Supplementary Legal Opinion on Changzhou Qianhong Biopharmaceutical Co., Ltd.'s Application for Issuing Convertible Bonds to Unspecified Objects
Beijing Grandway Law Offices
Beijing Dongcheng District, Jianguomennei Street 26, News Building, 7th Floor
Postal Code: 100005
Tel: 010-88004488/66090088
Fax: 010-66090016
To: Changzhou Qianhong Biopharmaceutical Co., Ltd. (the Issuer)
According to the "Lawyer Service Agreement" signed between our firm and the Issuer, we have accepted the Issuer's commission to act as the special legal advisor for this issuance and hereby issue this supplementary legal opinion. Our lawyers have verified the documents and relevant facts provided by the Issuer in accordance with the provisions of the Company Law, Securities Law, Administrative Measures, Practice Guidelines, and other relevant laws, regulations, rules, and normative documents, and in accordance with the recognized business standards, ethical norms, and diligence spirit of the legal profession. We have issued the "Legal Opinion on Changzhou Qianhong Biopharmaceutical Co., Ltd.'s Application for Issuing Convertible Bonds to Unspecified Objects" (hereinafter referred to as the "Legal Opinion") and the "Lawyer Work Report on Changzhou Qianhong Biopharmaceutical Co., Ltd.'s Application for Issuing Convertible Bonds to Unspecified Objects" (hereinafter referred to as the "Lawyer Work Report").
In accordance with the requirements of the Shenzhen Stock Exchange's "Review Letter [2026] No. 120011" regarding the "Inquiry Letter on Changzhou Qianhong Biopharmaceutical Co., Ltd.'s Application for Issuing Convertible Bonds to Unspecified Objects" (hereinafter referred to as the "Inquiry Letter"), our lawyers have further verified the relevant circumstances of the Issuer and this issuance and issued this supplementary legal opinion to modify, supplement, or further explain the relevant contents of the previously issued Legal Opinion and Lawyer Work Report. Our lawyers agree to submit this supplementary legal opinion as a necessary statutory document for the Issuer's issuance along with other materials and shall bear corresponding responsibilities in accordance with the law. This supplementary legal opinion is only for the purpose of the Issuer's issuance and shall not be used for any other purposes. The statements made by our lawyers in the Legal Opinion and Lawyer Work Report also apply to this supplementary legal opinion. Unless otherwise specified, the meanings of terms in this supplementary legal opinion are consistent with those in the Legal Opinion and Lawyer Work Report.
Our lawyers hereby provide the following supplementary legal opinions in accordance with the requirements of relevant laws, administrative regulations, rules, and normative documents, as well as the relevant provisions of the China Securities Regulatory Commission and the stock exchange, and in accordance with the recognized business standards, ethical norms, and diligence spirit of the legal profession:
Inquiry Letter Question 1
During the reporting period, the company's operating income for each period was 2,303.55 million yuan, 1,814.27 million yuan, 1,526.24 million yuan, and 1,215.02 million yuan, of which the income from the formulation series was 1,181.52 million yuan, 1,114.50 million yuan, 1,079.08 million yuan, and 812.19 million yuan, and the income from the raw material series was 1,116.80 million yuan, 692.03 million yuan, 443.40 million yuan, and 393.82 million yuan. The gross profit margins were 38.59%, 43.26%, 54.85%, and 57.71%, of which the gross profit margins for the formulation series were 61.41%, 61.52%, 61.82%, and 69.96%, and the gross profit margins 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 significant decrease in product prices due to centralized procurement, there is a risk of declining gross profit margins.