Company code: 688366 Company abbreviation: Haohaishengke

Shanghai Haohai Biotechnology Co., Ltd

Summary of the 2024 Annual Report

Section 1 Important Notice

1. The summary of this annual report is from the full text of the annual report, in order to fully understand the company's operating results, financial status and future development plan, investors should go to the www.sse.com.cn www.hkexnews.hk website to read the full text of the annual report carefully.

2. Major risk warning

Please refer to "Section 3 Management Discussion and Analysis" of this report for "4. Risk Factors".

3. The Board of Directors, the Board of Supervisors, the directors, supervisors and senior management of the Company guarantee the authenticity, accuracy and completeness of the contents of the annual report, and that there are no false records, misleading statements or material omissions, and bear individual and joint legal liabilities.

4. All directors of the company attend the meeting of the board of directors.

5. Ernst & Young Huaming Certified Public Accountants (Special General Partnership) issued a standard unqualified audit report for the company.

6. The company is not profitable and has not yet achieved profitability at the time of listing

□ Yes √ No

7. The profit distribution plan or the plan for the conversion of provident fund into share capital for the reporting period approved by the board of directors

The company's profit distribution plan for 2024 is: it is planned to distribute a cash dividend of 6.00 yuan (tax included) to all shareholders for every 10 shares based on the total share capital registered on the record date of the implementation of equity distribution and deducting the shares in the company's special securities account for repurchase. As of the date of consideration of the profit distribution plan, the total share capital of the company was 233,193,695 shares, deducting 3,155,281 shares (including 2,842,381 A shares and 312,900 H shares) in the special securities account for repurchase, so as to calculate the total proposed cash dividend of 138,023,048.40 yuan (tax included). In 2024, the company's total cash dividends (including interim distributed cash dividends) will be 230,925,296.80 yuan, accounting for 54.92% of the net profit attributable to shareholders of listed companies for the year. There will be no bonus shares for this profit distribution, and no capital reserve will be converted into share capital. This matter has been deliberated and approved by the thirtieth meeting of the fifth board of directors of the company, and must be submitted to the 2024 annual general meeting of shareholders.

8. Whether there are special arrangements for corporate governance and other important matters

□ Applicable √ Not applicable

Section 2 Basic information of the company

1. Company profile

1.1 Company Shares

√ Applicable □ Not applicable

Company stock profile

Stock Type Stock Listed Exchange Stock Abbreviation Stock Code Stock Abbreviation Before the change

and plates

A-share SSE Science and Technology Innovation Board Haohaisheng 688366 Not applicable

H Shares Main Board of the Hong Kong Stock Exchange Haohai Biotechnology 06826 Not applicable

(HAOHAI BIOTEC)

1.2 Brief description of the Company's Depositary Receipts

□ Applicable √ Not applicable

1.3 Contacts and Contact Details

Secretary of the Board of Directors (Domestic Representative for Information Disclosure)/

Securities Affairs Representative

Name: Tian Min

Address: 23rd Floor, Wenguang Building, No. 1386 Hongqiao Road, Changning District, Shanghai

Phone +86 021-5229 3555

Fax +86 021-5229 3558

E-mail info@3healthcare.com

2. Brief introduction of the company's main business during the reporting period

2.1 Main business, main products or services

The Group is a scientific and technological innovation enterprise engaged in the research and development, production and sales of medical devices and drugs, and is committed to providing innovative medical products to the market through technological innovation and transformation, integration of domestic and foreign resources and large-scale production, gradually realizing the import substitution of related pharmaceutical products, and becoming a leading enterprise in the field of biomedical materials.

(1) Medical cosmetology and wound care products

The Group has formed a business matrix covering four major categories: hyaluronic acid, epidermal repair genetic engineering preparations, radio frequency and laser equipment, which runs through the three major application scenarios of medical cosmetology, life cosmetology and home cosmetology, and can meet the all-round medical aesthetic consumption needs of end customers for epidermis, dermis and subcutaneous tissues.

The Group is one of the well-known hyaluronic acid manufacturers in China, and has independently developed and mastered crosslinking processes such as single-phase cross-linking, low-temperature secondary cross-linking, linear particle-free cross-linking and organic cross-linking. The first-generation hyaluronic acid product "Haiwei" is the first single-phase cross-linked sodium hyaluronate gel product approved by the State Food and Drug Administration in China, which is mainly positioned for the popularization of entry-level hyaluronic acid. The second-generation hyaluronic acid product "Jiaolan" is mainly positioned as a mid-to-high-end hyaluronic acid, focusing on the "dynamic filling" function. The third-generation hyaluronic acid product "Haimei" has the characteristics of linear and particle-free, and is positioned as a high-end hyaluronic acid in the market, focusing on the function of "precision carving". The fourth-generation organic cross-linked hyaluronic acid product "Haimei Yuebai" has obtained the Class III medical device product certificate issued by the State Food and Drug Administration in July 2024, forming a product portfolio with the previous three generations of hyaluronic acid with differentiated functions and price positioning, which can meet the increasingly diversified needs of the medical aesthetic market. Based on the world's first organic cross-linking process independently developed by the Group, "Haimei Yuebai" is the only hyaluronic acid product in China that uses the natural product lysine as a cross-linking agent.

The crosslinker is an essential amino acid and has a better long-term safety profile than traditional chemical crosslinkers. "Haimei Yuebai" is the first product in China to block the action site of hyaluronidase, which has the characteristics of more long-term effect. In addition, after injection, "Haimei Yuebai" can increase the volume of skin and soft tissues and stimulate local collagen proliferation, so as to repair sunken deformities and hyperplasia, correct static wrinkles, and achieve the effects of adjusting contours and beautifying the face. The Group's hyaluronic acid product portfolio has been widely recognized by the market and is a leading brand of domestic hyaluronic acid products for injection. Bioxis, a French hyaluronic acid subsidiary of the Group, has obtained the right to commercialize the hyaluronic acid product in the Chinese market using a patented technology of thin layer cross-linking, which makes the gel evenly distributed and free of obvious particles, and has been sold in the European and Middle East markets.

EndyMed, an Israeli listed company under the Group, is principally engaged in the research and development, production and sales of household and medical radiofrequency beauty instruments and equipment, and its EndyMed Pro and Pure professional RF beauty devices have been marketed in the domestic market. Radium Optoelectronics, a subsidiary of the Group, is mainly engaged in the research and development, production and sales of laser chips and instruments and equipment, and has obtained the medical device certifications of NMPA, US FDA and CE of the European Union and sold overseas.

The Company has entered into an equity investment and product licensing agreement with Eirion in the United States to acquire Eirion's innovative topical spreadable Type A meat

Exclusive rights to develop, sell and commercialize the toxin product ET-01, the classic injectable botulinum toxin product AI-09, and the small molecule drug product ET-0 Chinese mainland 2 for the treatment of hair loss and gray hair. Currently, AI-09 is in Phase I/II clinical trials in the U.S., and ET-01 is in Phase II clinical trials in the U.S.

In the field of wound care, the Group is the second largest manufacturer of external human epidermal growth factor in China, and the external human epidermal growth factor "Kanghesu" produced by the Group is the only epidermal growth factor product in China that has the same amino acid number, sequence and spatial structure as the natural EGF of the human body, and is also the first registered external human epidermal growth factor product in the world, with remarkable efficacy in the field of wound care and treatment.

(2) Ophthalmic products

In the field of cataracts, the Group has products such as intraocular lenses and ophthalmic viscoelastic agents. The Group is a leading international intraocular lens manufacturer and has built a complete intraocular lens industry chain with a full range of intraocular lens product portfolios covering major materials, optical designs and additional functional categories. Ophthalmic viscoelastic is an important soft medical consumable widely used in cataract, glaucoma and other intraocular surgeries, and the domestic market share of ophthalmic viscoelastic products produced by the Group has ranked first in the market for 17 consecutive years, making it the largest manufacturer of ophthalmic viscoelastic agents in China.

In the field of myopia prevention and control and refractive correction, the Group has orthokeratology lenses, PRL and other products. The Group has self-developed "Tongxiang" and "Tongliang", as well as the "MyOK" and "Hiline" orthokeratology lenses (OK lenses) brands of Taiwan Hengtai Optics, which are the exclusive agents of Taiwan Hengtai Optics in China, which can provide a variety of myopia prevention and correction product solutions for teenagers. PRL is a core consumable independently developed by the Group for phakic refractive lens surgery, which can help consumers achieve myopia correction without cutting the normal corneal tissue, and has a good market prospect. The clinical trials of the Group's second-generation aqueous humor permeable PRL products are progressing in an orderly manner, and the clinical trials of the high oxygen permeability scleral lens and the new ultra-high oxygen permeability (DK180) orthokeratology lens product have been officially launched in July and August 2024 respectively.

In the field of ocular surface and fundus diseases, the sodium hyaluronate eye drops developed by the Group were approved by the National Food and Drug Administration in March 2024

Sodium hyaluronate eye drops can be used for the treatment and alleviation of conjunctival epithelial damage caused by concomitant diseases such as dry eye syndrome and external diseases such as surgery, drug-induced, traumatic, and contact lens wearing. The Group's self-developed eye lotion products are made of exclusive patented ingredients medical chitin and sodium hyaluronate, are aseptically packaged and preservative-free, which have the effects of natural antibacterial, moisturizing and lubricating, promoting the repair of corneal epithelial damage and reducing spotting, etc., and can comprehensively care for the ocular surface health of orthokeratology lens wearers. Moxifloxacin hydrochloride eye drops for the treatment of bacterial conjunctivitis belong to the fourth generation of fluoroquinolones and are one of the mainstream drugs for the treatment of bacterial conjunctivitis. Biogel products for intraocular filling, which are used to seal retinal tears and treat rhegmatogenous retinal detachment, have entered the registration and application stage.

Contamac, a subsidiary of the Group, is one of the world's largest independent producers of optometric materials, serving more than 70 countries and companies worldwide

Customers in the region supply raw materials for optometric products such as intraocular lenses, orthokeratology lenses and scleral lenses.

(3) Orthopedic joint cavity viscoelastic supplement products

The Group is the largest manufacturer of viscoelastic supplements for orthopedic joint cavity in China. Degenerative osteoarthritis is a common and frequent disease in the elderly population, mainly affecting articular cartilage, bone and synovial tissue, resulting in joint pain, deformity and dysfunction.

The Group has two types of products in this field, sodium hyaluronate injection and medical chitin (for intra-articular injection), and is the only manufacturer in China with a full range of orthopedic sodium hyaluronate injection products of 2ml, 2.5ml and 3ml.

(4) Anti-adhesion and hemostatic products

The Group is the largest manufacturer of surgical anti-adhesion agents in China and one of the major manufacturers of medical collagen sponges and porcine-derived fibrin adhesives. Tissue adhesion is the main cause of postoperative complications, and the use of polymer biomaterials as an isolator to prevent surgical adhesion has gradually become a consensus to improve the safety of surgery. The Group's self-developed anti-adhesion products for medical chitin and medical sodium hyaluronate gel have been widely used in clinical practice.

Medical collagen has a good effect on hemostasis and tissue filling, and the Group's medical collagen sponge product "Chitebang" can be used for hemostasis, filling cavities of various tissues and organs to eliminate residual cavities, so as to shorten the operation time and promote postoperative wound and tissue healing. The pig-derived fibrin adhesive product "Kangrui Gum" developed by the Group is a new type of biomaterial made from protein extracted from pig blood, which has the functions of reducing bleeding, closing wounds and promoting wound healing, and can be widely used in general surgery, gynecology, cardiovascular and cerebral surgery, neurosurgery, thoracic surgery, hepatobiliary surgery and other departments, and is used as an auxiliary for surgical hemostasis of unsatisfactory bleeding control in routine surgical operations. In 2024, "Kangrui Gum" will be included in the "Shanghai Biomedical "New Excellent Pharmaceutical and Medical Device" Product Catalog.

2.2 Main business model

(1) Procurement model

In order to improve operational efficiency and reduce procurement costs, the Group has set up a procurement center to be responsible for the centralized procurement of general raw materials, machinery and equipment, etc. In terms of supplier selection, the Group establishes supplier files and forms a list of qualified suppliers through the collection and analysis of industrial chain information, the tracking and evaluation of supplier quality systems and cooperation terms. In the procurement process, the company's procurement specialist formulates a monthly procurement plan for general materials or a special procurement plan for machinery and equipment according to the production plan and inventory situation of relevant departments, reports to the procurement center for review, and then arranges personnel to implement procurement and supervise the implementation process by the person in charge or supervisor of the procurement center.

In addition to its own products, the Group also sells products such as intraocular lenses under the distribution brand. The procurement of distributed products is responsible for the procurement department of the specific subsidiary, and the main process is as follows: under the framework agreement for the procurement of distributed products, the subsidiary calculates the monthly or quarterly demand for various products according to the market situation and sales strategy, formulates the corresponding order plan, and after the approval of the financial manager and the person in charge of procurement of the subsidiary, the purchasing department issues a monthly or quarterly purchase order to the manufacturer of the distributed product and implements the follow-up procurement work.

(2) Production mode

The Group's pharmaceuticals are produced in strict accordance with the Good Manufacturing Practice (GMP) process, and the medical device products are produced in strict accordance with the quality management system ISO13485 and ISO9001 processes.

The Group adopts the model of determining production by sales and maintaining reasonable inventory, and formulates annual and monthly production plans for products. The production department decomposes and refines according to the production plan, and each workshop formulates the production material procurement plan and organizes production according to the monthly production plan.

In the production process, the production department is responsible for the production process and on-site management of specific products, and the quality department is responsible for supervising and inspecting the key quality control points and process control points in the production process, and is responsible for the quality supervision and production quality evaluation of raw and auxiliary packaging materials, intermediates, semi-finished products and finished products.

(3) Sales model

At present, the Group adopts a sales model of both distribution and direct sales. Under the distribution model, the company's customers are dealers, and the company and the dealers belong to the purchase and sale relationship, usually by buyout. Under the direct sales model, the company's customers are end customers such as distributors and hospitals.

Specifically, it is divided into two forms: direct sales to terminal medical institutions and sales to public hospitals through distributors designated by public hospitals.

2.3 The situation of the industry

(1). The development stage, basic characteristics and main technical thresholds of the industry

At present, China's pharmaceutical manufacturing industry is still in a stage of rapid development. According to the National Bureau of Statistics, in 2024, China's pharmaceutical manufacturing enterprises above designated size will achieve operating income of 2,529.85 billion yuan, which will remain stable as a whole, and the revenue scale will be among the 41 major industrial industries

It ranked 16th and ranked 31st in terms of growth rate. The total profit was RMB342.07 billion, down 1.1% year-on-year, in 41 major industrial sectors

, the profit scale ranked 8th, and the growth rate ranked 26th.

The Group's products are mainly made of biomedical materials as raw materials, which belong to the biomedical materials industry in the pharmaceutical manufacturing industry. Biomedical materials are used to combine with the living system to diagnose, treat, rehabilitate and prevent, as well as replace human tissues, organs or enhance their functions. At present, China's biomedical materials industry is in a stage of rapid development, and domestic products are still dominated by low-end products in terms of technical structure, and implantable biomedical materials with high technical content are mainly dependent on imports. For details of the company's various industry segments, please refer to the "5 (4) 1 (1) Industry Basic Information" section of "Section 3 Management Discussion and Analysis".

The research of implantable high-end biomedical materials involves the application of multidisciplinary knowledge such as biology, medicine, physics, chemistry, and chemical engineering, and has the characteristics of complex R&D technology, high organizational difficulty, high environmental requirements, long R&D cycle, and high investment. Moreover, most biomedical material products will be implanted into the human body, and the interaction between the materials and the human body may affect their respective functions and properties, resulting in the efficacy of the product is not as expected or even cause damage to the human body, further increasing the difficulty of its research and development, clinical and registration.

(2). Analysis of the company's position in the industry and its changes

The Group is a leading enterprise in the field of biomedical materials in China, and has achieved industry-leading advantages in the four major business segments that the Group focuses on: medical cosmetology and wound care, ophthalmology, orthopedics, anti-adhesion and hemostasis.

In the field of medical cosmetology, the Group is one of the well-known hyaluronic acid manufacturers in China, and has independently developed and mastered crosslinking processes such as single-phase cross-linking, low-temperature secondary cross-linking, linear particle-free cross-linking and organic cross-linking. The fourth-generation organic cross-linked hyaluronic acid product "Haimei Yuebai" has obtained the Class III medical device product certificate issued by the State Food and Drug Administration in July 2024, which will form a product portfolio with differentiated functions and price positioning with the previous three generations of hyaluronic acid, which can meet the increasingly diversified needs of the medical aesthetic market. The Group has formed a business matrix covering four major categories: hyaluronic acid, epidermal repair genetic engineering preparations, radio frequency and laser equipment, and has stockpiled innovative emulsion-based botulinum toxin products, which connect the three major application scenarios of medical cosmetology, life cosmetology and home cosmetology, so as to meet the all-round medical aesthetic consumption needs of end customers for epidermis, dermis and subcutaneous tissues.

In the field of wound care, the Group is the second largest manufacturer of external human epidermal growth factor in China, and the external human epidermal growth factor "Kanghesu" produced by the Group is the only epidermal growth factor product in China that has the same amino acid number, sequence and spatial structure as the natural EGF of the human body, and is also the first registered external human epidermal growth factor product in the world, with remarkable efficacy in the field of wound care and treatment. According to the research report of Punctuation Pharma, the Group's external human epidermal growth factor products have a market share of 26.91% in China in 2023, continuing to rank second in market share.

In the field of ophthalmology, the Group is the largest manufacturer of ophthalmic viscoelastic agents in China and an internationally renowned manufacturer of intraocular lenses and optometric materials.

According to the report of Punctuation Pharma, the market share of the Group's ophthalmic viscoelastic products increased from 44.52% in 2023 to

46.98%, ranking first in China's market share for 17 consecutive years. The Group is a leading international intraocular lens manufacturer and has built a complete intraocular lens industry chain with a full range of intraocular lens product portfolios covering major materials, optical designs and additional functional categories. The Group's EPL product is one of the three core products that can be used for phakic refractive lens surgery in the domestic market, and has good growth prospects. The Group has four differentiated orthokeratology lens products, namely "Children's Enjoyment", "MyOK", "Hengtai Hiline" and "Tongliang", which can better help adolescents achieve myopia prevention, control and correction. Contamac, a subsidiary of the Group, is one of the world's largest independent manufacturers of optometric materials, supplying intraocular crystals to customers in nearly 70 countries and regions around the world

Raw materials for optometric products such as shapes and orthokeratology lenses.

In the field of orthopedics, the Group is the largest manufacturer of orthopedic joint cavity viscoelastic supplements in China, with two types of products, sodium hyaluronate injection and medical chitin (for joint cavity injection), and is the only manufacturer in China with a full range of orthopedic sodium hyaluronate injection products of 2ml, 2.5ml and 3ml. According to the research report of Punctuation Pharmaceutical, in 2023, the market share of the Group's orthopedic joint cavity viscoelastic supplement products in China jumped to 50.44%, ranking first in the market for 10 consecutive years.

The Group is the largest manufacturer of surgical anti-adhesion agents in China and one of the major manufacturers of medical collagen sponges and porcine-derived fibrin adhesives. According to the research report of Punctuation Pharma, in 2023, the market share of surgical anti-adhesion products produced by the Group in China will be 28.82%, ranking first in the market for 17 consecutive years.

(3) The development and future development trend of new technologies, new industries, new forms of business and new models during the reporting period

During the reporting period, the domestic biomedical materials industry continued to develop. Stem cells, tissue engineering, 3D printing and other technologies continue to be cross-integrated with biomedical material technology, expand the application scope of biomedical materials in the medical field, and promote the deepening application of biomedical materials in tissue and organ repair and regeneration, physiotherapy and rehabilitation, medical cosmetology and other fields. With the large-scale, precise, personalized and intelligent development of the biomedical materials industry, China's biomedical materials will also develop in the direction of technological innovation, high-end products, industrial ecology and internationalization of layout in the future, and the industrial development model will gradually change to technological innovation and capital-driven.

3. The company's main accounting data and financial indicators

3.1 Key accounting data and financial indicators for the past 3 years

Unit: Yuan Currency: RMB

2024 2023 This year is compared to 2022

Increase/decrease (%)

Total assets 7,121,392,176.35 7,105,496,951.15 0.22 6,892,398,253.88

Shares attributable to listed companies 5,575,258,634.87 5,650,064,203.23 -1.32 5,514,610,290.63

East's net worth

Operating income 2,697,657,908.35 2,654,039,068.79 1.64 2,130,275,956.41

Shares attributable to listed companies 420,446,906.16 416,121,340.71 1.04 180,469,733.31

East's net profit

Attributable to shares of listed companies

Non-recurring deductions 379,096,331.64 383,406,434.26 -1.12 158,749,648.52

Net profit from profit or loss

648,571,330.09 634,449,395.83 2.23 231,296,030.90 arising from operating activities

Net gold flow

The weighted average net assets were 7.42 7.39, an increase of 0.03 percentage points and 3.21

Profit rate (%)

Basic earnings per share (RMB 1.80 1.75 2.86 0.75

/share)

Diluted earnings per share (RMB 1.80 1.75 2.86 0.75

/share)

R&D investment accounted for 8.86 8.29 percentage points of operating revenue, an increase of 0.57 percentage points and 8.55

Proportion of income (%)

3.2 Key accounting data by quarter in the reporting period

Unit: Yuan Currency: RMB

Q1 Q2 Q3 Q4

(January-March) (April-June) (July-September) (October-December)

Operating income 645,995,271.22 758,448,441.60 670,367,536.60 622,846,658.93

Net profit attributable to shareholders of listed companies 97,541,532.98 137,742,171.93 105,605,379.86 79,557,821.39

moistening

Deductions attributable to shareholders of listed companies 95,217,851.02 135,123,977.37 91,074,160.24 57,680,343.01

Net profit after non-recurring gains or losses

Net cash flow from operating activities 75,969,702.64 252,524,374.38 102,145,195.83 217,932,057.24

forehead

Explanation of the discrepancies between the quarterly data and the data disclosed in the periodic report

□ Applicable √ Not applicable

4. Shareholders

4.1 The total number of common shareholders, the total number of preferred shareholders whose voting rights have been restored, and the total number of shareholders holding special voting shares and the top 10

shareholders

Unit: Shares

As of the end of the reporting period, the total number of ordinary shareholders (households) was 7,275

The total number of ordinary shareholders at the end of the previous month prior to the disclosure date of the annual report was 7,191

The total number of preferred shareholders whose voting rights have been restored as of the end of the reporting period (households) is not applicable

Preferred shares whose voting rights have been restored at the end of the previous month prior to the disclosure date of the annual report are not applicable

Total number of shareholders

The total number of shareholders holding special voting shares as of the end of the reporting period Not applicable

(Households)

Holding of special voting shares at the end of the previous month prior to the disclosure date of the annual report is not applicable

Total number of shareholders (households)

Shareholdings of the top 10 shareholders (excluding shares lent through refinancing)

Stake, token, or freeze

Holding a balance

Name of Shareholder During the Reporting Period Shareholding at the End of the Period Proportion Restricted Shareholder

(Full name) Increase or decrease Quantity (%) Shares Shares Nature

Quantity Status Quantity

Jiang Wei 22,079,000 66,528,000 28.53 0 None 0 Natural

person

Youjie 11,520,000 40,320,000 17.29 0 None 0 Nature

person

HKSCC NOMINEES 6,220,096 39,040,085 16.74 - Unknown - Foreign legal entity

LIMITED

Lou Guoliang 2,460,475 8,611,661 3.69 0 None 0 Natural

person

Wu Jianying 2,461,753 8,495,717 3.64 0 None 0 Natural

person

Hou Yongtai 2,402,504 8,408,764 3.61 0 None 0 Natural

person

Peng Jinhua 1,132,000 3,962,000 1.70 0 None 0 Natural

person

Liu Yuanzhong 800,000 2,800,000 1.20 0 None 0 Natural

person

Huang Ming 800,000 2,800,000 1.20 0 None 0 Natural

person

Bank of China Co., Ltd

Division-Huabao CSI Medical Exchange 833,236 2,448,351 1.05 0 None 0 Others

Easy-to-type open-ended index securities

investment fund

Explanation of the above-mentioned shareholder affiliation or concerted action Among the top 10 shareholders mentioned above, Jiang Wei and You Jie are husband and wife, yes

The controlling shareholder and actual controller of the company. In addition to the above, the public

The company does not know whether the other shareholders are related to each other, nor is it known

Whether the other shareholders are acting in concert with each other.

Explanation of preferred shareholders whose voting rights have been restored and the number of shares held is not applicable

Holders of depositary receipts

□ Applicable √ Not applicable

The top 10 shareholders in terms of the number of voting rights as of the end of the reporting period

□ Applicable √ Not applicable

4.2 Block diagram of the property rights and control relationship between the company and the controlling shareholder

√ Applicable □ Not applicable

4.3 Block diagram of the property rights and control relationship between the company and the actual controller

√ Applicable □ Not applicable

4.4 The total number of preferred shareholders and the top 10 shareholders of the company at the end of the reporting period

□ Applicable √ Not applicable

5. Corporate bonds

Section 3: Important Matters

1. The company shall, in accordance with the principle of materiality, disclose the major changes in the company's operation during the reporting period, as well as the events that have a significant impact on the company's operation during the reporting period and are expected to have a significant impact in the future.

For details, please refer to "I. Discussion and Analysis of Business Conditions" in "Section 3 Management Discussion and Analysis" of this report.

2. If there is a delisting risk warning or termination of listing after the disclosure of the company's annual report, the reasons for the delisting risk warning or termination of listing shall be disclosed.

□ Applicable √ Not applicable