This asset appraisal report is prepared in accordance with China's asset appraisal standards.
Asset Appraisal Report for the Proposed Bank Mortgage of Buildings (Structures) and Land Use Rights of the Cangzhou Branch of Beijing Huasu Pharmaceutical Co., Ltd. Report Number: Shen Hua Rui Zi Ping Zi [2026] No. 003 (Volume 1 of 1)
Shenzhen Huaru Land and Real Estate Appraisal Co., Ltd. June 5, 2026
Table of Contents Statement: 2 Asset Appraisal Report Summary: 4 Asset Appraisal Report Body: 6
- Entrusting Party and Other Users of the Appraisal Report: 6
- Purpose of Appraisal: 7
- Appraisal Object and Scope: 7
- Value Type: 7
- Appraisal Base Date: 8
- Appraisal Basis: 8
- Appraisal Methods: 12
- Implementation Process and Status of Appraisal Procedures: 16
- Appraisal Assumptions: 19
- Appraisal Conclusion: 20
- Special Matters: 20
- Restrictions on Use of Appraisal Report: 21
- Date of Appraisal Report: 23
- Signatures and Seals of Appraisal Professionals and Appraisal Agency: 24 Attachments to the Asset Appraisal Report: 25
Statement (1) This asset appraisal report is prepared in accordance with the Basic Standards for Asset Appraisal issued by the Ministry of Finance and the Asset Appraisal Professional Standards and Code of Ethics issued by the China Appraisal Society. (2) The entrusting party or other users of the asset appraisal report shall use the report in accordance with laws, administrative regulations, and the scope of use stated in this report. The appraisal agency and its professionals shall not be held liable if the entrusting party or other users violate these provisions. (3) This asset appraisal report is intended solely for the entrusting party and other users specified in the appraisal contract. No other organization or individual may become a user of this report. (4) The appraisal agency and appraisers remind users to correctly understand the appraisal conclusion. The conclusion is not equivalent to the realizable price of the appraisal object and should not be considered a guarantee of such price. (5) The appraisal agency and appraisers adhere to the principles of independence, objectivity, and fairness, and assume legal responsibility for the report issued. (6) The list of assets involved is declared by the entrusting party, who is responsible for the authenticity, legality, and completeness of the provided materials. (7) The appraisal agency and appraisers have no current or expected interest in the appraisal object, nor any bias toward the relevant parties. (8) Appraisers have conducted on-site investigations of the appraisal object and its related assets, and have performed necessary verification of legal ownership documents. Discovered issues have been disclosed, and the entrusting party has been requested to rectify them to meet the requirements for issuing this report. (9) The analysis, judgment, and results in this report are subject to the assumptions and limiting conditions stated herein. Users should fully consider the impact of these factors on the appraisal conclusion.
Asset Appraisal Report Summary Shen Hua Rui Zi Ping Zi [2026] No. 003 To: Cangzhou Branch of Beijing Huasu Pharmaceutical Co., Ltd.: Shenzhen Huaru Land and Real Estate Appraisal Co., Ltd. accepted the commission and, in accordance with relevant laws, regulations, and appraisal standards, adopted the replacement cost method and market comparison method to assess the market value of the buildings (structures) and land use rights involved in the proposed bank mortgage by the Cangzhou branch.
- Purpose of Appraisal: To provide a reference for the fair value of the buildings (structures) and land use rights as of May 31, 2026, for the proposed bank mortgage.
- Appraisal Object and Scope: (1) Appraisal Object: The market value of the buildings (structures) and land use rights involved. (2) Appraisal Scope: The buildings (structures) and land use rights held by the Cangzhou branch.
- Value Type and Definition: Market value, defined as the estimated value of the appraisal object in a normal, fair transaction between a willing lessor and a willing lessee on the appraisal base date, under conditions of voluntary, informed, and non-coerced participation.
- Appraisal Base Date: May 31, 2026.
- Main Appraisal Methods: Replacement cost method and market comparison method.