Special Explanation on Fund Occupation by Controlling Shareholder and Other Related Parties
To the shareholders of Guizhou Xinbang Pharmaceutical Co., Ltd.:
We have been engaged to audit the 2025 financial statements of Guizhou Xinbang Pharmaceutical Co., Ltd. (hereinafter referred to as "Xinbang Pharmaceutical"), including the consolidated and parent company balance sheets as of December 31, 2025, the consolidated and parent company income statements, consolidated and parent company cash flow statements, and consolidated and parent company statements of changes in owners' equity, as well as the notes to the financial statements. We issued a standard unqualified audit report with report number Dehao Shen Zi [2026]00001533 on April 17, 2026.
In accordance with the "Supervision Guidelines No. 8 for Listed Companies – Regulatory Requirements for Fund Transactions and External Guarantees" (CSRC Announcement [2022] No. 26) and the "Shenzhen Stock Exchange Listed Company Self-Regulatory Supervision Guidelines No. 1 – Business Handling (2026 Revision)" issued by the China Securities Regulatory Commission and the Shenzhen Stock Exchange, we hereby issue a special explanation on the "Summary Table of Non-Operating Fund Occupation and Other Related Fund Transactions for 2025" compiled by Xinbang Pharmaceutical (hereinafter referred to as the "Summary Table").
The accurate compilation and external disclosure of this Summary Table, ensuring its truthfulness, legality, and completeness, are the responsibility of Xinbang Pharmaceutical's management. We have cross-checked the information contained in the Summary Table with the accounting data and the relevant content of the audited financial statements of Xinbang Pharmaceutical for 2025. In all material respects, no inconsistencies were found. In addition to the audit procedures performed regarding related party transactions during the 2025 financial statement audit of Xinbang Pharmaceutical, we have not performed any additional audit procedures on the information contained in the Summary Table. To better understand the situation of fund occupation by the controlling shareholder and other related parties of Xinbang Pharmaceutical in 2025, the attached Summary Table should be read in conjunction with the audited financial statements.
This special explanation is issued in accordance with the requirements of the China Securities Regulatory Commission, its dispatched agencies, and the Shenzhen Stock Exchange, and shall not be used for any other purpose. The consequences arising from improper use shall be borne by the registered accountants and the accounting firm that performed this engagement.
Attachment: Summary Table of Non-Operating Fund Occupation and Other Related Fund Transactions of Guizhou Xinbang Pharmaceutical Co., Ltd. for 2025