Qingdao Haier Biomedical Co., Ltd

The 2024 annual evaluation report and 2025 annual action plan of "improving quality and efficiency and emphasizing returns".

Qingdao Haier Biomedical Co., Ltd. (hereinafter referred to as the "Company") is based on the confidence in the company's future development prospects and the recognition of the company's value in order to practice the "investor-oriented" development concept of listed companies, safeguard the interests of all shareholders of the company, enhance investor confidence, and promote the company's long-term healthy and sustainable development

On March 28, 2024, the company released the "Haier Biotech 2024 "Quality Improvement, Efficiency and Return" Special Action

plan", which formulates a clear work direction for the company's 2024 annual action of improving quality, efficiency and return. In the past year, the company has actively carried out and implemented various tasks according to the content of the action plan, and after deliberation and approval by the board of directors, the main work results for the whole year of 2024 and the action plan for 2025 are reported as follows:

1. Accelerate the development of new digital and intelligent industries and improve the quality of operation

In 2024, the external environment challenges will still exist, and the company will actively respond with the rapid development of new industries, the in-depth layout of overseas markets and the expansion of digital intelligence scenario solutions, and the operating income will return to positive growth. In 2025, we will continue to adhere to innovation-driven, continue to iterate around the diversified scenarios of users, increase the intensity of "going global", and continue to strengthen the development of new momentum:

1. Adhere to innovation-driven and support the rapid development of new industries

In 2024, the company will invest 306 million yuan in R&D, accounting for 13.41% of operating revenue. The company is divided into six large

The technology platform is the core to deepen the diversified and open R&D system, and deeply co-create with users such as the Institute of Hematology of the Chinese Academy of Medical Sciences and Xi'an Jiaotong University, while supporting the company's rapid expansion from cryogenic to multi-field products, and constantly building industry-leading innovation capabilities. During the reporting period, the timely launch rate of new products increased by 9%, the compliance rate of new product projects increased by 5%, and the proportion of revenue from new products launched in the current year increased by 5%; Newly obtained a total of 5 categories of products, including automatic liquid nitrogen storage system, constant temperature incubator, cryogenic transfer box, biological safety cabinet, etc., 7 Class II and Class III medical device registration certificates; A total of 32 achievements have been identified as international leading level achievements, 58 standards such as national/industry/local groups/CQC technical specifications have been led or participated in the drafting, and 8 types of product solutions have achieved "first" or "only" leadership.

In 2025, the company will continue to increase R&D and innovation, rely on a diversified and open R&D system, and expand to the core processes and scenarios in the field of life science and medical innovation on the basis of general products. First, in terms of general product innovation, on the one hand, we will consolidate the advantages of low-temperature technology, strive to create green, automated, intelligent and subversive comprehensive solutions, and focus on promoting the super energy-saving series, Wuji series and Ark series to be more productive

R&D and listing of product solutions, expanding the integration and application of industrial automation technologies such as cryogenic and mechanical transmission and control, and visual processing, and continuing to lead industry reforms; On the other hand, based on the six major technology platforms, we will promote the iteration of general instrument product series such as incubators, centrifuges, and safety cabinets, upgrade the interactive experience of laboratory product solutions, and accelerate the expansion of laboratory cryopreservation consumables to cell culture consumables. Second, in terms of core process and scenario expansion, we will start with analytical instruments to enter the field of professional instruments, and explore the whole process of pharmaceutical processes from the perspective of cryopreservation and thawing scenarios; Accelerate the implementation of overseas certification of blood multi-component separation products, and expand blood treatment and blood testing scenarios; Upgrade the hospital static distribution robot solution and incubate a public health intelligent service platform.

2. Accelerate the expansion of the scene ecology around the diversified scenarios of users

With the goal of creating the best user experience, the company has formed two major sectors of life science and medical innovation for life science users such as pharmaceutical and biological enterprises, university scientific research institutions, and medical and health users such as hospitals, disease control, blood banks, and grassroots public health, and provides comprehensive solutions for digital scenarios represented by smart laboratories, digital hospitals, smart public health, and smart blood use.

In 2024, the company's operating income will return to positive growth, and the growth rate in the fourth quarter will further increase to 10.40% after the revenue growth rate in the third quarter turned positive year-on-year; Although the delivery of some orders in the fourth quarter was cross-time, the trend of continuous improvement in order growth in the previous quarter was clear, and business development gradually returned to the normal track. Among them, the annual growth rate of new industries was 21.25%, accounting for 45.47% of the main business income, an increase of 7.93 percentage points over last year, and the business of drug automation, laboratory consumables, digital public health, and pulp mining consumables continued to grow at a high rate; The company completed the merger and acquisition of Shanghai Yuanxi Instrument and officially entered the analytical instrument track. The decline in the cryogenic storage industry in the second half of the year narrowed quarter by quarter, and achieved positive year-on-year growth in the fourth quarter, and the annual revenue of cryogenic storage after excluding the solar vaccine program was basically the same as last year. Since the pioneering launch of the integrated solutions of the Internet of Things represented by smart blood use and smart vaccination, the company has always been committed to the integration of cutting-edge technologies such as cloud computing, big data, and artificial intelligence with the industry. The user value of process efficiency leaps and value reconstruction.

In 2025, the company will continue to rely on the innovation of digital intelligence scenarios such as smart laboratories, digital hospitals, smart public health, and smart blood use, and focus on the development of two major industries in the field of life sciences, namely digital intelligence sample bank and general laboratory equipment, and extend from smart laboratory scenarios to industrial application scenarios such as pharmaceutical processes around scientific research universities and pharmaceutical and biological enterprises. In the field of medical innovation, we customize smart blood safety solutions for blood bank and hospital users, and to:

Continued expansion of blood component preparation and treatment; Customize smart vaccine safety solutions and ecosystem services for disease control departments and community health centers, and expand to public health; Customize solutions such as automated medication and smart operating rooms for hospital users, and expand to smart service medical platforms. The company insists on starting from the needs of users, providing users with value-added services on the basis of products, creating an integrated scenario solution of "software and hardware services", and accelerating the implementation of industrial layout through the "endogenous + extensional" approach.

3. Deepen the global layout and increase the intensity of "going overseas".

In 2024, the company's overseas market revenue will be 715 million yuan, a year-on-year decrease of 8.73%, excluding solar energy

Double-digit growth after the impact of the vaccine regimen. Since entering the third quarter, the delivery speed of orders for solar vaccine solutions has accelerated, and the fourth quarter has achieved positive year-on-year growth, which has basically digested the disruption caused by the extension of the order execution cycle to overseas revenue, and the company's overseas market is expected to accelerate significantly in 2025. On the basis of more than 800 network systems covering more than 150 countries and regions, the company adheres to the "one country, one policy", builds a localized business team and a flexible and independent management mechanism, and realizes rapid insight and response to the needs of local users with localized products, marketing, logistics, after-sales and other strategies. At present, the company has formed a localized team with the United States, the United Kingdom, the Netherlands, Singapore, India and other countries as the core and radiating the surrounding areas; During the reporting period, 56 new product models were certified by overseas localization, and a total of more than 400 overseas product certifications were obtained.

In 2025, the company will continue to promote the global layout of cross-regional, cross-channel and cross-category, accelerate the construction of a localized operation system, and actively cultivate the growth of overseas markets. Adhering to the "one country, one policy", while deepening the British model, we will focus on key regions and countries such as the Americas, Asia-Pacific, and Europe, and do a good job in two layouts: first, the layout of the localized product system, continue to increase the share of advantageous products, seize the market opportunities of smart blood and drug automation, and accelerate the expansion of new products and solutions such as laboratory instruments and consumables; The second is to localize the layout of the operation system, improve the planning, marketing, and after-sales teams, enhance the terminal contact capabilities of medical, scientific research, pharmaceutical, and other channels, overcome blank areas, improve weak areas, and steadily increase local market share.

2. AI empowerment builds new momentum for development and accelerates the development of new quality productivity

The company took the lead in integrating technologies such as the Internet of Things and cloud computing, and launched comprehensive solutions for digital scenarios such as smart blood use and smart vaccination, leading the industry change. In recent years, we have continued to focus on differentiated user experience, deeply integrated cutting-edge technologies such as artificial intelligence into multiple scenarios such as in-hospital medication, vaccine services, cell culture, blood management, and sample management, integrated multi-dimensional data resources, built an intelligent interactive ecology, and improved the competitiveness of products and solutions. Internally, we will promote the digital and intelligent upgrading of all nodes in the whole process such as marketing, supply chain, logistics, and services, so as to optimize the efficiency of the whole value chain.

In 2024, the company will continue to promote the core technology system of automation and the cutting-edge technology of AI in storage

Innovation and application of laboratory scenarios such as processing, biological culture, and centrifugal preparation, as well as medical and health scenarios such as in-hospital medication, blood management, and vaccination: in-hospital drug use scenarios are based on generative large models and

DeepSeek-R1 deep learning capability builds a dynamic inventory management system, which predicts demand in real time and replenishes drugs in real time by analyzing pill box size, drug morphology image data and inventory information, improving drug dispensing efficiency by 10%-15%. In the blood management scenario, based on the historical blood data of blood-using hospitals and the historical blood collection data of blood collection points (note: the above data is authorized by the user), statistical modeling and machine learning are combined to optimize inventory management, predict blood demand and formulate blood collection plans, and the average blood turnover time of hospitals is compressed to 3-5 days. In the vaccine service scenario, in response to the problem of missing and re-inoculating at grassroots vaccination sites, the AI intelligent vaccination service was launched, which reminded parents of school-age children by phone through large-scale model intelligent Q&A, achieving an efficiency leap of 300-400 users per minute for missing vaccination. In the sample management scenario, the self-developed Kuidou AI self-decision-making model enables the control system to realize self-perception and self-judgment through AI algorithms in emergency situations, automatically transfer samples at low temperature in the library, and automatically update location information to ensure sample safety. For the special use scenarios of the biobank, the innovative AI low-temperature and high-speed transmission control technology realizes the overload protection of the cryogenic motor, real-time detection of the motor status, and protects the good running state of the motor in extreme environments. In the cell culture scenario, in order to solve the problem of quality consistency between users' cell culture batches, the company independently developed an intelligent cell evaluation system, built a cell morphology AI recognition and evaluation system, integrated computer self-learning network models and judgment standards, quantitatively output culture status data, and combined with the scenario scheme of automated cell culture workstations, realized real-time controllable and accurate judgment of cell culture growth status, and reduced the difference fluctuation between cell batches by 54 percentage points.

In 2024, the internal company will continue to promote the interconnection of the whole process of R&D, procurement, manufacturing, marketing, after-sales and other nodes, improve quality and efficiency: the R&D end will be managed through modular integration, and the material number will be optimized by 11%; On the procurement side, the procurement platform of the subsidiary was integrated with the digital operation system, and the average efficiency of the overall procurement was increased by 25%; Relying on the "intelligent ergonomic cloud platform" on the production side, the production efficiency has increased by 8%, the market defect has decreased by 27%, and the collaborative response efficiency of production and marketing has been increased by 15%; On the market side, we build a big data platform operation model, open up multiple links in the sales chain, accurately gain insight into market industry trends and user needs, and drive the dynamic adjustment and optimization of sales strategies. The after-sales side has upgraded the smart customer service platform, service value-added platform, scenario-based delivery platform, etc., and user satisfaction has continued to improve.

In 2025, the company will continue to promote the core technology system of automation and the cutting-edge technology of AI in storage,

The innovation and application of laboratory scenarios such as pretreatment, biological culture, and centrifugal preparation, as well as medical and health scenarios such as in-hospital medication, blood management, and vaccination, provide more efficient, convenient, and personalized solutions to improve

User experience. Internally, the company will continue to drive the digital and intelligent upgrade of all nodes in the whole process of AI-enabled marketing, supply chain, logistics, and services: upgrade the digital and intelligent marketing system, dynamically update based on real-time insights of business opportunities and user portraits, accurately match customer needs, and provide users with more accurate and customized services; Upgrade the supply chain, logistics and service system, optimize inventory management, real-time intelligent scheduling, accurate demand forecasting, and promote efficient collaboration and innovation across the entire value chain.

3. Strengthen the corporate governance system and build a solid foundation for development

In 2025, the Company will continue to strictly abide by the provisions of laws and regulations, continue to improve its corporate governance system, enhance ESG construction, strengthen the responsibilities of the "key minority", and ensure the high-quality development of the Company:

1. Improve the company's system and adhere to standardized operation

In 2024, in strict accordance with the provisions of the Company Law, the Securities Law, the Code of Governance for Listed Companies, the Rules Governing the Listing of Stocks on the Science and Technology Innovation Board of the Shanghai Stock Exchange (hereinafter referred to as the "Listing Rules of the Science and Technology Innovation Board"), the Measures for the Administration of Independent Directors of Listed Companies, and relevant laws and regulations, the Company has continuously improved its corporate governance structure, revised or formulated 15 corporate systems, including the Articles of Association, the Rules of Procedure of the General Meeting of Shareholders, and the Decision-making System for Related Party Transactions, to effectively improve the Company's governance norms.

In 2025, in accordance with the latest revision of the Company Law, the Listing Rules of the Science and Technology Innovation Board and other laws and regulations, the Company will continue to improve its corporate governance structure, update and revise the Company's internal management system, and actively cooperate with independent directors in performing their duties through prior communication meetings and special seminars, so as to improve the transparency and fairness of the Company's operations.

2. Improve the corporate governance structure and strengthen the responsibility of the "key minority".

In 2024, in strict accordance with the requirements of the Company Law, the Listing Rules of the Science and Technology Innovation Board, the Articles of Association and other laws and regulations, the Company held a total of 8 meetings of the Board of Directors and 7 meetings of the Board of Supervisors to deliberate on matters such as the company's shareholders' dividend returns, the improvement of the company's system, cash management of raised funds, related party transactions, the change of directors and senior management, and the financial reports of each period, so as to ensure the compliance of the company's related businesses. In addition, the Company continued to carry out special training sessions to focus on matters that are prone to violations such as compliance reduction and insider trading, continuously reducing the risk of violations by controlling shareholders, directors, supervisors and senior executives, and timely conveying the latest regulatory developments to improve the compliance awareness of the "key minority".

In 2025, the Company will continue to hold special training sessions for directors, supervisors and senior executives, update the latest policies and regulatory priorities in a timely manner, strengthen the compliance awareness of the "key minority", and put an end to violations such as short-term trading, insider trading, and window trading of company stocks.

3. Build an ESG governance framework to promote the long-term development of the company

In 2024, the company will adhere to the original mission of "making life better" and adhere to the principle of "respecting life wisely and sharing the future".

Construct and improve the sustainable development model with "LIFE" as the core, covering the four core areas of Leadership, Integrity, Future and Ecosystem, and sort out a number of key indicators including corporate governance, product innovation, and low-carbon technology. Up to now, the company has disclosed the "Sustainability Report" (also known as the "Social Responsibility Report") for four consecutive years, and at the same time, the company has disclosed the English report for two consecutive years in view of the large number of foreign investors in the company.

In 2025, the Company will continue to improve the quality of its sustainability reports, continue to promote the integration of the ESG system into all aspects of the company's operation and management, upgrade its ESG medium- and long-term development goals according to the industry and business development, iterate the ESG indicator system, continuously improve its sustainable development management, and improve its ESG practices.

4. Strengthen investor communication and convey the company's long-term development value

The company strictly abides by the relevant requirements of the "Guidelines for Investor Relations of Listed Companies" and the "Investor Relations Management System of Haier Bio", standardizes investor relations management activities, and broadens investor relations management channels. Through various means such as issuing announcements, holding performance briefings, interacting with SSE e-exchanges, and answering calls from investors, we will strengthen interaction with investors and protect investors' right to know. In 2024, the company will receive more than 110 institutional investors, publish 30 "Investor Relations Record Forms", and answer hundreds of investor calls

Held 4 performance briefings, 1 investor collective reception day, and replied to 36 interactive questions.

In addition, the company also further enriches the way of communication with investors through visualizations such as "one picture to understand" and "investor relations column of the official account".

In 2025, the company will continue to convey the company's operating results and financial status to the market in a timely, open and transparent manner through listed company announcements, investor exchange meetings, performance briefings, on-site research by receiving investors, SSE e-interaction, telephone, email, etc., in addition to presenting the company's business progress and financial status in front of investors in a visual form that is easy for investors to understand. The company's specific arrangements for 2025 are as follows:

1. After regular reports and quarterly reports, 3-4 performance briefings or online reception days for investors will be held, and the company's management will fully communicate with investors about financial performance, business operations and development strategies;

2. Actively participate in strategy meetings and receive on-site research from investors through online and offline methods, and are expected to participate in at least 100 sessions throughout the year to further enhance the image of listed companies in the capital market.

5. Increase investor returns and share the fruits of development

The company attaches great importance to the return on investment of shareholders, actively safeguards the interests of all shareholders, and gives back to investors through a variety of ways, and the company's 2022 annual general meeting of shareholders deliberated and approved the "Proposal on the Company's Shareholder Dividend Return Plan for the Next Three Years (2023-2025)" which is still being implemented. Since the company's listing, it has continued to pay dividends for 5 consecutive years from 2019 to 2023, with a cumulative dividend amount of 641 million yuan. In addition, the company continues to promote buyback work, 2024

The share repurchase program launched in January 25 was completed with a total of 1,691,200 shares, and the cumulative payment of funds

The total amount is nearly 50 million yuan.

In 2025, the company will launch a new round of share repurchase plan, based on confidence in the company's future development prospects, recognition of the company's value and earnest fulfillment of social responsibilities, and in order to further establish and improve the company's long-term incentive mechanism, the company intends to use its own funds at a rate of not less than RMB 100 million (inclusive), not more than the people

The amount of RMB 20,000,000 (inclusive) to repurchase the company's shares, as of February 28, 2024, the company has returned

Purchase of 323,614 shares. In addition, in order to enhance investor confidence, the company's actual controller acted in concert with Qingdao Hai

Chuangzhi Management Consulting Enterprise (Limited Partnership) plans to pass through Shanghai within 6 months from January 8, 2025

The stock exchange trading system continues to increase its holdings of the company's shares by centralized bidding, and the cumulative amount of increased holdings is not less than

10,000,000 yuan, and no more than 20,000,000 yuan, the plan to increase holdings is still ongoing.

At the same time, the company will continue to implement the "Company in the next three years (2023-2025) shareholder dividend return regulations".

On March 28, 2025, the fifth meeting of the third board of directors of the company deliberated and approved the "About the Company 2024

The proposal of the annual profit distribution plan intends to distribute a cash dividend of 4.7 yuan (tax included) to all shareholders for every 10 shares, deducting 3,474,444 shares in the special securities account for repurchase, so as to calculate the total proposed cash dividend

147,804,690.08 yuan (tax included), the cash dividend accounted for 40.31% of the net profit attributable to shareholders of the listed company this year (this proposal still needs to be reviewed by the general meeting of shareholders). In the future, the company will ensure the dynamic balance between performance growth and shareholder returns according to the development stage and industry conditions, insist on providing shareholders with stable cash dividends, ensure that shareholders obtain reliable long-term investment returns, and continuously enhance shareholders' investment experience.

6. Launched a new round of equity incentive plan to strengthen the sharing of interests between the company and shareholders

The company actively explores the all-staff creation system under the Rendanyi model, and allows each employee to maximize their personal value by creating user value through high value-added and high sharing. On the one hand, we will implement targeted and customized performance evaluation and salary incentives for managers and grassroots employees, build a perfect spiritual and material incentive system, and encourage all employees to achieve their own professional value through the positive cycle of "value creation", "value evaluation" and "value distribution", so as to achieve a win-win situation for the company and employees, so as to create long-term value returns for shareholders; On the other hand, in order to further improve the company's long-term incentive mechanism and attract and retain outstanding talents, the company will follow the income and The principle of reciprocity of contributions, in accordance with relevant laws, regulations and normative documents, the equity incentive plan has been formulated. On March 27, 2024, the 18th meeting of the second board of directors of the company and other meetings deliberated and approved the "Proposal on the > and Summary of the Company's < 2024 Restricted Stock Incentive Plan (Draft)" and "Measures for the Implementation of the Assessment and Management Measures for the Company's < 2024 Restricted Stock Incentive Plan>The number of restricted shares to be granted in this incentive plan is 3.42 million shares, accounting for 1.076% of the company's total share capital at the time of the announcement of the draft incentive plan. thereinto

2.92 million shares were granted for the first time, accounting for 0.918% of the company's total share capital at the time of the announcement of this incentive plan, and 500,000 shares were reserved.

Accounting for 0.157% of the company's total share capital of 31,7952,508 shares at the time of the announcement of this incentive plan, the total number of incentive objects granted for the first time was 262, and the total number of incentive objects granted by the reserved part was 59, realizing the effective linkage between senior management and core backbone employees and the company's operating performance, and realizing the sharing of interests between the company and shareholders.

7. Other matters

During the implementation of the 2024 plan, the company continued to evaluate the specific measures of the action plan of "improving quality, efficiency and return", fulfilled its information disclosure obligations in a timely manner, and paid close attention to relevant feedback from investors. Overall, investors in 2024 recognized the company's stable dividends, continuous repurchases, high-quality information disclosure and other investor return methods, and at the same time put forward expectations for the company's further performance growth and accelerated development of "endogenous + extensional". Therefore, according to the opinions and suggestions of investors, combined with its own actual situation, the company has further optimized the 2025 action plan on the basis of the 2024 action plan.

In 2025, the company will continue to focus on user needs, enhance the company's core competitiveness, accelerate the development of new quality productivity, fulfill the company's responsibilities and obligations, repay the trust of investors, maintain the company's good market image, and promote the stable and healthy development of the capital market through good performance, standardized corporate governance, and continuous investor returns. The forward-looking statements of the company's planning and development strategy involved in this report are not fait accompli, and do not constitute the company's substantive commitment to investors, and investors are advised to pay attention to the relevant risks.

Qingdao Haier Biomedical Co., Ltd

March 28, 2025