[Temporary Announcement] Zhengji Pharmaceutical: Major Litigation Announcement of Wholly-Owned Subsidiary

Announcement number: 2026-033

Securities code: 874229 Securities abbreviation: Zhengji Pharmaceutical Sponsor: Guolian Minsheng Underwriting Sponsor

Announcement of major litigation against a wholly-owned subsidiary of Jiangsu Zhengji Pharmaceutical Co., Ltd.

The company and all members of the board of directors guarantee that the contents of the announcement are true, accurate and complete, and that there are no false records, misleading statements or major omissions, and bear individual and joint legal liability for the authenticity, accuracy and completeness of the contents.

1. Basic situation and latest progress of the acceptance of this litigation matter

(1) Party status of the listed company’s wholly-owned subsidiary: Applicant

(2) Date of receipt of acceptance notice: September 22, 2026

(3) Litigation acceptance date: September 20, 2026

(4) Name of the court accepting the case: Beijing No. 4 Intermediate People’s Court

(5) Counterclaim: None

(6) Latest developments in this case:

The company received a notice of acceptance of the case from the Beijing Fourth Intermediate People's Court on September 22, 2026. The case number is (2026) Beijing 04 Minte No. 1125.

2. Basic information about this litigation matter

(1) Basic information of the parties

1. Applicant

Name: Suzhou First Pharmaceutical Co., Ltd. (hereinafter referred to as "First Pharmaceutical")

Legal representative: Xu Jun

Relationship with the listed company: Wholly owned subsidiary of the listed company

2. The first respondent

Name: Beijing Kangchen Pharmaceutical Co., Ltd. (hereinafter referred to as "Kangchen Pharmaceutical") Legal representative: Liu Jianhua

Relationship with the listed company: None

Announcement number: 2026-033

3. The second respondent

Name: Beijing Kangchen Biotechnology Co., Ltd. (hereinafter referred to as "Kangchen Biotechnology")

Legal representative: Liu Jianhua

Relationship with the listed company: None

(2) Case facts and causes of disputes:

In the dispute arbitration case between the applicant and the respondent over the "Agreement on Payment of Cash to Purchase Assets", the China International Economic and Trade Arbitration Commission issued [2026] China International Economic and Trade Arbitration Arbitration Award No. 1519 (for details, please see the company's designated information disclosure level in the national small and medium-sized enterprise share transfer system) "Announcement on Major Arbitration Progress of Jiangsu Zhengji Pharmaceutical Co., Ltd." (Announcement No.: 2026-027) disclosed by Taiwan (www.neeq.com.cn). After receiving the award, the applicant believed that the arbitration procedure in this case seriously violated the arbitration rules. The arbitral tribunal failed to examine the applicant's core defense grounds in accordance with the law and deprived the applicant of the right to make statements and debates. This is in line with the circumstances under which the award should be revoked under Article 83 of the "Arbitration Law of the People's Republic of China (2025 Revision)". The specific reasons are as follows:

1. The applicant clearly raised the core defense of bankruptcy and reorganization throughout the arbitration process, but the arbitral tribunal completely failed to hear or comment on it, seriously depriving the applicant of the right to state his opinions and constituting a statutory reason for dismissal.

The Suzhou Industrial Park People's Court has ruled to accept the applicant's bankruptcy reorganization application on April 27, 2023, and the reorganization plan will take effect in accordance with the law on July 21, 2023. The reorganization plan is binding on all creditors and debtors.

After the respondent learned that the applicant had entered the bankruptcy reorganization procedure, it never declared the claims involved in the case during the bankruptcy procedure. According to Article 92 of the Enterprise Bankruptcy Law and the relevant provisions of the judicial interpretation of the Bankruptcy Law, creditors who have not declared their claims in accordance with the law can only claim their rights in accordance with the repayment ratio stipulated in the reorganization plan, and have no right to require the debtor to bear full repayment liability.

The applicant repeatedly submitted bankruptcy rulings and reorganization plans in arbitration defenses, court hearings, and written agency opinions, using the above-mentioned bankruptcy claims defense as the core defense reason. However, the full text of the arbitration award did not include any review, reasoning or response to this major defense matter. It ignored the special legal framework for bankruptcy and reorganization and directly ruled that the applicant should bear full joint and several liability for liquidated damages and related expenses of 90 million yuan.

The arbitral tribunal's omission of a statutory major defense essentially deprived the applicant of its right to fully state, provide evidence and debate, which is in line with Article 83, paragraph 1, item (2) of the Arbitration Law, which states that "due to other reasons that are not the responsibility of the respondent,

Announcement number: 2026-033

The reason for the failure to state the opinion".

2. The arbitral tribunal has double standards for the admission of evidence, and the arbitration procedures are inconsistent with the China International Economic and Trade Arbitration Commission Arbitration Rules.

(1) The second respondent submitted an "Application for Adding Arbitration Requests and Restatement of Factual Reasons" and a large amount of supplementary evidence 4 days before the hearing, and significantly changed the arbitration claims. The arbitral tribunal directly accepted the change request and supporting evidence, without giving the applicant an equivalent time limit for defense and evidence preparation.

(2) The applicant submitted key rebuttal evidence and supplementary agency opinions to the arbitration tribunal on April 15, 2026, to support core arguments such as bankruptcy defense, liability for breach of contract, excessive liquidated damages, and statute of limitations defense. The arbitral tribunal rejected the aforementioned materials without justifiable reasons, did not organize cross-examination, and did not comment on them at all in the award.

The arbitral tribunal adopts completely different standards for the admission of evidence for both parties, violating the mandatory requirement of the arbitration rules to equally protect the rights of all parties to present evidence and debate, and the arbitration procedure is inconsistent with the arbitration rules.

3. There are major errors in the attribution of entity responsibility and the application of law in the ruling involved in the case.

(1) The arbitral award ignored the objective facts of the entire transaction process and mistakenly determined that the applicant constituted a major breach of contract; (2) The arbitral tribunal failed to consider the legal consequences of the second respondent’s long-term failure to declare bankruptcy claims and ordered the applicant to bear huge liquidated damages, which is in direct conflict with the mandatory provisions of the Enterprise Bankruptcy Law;

(3) The second respondent did not fully prove the actual losses, and the amount of liquidated damages determined in the award significantly exceeded the scope of the actual losses, which was a serious imbalance in the discretion.

(3) Claims and reasons for litigation

1. Revoke the [2026] CIETAC Jingcao Zi No. 1519 Arbitration Award made by the China International Economic and Trade Arbitration Commission in accordance with the law;

2. The litigation fees for applying to annul the arbitration award in this case shall be jointly borne by the respondent.

3. The impact of this litigation on the company and the company’s response measures

(1) Impact on the company’s operations:

This application to revoke the arbitration award has not yet been heard and has not yet had an impact on the company's operations.

(2) Impact on the company’s financial aspects:

This application to revoke the arbitration award has not yet been heard and has not yet had an impact on the company's finances.

Announcement number: 2026-033

(3) Response measures taken by the company:

The company will perform its information disclosure obligations in a timely manner based on the progress of the litigation.

4. Other matters that should be explained

None

5. Document directory for reference

Notice of Case Acceptance by Beijing Fourth Intermediate People’s Court (2026) Beijing 04 Minte No. 1125

Board of Directors of Jiangsu Zhengji Pharmaceutical Co., Ltd.

September 23, 2026