Chengdu Kanghong Pharmaceutical Group Co.Ltd(002773) : Announcement on purchasing financial products with self owned funds (2022 / 01 / 14)

Securities code: 002773 securities abbreviation: Chengdu Kanghong Pharmaceutical Group Co.Ltd(002773) Announcement No.: 2022-002 Chengdu Kanghong Pharmaceutical Group Co.Ltd(002773)

Announcement on using self owned funds to purchase financial products

The company and all members of the board of directors guarantee that the information disclosed is true, accurate and complete without false records, misleading statements or major omissions.

The ninth meeting of the seventh board of directors of Chengdu Kanghong Pharmaceutical Group Co.Ltd(002773) (hereinafter referred to as ” Chengdu Kanghong Pharmaceutical Group Co.Ltd(002773) ” or “the company”) and the general meeting of shareholders in 2020 considered and adopted the proposal on the company’s use of its own funds to purchase financial products, and agreed that the company and its subsidiaries use some idle own funds to purchase financial products (including structural deposits) within the amount of no more than RMB 2 billion, The purchase principle is short-term principal guaranteed financial products (including structured deposits) with high security and good liquidity, which are issued by commercial banks and provide Principal Guaranteed commitments, and the purchase period is one year from the date of deliberation and approval by the general meeting of shareholders; Within the above quota and term, the funds can be used on a rolling basis; The board of directors authorizes the president or financial director of the company to exercise the purchase decision-making power of specific financial products according to the above principles, and the financial department is responsible for the specific purchase. For details, see the information disclosure media and cninfo (www.cn. Info. Com. CN.) designated by the company on April 28, 2021 and May 19, 2021 Relevant announcements published.

Recently, the company’s subsidiary Chengdu Kanghong Pharmaceutical Co., Ltd. (hereinafter referred to as “Kanghong pharmaceutical”) purchased financial products with its own funds. The relevant information is hereby announced as follows: I. purchase of financial products

(I) Bank Of Chengdu Co.Ltd(601838) main contents of financial products

Bank Bank Of Chengdu Co.Ltd(601838) Jinniu sub branch

1. Product name “Furong Jincheng” unit structured deposit

2 product code dz-2022014

3. Product type: customized

4. The purchase amount is RMB 184.8 million only

5 establishment date / value date January 11, 2022

6. Expiration date: May 16, 2022

(withdrawal will be postponed in case of legal holidays)

7. Product life: 125 days

8. Fixed price of transaction currency to mid on Bloomberg bfix page at 2 p.m. Beijing time

September 12, 2022

If the observation date EUR / USD ≤ 1.21, the yield to maturity is 3.5% (the yield to maturity of the highest expected annual yield product);

10. If the observation date is 1.21 < EUR / USD < 1.34, the yield to maturity is 1.54% – 3.5% (guaranteed yield – maximum expected annual yield);

If EUR / USD ≥ 1.34 on the observation date, the yield to maturity is 1.54% (guaranteed yield).

11. Source of funds: self owned funds

12. Description of association relationship: Kanghong pharmaceutical has no association relationship with Bank Of Chengdu Co.Ltd(601838) Jinniu sub branch

13. Risk disclosure

13.1 principal and income risk: This product has investment risk, Bank Of Chengdu Co.Ltd(601838) only guarantees the capital principal and the income explicitly promised in the contract. Investors should fully understand the risk of uncertain income. The income of this product consists of hedging income and floating income. The floating income depends on the price change of the linked object and is affected by many factors of the market. The risk of uncertain income shall be borne by the investors themselves, and the investors shall have a full understanding of it. If the market income increases during the product duration, the income of this deposit will not increase with the increase of market income.

13.2 policy risk: This product is designed for the current relevant regulations and policies. If the national macro policies and relevant market regulations and policies change, it may affect the normal progress of the value, duration and maturity of the product, and even reduce the income of the product.

13.3 liquidity risk: during the duration of the product, investors can only subscribe within the time specified in the product manual. After the product is established, investors do not have the right to redeem in advance.

13.4 risk of lack of investment experience: the floating income of this product is linked to the price level of the linked object, and the income calculation is complex, so it is suitable for investors with relevant investment experience and risk tolerance.

13.5 information transmission risk: the investor shall timely query the relevant information of the product according to the methods specified in the product manual. If the buyer fails to inquire in time, or due to the influence of communication failure, system failure and other force majeure factors, the investor cannot understand the deposit information in time, and thus affect the investor’s investment decision, the resulting responsibilities and risks shall be borne by the investor. In addition, if the effective contact information reserved in Bank Of Chengdu Co.Ltd(601838) is changed, the investor shall notify Bank Of Chengdu Co.Ltd(601838) in time. If the investor fails to inform Bank Of Chengdu Co.Ltd(601838) of the change of contact information in time or for other reasons of the investor, Bank Of Chengdu Co.Ltd(601838) may not be contacted in time when it is necessary to contact the investor, and may affect the investor’s investment decision, and the resulting responsibilities and risks shall be borne by the investor.

13.6 risk of non establishment of the product: if the national macro policies and relevant market regulations and policies change, or the market fluctuates violently, and it is difficult to provide the product to the investor in accordance with the provisions of the product manual after Bank Of Chengdu Co.Ltd(601838) reasonable judgment from the time the investor signs the agreement for investors of Bank Of Chengdu Co.Ltd(601838) unit structured deposit to the time when the product value rises, Then Bank Of Chengdu Co.Ltd(601838) has the right to decide that this product is not established. 13.7 data source risk: in the calculation of the yield of this product, the price level of the linked object provided by the data provider needs to be used.

If the reference page provided by the data provider agreed in the product specification cannot give the required price level at that time, Bank Of Chengdu Co.Ltd(601838) will select a reasonable price level recognized by the market for calculation based on the principles of fairness, impartiality and fairness.

13.8 force majeure risk: refers to the loss that the occurrence of force majeure factors such as natural disasters and wars will seriously affect the normal operation of the financial market, may affect the normal acceptance, investment and repayment of the product, and even reduce the income of the product. The investor shall bear any loss caused by the risk of force majeure and Bank Of Chengdu Co.Ltd(601838) shall not bear any responsibility. 13.9 reinvestment risk: Bank Of Chengdu Co.Ltd(601838) has the right but not the obligation to terminate the product in advance. If Bank Of Chengdu Co.Ltd(601838) terminates the product in advance, the actual product term of the product may be less than the predetermined term. If the product is terminated in advance, the investor will bear the risk of not realizing all the expected returns at the beginning of the period. 13.10 risk of capital deduction: the risk of capital freezing and deduction by judicial and other competent authorities due to investors.

13.11 counterparty risk: in case of unexpected default, deterioration of credit status, bankruptcy, etc. of the counterparty of relevant investment, invested financial instruments or related parties under assets, the realization of deposit income may be affected.

13.12 technical risk: the operation of structured deposit products may depend on electronic communication technologies and electronic carriers. These technologies may be attacked by network hackers and computer viruses. At the same time, communication technologies, computer technologies and related software may have defects, affecting the normal operation of the value, duration, expiration and other procedures of the product.

13.13 product risk: the product risk rating of this period is level I, the product risk is very low, and the risk of principal loss is o.

(II) Industrial Bank Co.Ltd(601166) main contents of financial products

Bank Industrial Bank Co.Ltd(601166) Chengdu Chenghua sub branch

1 product name Industrial Bank Co.Ltd(601166) enterprise financial RMB structured deposit

2. Product nature breakeven floating income type

3. Subscription amount: Kanghong pharmaceutical subscribed RMB 21 million

4 value date (established on January 13, 2022)

(day)

5. Expiration date: May 17, 2022

The actual product term is subject to the bank’s early termination clause.

Observation target: Shanghai Gold morning benchmark price of Shanghai gold exchange. (Shanghai Gold benchmark price refers to the RMB benchmark price finally formed by market participants on the platform of Shanghai Gold Exchange after reaching the relative balance of market volume and price according to the centralized trading mode of price inquiry and quantity matching. See www.sge.com.cn for details The price is published by Shanghai Gold Exchange and displayed on Bloomberg page

“SHGFGOAM INDEX”。 If the 6 revenue clause – observation benchmark price is not displayed on the Bloomberg system page on the pricing date or the exchange does not form a benchmark price, the applicable benchmark price shall be determined by Industrial Bank Co.Ltd(601166) Chengdu branch according to the principle of good bidding and market practice.)

6.1 working day of observation target: trading day of Shanghai gold exchange.

6.2 observation date: May 12, 2022 (in case of non observation target working day, it shall be adjusted to the previous observation target working day)

6.3 price on observation day: the price of the observation object on the observation day.

6.4 reference price: the benchmark price of Shanghai gold in the morning of Shanghai Gold Exchange on the working day of the subject matter observed next to the value date.

7.1 product income = principal amount * (fixed rate of return + floating rate of return) * product duration / 365

7.2 fixed income = principal amount * 1.5% / year * product duration days / 365

7.3 floating income = principal amount * floating rate of return * product duration / 365

If the price on the observation day is less than or equal to (reference price * 99.5%), the floating rate of return = 1.79% / year;

If the price on the observation day is greater than (reference price * 99.5%) and less than or equal to (reference income clause – income price * 145%), the floating rate of return = 1.58% / year;

7 calculation method: if the price on the observation day is greater than (reference price * 145%), the floating rate of return is zero. 7.4 product duration: if the deposit product is not terminated in advance, the duration of the observation period is the number of days from the value date (inclusive) to the maturity date (exclusive);

If the deposit product is terminated in advance, the duration of the observation period is the number of days from the value date (inclusive) to the early termination date (exclusive).

7.5 management fee: the calculation of the income of this deposit product has included (included) the operation and management cost of Industrial Bank Chengdu Branch (such as account supervision, capital operation management, transaction handling fee, etc.). Kanghong pharmaceutical is not required to pay or bear other fees or charges under this product.

8. Source of funds: self owned funds

9. Related relationship description: Kanghong pharmaceutical has no related relationship with Industrial Bank Co.Ltd(601166) Chengdu Chenghua sub branch

10. Risk Disclosure

10.1 market risk: the maturity income of this deposit product depends on the price change of the linked object of the derivative structure, and may be affected by many factors such as international and Chinese market exchange rates, interest rates and entity credit. In the worst case, only fixed income can be obtained. For investors without relevant investment experience, this product

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