I. What Are Illegal Securities and Futures Activities?Illegal securities and futures activities refer to acts that violate the Securities Law, Regulations on the Administration of Futures Trading and other applicable laws and administrative regulations. Without approval by competent authorities, such illegal acts include arbitrarily conducting public securities issuance, establishing securities trading venues or securities companies, setting up futures trading venues or organizing futures trading in other forms, founding futures companies and other futures operating institutions, engaging in securities businesses such as securities brokerage, securities underwriting and securities investment consulting, or carrying out futures businesses without authorization.II. Main Forms of Illegal Securities and Futures Activities(I) Illegal Securities IssuanceIt is mainly manifested in the illegal issuance of stocks. Fraudsters lure investors into purchasing and transferring so-called "original shares" under the pretext of upcoming "domestic and overseas listings". Typical fraud characteristics include: tempting the public with promises of domestic and overseas listings and high returns; targeting the general public, especially middle-aged and elderly groups; and aiming to illegally occupy public funds.(II) Illegal Securities Business OperationIt mainly covers illegal securities investment consulting and illegal brokerage businesses. As a common illegal act, illegal securities investment consulting is conducted by lawbreakers who set up websites or use social software and self-media platforms to recruit members and clients. By promising guaranteed profits and high returns, they illegally provide securities investment analysis, forecasts and recommendations, and charge fees for membership, consultation and services.Illegal brokerage business refers to acts where unqualified institutions or individuals control trading accounts and sub-accounts, accept trading instructions and conduct transactions on behalf of investors, including off-market margin trading via sub-accounts and other illegal practices.(III) Illegal Futures Business OperationLawbreakers forge fake futures trading platforms to induce investors to participate in futures trading. These counterfeit platforms involve no real trading activities and are connected with third-party payment channels. Victims’ funds are transferred to designated third-party payment institutions, laundered and finally diverted to personal accounts controlled by fraudsters, which is essentially a type of fraud.III. How to Identify Illegal Securities and Futures Activities1. Verify institutional qualificationsAll securities and futures businesses (including related consulting services) must be approved by the China Securities Regulatory Commission (CSRC) with valid qualification certificates. Investors may check information on legitimate securities and futures institutions and practitioners via the official websites of the CSRC (www.csrc.gov.cn), the Securities Association of China (www.sac.net.cn) and the China Futures Association (www.cfachina.org), or verify relevant information with local securities regulatory bureaus.2. Identify marketing tacticsIllegal operators often claim to be "investment mentors" or "stock experts", boasting access to insider information and the ability to pick profitable stocks to lure investors with guaranteed high profits. Legitimate securities and futures institutions are prohibited from such promotions. Securities and futures trading carries inherent risks, and risk-free profits are impossible. Risk disclosure is a mandatory regulatory requirement rather than a mere formality.3. Check website domain namesIllegal securities and futures websites usually use meaningless combinations of letters and numbers, or modify and append characters to the official domain names of legitimate institutions. Investors can verify official website addresses through the regulatory and industry association platforms mentioned above, and check website filing information and server locations to identify irregular websites.4. Examine payment accountsLegitimate securities and futures institutions conduct business and open bank accounts only under their official corporate names. Investors shall remain vigilant during fund transfers. Any payment request directed to personal accounts or accounts inconsistent with the institutional name must be firmly rejected.Formal RemindersEnhance legal awareness and stay alert to illegal securities activities.Resist the temptation of excessive returns and guard against traps of illegal securities activities.

In October 2023, Henan Nucleoside Pharmaceutical Research Institute Co., Ltd. (hereinafter referred to as “Tuoxin Nucleoside Pharmaceutical Research Institute”), a subsidiary of Tuoxin Pharmaceutical Group, signed an Implementation License and Cooperative Development Agreement with Nanjing University of Chinese Medicine and China Pharmaceutical University. The three parties jointly launched a project to develop a new clinical indication of vincamine for the treatment of pulmonary fibrosis.Under the agreement, the two universities have granted the institute the exclusive license for the application of vincamine in the treatment of pulmonary fibrosis, based on their jointly owned invention patent Application of Vincamine and Its Salts in the Preparation of Drugs for Treating Peripheral Nerve Axonal Injury, Diabetic Foot and Pulmonary Fibrosis (Patent No. ZL202111435423.2). The licensing term is valid until November 28, 2041. Meanwhile, the universities will provide pharmacodynamic research data on vincamine for pulmonary fibrosis and assist in clinical trial applications.On the basis of the provided pharmacodynamic data, Tuoxin Nucleoside Pharmaceutical Research Institute will submit applications for Phase I, II and III clinical trials to the Center for Drug Evaluation of the National Medical Products Administration (NMPA). Once the Phase III clinical trials sufficiently support the registration of vincamine for the new indication of pulmonary fibrosis treatment, the company will file the new drug marketing application and complete the product launch process.

Recently, extreme rainfall has hit Northeast China, North China, Huanghuai and other regions, causing residential entrapment, casualties and other disasters in multiple areas. Rescue forces from across the country have assembled rapidly, rushed to the frontline for flood prevention and disaster relief, and fully engaged in disaster rescue work. At this critical moment when the whole nation unites as one to fight floods and disasters, individual internet users fabricate and disseminate false disaster-related information and stir up regional confrontation and discrimination. Such behaviors have seriously disrupted online public opinion order and hindered flood fighting and disaster relief efforts.To further purify the online environment, standardize network order, uphold the positive online atmosphere of national solidarity, disaster relief and post-disaster recovery, fully protect people’s lives and property, and maintain overall social stability, and to encourage everyone to become participants and contributors to flood prevention and disaster relief, we hereby issue the following initiative:I. Consciously Refuse the Dissemination of Illegal and Harmful Online Information1. Resolutely resist illegal and harmful information. Do not create, believe in or spread illegal, harmful and negative information related to flood prevention and disaster relief. Refuse to spread rumors or fan disputes. Do not arbitrarily disseminate unsubstantiated reports, privacy disclosure, personal attacks and other inappropriate remarks with no verified sources or evidence.2. Strictly manage information release accounts. Strengthen manual review and qualification authentication of online accounts. Prevent impersonation of Party and government organs, military authorities, news media and government institutional accounts. Strictly regulate self-media accounts that produce professional content without valid qualifications. It is prohibited to manipulate self-media account matrices to publish and disseminate illegal and negative information concerning flood disasters and relief work.3. Standardize information release content. Users shall mark the source of news information in accordance with relevant regulations; clearly indicate the shooting time and location for self-shot content; label AI-generated content accordingly; specify the occurrence time and background when reposting past news; add fictitious creation labels for speculative and adapted content. Platforms will mark disputed or rumor information with corresponding labels, and take regulatory measures including traffic restriction, rumor refutation and account mute in accordance with rules.II. Adopt a Zero-tolerance Policy Against Illegal and Harmful Information4. Enhance awareness of online civilization. Establish correct online ethics, actively resist and report various online illegal and uncivilized behaviors, firmly combat cyber crimes, and effectively safeguard the legitimate rights and interests of the state, society, collectives and individuals.5. Strengthen positive public opinion guidance. Improve management mechanisms for follower volume and profit access via platform conventions and user agreements. For accounts in violation of regulations, disciplinary measures including mute, restriction or prohibition of new followers, and full follower clearance will be imposed as appropriate. User accounts that maliciously hype flood prevention hot topics and sensitive incidents through multi-account linkage for marketing purposes will have their profit access revoked or permanently prohibited.6. Foster a healthy online ecosystem. Clearly mark the affiliated MCN institutions of self-media accounts. For MCN institutions that manipulate signed accounts for coordinated hype and commit repeated violations, punitive measures including profit access restriction, service limitation and platform removal will be implemented.III. Mobilize and Leverage Positive Energy of Online Platforms7. Improve the supervision and reporting mechanism. Encourage users to participate in platform content governance, collect and report illegal and harmful information, identify and expose rumors and false content, provide relevant clues to regulatory authorities, and cooperate with investigations and disposal to eliminate adverse impacts to the maximum extent.8. Assist with public rescue requests. Proactively collect online rescue demands from the public, timely report relevant clues to competent authorities, and cooperate with official disaster relief work under the overall coordination of local Party committees and governments.9. Expose illegal and criminal cases resolutely. Intensify the exposure and disposal of rule-breaking users and accounts. Launch special warning education columns to release typical violation cases regularly, reminding all users to strictly abide by national laws and regulations, comply with platform conventions and service agreements, and strengthen self-discipline.

Xinxiang Jingquan Biotechnology Co., Ltd. (hereinafter referred to as "Jingquan Biotechnology") has successfully completed rigorous scientific evaluation and obtained Self-GRAS status for its core product L-α-Glycerylphosphorylcholine (L-α-GPC) in compliance with the Generally Recognized As Safe (GRAS) criteria set by the U.S. Food and Drug Administration (FDA).This milestone indicates that the L-α-GPC manufactured by Jingquan Biotechnology meets internationally authoritative standards in terms of quality, safety and application scope, laying a solid foundation for its entry into the global markets of high-end foods, dietary supplements and foods for special medical purposes.GRAS is one of the safety grade certifications issued by the U.S. Food and Drug Administration (FDA) for food additives and dietary ingredients. The Self-GRAS scientific evaluation completed by Jingquan Biotechnology this time is based on globally recognized scientific standards and extensive published research data, and confirmed after comprehensive and rigorous review by an independent third-party expert panel. This certification verifies that L-α-GPC is safe under specified usage conditions and can be applied in various dietary supplements and foods.L-α-Glycerylphosphorylcholine (L-α-GPC) is a choline compound naturally present in the human body and a key component of brain nerve cell membranes. The successful acquisition of this certification serves as powerful validation of the safety of Jingquan Biotechnology’s products, and further demonstrates the company’s strong comprehensive strengths in raw material R&D, quality control and international compliance. It means our L-α-GPC raw materials have obtained a "passport" to enter the U.S. market and numerous international markets that recognize FDA standards, enabling us to supply global clients with safe, reliable, compliant and high-quality raw material options.

To comprehensively enhance the emergency response capacity for pressure vessel leakage accidents and solidify the line of safety production, Xinxiang Jingquan Biotechnology Co., Ltd. (hereinafter referred to as "Jingquan Biotechnology") successfully organized and carried out an emergency drill targeting over-temperature, overpressure and leakage of pressure vessels and pipelines in July 2025. The drill was conducted in strict accordance with relevant laws and regulations including the Work Safety Law of the People's Republic of China, the Special Equipment Safety Supervision Regulations, and theSupervision Regulations on Safety Technology for Pressure Vessels.The drill simulated an emergency scenario where sudden abnormal overpressure of pressure vessels in Workshop 1 caused leakage at pipeline flanges, and an on-site employee fell into a coma after inhaling solvent vapor. Liu Deqian, General Manager of Jingquan Biotechnology, served as the Chief Commander of the drill, while Jiang Peisen, Deputy General Manager, and Zhu Tongqing, Safety Director of Special Equipment, served as Deputy Chief Commanders. A total of 47 staff members from production, safety, medical care, logistics and other departments participated in the on-site drill with coordinated efforts of all departments, and an evaluation team tracked and recorded the whole process.Prior to the drill, Chief Commander Liu Deqian and Deputy Chief Commander Zhu Tongqing systematically explained the types and distribution of the company’s special equipment, basic professional knowledge of pressure vessels and pipelines, as well as emergency response skills for sudden accidents. Meanwhile, they put forward clear requirements for the standardized implementation of the drill.The drill officially kicked off upon the chief commander’s order, accompanied by a sudden simulated leakage alarm. On-site operators spotted the abnormality promptly and immediately reported key details such as the time, location, medium and leakage volume as specified in the emergency plan. The Emergency Command responded at once and activated the emergency response plan without delay.The on-site response team carried out the emergency shutdown procedure decisively to cut off the leakage source; the warning and evacuation team rapidly set up restricted areas, cordoned off the site and evacuated surrounding staff in an orderly fashion.The medical rescue team took positions immediately to prepare for rescue operations. Handling personnel put on complete protective equipment, entered the leakage area, and used professional instruments to detect the concentration and diffusion range of the leaked medium.The emergency rescue team ventured into the hazardous area to rescue the trapped staff, who were then handed over to the medical team for simulated treatment and transfer.Meanwhile, rescuers turned on fire hydrants to spray water for cooling the pressure vessels; the medical rescue team efficiently completed the rescue and transfer procedures for the injured personnel.After the leakage was effectively under control, the on-site warning was lifted and cleanup work was carried out promptly. Equipment maintenance personnel conducted comprehensive inspection and repair of the pressure vessels, while the environmental monitoring team performed simultaneous environmental assessment. When the termination alarm sounded, the Chief Commander announced the successful conclusion of the drill.After the drill, Chief Commander Liu Deqian and Deputy Chief Commander Zhu Tongqing delivered respective comments and summaries.The drill achieved all preset objectives. It comprehensively verified the effectiveness of Jingquan Biotechnology’s emergency response mechanism and identified areas for improvement, providing a clear direction for subsequent optimization.In accordance with the evaluation feedback, the company will revise its emergency response plans and conduct targeted training on weak links. By continuously improving the emergency management system, Jingquan Biotechnology will firmly uphold the bottom line of work safety and effectively protect employees’ lives and corporate property safety.

Xinxiang Jingquan Biotechnology Co., Ltd.2024 Annual Environmental, Social and Governance ReportJingquan Biotechnology 2024 ESG Report