Announcement on the Use of Own Funds to Purchase Wealth Management Products

Chengdu Kanghong Pharmaceutical Group Co., Ltd. (hereinafter referred to as "Kanghong Pharmaceutical" or "the Company") guarantees that the content of this information disclosure is true, accurate, and complete, with no false records, misleading statements, or significant omissions. The 10th meeting of the 8th Board of Directors and the 2024 Annual General Meeting approved the proposal on the use of own funds to purchase wealth management products, agreeing that the Company and its subsidiaries may use part of the idle own funds to purchase wealth management products (including structured deposits) within a limit not exceeding RMB 3.8 billion. The purchasing principle is to prioritize high safety, good liquidity, and short-term principal-protected wealth management products issued by commercial banks with a capital protection commitment. The purchase period is one year from the date of approval by the shareholders' meeting; within the above limit and period, funds can be rolled over. The board has authorized the president or financial officer to exercise specific purchasing decision-making rights based on the above principles, with the finance department responsible for specific purchasing matters. For detailed information, please refer to the designated information disclosure media and the Giant Tide Information Network (www.cninfo.com.cn) published on April 26, 2025, in the "Resolution Announcement of the 10th Meeting of the 8th Board of Directors" (Announcement No. 2025-010), "Announcement on the Use of Own Funds to Purchase Wealth Management Products" (Announcement No. 2025-014), and the "Resolution Announcement of the 2024 Annual General Meeting" (Announcement No. 2025-022). Recently, the Company has used its own funds to purchase wealth management products. The relevant situation is announced as follows: