Implementation Announcement of 2025 Annual Equity Distribution

Special Reminder

1. Anhui Shanhe Pharmaceutical Auxiliary Materials Co., Ltd. (hereinafter referred to as "the Company") has approved the 2025 annual equity distribution plan at the shareholders' meeting held on May 13, 2026. The implementation of this distribution plan is within two months of the shareholders' meeting approval.
2. Due to the convertible bonds issued by the Company (bond abbreviation: Shanhe Convertible Bonds, bond code: 123199) currently being in the conversion period, the Company has applied for a suspension of conversion from the last trading day before the equity distribution announcement (June 2, 2026) to the equity distribution registration date (June 9, 2026). For details, please refer to the announcement titled "Announcement on the Suspension of Conversion of Shanhe Convertible Bonds During the Equity Distribution Period" disclosed on May 29, 2026, on the Giant Tide Information Network (http://www.cninfo.com.cn) (announcement number 2026-025).
3. From the announcement of the 2025 profit distribution plan on April 22, 2026 (announcement number 2026-012) to the last trading day before this equity distribution implementation application (June 1, 2026), there has been no conversion of convertible bonds. The total share capital of the Company is 234,456,278 shares. The 2025 annual equity distribution plan is as follows: Based on the total share capital of 234,456,278 shares minus the repurchased shares of 1,825,500 shares, the base is 232,630,778 shares, with a cash distribution of 3.00 RMB (including tax) per 10 shares, totaling 69,789,233.40 RMB (including tax). No bonus shares will be issued, and no capital reserve will be converted into share capital. The remaining undistributed profits will be carried forward to future distributions.
4. Since the repurchased shares do not participate in the dividend, after the implementation of this equity distribution, the total share capital of the Company will remain unchanged according to the principle of unchanged market value of the stock. The proportion of total cash dividends allocated to each share will decrease. The cash dividend per 10 shares (including tax) calculated based on the total share capital (including shares in the Company's repurchase special securities account) is: actual cash dividend total / total share capital (including shares in the Company's repurchase special securities account) * 10 shares = 69,789,233.4 RMB / 234,456,278 shares * 10 shares = 2.976641 RMB/share (retain