Announcement on Increasing the Transaction Limit for Hedging Financial Derivative Business

Securities Code: 002294 Securities Abbreviation: Sinovac Number: 2026-035 Shenzhen Sinovac Pharmaceutical Co., Ltd. Announcement on Increasing the Transaction Limit for Hedging Financial Derivative Business The Company and the Board of Directors guarantee the truthfulness, accuracy, and completeness of the information disclosed herein, and do not have any false records, misleading statements, or material omissions. Key Content Highlights:

1. Shenzhen Sinovac Pharmaceutical Co., Ltd. (hereinafter referred to as the "Company") held the 17th meeting of the Sixth Board of Directors on March 19, 2026, and deliberated and approved the "Proposal on Carrying Out Hedging Financial Derivative Trading Business." The Company agreed to appropriately carry out hedging financial derivative trading business, provided that normal operating, R&D, production, and construction capital needs are met. The amount for carrying out hedging financial derivative trading business shall not exceed USD 40 million (or equivalent in other currencies). This limit can be used jointly and rolled over by the Company and its subsidiaries included in the consolidated financial statements. The usage period for the relevant limit shall not exceed 12 months, and the transaction amount at any point within the period shall not exceed the derivative trading limit. The Board of Directors authorizes the Company's management to implement relevant matters, with the authorization period being valid for one year from the date of approval by this Board meeting. (See the "Resolution of the 17th Meeting of the Sixth Board of Directors" and the "Announcement on Carrying Out Hedging Financial Derivative Trading Business" published on March 21, 2026, in the China Securities Journal, Securities Times, and Juchao Information Network www.cninfo.com.cn)
2. To further optimize foreign exchange risk management strategies, effectively hedge and prevent exchange rate and interest rate fluctuation risks, and reasonably control exchange gains and losses, provided that normal operating, R&D, production, and construction capital needs are met, the Company plans to increase the transaction limit for hedging financial derivative trading business from USD 40 million (or equivalent in other currencies) to USD 700 million (or equivalent in other currencies). The transaction types and venues remain consistent with the previous board meeting. The usage period for the relevant limit shall not exceed 12 months, and the transaction amount at any point within the period shall not exceed the derivative trading limit. This proposal needs to be submitted to the Company's 2025 Annual General Meeting of Shareholders for deliberation. The Board of Directors proposes that the shareholders' meeting authorize the Company's management to implement relevant matters, with the authorization period being valid for one year from the date of approval by the Company's 2025 Annual General Meeting of Shareholders.
3. Transaction types include, but are not limited to, the following: foreign exchange forward settlement and sales business in USD or other currencies, foreign exchange swap business, currency swap business, interest rate swap business, and foreign exchange option business, or a combination of the above products. The underlying assets of financial derivatives include exchange rates, interest rates, currencies, or a combination of the above assets; settlement can be made either by physical delivery or by net settlement. Trading tools: forwards, swaps, and futures. Trading venue: onshore exchange trading.
4. Deliberation procedures completed: The "Proposal on Increasing the Transaction Limit for Hedging Financial Derivative Trading Business" was deliberated and approved at the 18th meeting of the Sixth Board of Directors and needs to be submitted to the shareholders' meeting for deliberation.
5. Special risk warning: Financial derivative trading does not have principal or yield guarantees and may be subject to market risk, liquidity risk, internal control risk, performance risk, legal risk, and yield risk. Investors are kindly reminded to pay attention to investment risks. I. Reasons for Increasing the Transaction Limit for Hedging Financial Derivative Business Affected by the complex and volatile international economic environment, recent international foreign exchange market fluctuations have significantly intensified, and the complexity and uncertainty of exchange rate trends have further increased, with the uncertainty of exchange rate fluctuations continuously growing. The existing hedging limit is expected to be insufficient to cover the exchange rate risk exposure that the Company may face in the future, and it cannot meet the continuous demand for risk hedging. To further effectively hedge against exchange rate fluctuation risks, enhance the Company's foreign exchange risk management capabilities, and in conjunction with capital management requirements and daily operational needs, the Company intends to increase the transaction limit for foreign exchange hedging business on the basis of the original approved limit. II. Overview of Investment
6. Investment Objective To effectively hedge against and prevent exchange rate and interest rate fluctuation risks, and reasonably control exchange gains and losses, the Company will appropriately carry out foreign exchange hedging business through financial derivative trading, without affecting the Company's (including its subsidiaries included in the consolidated financial statements, hereinafter referred to as the same) normal operations. The Company will not engage in speculative or arbitrage trading. This matter will not affect the development of the Company's main business, and the capital utilization arrangements are reasonable. The Company's hedging financial derivative trading business is closely related to daily operational needs and is carried out based on the status of foreign currency assets and liabilities and foreign exchange receipts and payments, in order to enhance the ability to actively respond to foreign exchange fluctuation risks, better hedge against exchange rate and interest rate risks, and improve financial stability. According to "Accounting Standards for Business Enterprises No. 24 - Hedging," the foreign exchange derivative trading business that the Company intends to carry out is for managing the risk exposure arising from foreign exchange risks. Changes in the fair value or cash flows of foreign exchange derivatives are expected to offset changes in the fair value or cash flows of the hedged items, in whole or in part, which complies with the relevant provisions of hedging.
7. Investment Limit The Company intends to carry out hedging financial derivative trading business with a limit not exceeding USD 700 million (or equivalent in other currencies). This limit can be used jointly and rolled over by the Company and its subsidiaries included in the consolidated financial statements. The usage period for the relevant limit shall not exceed 12 months, and the transaction amount at any point within the period shall not exceed the derivative trading limit. The upper limit of the transaction margin and premium to be used (including the value of collateral provided for the transaction, the credit line of financial institutions expected to be used, and the margin reserved for emergency measures, etc.) shall not exceed USD 35 million (or equivalent in other currencies).
8. Investment Method The Company's hedging financial derivative trading business includes, but is not limited to, the following: foreign exchange forward settlement and sales business in USD or other currencies, foreign exchange swap business, currency swap business, interest rate swap business, and foreign exchange option business, or a combination of the above products. The underlying assets of financial derivatives include exchange rates, interest rates, currencies, or a combination of the above assets; settlement can be made either by physical delivery or by net settlement. Trading venue: onshore exchange trading. The Company's financial derivative trading business is aimed at locking in costs and hedging against exchange rate and interest rate risks. The transaction types are simple financial derivative products closely related to the underlying business, and these financial derivative products are matched with the underlying business in terms of type, scale, direction, and term, in order to comply with the Company's prudent and stable risk management principles.
9. Investment Term The authorization shall be valid for one year from the date of approval by the Company's 2025 Annual General Meeting of Shareholders.
10. Funding Source The funding source for the aforementioned investment will be the Company's own funds or self-raised funds. The funding source is legal and compliant. At the same time, all financial derivative trading business will be matched with normal operations and will not affect the Company's liquidity.
11. Counterparties Banks and other financial institutions that have obtained foreign exchange and other financial derivative trading qualifications with the approval of relevant government departments. There is no relationship with the Company. III. Deliberation Procedures On March 19, 2026, the Company held the 17th meeting of the Sixth Board of Directors, which was attended by 9 directors, with 0 votes against and 0 abstentions. The "Proposal on Carrying Out Hedging Financial Derivative Trading Business" was deliberated and approved. On April 17, 2026, the Company held the 18th meeting of the Sixth Board of Directors, which was attended by 9 directors, with 0 votes against and 0 abstentions. The "Proposal on Increasing the Transaction Limit for Hedging Financial Derivative Trading Business" was deliberated and approved. This matter still needs to be submitted to the shareholders' meeting for deliberation and approval. This transaction does not constitute a related-party transaction. IV. Transaction Risk Analysis and Risk Control Measures (I) Investment Risks The Company (including its subsidiaries included in the consolidated financial statements) conducts hedging financial derivative trading business with the principle of locking in exchange rate and interest rate risks, and does not engage in speculative or arbitrage trading. However, financial derivative trading still carries certain risks:
12. Market Risk: The difference between the contract exchange rate and interest rate and the actual exchange rate and interest rate at maturity will generate trading gains or losses. During the term of the financial derivatives, revaluation gains or losses will be generated in each accounting period, and the cumulative value of revaluation gains or losses at maturity will equal the trading gains or losses.
13. Liquidity Risk: The risk of being unable to complete transactions due to insufficient market liquidity.
14. Internal Control Risk: Financial derivative trading business is highly specialized and complex, and risks may arise from imperfect internal control mechanisms.
15. Performance Risk: The risk of default arising from the inability to perform contracts upon maturity in the financial derivative trading business.
16. Legal Risk: The risk of losses to the Company due to changes in relevant laws and regulations or the counterparty's violation of relevant legal systems, which may result in the inability to perform contracts normally.
17. Yield Risk: Due to numerous factors affecting the foreign exchange market, it is impossible to accurately predict future exchange rate trends when conducting financial derivative trading business. There will be differences between the spot exchange rate at the time of delivery and the contract exchange rate, which will result in gains or losses for the Company. (II) Risk Control Measures
18. The Company's hedging financial derivative trading business is aimed at locking in costs and hedging against exchange rate and interest rate risks, and any speculative trading is prohibited.
19. In accordance with the "Rules Governing the Listing of Stocks on the Shenzhen Stock Exchange," "Shenzhen Stock Exchange Listed Company Self-Regulatory Guidelines No. 1 - Standardized Operation of Main Board Listed Companies," and "Shenzhen Stock Exchange Listed Company Self-Regulatory Guidelines No. 7 - Transactions and Related Transactions," the Company has formulated the "Financial Derivative Trading Management System" and clearly defined the staffing, decision-making procedures, reporting system, internal control, and risk monitoring management measures for relevant businesses to control transaction risks.
20. The Company will carefully select financial institutions with legal qualifications, good credit, and large scale as counterparties, prudently review the terms of contracts signed with them, strictly manage risks, and prevent legal risks.
21. The Company's finance department should pay attention to changes in the public market prices or fair values of derivatives, promptly assess changes in the risk exposure of the proposed financial derivative trading business, and report to management and the Board of Directors in a timely manner. The Company's finance department will be responsible for preparing transaction risk analysis reports. In addition, the Company's finance department will be responsible for selecting counterparties for the Company, signing master agreements for financial derivative trading, unifying the control of credit limits; regularly submitting risk management reports, and formulating emergency response plans for emergencies; undertaking research on the international and domestic economic situation and financial markets, collecting and reporting financial information; and being responsible for the implementation and execution of financial derivative trading management for all subsidiaries.
22. The Company's Audit Department will conduct checks on the actual operation, fund utilization, and profit and loss of financial derivative trading business on a quarterly or irregular basis, audit whether the transactions comply with relevant internal control systems, and report the audit results to the Company's Board of Directors or the Board of Directors' Audit Committee. The Board of Directors' Audit Committee will be responsible for reviewing the necessity, feasibility, and risk control of derivative trading.
23. The Company will continuously track the execution progress and investment safety status of financial derivative trading. If abnormal situations such as significant investment losses occur, immediate measures will be taken, and disclosure obligations will be fulfilled in accordance with regulations.
24. The Company will fulfill its information disclosure obligations in a timely manner in accordance with the relevant regulations of the Shenzhen Stock Exchange. V. Accounting Treatment for Transactions (I) Fair Value Analysis The Company's derivative trading business primarily targets currencies with strong liquidity and large market transparency. Transaction prices and daily settlement unit prices can fully reflect the fair value of derivatives. The Company will recognize and measure them in accordance with "Accounting Standards for Business Enterprises No. 22 - Recognition and Measurement of Financial Instruments," "Accounting Standards for Business Enterprises No. 24 - Hedging," and "Accounting Standards for Business Enterprises No. 39 - Fair Value Measurement" and their guidelines. The fair value is generally determined based on prices provided or obtained from pricing service institutions such as banks. (II) Accounting Policies and Accounting Principles The Company will perform corresponding accounting treatment for the proposed financial derivative trading business in accordance with "Accounting Standards for Business Enterprises No. 22 - Recognition and Measurement of Financial Instruments," "Accounting Standards for Business Enterprises No. 24 - Hedging," and "Accounting Standards for Business Enterprises No. 37 - Presentation of Financial Instruments," and their guidelines, and reflect them in the balance sheet, income statement, and other relevant items. VI. Impact on the Company The Company's proposed hedging financial derivative trading business is closely related to the Company's main business, and speculative and arbitrage transactions are prohibited. Under the premise of fully ensuring the capital needs of daily operations, without affecting normal operations, and effectively controlling risks, the hedging financial derivative trading business is beneficial for hedging and preventing exchange rate and interest rate fluctuation risks, reasonably controlling exchange gains and losses, strengthening the Company's foreign exchange risk management capabilities, and enhancing financial stability. In addition, the Company has established a sound internal control system, clarified risk response measures, and the business risks are controllable. To further effectively hedge against exchange rate fluctuation risks, enhance the Company's foreign exchange risk management capabilities, increase the transaction limit for foreign exchange hedging business, and appropriately carry out financial derivative trading is necessary and feasible, and is in the interest of the Company and all shareholders. VII. Documents for Reference
25. Resolution and Announcement of the 17th Meeting of the Sixth Board of Directors;
26. Resolution and Announcement of the 18th Meeting of the Sixth Board of Directors;
27. Feasibility Analysis Report issued by the Company;
28. Internal control system related to futures and derivative trading;
29. Other documents required by the China Securities Regulatory Commission and the Shenzhen Stock Exchange. Hereby Announced Shenzhen Sinovac Pharmaceutical Co., Ltd. Board of Directors April 21, 2026