Foreword

Striving for New Ambitions, Forging Ahead into a New Chapter. On February 25, Benifit Pharmaceutical's 2026 Annual Work Deployment Conference was grandly held at Lishui International Conference and Exhibition Center. All staff from the Group's Commercial, Pharmaceutical, Yilv Modern Agriculture, and National Medical Hall divisions gathered to discuss development and draw a blueprint for the future. Chairman Wu Lihua delivered a keynote speech entitled Set Off Again · Embrace the New Era. All Benifit people united as one, anchored on the dual-wheel drive strategy of Anchoring on Traditional Chinese Medicine, Breaking Through in the C-end Market, and clarified the "Three Strengths & One Core" working approach. We will meet the uncertain future with determined efforts, and sound the clarion call for breakthroughs and brave progress in 2026!

Understand the Trend · Clarify the Direction:

Assess the Situation to Set the Course, Dual-wheel Drive to Open a New Chapter

"The era of comfort has ended, and the era of capability has begun." Chairman Wu Lihua deeply analyzed the current economic market and industry development, pointing out that the industry is facing a cyclical inflection point with superimposed pressures from policies, competition, and medical insurance. The dual squeeze of centralized procurement and DRG, intensified market competition, and normalized medical insurance cost control are forcing the industry to accelerate transformation.

Finding opportunities amid crises demonstrates responsibility. Facing the blue-ocean opportunities in the trillion-level health market, the Group has anchored the dual-wheel drive strategy of Anchoring on Traditional Chinese Medicine, Breaking Through in the C-end Market. We will uphold our core business to become a quality benchmark for TCM herbal pieces and formula granules, and expand new horizons by empowering C-end scenarios with TCM genes. Focusing on three core consumer groups: the elderly, Generation Z, and sub-health groups, we will layout age-appropriate TCM products, portable light-healthcare items, and integrated "Prevention-Treatment-Healthcare" solutions. We will extend from "treating diseases" to "health management", seize the incremental market under the Healthy China 2030 strategy, and let the bright pearl of TCM shine anew in the new era.

Eighteen years of deep cultivation have given Benifit the confidence to navigate through cycles. The three cornerstones – reverence, insight, and team strength – have consolidated our development foundation; the three-force model of aspiration, cognition, and execution has forged an iron fighting team. Benifit's "set off again" is not a passive escape, but an active strategic march!

Clarify Guidelines · Strengthen the Core:

Four Guidelines to Consolidate the Foundation, Resolute Reform to Break Constraints

With the direction set, we will reach our destination through action. The conference clarified the four core development guidelines for 2026, supporting high-quality development with a strong core to ensure every step forward is solid.

Unite for Breakthroughs · Eliminate Problems:

With the resolve of "radical cure", we will break development constraints, face problems from individual, team, and system dimensions, and implement the five-step method: discovery – classification – tracing – solution – review. We refuse to cover up or delay problems, making "problem elimination" the instinct of all staff;

Goal First · Result-oriented:

Introduce the OKR management method, build a three-level goal system: company – department – individual. Reject blind busyness and formalism, make "results speak" the core evaluation standard, and ensure steady progress with targeted efforts;

Iterative Upgrade · System Advancement:

Consolidate the development foundation with persistent efforts, promote standardized management, efficient processes, and professional talents. Integrate "iterative upgrade" into the organizational gene, making the system a firewall for standardized management;

Strength-based · Robust Business:

Adhere to the strategic philosophy of "Three Excellences, Two Cores, One Foundation". Consolidate the cornerstone with quality and efficiency improvement in TCM business, expand the market online and offline with C-end business, and create blockbuster health new products integrating TCM genes and C-end scenarios, making strong strength the foundation for competition.

Take Action · Deliver Results:

Three Strengths & One Core for Implementation, Three-year Plan for Blueprint

Though the road is long, we will reach it; though the task is hard, we will accomplish it. In 2026, the Group will take Strong Execution, Strong System, Strong Cost Reduction as the key approaches, and Everything Centered on Business as the core orientation, turning strategic deployment into tangible action results.

Strong Execution: Practice "silent execution", implement orders without discount. Build an efficient work closed loop with time-limited completion + performance appraisal + supervision and accountability, making execution the "last mile" of strategy implementation;

Strong System: Improve the four systems of organization, process, system, and quality, focus on strengthening the "Three Excellences, Two Cores, One Foundation" system, and solve the most complex problems with the simplest rules;

Strong Cost Reduction: Focus on the three cost centers: production, manpower, and marketing. Improve efficiency through lean production, enhance personnel efficiency through optimized management, and boost conversion through channel focus, making every penny count;

Focus on Business: Establish the philosophy of "Business first, all for business". Promote functional departments to transform from "management-oriented" to "service-oriented". Establish production-marketing coordination and cross-departmental docking mechanisms, ensure supply with excellent products, eliminate problems with excellent services, and escort high-quality business growth.

Build Culture · Gather Strength:

Strivers-oriented, Forge an Iron Army for the Future

Culture is the root; deep roots bring lush growth. Team is the soul; united soul brings prosperity. Benifit has always adhered to the corporate tenet of "A School, An Army, A Family", with the business values of "Customer First, Innovation Empowerment, Intensive Development, Strivers-oriented", and strives to build a courageous and capable Benifit Iron Army.

In 2026, the Group will deepen the construction of a strivers-oriented culture, fully launch the Striver Training Program, build a dual-promotion channel of "management + professionalism", improve the incentive mechanism and care culture. We will empower employee growth with a 500,000-yuan learning fund and a 3-million-yuan talent fund, letting strivers share the fruits of corporate development. Draw strength from the fighting spirit of the "grassroots counterattack" of the Lishui Team, making the tenacity of refusing to accept fate, refusing to admit defeat, and never giving up the spiritual foundation of every Benifit person.

Chairman Wu Lihua emphasized at the conference: The only way to break through is to strive! In 2026, all Benifit people must take "Everything speaks with data and results" as the code of conduct, abandon empiricism, adhere to long-termism. With the courage of "radical cure", the tenacity of "nail driving", and the drive of "rolling up sleeves to work hard", we will safeguard the "root" of TCM and raise the "sail" of C-end breakthrough.

Conclusion of the Conference

A small boat has passed ten thousand mountains; the road ahead is long and bright. Eighteen years of hard work have made Benifit young and progressive; nineteen years of trials and hardships have made Benifit stride forward with firm determination. Benifit in 2026 stands at a brand-new starting point after nineteen years of development, coinciding with the grand launch of the Group's seventh three-year development plan. Taking this annual deployment conference as an opportunity, all Benifit people will adhere to long-termism and the original aspiration of striving, take "Everything speaks with data and results" as the code of conduct, uphold the root, explore new areas, and break through difficulties. On the track of integrated development of TCM and health, we will march forward bravely, strive for the first, and continue to write a new glory belonging to Benifit!