Special Explanation on the Fund Occupation by Controlling Shareholder, Actual Controller, and Other Related Parties of CSPC Innovation Pharmaceutical Co., Ltd.
[Document Reference: 德师报(函)字(26)第Q00209号]
To the Board of Directors of CSPC Innovation Pharmaceutical Co., Ltd.:
We have been engaged to audit the consolidated and parent company balance sheets of CSPC Innovation Pharmaceutical Co., Ltd. as of December 31, 2025, and the related consolidated and parent company income statements, consolidated and parent company statements of cash flows, consolidated and parent company statements of changes in owners' equity, and notes to the financial statements (collectively referred to as the "Financial Statements") for the year then ended, in accordance with Chinese Certified Public Accountants' Auditing Standards. We issued our unqualified audit report on the Financial Statements on March 16, 2026, under the reference number 德师报(审)字(26)第P00247号.
In accordance with the requirements of the "Supervision Requirements for Fund Inter-company Transfers and External Guarantees for Listed Companies" issued by the China Securities Regulatory Commission, the Ministry of Public Security, the State-owned Assets Supervision and Administration Commission of the State Council, and the China Banking and Insurance Regulatory Commission, your company has prepared the attached summary table of non-operating fund occupation and other related party fund inter-company transfers for 2025 (hereinafter referred to as the "Summary Table").
The preparation and external disclosure of the Summary Table, ensuring its truthfulness, legality, and completeness, are the responsibility of your company's management.
We have compared the information contained in the Summary Table with the accounting information and audited financial statements that we reviewed during our audit of your company's 2025 Financial Statements. We found no inconsistencies in all material respects. In addition to the audit procedures related to related party transactions performed in accordance with Chinese Certified Public Accountants' Auditing Standards for the audit of your company's 2025 Financial Statements, we have not performed any additional audit procedures on the information contained in the Summary Table.
To better understand the fund occupation by the controlling shareholder, actual controller, and other related parties of your company in 2025, the attached Summary Table should be read in conjunction with the audited financial statements.
This explanation is for the purpose of your company's submission to the securities regulatory authorities regarding the fund occupation by the controlling shareholder, actual controller, and other related parties for 2025, and shall not be used for any other purpose.
Deloitte Huayong Certified Public Accountants (Special General Partnership) China · Shanghai
Certified Public Accountant: Wu Shan
Certified Public Accountant: Wang Hanping
March 16, 2026
CSPC Innovation Pharmaceutical Co., Ltd.
Summary Table of Non-Operating Fund Occupation and Other Related Party Fund Inter-company Transfers for 2025
Non-operating Fund Occupation Name of Fund Occupier Relationship with Listed Company Listed Company's Accounting Subject 2025 Beginning Fund Balance 2025 Cumulative Amount of Fund Occupation (Excluding Interest) 2025 Cumulative Interest on Fund Occupation (If Any) 2025 Cumulative Repayment Amount 2025 Ending Fund Balance Reason for Occupation Nature of Occupation Unit: RMB Ten Thousand Yuan Controlling Shareholder, Actual Controller, and Subsidiaries Subtotal No No No No No No Not Applicable Not Applicable Former Controlling Shareholder, Actual Controller, and Subsidiaries Subtotal No No No No No No Not Applicable Not Applicable Other Related Parties and Subsidiaries Subtotal No No No No No No Not Applicable Not Applicable Total