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Zhejiang Xianju Pharmaceutical Co., Ltd. Three-Year (2027-2029) Shareholder Return Plan

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This plan outlines Zhejiang Xianju Pharmaceutical's shareholder return strategy for 2027-2029. It emphasizes a stable dividend policy, prioritizing cash dividends, and aims to balance investor returns with sustainable company development. The plan details dividend forms, payout ratios based on company stage, and decision-making processes, including shareholder consultation.

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Zhejiang Xianju Pharmaceutical Co., Ltd. Three-Year (2027-2029) Shareholder Return Plan

To further improve and perfect a scientific, sustainable, and stable shareholder return mechanism, enhance the transparency and operability of the company's profit distribution policy decisions, guide investors in establishing long-term value investment and rational investment concepts, and effectively protect the legitimate rights and interests of public investors, in accordance with the "Company Law" and the CSRC's "Listed Company Supervision Guidelines No. 3 - Listed Company Cash Dividends" and other relevant laws, regulations, and normative documents, and in accordance with the relevant provisions of the "Articles of Association," comprehensively considering the company's operating conditions and other factors, the company's board of directors has formulated the "Three-Year (2027-2029) Shareholder Return Plan" (hereinafter referred to as the "Plan"), the specific contents of which are as follows:

I. Principles for Formulating This Plan

  1. The company shall actively implement a continuous and stable dividend distribution policy, comprehensively considering investors' reasonable investment returns and the company's sustainable development, and establish a continuous, stable, and proactive dividend policy while ensuring the company's normal operating development.
  2. For the next three years (2027-2029), the company will adhere to cash dividends as the primary form, generally focusing on annual cash dividends, and may also implement interim cash dividends (semi-annual or quarterly). Under the condition of complying with relevant laws, regulations, and the "Articles of Association," the continuity and stability of the profit distribution policy shall be maintained.
  3. Fully consider the company's sustainable development strategy and actual development situation, and fully consider and listen to the opinions of shareholders (especially small and medium shareholders).

II. Factors Considered by the Company in Formulating This Plan

  1. In formulating this plan, the company focuses on its long-term sustainable development, comprehensively analyzing industry characteristics, company development strategies and operating plans, shareholder returns, social capital costs, and external financing environment.
  2. Fully consider the company's current and future profitability, cash flow status, development stage, project investment capital needs, and the credit and debt financing environment.
  3. Balance shareholders' reasonable investment returns with the company's long-term development.

III. Three-Year (2027-2029) Shareholder Return Plan

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