Progress Announcement on Subsidiary's Bill Pool Business and Guarantees

Overview of Guarantee Situation

Tibet Qizheng Tibetan Medicine Co., Ltd. (hereinafter referred to as "the Company") approved the proposal for the Company and its subsidiaries to engage in bill pool business and provide guarantees for its subsidiaries at the 16th meeting of the 6th Board of Directors and the first extraordinary general meeting of shareholders in 2026. The Company and its subsidiaries will collaborate with domestic commercial banks with good credit ratings for a total amount not exceeding RMB 650 million in bill pool business, with the Company providing a guarantee of RMB 200 million for the subsidiary's bill pool pledge financing. The duration of the bill pool business is 12 months from the date of approval by the shareholders' meeting. For details, please refer to the announcements published in the Securities Times and on the Giant Tide Information Network (http://www.cninfo.com.cn).

Progress of Guarantee

Recently, the Company signed a "Bill Pool Business Cooperation Agreement" (Xingyin Lan Piao Chi Fu Zi 2026 No. 0005) with the Lanzhou Branch of Industrial Bank (hereinafter referred to as "Industrial Bank"). Industrial Bank will conduct bill pool pledge financing business for the Company or its group member enterprises, with all commercial bills in the bill pool providing guarantees for the debts under the "Bill Pool Agreement" and all financing contracts thereunder. The subsidiaries Gansu Qizheng Tibetan Medicine Co., Ltd. (hereinafter referred to as "Gansu Qizheng"), Gansu Foge Tibetan Medicine Co., Ltd. (hereinafter referred to as "Gansu Foge"), and Tibet Tibetan Medicine Group Co., Ltd. (hereinafter referred to as "Tibet Tibetan Medicine") signed "Maximum Pledge Contracts" with Industrial Bank, utilizing RMB 60 million, RMB 28 million, and RMB 40 million of the "Bill Pool Agreement" limits, respectively, with the Company providing guarantees through the commercial bills in the pledged bill pool. The current usage of the guarantee limit for the subsidiary's bill pool pledge financing is as follows: