Reply to the Inquiry Letter Regarding Changzhou Qianhong Biopharma Co., Ltd.'s Application for Issuing Convertible Corporate Bonds to Unspecified Objects

Stock Abbreviation: Qianhong Pharmaceutical

Stock Code: 002550

Changzhou Qianhong Biopharma Co., Ltd. (518 Yunhe Road, Xinbei District, Changzhou)

Reply to the Inquiry Letter Regarding Changzhou Qianhong Biopharma Co., Ltd.'s Application for Issuing Convertible Corporate Bonds to Unspecified Objects

Sponsor Institution (Lead Underwriter)

(Qianhai Shenzhen-Hong Kong Cooperation Zone, Nanshan Street, 128 Guiwan 5th Road, B7 Building, 401)

March 2026

Shenzhen Stock Exchange:

We acknowledge receipt of the "Inquiry Letter Regarding Changzhou Qianhong Biopharma Co., Ltd.'s Application for Issuing Convertible Corporate Bonds to Unspecified Objects" (Inquiry Letter [2026] No. 120011) issued on February 12, 2026. Changzhou Qianhong Biopharma Co., Ltd. (hereinafter referred to as "Qianhong Pharmaceutical," "the Company," or "the Issuer") has conducted a thorough review of the issues listed in the inquiry letter with the sponsor institution Huatai United Securities Co., Ltd. (hereinafter referred to as "the Sponsor," "Huatai United"), the issuer's lawyer Beijing Guofeng Law Firm (hereinafter referred to as "the Issuer's Lawyer," "Guofeng"), and the reporting accountant Tianye Accounting Firm (Special General Partnership) (hereinafter referred to as "the Accountant," "Tianye"). We now respond as follows for your review.

Note:

1. Unless otherwise specified, the definitions of abbreviations or terms in this reply are the same as those in the "Prospectus for the Issuance of Convertible Corporate Bonds by Changzhou Qianhong Biopharma Co., Ltd. to Unspecified Objects and Listing on the Main Board."
2. If there are discrepancies between the total amounts in this reply and the direct sum of individual amounts, they are due to rounding.
3. The font in this reply indicates the following meanings:
   • Issues listed in the inquiry letter: Regular font (not bold)
   • Responses to issues listed in the inquiry letter: Song font (not bold)
   • Modifications and supplements to application documents: Kai font (bold)

Question 1

During the reporting periods, the Company's operating revenues were 2,303,547,800 yuan, 1,814,268,900 yuan, 1,526,242,800 yuan, and 1,215,015,000 yuan, respectively. Among these, the revenue from the formulation series was 1,181,518,300 yuan, 1,114,502,500 yuan, 1,079,083,200 yuan, and 812,189,900 yuan, while the revenue from the raw material series was 1,116,796,500 yuan, 692,028,100 yuan, 443,396,100 yuan, and 393,822,600 yuan. The gross profit margins were 38.59%, 43.26%, 54.85%, and 57.71%, respectively. The gross profit margins for the formulation series were 61.41%, 61.52%, 61.82%, and 69.96%, while those for the raw material series were 14.19%, 13.37%, 37.67%, and 32.62%. According to the application documents, if there is a significant increase in raw material prices or a substantial decrease in product prices due to centralized procurement, there is a risk of declining gross profit margins.

During the reporting periods, the Company's foreign sales revenues were 995,449,100 yuan, 557,089,200 yuan, 352,110,600 yuan, and 317,345,000 yuan, accounting for 43.23%, 30.79%, 23.11%, and 26.18% of the main business revenue, respectively. The foreign exchange gains and losses during the reporting periods were 74,016,000 yuan, 1,261,900 yuan, 3,726,200 yuan, and -6,614,300 yuan, indicating that exchange rate fluctuations have a certain impact on the Company's performance.