Stock code: 688506 Stock abbreviation: Baili Tianheng Announcement No.: 2024-035

Sichuan Baili Tianheng Pharmaceutical Co., Ltd.

Announcement on Hiring Audit Institutions for the Issuance and Listing of H Shares

the company's board of directors and all directors to ensure that the contents of this announcement does not exist any false records, misleading statements or major omissions, and the authenticity, accuracy and completeness of the contents of the legal responsibility.

Important Content Tips:

Proposed accounting firm: Deloitte Guan Huang Chen Fang (hereinafter referred to as "Deloitte")

The basic situation of the 1.'s proposed appointment of accounting firms.

1. Basic information

Deloitte is a partnership accounting firm registered in Hong Kong. It is a member of Deloitte's international network. Its registered address is located on the 35th floor of the first phase of Pacific Place, 88 Queensway, Hong Kong. Its business scope includes auditing, corporate management consulting, financial consulting, Risk management and tax services.

As of 2023, the main industries of Deloitte's financial statement audit clients include photovoltaic energy, manufacturing, logistics and postal industry, Internet industry, scientific research and technical service industry, telecommunications, media and entertainment industry, accommodation and catering industry, transportation, real estate industry and financial service industry.

2. Investor protection capacity

Deloitte has appropriate professional liability insurance to cover reasonable risks arising from the provision of professional services. In the past three years, Deloitte has not been found to be liable for civil compensation by the court or arbitration institution in the relevant civil litigation.

3. Integrity record

A Deloitte partner reached an agreement with the Hong Kong Institute of Certified Public Accountants in 2022 for his practice and was subject to administrative sanctions. In addition, Deloitte and its employees have not been subject to other penalties, supervision and management measures, self-regulatory measures or disciplinary sanctions for their practice in the past three years.

Review procedures to be performed by the accounting firm to be appointed by the 2.

(I) of the deliberations of the Board of Auditors

The company held the third meeting of the audit committee of the fourth session of the board of directors in 2024 on June 21, 2024, and deliberated and passed the proposal on the audit institution for the issuance and listing of H shares by the company. The audit committee consulted the relevant qualification certificates, relevant information and integrity records of Deloitte, and believed that Deloitte had the ability to issue and list H shares

Relevant professional and investor protection capabilities and independence, good integrity, to meet the company's issuance and listing financial audit requirements. Agreed to hire Deloitte as the company's H-share issuance and listing audit agency, and agreed to submit the proposal to the company's board of directors for consideration.

Deliberations and voting of the Board of Directors of the (II)

The company held the fifteenth meeting of the fourth board of directors on June 21, 2024, with 9 votes in favor, 0

Voted against, 0 abstention, deliberated and passed the "proposal on the company's employment of audit institutions for the issuance and listing of H shares".

(III) Effective Date

The matter of hiring an audit institution for the issuance and listing of H shares needs to be submitted to the company for the second time in 2024.

and shall take effect from the date of approval by the second interim general meeting of shareholders in 2024.

It is hereby announced.

Board of Directors of Sichuan Baili Tianheng Pharmaceutical Co., Ltd.

22 June 2024