Special Explanation on Non-operating Fund Occupation and Other Related Party Fund Transactions of Tianjin Red Sun Pharmaceutical Co., Ltd. for 2025
XYZH/2026CDAA3B0223 Tianjin Red Sun Pharmaceutical Co., Ltd.
To all shareholders of Tianjin Red Sun Pharmaceutical Co., Ltd.:
We have audited the 2025 financial statements of Tianjin Red Sun Pharmaceutical Co., Ltd. (hereinafter referred to as "Red Sun Pharmaceutical"), including the consolidated and parent company balance sheets as of December 31, 2025, the consolidated and parent company income statements for 2025, the consolidated and parent company cash flow statements, the consolidated and parent company statements of changes in owners' equity, and the notes to the financial statements. We issued an unqualified audit report with report number XYZH/2026CDAA3B0196 on April 17, 2026.
In accordance with the "Supervision Guidelines No. 8 for Listed Companies – Supervision Requirements for Listed Company Fund Transactions and External Guarantees" (CSRC Announcement [2022] No. 26) and the disclosure requirements of the Shenzhen Stock Exchange, Red Sun Pharmaceutical has prepared the "Summary Table of Non-operating Fund Occupation and Other Related Party Fund Transactions of Red Sun Pharmaceutical for 2025" (hereinafter referred to as the "Summary Table") attached to this special explanation. It is Red Sun Pharmaceutical's responsibility to prepare and disclose the Summary Table externally, ensuring its truthfulness, accuracy, and completeness. We have cross-checked the information contained in the Summary Table with the accounting materials and audited financial statements that we reviewed during our audit of Red Sun Pharmaceutical's 2025 financial statements. In all material respects, we found no inconsistencies.
Apart from performing the audit of Red Sun Pharmaceutical's 2025 financial statements and cross-checking the amounts of the items in the attached Summary Table with the accounting materials and audited financial statements provided by Red Sun Pharmaceutical during our audit, we have not performed any additional procedures on the attached Summary Table.