Watson Bio: Specific rectification measures in response to the Yunnan Securities Regulatory Bureau's order for rectification.

Watson Biology announced that it received a "Decision Letter" from the Yunnan Securities Regulatory Bureau on December 18, 2025, requesting rectification of the issue of the company's chairman's high executive compensation decision not being submitted for review in accordance with regulations for the years 2023-2024. The board of directors attaches great importance to this issue and has established a special task force led by Chairman Li Yunchun to take rectification measures, including revising regulations, improving decision-making procedures, organizing learning activities, self-inspection by independent directors, holding accountable relevant personnel, etc. Most of the rectification measures are required to be completed before the annual shareholders' meeting in 2025. In addition, learning activities and accountability have been completed, and the company apologizes for the issue.