Core Viewpoint - The company will repurchase and cancel a total of 14,448,840 restricted stocks due to certain conditions not being met by the incentive recipients as per the 2021 Restricted Stock Incentive Plan [1][3]. Summary by Sections Repurchase and Cancellation Reasons - The repurchase is based on the failure of six incentive recipients to meet the conditions for lifting restrictions during the second release period, resulting in the cancellation of 105,840 restricted stocks. Additionally, due to unmet performance targets, 14,343,000 restricted stocks from the third release period will also be canceled [1][3]. Details of the Repurchase - The decision for the repurchase was approved in the 57th meeting of the 8th Board of Directors and the 44th meeting of the 8th Supervisory Board on June 27, 2025. The total number of restricted stocks to be repurchased is 14,448,840, involving 369 incentive recipients [2][3]. Repurchase Arrangement - The company has opened a dedicated securities account for the repurchase and has applied for the cancellation procedures for the 14,448,840 restricted stocks. The cancellation is expected to be completed by August 28, 2025 [3]. Changes in Share Structure - After the completion of the repurchase, the total number of remaining restricted stocks under the 2021 Incentive Plan will be 2,310,000 [3]. Legal Compliance - The repurchase has followed all necessary legal procedures and complies with relevant laws and regulations. The company has committed to fulfilling its information disclosure obligations and will handle the cancellation and capital reduction registration as required by law [4].

Core Viewpoint - The legal opinion letter from Guangdong Xinda Law Firm confirms that Kangmei Pharmaceutical Co., Ltd.'s plan to repurchase and cancel unvested restricted stocks under its first and second stock incentive plans complies with relevant laws and regulations [4][6][8]. Summary by Sections Repurchase and Cancellation Conditions - The decision to terminate the first and second stock incentive plans and repurchase unvested restricted stocks is based on the provisions of the Management Measures and has been approved by the company's board and shareholders [4][6]. Decision-Making Process and Information Disclosure - On September 14, 2021, the company held meetings to approve the termination of the first and second stock incentive plans and the repurchase of unvested stocks, with independent directors expressing agreement [6][7]. - The company disclosed the resolutions through official announcements [7]. Involved Parties, Share Quantity, and Cancellation Date - The repurchase involves 816 incentive recipients [8]. - The total number of shares to be repurchased and canceled is 34.97 million shares [8]. - The company has applied for the necessary procedures with the China Securities Depository and Clearing Corporation [8]. Conclusion - The legal opinion concludes that the repurchase and cancellation process meets all necessary legal and regulatory requirements [8].