zhonghong 61480288 5 2022.06.07-2032.06.06 Original acquisition 175 Jiangsu Zhonghong 60864232 5 2022.05.21-2032.05.20 Original acquisition

176 Jiangsu Zhonghong 58140848 10 2022.05.21-2032.05.20 Original acquisition

177 Jiangsu Zhonghong 60702188 5 2022.05.14-2032.05.13 Original acquisition

178 Jiangsu Zhonghong 58065057 10 2022.04.28-2032.04.27 Original acquisition

179 Jiangsu Zhonghong 58087241 10 2022.04.28-2032.04.27 Original acquisition

180 Jiangsu Zhonghong 55411360 5 2022.03.14-2032.03.13 Original acquisition

181 Jiangsu Zhonghong 58187848 10 2022.02.14-2032.02.13 Original acquisition

1-1-233

Serial number Trademark pattern Rights holder Registration number Approved goods/category Validity period Obtaining method 182 Jiangsu Zhonghong 58168787 10 2022.02.07-2032.02.06 Original acquisition 183 Jiangsu Zhonghong 58193432 10 2022.01.28-2032.01.27 Original acquisition 184 Jiangsu Zhonghong 58177202 10 2022.01.28-2032.01.27 Original acquisition 185 Jiangsu Zhonghong 58201402 10 2022.01.28-2032.01.27 Original acquisition 186 Jiangsu Zhonghong 58184750 10 2022.01.28-2032.01.27 Original acquisition 187 Jiangsu Zhonghong 58184733 10 2022.01.28-2032.01.27 Original acquisition 188 Jiangsu Zhonghong 58181961 10 2022.01.28-2032.01.27 Original acquisition 189 Jiangsu Zhonghong 58181995 10 2022.01.28-2032.01.27 Original acquisition 190 Jiangsu Zhonghong 58173536 10 2022.01.28-2032.01.27 Original acquisition 191 Jiangsu Zhonghong 58198450 10 2022.01.28-2032.01.27 Original acquisition 192 Jiangsu Zhonghong 58151158 10 2022.01.28-2032.01.27 Original acquisition

1-1-234

Serial number Trademark pattern Rights holder Registration number Approved goods/category Validity period Obtaining method 193 Jiangsu Zhonghong 58151122 10 2022.01.28-2032.01.27 Original acquisition 194 Jiangsu Zhonghong 58153909 10 2022.01.28-2032.01.27 Original acquisition 195 Jiangsu Zhonghong 58065216 10 2022.01.28-2032.01.27 Original acquisition 196 Jiangsu Zhonghong 58063896 10 2022.01.28-2032.01.27 Original acquisition 197 Jiangsu Zhonghong 58085730 10 2022.01.28-2032.01.27 Original acquisition 198 Jiangsu Zhonghong 58089535 10 2022.01.28-2032.01.27 Original acquisition 199 Jiangsu Zhonghong 58082773 10 2022.01.28-2032.01.27 Original acquisition 200 Jiangsu Zhonghong 58073642 10 2022.01.28-2032.01.27 Original acquisition 201 Jiangsu Zhonghong 58076604 10 2022.01.28-2032.01.27 Original acquisition 202 Jiangsu Zhonghong 58078283 10 2022.01.28-2032.01.27 Original acquisition 203 Jiangsu Zhonghong 58078235 10 2022.01.28-2032.01.27 Original acquisition

1-1-235

Serial number Trademark pattern Rights holder Registration number Approved goods/category Validity period Obtaining method 204 Jiangsu Zhonghong 58081177 10 2022.01.28-2032.01.27 Original acquisition 205 Jiangsu Zhonghong 58076974 10 2022.01.28-2032.01.27 Original acquisition 206 Jiangsu Zhonghong 58073402 10 2022.01.28-2032.01.27 Original acquisition 207 Jiangsu Zhonghong 55209085 5 2022.01.14-2032.01.13 Original acquisition 208 Jiangsu Zhonghong 55227585 5 2022.01.14-2032.01.13 Original acquisition 209 Jiangsu Zhonghong 55231175 5 2022.01.14-2032.01.13 Original acquisition 210 Jiangsu Zhonghong 54836987 5 2022.01.14-2032.01.13 Original acquisition 211 Jiangsu Zhonghong 55953872 5 2021.12.07-2031.12.06 Original acquisition 212 Jiangsu Zhonghong 55949402 5 2021.12.07-2031.12.06 Original acquisition 213 Jiangsu Zhonghong 55975572 5 2021.12.07-2031.12.06 Original acquisition

1-1-236

Serial number Trademark pattern Rights holder Registration number Approved goods/category Validity period Obtaining method 214 Jiangsu Zhonghong 55973997 5 2021.12.07-2031.12.06 Original acquisition 215 Jiangsu Zhonghong 55398837A 5 2021.11.21-2031.11.20 Original acquisition 216 Jiangsu Zhonghong 55210283A 5 2021.11.21-2031.11.20 Original acquisition 217 Jiangsu Zhonghong 55203852A 5 2021.11.21-2031.11.20 Original acquisition 218 Jiangsu Zhonghong 55210271A 5 2021.11.21-2031.11.20 Original acquisition 219 Jiangsu Zhonghong 54841497A 5 2021.11.21-2031.11.20 Original acquisition 220 Jiangsu Zhonghong 54834102A 5 2021.11.21-2031.11.20 Original acquisition 221 Jiangsu Zhonghong 54850098A 5 2021.11.21-2031.11.20 Original acquisition 222 Jiangsu Zhonghong 54819958A 5 2021.11.21-2031.11.20 Original acquisition 223 Jiangsu Zhonghong 55389752 5 2021.11.07-2031.11.06 Original acquisition

1-1-237

Serial number Trademark pattern Rights owner Registration number Approved goods/category Validity period Obtaining method 224 Jiangsu Zhonghong 55408126 5 2021.11.07-2031.11.06 Original acquisition 225 Jiangsu Zhonghong 55376479 5 2021.11.07-2031.11.06 Original acquisition 226 Jiangsu Zhonghong 55376450 5 2021.11.07-2031.11.06 Original acquisition 227 Jiangsu Zhonghong 54832494 5 2021.10.21-2031.10.20 Original acquisition 228 Jiangsu Zhonghong 54834094 5 2021.10.21-2031.10.20 Original acquisition 229 Jiangsu Zhonghong 54842083 5 2021.10.21-2031.10.20 Original acquisition 230 Jiangsu Zhonghong 54850107 5 2021.10.21-2031.10.20 Original acquisition 231 Jiangsu Zhonghong 54671559 5 2021.10.14-2031.10.13 Original acquisition 232 Jiangsu Zhonghong 54671990 5 2021.10.07-2031.10.06 Original acquisition 233 Jiangsu Zhonghong 54703276 5 2021.10.07-2031.10.06 Original acquisition 234 Jiangsu Zhonghong 54670671 5 2021.10.07-2031.10.06 Original acquisition

1-1-238

Serial number Trademark pattern Rights owner Registration number Approved goods/categories Validity period Obtaining method 235 Jiangsu Zhonghong 54689470 5 2021.10.07-2031.10.06 Original acquisition 236 Jiangsu Zhonghong 54683951 5 2021.10.07-2031.10.06 Original acquisition 237 Jiangsu Zhonghong 54684324 5 2021.10.07-2031.10.06 Original acquisition 238 Jiangsu Zhonghong 48694563 5 2021.03.21-2031.03.20 Original acquisition 239 Jiangsu Zhonghong 47683727 5 2021.02.14-2031.02.13 Original acquisition 240 Jiangsu Zhonghong 22617787 23 2018.02.14-2028.02.13 Original acquisition 241 Jiangsu Zhonghong 22617158 3 2018.02.14-2028.02.13 Original acquisition 242 Jiangsu Zhonghong 22617490 22 2018.02.14-2028.02.13 Original acquisition 243 Jiangsu Zhonghong 17323137 10 2016.09.07-2026.09.06 Original acquisition 244 Jiangsu Zhonghong 17323113 10 2016.09.07-2026.09.06 Original acquisition 245 Jiangsu Zhonghong 17323687 10 2016.09.07-2026.09.06 Original acquisition

1-1-239

Serial number Trademark pattern Rights holder Registration number Approved goods/category Validity period Obtaining method 246 Jiangsu Zhonghong 17323125 10 2016.09.07-2026.09.06 Original acquisition 247 Jiangsu Zhonghong 17323060 1 2016.09.07-2026.09.06 Original acquisition 248 Jinghong Biotechnology 22620090 23 2018.04.07-2028.04.06 Original acquisition 249 Jinghong Biotechnology 22875111 5 2018.02.28-2028.02.27 Original acquisition 250 Jinghong Biotechnology 22875019 5 2018.02.28-2028.02.27 Original acquisition of 251 Jinghong Biotechnology 22875010 5 2018.02.28-2028.02.27 Original acquisition of 252 Jinghong Biotechnology 22874923 5 2018.02.28-2028.02.27 Original acquisition of 253 Jinghong Biotechnology 22874888 5 2018.02.28-2028.02.27 Original acquisition 254 Jinghong Biotechnology 22874475 5 2018.02.28-2028.02.27 Original acquisition 255 Jinghong Biotechnology 22620007 22 2018.02.14-2028.02.13 Original acquisition

1-1-240

Serial number Trademark pattern Rights holder Registration number Approved goods/categories Validity period Obtaining method 256 Jinghong Biotech 17346214 10 2017.05.21-2027.05.20 Original acquisition 257 Jinghong Biotech 18453561 42 2017.03.21-2027.03.20 Original acquisition 258 Jinghong Biotechnology 18453547 10 2017.01.07-2027.01.06 Original acquisition 259 Jinghong Biotechnology 18453425 5 2017.01.07-2027.01.06 Original acquisition 260 Jinghong Biotechnology 17323390 5 2016.11.14-2026.11.13 Original acquisition of 261 Jinghong Biotechnology 17323976 5 2016.10.28-2026.10.27 Original acquisition of 262 Jinghong Biotechnology 17346328 5 2016.09.07-2026.09.06 Original acquisition of 263 Jinghong Biotech 17328405 10 2016.09.07-2026.09.06 Original acquisition

1-1-241

Serial number Trademark pattern Rights holder Registration number Approved goods/categories Validity period Obtaining method 264 Jinghong Biotech 17328382 42 2016.09.07-2026.09.06 Original acquisition 265 Jinghong Biotech 17323791 42 2016.09.07-2026.09.06 Original acquisition 266 Jinghong Biotechnology 17323688 10 2016.09.07-2026.09.06 Original acquisition 267 Jinghong Biotechnology 17323632 10 2016.09.07-2026.09.06 Original acquisition 268 Jinghong Biotechnology 17323267 1 2016.09.07-2026.09.06 Original acquisition 269 Jinghong Biotech 17323793 42 2016.09.07-2026.09.06 Original acquisition

Appendix 3: The issuer’s domestic authorized patents

Serial number Patentee Patent name Patent type Patent number Application date How to obtain Other rights

4-(imidazo[1, 2-a] for the treatment of proliferative diseases and disorders

1 Qianhong Pharmaceutical Invention 202080069747.6 2020.10.14 Inherited and acquired No derivatives of pyridin-3-yl)-N-(pyridin-3-yl)pyrimidin-2-amine

4-(imidazo[1,2-a]pyridin-3-yl)-N-(pyridin-3-yl) as therapeutic agent

2 Qianhong Pharmaceutical Invention 202080054893.1 2020.07.10 Acquisition by inheritance None

Derivatives of pyrimidin-2-amine

3 Qianhong Pharmaceutical Preparation method of enzyme tablets and enzyme tablets Invention 202111117869.0 2021.09.23 Original acquisition None

A preparation capable of improving the thermal stability of tablets and pancreatic kallikreinogenase

4 Qianhong Pharmaceutical Invention 201911370818.1 2019.12.26 Original acquisition of non-heat-stable pancreatic kallikrein tablets and preparation method thereof

1-1-242

Serial number Patentee Patent name Patent type Patent number Application date Method of acquisition Other rights 5 Qianhong Pharmaceutical A method for preparing asparaginase by fermentation Invention 201911368749.0 2019.12.26 Original acquisition None 6 Qianhong Pharmaceutical A method for preparing enoxaparin sodium Invention 201410361424.0 2014.07.28 Original acquisition None 7 Qianhong Pharmaceutical A preparation process for nadroparin calcium Invention 201410361423.6 2014.07.28 Original acquisition None

Specific anti-rHAP monoclonal antibody and preparation method and test thereof

8 Qianhong Pharmaceutical Invention 201310739604.3 2013.12.27 Original acquisition None

kit

9 Qianhong Pharmaceutical A method for preparing high-quality dalteparin sodium Invention 201410289479.5 2014.06.26 Original acquisition None 10 Qianhong Pharmaceutical A method for preparing dalteparin sodium Invention 201410289506.9 2014.06.26 Original acquisition None

Isolation of Annexin V or its derivatives expressed in E. coli

11 Qianhong Pharmaceutical Invention 201310708043.0 2013.12.20 Original acquisition None

Purification method

12 Qianhong Pharmaceutical Decolorization method of enoxaparin sodium Invention 201210274496.2 2012.08.03 Original acquisition None

Asparaginase freeze-dried powder injection and preparation method thereof and aspartame

13 Qianhong Pharmaceutical Invention 201110081387.4 2011.04.01 Original acquisition Amidase-free solution

Application of pancreatic kallikreinogenase in the preparation of drugs for radiotherapy of tumors

14 Qianhong Pharmaceutical Invention 200610152501.7 2006.09.27 Original acquisition None

use

15 Qianhong Pharmaceutical Method for purifying L-asparaginase Invention 200710021221.7 2007.04.18 Original acquisition None 16 Qianhong Pharmaceutical Method for purifying elastase Invention 200710020819.4 2007.04.06 Original acquisition None 17 Qianhong Pharmaceutical Compound digestive enzyme preparation and its preparation method Invention 200610152502.1 2006.09.27 Original acquisition No 18 Qianhong Pharmaceutical Ornaments (cartoon character ornaments) Appearance design 202430151544.2 2024.03.22 Original acquisition No 19 Qianhong Pharmaceutical Packaging box (kallikrein for injection) Appearance design 201630463858.1 2016.09.07 Original acquisition N/A 20 Qianhong Pharmaceutical Packaging box (compound digestive enzyme capsules II) Appearance design 201630463866.6 2016.09.07 Original acquisition N/A 21 Qianhong Pharmaceutical Packaging box (elastase enteric-coated tablets) Appearance design 201630463855.8 2016.09.07 Original acquisition None

1-1-243

Serial number Patentee Patent name Patent type Patent number Application date How to obtain Other rights

22 Qianhong Pharmaceutical Packaging box (Heparin sodium injection) Appearance design 201630463862.8 2016.09.07 Original acquisition None

23 Qianhong Pharmaceutical Packaging box (enoxaparin sodium injection) Appearance design 201630463854.3 2016.09.07 Original acquisition None

Qianhong Pharmaceutical, Ying N-cycloalkyl/heterocycloalkyl-4-(imidazo[1,

24 Invention 201880015860.9 2018.02.01 Inherited and acquired Wunuoshengkang 2-a]pyridine)pyrimidin-2-amine derivatives

Qianhong Pharmaceutical, British

25 Selective CDK4/6 inhibitor succinate and its crystal form Invention 202011249267.6 2020.11.10 Original acquisition Wunuoshengkang

Qianhong Pharmaceutical, Ying N-(pyridin-2-yl)-4-(thiazol-5-yl)pyrimidin-2-amine compounds

26 Invention 201680043079.3 2016.08.04 Inherited acquisition of Wunuoshengkang as a therapeutic compound

Qianhong Pharmaceutical, British

27 Selective CDK9 inhibitor tartrate and its crystal form Invention 201810637484.9 2018.06.20 Original acquisition Wunuoshengkang

Yingnuo Shengkang, Qian

28 A method for preparing a CDK inhibitor Invention 202211346206.0 2022.10.31 Original acquisition Wuhong Pharmaceutical

Innoshengkang, Qian A drug combination containing a cell cycle protein kinase inhibitor

29 Invention 202111451044.2 2021.12.01 Original acquisition of red-free pharmaceutical drug and preparation method thereof

Jiangsu Zhonghong, Qian PEGylated long-acting growth hormone and its preparation method and medicine

30 Invention 202111395675.7 2021.11.19 Original acquisition Wuhong Pharmaceutical Application

Jiangsu Zhonghong, Qian

31 Preparation of pegylated kallikrein and its application Invention 201710699376.X 2017.08.16 Original acquisition Wuhong Pharmaceutical

Jiangsu Zhonghong, Qian

32 Recombinant human growth hormone and its encoding gene, preparation method and application Invention 201711327350.9 2017.12.13 Original acquisition Wuhong Pharmaceutical

Jiangsu Zhonghong, Qian

33 PEG site-modified asparaginase injection Invention 201610461047.7 2016.06.22 Original acquisition Wuhong Pharmaceutical

Jiangsu Zhonghong, Qian PEG modification of medicinal kallikrein and its preparation method and application

34 Invention 201710699360.9 2017.08.16 Original acquisition for Wuhong Pharmaceutical Use

Jiangsu Zhonghong, Qian Polyethylene glycol site-modified asparaginase and its preparation method

35 Invention 201410837456.3 2014.12.29 Original acquisition and application by Wuhong Pharmaceutical

1-1-244

Serial number Patentee Patent name Patent type Patent number Application date How to obtain Other rights

Jiangsu Zhonghong, Qian

36 Medicinal kallikrein and its preparation method and application Invention 201611129081.0 2016.12.09 Original acquisition Wuhong Pharmaceutical

Jiangsu Zhonghong, Qian

37 Insulin-like growth factor recombinant lactobacillus and its application Invention 201310716773.5 2013.12.23 Original acquisition Wuhong Pharmaceutical

Jiangsu Zhonghong, Qian

38 Epidermal growth factor recombinant lactobacillus and its application Invention 201310716679.X 2013.12.23 Original acquisition Wuhong Pharmaceutical

Nanjing University of Technology A fusion protein of expansin and xylanase and its encoding gene

39 Invention 201710134735.7 2017.03.08 Original acquisition None

Science, Qianhong Pharmaceutical and Application

40 Hubei Qianhong A circulating oven for crude trypsin processing Utility model 202420428944.8 2024.03.05 Original acquisition N/A 41 Hubei Qianhong A trypsin raw material conveying device Utility model 202420465508.8 2024.03.11 Original acquisition N/A 42 Hubei Qianhong A pulping machine for crude trypsin processing Utility model 202420187386.0 2024.01.24 Original acquisition N/A 43 Hubei Qianhong A constant-temperature crushing equipment for crude trypsin production Utility model 202323424682.2 2023.12.15 Original acquisition N/A 44 Hubei Qianhong A meat grinder for crude trypsin processing Utility model 202420201333. 2023.11.27 Original acquisition No 47 Hubei Qianhong A degreasing device for trypsin production Utility model 202323527363.4 2023.12.25 Original acquisition No 48 Hubei Qianhong A centrifugal sedimentation device for trypsin processing Utility model 202323473874.2 2023.12.20 Original acquisition None 49 Hubei Qianhong A grinding device for pancreatic enzyme production Utility model 202323195772.9 2023.11.27 Original acquisition None

Hubei Runhong Biology

50 A constant-temperature crushing device for crude trypsin production Utility model 202221059035.9 2022.04.29 Original acquisition Wu Technology Co., Ltd.

Hubei Runhong Biology

51 A high-efficiency drying equipment for crude trypsin production Utility model 202221059058.X 2022.04.29 Original acquisition Wu Technology Co., Ltd.

1-1-245

Serial number Patentee Patent name Patent type Patent number Application date How to obtain Other rights

Hubei Runhong Biology

52 A filter press equipment for crude trypsin production Utility model 202221059030.6 2022.04.29 Original acquisition Wu Technology Co., Ltd.

Hubei Runhong Biology

53 A boiler waste heat recovery device that can increase the temperature of the inlet water Utility model 202123088250.X 2021.12.09 Inherited and obtained Wu Technology Co., Ltd.

Hubei Runhong Biology

54 An exhaust gas treatment device for energy-saving boilers Utility model 202123068398.7 2021.12.08 Inherited and acquired Wu Technology Co., Ltd.

Hubei Runhong Biology

55 An ethanol recovery device Utility model 202023030751.8 2020.12.16 Inherited Wu Technology Co., Ltd.

Hubei Runhong Biology

56 An environmentally friendly crusher with dust-proof function Utility model 202023273292.6 2020.12.30 Inherited from Wu Technology Co., Ltd.

Hubei Runhong Biology

57 A pre-drying oven for storage Utility model 202020842417.3 2020.05.19 Inherited and acquired Wu Technology Co., Ltd.

Hubei Runhong Biology

58 A new type of cooling and deodorizing tower Utility model 202020618069.1 2020.04.23 Inherited and acquired Wu Technology Co., Ltd.

Licensee: Qianhong59 Innoshengkang Therapeutic compound Invention 201310136003.3 Acquired by inheritance on 2013.04.18

pharmaceutical

Licensee: Yabao 60 Innoshengkang Compounds for the treatment of proliferative disorders Invention 201180030413.9 2011.06.21 Inherited shares of Pharmaceutical Group

Co., Ltd. 61 Innoshengkang Pharmaceutical packaging box (anti-tumor drugs) Appearance design 202230826892.6 2022.12.09 Original acquisition None

62 Jiangsu Zhonghong Recombinant dust mite allergen protein pharmaceutical mixture and its application Invention 201910534102.4 2019.06.20 Original acquisition None

63 Jiangsu Zhonghong A method for detecting the purity of polyethylene glycol-modified protein drugs Invention 201611267302.0 2016.12.31 Original acquisition None

A neutrophil gelatinase-associated lipocalin assay

64 Jiangsu Zhonghong Invention 202010185664.5 2020.03.17 Original Acquisition None

Test kits and their clinical applications

65 Jiangsu Zhonghong A β-microglobulin detection kit and its clinical application Invention 202010185527.1 2020.05.06 Original acquisition None

66 Jiangsu Zhonghong Liquid phase method for detecting Tween content in pharmaceutical preparations Invention 201811387333.9 2018.11.21 Original acquisition None

1-1-246

Serial number Patentee Patent name Patent type Patent number Application date Acquisition method Other rights 67 Jiangsu Zhonghong Arginine deiminase mutants and their applications Invention 201910800782.X 2019.08.28 Original acquisition None

Preparation of recombinant dust mite type I allergen Derp1 and Derf1 proteins

68 Jiangsu Zhonghong Invention 201811379966.5 2018.11.20 Original acquisition None and application

Preparation of recombinant dust mite type II allergen Derp2 and Derf2 proteins

69 Jiangsu Zhonghong Invention 201811379967.X 2018.11.20 Original Acquisition None

and application

70 Jiangsu Zhonghong Chemical modifications of recombinant human kallikrein and their applications Invention 201910046203.7 2013.12.30 Original acquisition None 71 Jiangsu Zhonghong Anti-human serum albumin antibodies and their applications Invention 201911208089.X 2019.11.30 Original acquisition None 72 Jiangsu Zhonghong Anti-human beta -MG antibody and its application Invention 201811616600.5 2018.12.28 Original acquisition No 73 Jiangsu Zhonghong Anti-human D-Dimer antibody and its application Invention 201910354935.2 2019.04.29 Original acquisition No 74 Jiangsu Zhonghong Human D-dimer quantitative detection card and its clinical application Invention 201910354934.8 2019.04.29 Original acquisition N/A 75 Jiangsu Zhonghong Anti-human MYO antibody and its application in detection kit Invention 201811625189.8 2018.12.28 Original acquisition N/A 76 Jiangsu Zhonghong Anti-human NGAL antibody and its application in detection test strip card Invention 201811643164.0 2018.12.29 Original acquisition None 77 Jiangsu Zhonghong Recombinant human growth hormone and its eukaryotic system expression method Invention 201811186317.3 2018.10.12 Original acquisition None

Anti-human neutrophil gelatinase-associated lipocalin antibody

78 Jiangsu Zhonghong Invention 201811637708.2 2018.12.29 Original Acquisition None

and its application in testing test paper cards

79 Jiangsu Zhonghong Anti-human β-microglobulin antibody and its application Invention 201811616641.4 2018.12.28 Original acquisition None 80 Jiangsu Zhonghong Anti-human D-dimer antibody and its application Invention 201910354942.2 2019.04.29 Original acquisition None

Quantitative detection of human neutrophil gelatinase-associated lipocalin

81 Jiangsu Zhonghong Invention 201811637713.3 2018.12.29 Original acquisition None

Card test and its clinical application

82 Jiangsu Zhonghong Quantitative detection test strip card for human β-microglobulin and clinical application Invention 201811616680.4 2018.12.28 Original acquisition None 83 Jiangsu Zhonghong Immunohistochemical detection kit for human CD26 and its clinical application Invention 201811623085.3 2018.12.28 Original acquisition None

1-1-247

Serial number Patentee Patent name Patent type Patent number Application date Acquisition method Other rights 84 Jiangsu Zhonghong Human myoglobin detection test strip card and its clinical application Invention 201811625161.4 2018.12.28 Original acquisition None

Recombinant arginine deiminase and its industrial preparation methods and applications

85 Jiangsu Zhonghong Invention 201711371748.2 2017.12.19 Original acquisition None

use

86 Jiangsu Zhonghong PEG-binding number detection method for PEG-modified proteins Invention 201611270257.4 2016.12.31 Original acquisition None 87 Jiangsu Zhonghong Bispecific antibodies, preparation methods and uses thereof Invention 201580008856.6 2015.10.30 Original acquisition None

Polyethylene glycol site-modified arginine deiminase and its preparation

88 Jiangsu Zhonghong Invention 201711379689.3 2017.12.20 Original acquisition None

Methods and Applications

89 Jiangsu Zhonghong A recombinant Artemisia annua class 1 allergen protein and its application Invention 201711379683.6 2017.12.20 Original acquisition None

A recombinant Dermatophagoides farinae type 2 allergen protein and its preparation method

90 Jiangsu Zhonghong Invention 201711379720.3 2017.12.20 Original acquisition None

and application

91 Jiangsu Zhonghong A retinol-binding protein detection kit and its clinical application Invention 201811623179.0 2018.12.28 Original acquisition None

A recombinant Dermatophagoides farinae class 1 allergen protein and its preparation method

92 Jiangsu Zhonghong Invention 201711379684.0 2017.12.20 Original Acquisition None

and application

93 Jiangsu Zhonghong Preparation method and application of human colon cancer stem cells Invention 201710037582.4 2017.01.19 Original acquisition None

An anti-human CD26 antibody and its application in detection kit

94 Jiangsu Zhonghong Invention 201811623127.3 2018.12.28 Original acquisition None

use

95 Jiangsu Zhonghong Anti-human myoglobin antibody and its application in detection kit Invention 201811623180.3 2018.12.28 Original acquisition None 96 Jiangsu Zhonghong Anti-human cystatin C antibody and its application Invention 201710784642.9 2017.09.04 Original acquisition None 97 Jiangsu Zhonghong An anti-human CysC antibody and its application Invention 201710784623.6 2017.09.04 Original acquisition No 98 Jiangsu Zhonghong A method suitable for pegylated protein purity detection Invention 201611088647.X 2016.11.30 Original acquisition No 99 Jiangsu Zhonghong Anti-human RBP antibody and its application Invention 201810087162.1 2018.01.30 Original acquisition None 100 Jiangsu Zhonghong Anti-human retinol-binding protein antibody and its application Invention 201810087124.6 2018.01.30 Original acquisition None

1-1-248

Serial number Patentee Patent name Patent type Patent number Application date Acquisition method Other rights 101 Jiangsu Zhonghong A recombinant Artemisia annua type 3 allergen protein and its application Invention 201711379640.8 2017.12.20 Original acquisition None

Vectors, genes, methods and applications for expressing recombinant proteins in Pichia pastoris

102 Jiangsu Zhonghong Invention 201410854294.4 2014.12.31 Original acquisition None

use

103 Jiangsu Zhonghong A method for the industrial production of pharmaceutical grade recombinant human kallikrein Invention 201611128101.2 2016.12.09 Original acquisition None 104 Jiangsu Zhonghong A method for reprogramming induced pluripotent stem cells Invention 201510998816.2 2015.12.25 Original acquisition None 105 Jiangsu Zhonghong Anti-human CRP antibody and its application Invention 201710037823.5 2017.01.19 Original acquisition None 106 Jiangsu Zhonghong Anti-human C-reactive protein antibody and its application Invention 201710037811.2 2017.01.19 Original acquisition None 107 Jiangsu Zhonghong Method for purifying polyethylene glycol modified proteins and modified products Invention 201410837314.7 2014.12.29 Original acquisition None

A recombinant house dust mite type 2 allergen protein and its preparation method

108 Jiangsu Zhonghong Invention 201711379674.7 2017.12.20 Original acquisition No and application

A recombinant house dust mite type 1 allergen protein and its preparation method

109 Jiangsu Zhonghong Invention 201711379658.8 2017.12.20 Original acquisition None

and application

110 Jiangsu Zhonghong Anti-human kallikrein antibody and its application Invention 201510051431.5 2015.01.30 Original acquisition None

New uses of multi-arm polyethylene glycol modifiers and their application in modifying Asparagus

111 Jiangsu Zhonghong Invention 201310745273.4 2013.12.30 Original acquisition None

Applications in amidases

112 Jiangsu Zhonghong Anti-human tissue kallikrein 1 antibody and its application Invention 201510051827. Anti-human PCT antibody and its application Invention 201610397039.0 2016.06.07 Original acquisition None 115 Jiangsu Zhonghong Anti-human C-reactive protein antibody and its application Invention 201610225905.8 2016.04.12 Original acquisition None

Pharmaceutical composition containing pegylated asparaginase and preparation thereof

116 Jiangsu Zhonghong Invention 201410837626.8 2014.12.29 Original Acquisition None

Preparation method

117 Jiangsu Zhonghong Anti-human CRP antibody and its application Invention 201610225719.4 2016.04.12 Original acquisition None

1-1-249

Serial number Patentee Patent name Patent type Patent number Application date Acquisition method Other rights 118 Jiangsu Zhonghong Anti-ractopamine antibodies and their applications Invention 201510048100.6 2015.01.29 Original acquisition None 119 Jiangsu Zhonghong Human tissue kallikrein 1 colloidal gold quantitative detection test paper card Invention 201510050984.9 2015.01.30 Original Acquisition N/A 120 Jiangsu Zhonghong Human Tissue Kallikrein 1 Fluorescence Quantitative Detection Test Paper Card Invention 201510050985.3 2015.01.30 Original Acquisition N/A 121 Jiangsu Zhonghong Human Tissue Kallikrein 1 ELISA Quantitative Detection Kit Invention 201510051031.4 2015.01.30 Original acquisition None

A recombinant human kallikrein 1 and its encoding gene and preparation

122 Jiangsu Zhonghong Invention 201310718972.X 2013.12.23 Original acquisition No method

Human kallikrein and encoding genes expressed in mammalian cells

123 Jiangsu Zhonghong Invention 201310746269.X 2013.12.30 Original Acquisition None

and its applications

124 Jiangsu Zhonghong Fusion protein of TNFα and DC-SIGN and its application Invention 201310743708.1 2013.12.30 Original acquisition None 125 Jiangsu Zhonghong Fully human anti-CD26 antibody and its application Invention 201310704444.9 2013.12.19 Original acquisition None 126 Jiangsu Zhonghong A humanized anti-CD26 antibody and its application Invention 201410020156.6 2014.01.16 Original acquisition None

A kind of human kallikrein and its encoding gene and application preparation method

127 Jiangsu Zhonghong Invention 201310737079.1 2013.12.27 Original acquisition None

law

128 Jiangsu Zhonghong Anti-CD26 antibody and its preparation method Invention 201310704143.6 2013.12.19 Original acquisition None 129 Jiangsu Zhonghong Anti-CD26 antibody and its application Invention 201310662363.7 2013.12.09 Original acquisition None 130 Jinghong Biotech Human PCT fluorescence quantitative detection test paper card Invention 201610396648.4 2016.06.07 Original acquisition N/A 131 Jinghong Biotech. Human C-reactive protein colloidal gold quantitative detection card Invention 201710037822.0 2017.01.19 Original acquisition N/A 132 Jinghong Bioscience Human procalcitonin colloidal gold quantitative detection card Invention 201610397923.4 2016.06.07 Original acquisition N/A 133 Jinghong Biotech Human C-reactive protein fluorescence quantitative detection test paper card Invention 201610225639.9 2016.04.12 Original acquisition N/A 134 Jinghong Biotechnology Ractopamine detection test paper card and kit Invention 201510048150.4 2015.01.29 Acquisition by inheritance None 135 Jinghong Biotech Immunochromatography Quantitative Detector Appearance design 201730323718.9 2017.07.21 Original acquisition None

1-1-250

Serial number Patentee Patent name Patent type Patent number Application date How to obtain Other rights

Jinghong Biotech, Jiang

136 Human cystatin C colloidal gold quantitative detection card Invention 201710784640.X 2017.09.04 Original acquisition Wu Su Zhonghong

Jinghong Biotech, Jiangren RBP colloidal gold immunochromatographic quantitative detection test paper card and its clinical

137 Invention 201810087161.7 2018.01.30 Original acquisition Wusu Zhonghong bed application

Appendix 4: Issuer’s overseas authorized patents

Serial number Patentee Patent name Patent number Patent type Patent validity period Country/region Obtaining method

Qianhong Pharmaceutical, Tartrate of selective CDK9 inhibitor and crystal

1 11202012379T Invention 2019.05.29-2039.05.29 Singapore Original acquisition form thereof

Qianhong Pharmaceutical, Tartrate of selective CDK9 inhibitor and crystal

2 3102296 Invention 2019.05.29-2039.05.29 Canada Original acquisition form thereof

Qianhong Pharmaceutical, Tartrate of selective CDK9 inhibitor and crystal

3 2019289398 Invention 2019.05.29-2039.05.29 Australia Original acquisition form thereof

Qianhong Pharmaceutical, Tartrate of selective CDK9 inhibitor and crystal UK, France,

4 3812385 Invention 2019.05.29-2039.05.29 Original acquisition of Innoshengkang form thereof Germany, Switzerland

Qianhong Pharmaceutical, Tartrate of selective CDK9 inhibitor and crystal

5 11566024 Invention 2019.05.29-2039.06.30 United States Original acquisition of Innoshengkang form thereof

Qianhong Pharmaceutical, the selected CDK9 combination of tartaric acid and

6 7432590 Invention 2019.05.29-2039.05.29 Japan Original acquisition of the crystal form of Inno Shengyasu

Qianhong Pharmaceutical,

7 Tartrate of selective CDK9 inhibitor and its crystal form 40050960 Invention 2019.05.29-2039.05.29 Hong Kong, China Original acquisition

Innuoshengkang

8 Inno Shengkang THERAPEUTIC COMPOUNDS 9062039 Invention 2013.04.18-2033.04.18 United States Acquired by inheritance

UK, France,

9 Inno Shengkang THERAPEUTIC COMPOUNDS 2844657 Invention 2013.04.18-2033.04.18 Inherited from Germany and Switzerland

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Serial number Patentee Patent name Patent number Patent type Patent validity period Country/region Obtaining method

BENZENESULFONAMIDE DERIVATIVES

10 USEFUL AS INHIBITORS OF PROTEIN 2908638 Invention 2013.04.18-2033.04.18 Canada Acquired by inheritance

KINASE

11 Inno Shengkang THERAPEUTIC COMPOUNDS 2013250912 Invention 2013.04.18-2033.04.18 Australia Acquired by inheritance

Site-specific polyethylene glycolylated

Jiangsu Zhonghong,

12 (pegylated) asparaginase, preparation method 11103565 Invention 2020.01.17-2040.01.16 United States Original Acquisition from Jingsen Biotech

therefore and use thereof

Recombinant Dermatophagoides farinae type 1

13 Jiangsu Zhonghong allergen protein and its preparation method and 10975128 Invention 2019.06.28-2039.06.27 United States Original application

Recombinant Dermatophagoides farinae type 2

14 Jiangsu Zhonghong allergen protein and its preparation method and 11236137 Invention 2019.06.28-2039.06.27 United States Original application

Recombinant Dermatophagoides

15 Jiangsu Zhonghong pteronyssinus type 2 allergen protein and its 11319353 Invention 2017.12.28-2037.12.27 United States Original acquisition preparation method and application

Variant recombinant dermatophagoides

16 Jiangsu Zhonghong pteronyssinus type 1 allergen protein and its 11359191 Invention 2017.12.28-2037.12.27 United States Original acquisition preparation method and application

Bispecific antibody binding to human CD26

Jiangsu Zhonghong,

17 and human CD3, production method therefor 10752686 Invention 2015.10.30-2035.10.29 United States Original acquisition of Jingsen Biotechnology

and use thereof

Site-specific polyethylene glycolylated

Jiangsu Zhonghong,

18 (pegylated) asparaginase, preparation method 10537620 Invention 2015.02.03-2035.02.02 United States Original Acquisition from Jingsen Biotech

therefore and use thereof

Use of multi-arm polyethylene glycol modifier

Jiangsu Zhonghong, and application of multi-arm polyethylene

19 10406235 Invention 2014.07.28-2034.07.27 United States Original acquisition of Kyomori Biotech glycol modifier in L-asparaginasum

modification

Jiangsu Zhonghong, Pegylated tissue kallikrein, and preparation

20 10052368 Invention 2014.01.09-2034.01.08 United States Original acquisition of Jingsen Biotechnology method therefor and uses thereof

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Schedule 5: Copyright

Serial number Copyright owner Full name of the software Certificate number Registration number First publication date Registration date How to obtain Scope of rights

Qianhong flow data collection software soft copy

1 Qianhong Pharmaceutical 2021SR0403582 Unpublished 2021.03.17 Original acquisition All rights file V3.0 No. 7125809

Crude Trypsin Quality Testing and Quality Control

2 Hubei Qianhong 2024SR0999884 - 2024.07.15 Original acquisition of all rights management system V1.0 No. 13403757

Quality Control Production of Crude Trypsin

3 Hubei Qianhong 2024SR0999806 - 2024.07.15 Original acquisition of all rights management system V1.0 No. 13403679

Production data of crude trypsin project soft copy No.

4 Hubei Qianhong 2024SR0994599 - 2024.07.12 Original acquisition All rights analysis and management platform V1.0 No. 13398472

Crude trypsin production process control Soft publication No. 1

5 Hubei Qianhong 2024SR0994650 - 2024.07.12 Original acquisition of all rights debugging platform V1.0 No. 13398523

Intelligent production process of crude trypsin Soft publication No. 1

6 Hubei Qianhong 2024SR0994645 - 2024.07.12 Original acquisition of all rights optimization platform V1.0 No. 13398518

Hubei Runhong Biology Co., Ltd. Isolation and purification of crude trypsin. Soft publication No. 1

Hubei Runhong Biology Co., Ltd. Crude trypsin extraction and multi-enzyme production. Soft publication No. 1

Hubei Runhong Biology Co., Ltd. Crude Trypsin Automated Production Plant, Software License No.

Hubei Runhong Biology Co., Ltd. Crude trypsin drying process system. Soft publication No. 1

10 2022SR0674050 2021.07.27 2022.05.31 Original Acquisition All Rights Technology Co., Ltd. V1.0 No. 9628249

Hubei Runhong Biology Co., Ltd. Crude trypsin production and separation process. Soft publication No. 1

Hubei Runhong Biological Science and Technology Co., Ltd. Crude Trypsin Process Quality Inspection Software No. 1

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