Emergency Response System for Sudden Incidents

Chapter 1 General Principles

Article 1

To strengthen Jilin Province Xidian Pharmaceutical Technology Development Co., Ltd. (hereinafter referred to as "the Company") in handling sudden incidents, this system is established to create a rapid response and emergency handling mechanism, minimizing the impact and losses caused by such incidents, maintaining normal production and operational order, ensuring corporate stability, and protecting the legitimate rights and interests of the Company and its shareholders, in accordance with the Company Law of the People's Republic of China, the Securities Law of the People's Republic of China, the Emergency Response Law of the People's Republic of China, and other relevant laws and regulations, as well as the Articles of Association of Jilin Province Xidian Pharmaceutical Technology Development Co., Ltd. (hereinafter referred to as "the Articles of Association").

Article 2

The term "sudden incident" as used in this system refers to unexpected events that differ from daily operations and have already or may severely impact the Company's operations, financial status, social reputation, and stock price, necessitating emergency response measures.

Article 3

The Company shall implement a principle of prevention first, combining prevention with emergency handling in its response to sudden incidents.

Article 4

This system applies to the Company and its subsidiaries (referring to wholly-owned subsidiaries and holding subsidiaries).

Chapter 2 Classification of Sudden Incidents

Article 5

Based on factors such as social harm and impact scope, sudden incidents mainly include but are not limited to the following four categories:

1. Governance-related
   1. Major risks faced by the Company's major shareholders that significantly affect the Company.
   2. Disputes or significant disagreements among major shareholders.
   3. Major violations or illegal activities involving the Company's directors and senior executives.
   4. Loss of control of the Company by its management.
   5. Transfer or concealment of Company assets by major shareholders or related personnel overseas or in locations that cannot be retrieved.
   6. Significant litigation between the Company and society, shareholders, or employees.
   7. Other governance-related sudden incidents.
2. Operational
   1. Severe deterioration of the Company's operational and financial status.
   2. Risk of delisting faced by the Company.
   3. Major product quality incidents that hinder the Company's continued operation.
   4. Significant economic losses or civil compensation risks faced by the Company.
   5. Other operational sudden incidents.
3. Policy Environment
   1. Major international events affecting the Company.
   2. Major domestic events or significant policy changes affecting the Company.
   3. Natural disasters severely impacting the Company's operations.
   4. Safety production accidents, traffic accidents, or public facility and equipment accidents affecting the Company's operations.
   5. Risks of significant administrative penalties faced by the Company.
   6. Other environmental sudden incidents.
4. Information
   1. Abnormal fluctuations in the Company's stock price.
   2. Concentrated or false media reports about the Company.
   3. False rumors or information in society that significantly impact the Company.
   4. Major omissions or errors in information released by the Company that significantly affect the market.
   5. Potential or actual social instability leading to investor complaints or visits.
   6. Other information-related sudden incidents.

Chapter 3 Organizational Structure

Article 6

The Company shall implement unified leadership, organization, rapid response, and coordinated handling for the management of sudden incidents.