Audit Report on the Storage and Use of Raised Funds
Ernst & Young Hua Ming (2026) Special Letter No. 70055189_B01 Kailai Ying Pharmaceutical Group (Tianjin) Co., Ltd.
To the Board of Directors of Kailai Ying Pharmaceutical Group (Tianjin) Co., Ltd.:
We have been engaged to perform an independent audit of the accompanying Special Report on the Storage and Use of Raised Funds for 2025 by Kailai Ying Pharmaceutical Group (Tianjin) Co., Ltd. (hereinafter referred to as "Kailai Ying"). The Special Report on Raised Funds was prepared in accordance with the "Supervision Rules for Raised Funds of Listed Companies," the "Shenzhen Stock Exchange Main Board Listed Company Standardized Operation Guide No. 1," and relevant format guidelines. It is the responsibility of the Board of Directors of Kailai Ying to ensure the content is true, accurate, and complete, and free from any false statements, misleading representations, or material omissions. Our responsibility is to express an independent opinion on the Special Report on Raised Funds based on our audit.
We conducted our audit in accordance with the "Other Assurance Services Standards No. 3101 of the Chinese Institute of Certified Public Accountants – Assurance Services Other Than Audits or Reviews of Historical Financial Information." This standard requires us to plan and perform the audit to obtain reasonable assurance about whether the Special Report on Raised Funds is free from material misstatement. Our audit included obtaining an understanding of the entity, performing tests, confirmations, and other procedures we considered necessary. We believe that our audit provides a reasonable basis for our opinion.
We are of the opinion that, in all material respects, the Special Report on Raised Funds of Kailai Ying has been prepared in accordance with the "Supervision Rules for Raised Funds of Listed Companies," the "Shenzhen Stock Exchange Main Board Listed Company Standardized Operation Guide No. 1," and relevant format guidelines, and truthfully reflects the storage and use of raised funds by Kailai Ying in 2025.
This report is for disclosure by Kailai Ying in its 2025 annual report and is not intended for any other purpose.
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Audit Report on the Storage and Use of Raised Funds (Continued)
Ernst & Young Hua Ming Certified Public Accountants (Special General Partnership) Certified Public Accountant: Xu Xinqiao
Beijing, China Certified Public Accountant: Lu Jun March 30, 2026
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Kailai Ying Pharmaceutical Group (Tianjin) Co., Ltd. Special Report on the Storage and Use of Raised Funds for 2025
In accordance with the "Supervision Rules for Raised Funds of Listed Companies," the "Shenzhen Stock Exchange Main Board Listed Company Standardized Operation Guide No. 1," and the "Shenzhen Stock Exchange Listed Company Supervision Guide No. 2 – Announcement Format," etc., the Board of Directors of Kailai Ying Pharmaceutical Group (Tianjin) Co., Ltd. (hereinafter referred to as the "Company" or "this Company") has prepared the "Special Report on the Storage and Use of Raised Funds for 2025," the details of which are as follows:
I. Basic Situation of Fund Raising
(I) Amount of Raised Funds and Time of Arrival
Approved by the "Approval for the Non-public Offering of Shares by Kailai Ying Pharmaceutical Group (Tianjin) Co., Ltd." (Zheng Jian Xu Ke [2020] No. 1912) issued by the China Securities Regulatory Commission, the Company issued 10,178,731.00 ordinary shares (A shares) to specific investors in September 2020 at an issue price of RMB 227.00 per share. The total amount of raised funds was RMB 2,310,571,937.00. After deducting the underwriting fees of RMB 32,696,772.70 (excluding tax), the Company actually received RMB 2,277,875,164.30. After deducting other issuance expenses of RMB 2,914,508.24, the net amount of raised funds was RMB 2,274,960,656.06. The arrival of these funds was verified by the "Capital Verification Report" (Rong Cheng Yan Zi [2020] No. 100Z0073) issued by Rongcheng Certified Public Accountants (Special General Partnership). The Company has implemented a special account management system for the raised funds.