Kanghong Pharmaceutical cancels 52.43m stock options

Chengdu Kanghong Pharmaceutical Group Co., Ltd. (the "Company") announced the completion of the cancellation of 52.43 million stock options from its 2021 stock option incentive plan. The decision was approved at the eighth board of directors' twelfth meeting and the eighth board of supervisors' twelfth meeting held on August 27, 2025. This action stems from a resolution to cancel unexercised options belonging to 31 incentive recipients.

The cancellation addresses several scenarios, including some incentive recipients not meeting their individual performance targets for 2024, as well as unexercised options from the third vesting period of the initial grant and the second vesting period of the reserved grant. The Company, acting under the authorization granted by its first extraordinary general meeting in 2021, proceeded with the cancellation of these options, which were either partially or entirely unexercised.

The application for cancellation was submitted to the Shenzhen branch of China Securities Depository and Clearing Corporation Limited, and as of the announcement date, the 52.43 million stock options have been successfully cancelled. The Company confirmed that this cancellation complies with the "Administrative Measures for Equity Incentive Plans of Listed Companies" and its "2021 Stock Option Incentive Plan (Draft)," ensuring the normal operation of the plan and no adverse impact on the company's financial condition, operating results, or the stability of the management team.