# EDGAR Filing Document

**Accession Number:** 0001809616
**File Stem:** 0001213900-26-009000
**Filing Date:** 2026-1
**Character Count:** 1075464
**Document Hash:** 9f98e91ad081a7d7f30ae1dd1b4bbe4b
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001213900-26-009000.hdr.sgml**: 20260129

**ACCESSION NUMBER**: 0001213900-26-009000

**CONFORMED SUBMISSION TYPE**: 20-F

**PUBLIC DOCUMENT COUNT**: 119

**CONFORMED PERIOD OF REPORT**: 20250930

**FILED AS OF DATE**: 20260129

**DATE AS OF CHANGE**: 20260128

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Universe Pharmaceuticals INC
- **CENTRAL INDEX KEY:** 0001809616
- **STANDARD INDUSTRIAL CLASSIFICATION:** PHARMACEUTICAL PREPARATIONS [2834]
- **ORGANIZATION NAME:** 03 Life Sciences
- **EIN:** 000000000
- **STATE OF INCORPORATION:** F4
- **FISCAL YEAR END:** 0930

**FILING VALUES:**
- **FORM TYPE:** 20-F
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-40231
- **FILM NUMBER:** 26574142

**BUSINESS ADDRESS:**
- **STREET 1:** 265 JINGJIU AVENUE
- **STREET 2:** JINGGANGSHAN ECON. AND TECH. DEV. ZONE
- **CITY:** JI'AN, JIANGXI
- **STATE:** F4
- **ZIP:** 343100
- **BUSINESS PHONE:** 86-0796-8403309

**MAIL ADDRESS:**
- **STREET 1:** 265 JINGJIU AVENUE
- **STREET 2:** JINGGANGSHAN ECON. AND TECH. DEV. ZONE
- **CITY:** JI'AN, JIANGXI
- **STATE:** F4
- **ZIP:** 343100

?xml version='1.0' encoding='ASCII'?

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**WASHINGTON, D.C. 20549**

**FORM 20-F**

☐ **REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR (g) OF THE SECURITIES EXCHANGE ACT OF 1934**

**OR**

☒ **ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934**

**For the fiscal year ended September 30, 2025**

**OR**

☐ **TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934**

**OR**

☐ **SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934**

Date of event requiring this shell company report

**For the transition period from &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; to &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;** 

Commission file number: 001-40231

**Universe Pharmaceuticals INC**

(Exact name of Registrant as specified in its charter)

**N/A**

(Translation of Registrant's name into English)

**Cayman Islands**

(Jurisdiction of incorporation or organization)

**265 Jingjiu Avenue, Jinggangshan Economic and Technological Development Zone**

**Ji'an, Jiangxi, China 343100**

**+86-0796-8403309**

(Address of principal executive offices)

**Gang Lai, Chief Executive Officer**

**Telephone: +86-0796-8403309**

**Email: gang.lai@universe-pharmacy.com**

**265 Jingjiu Avenue, Jinggangshan Economic and Technological Development Zone**

**Ji'an, Jiangxi Province**

**People's Republic of China**

(Name, Telephone, E-mail and/or Facsimile number and Address of Company Contact Person)

**Securities registered or to be registered pursuant to Section 12(b) of the Act.**

---

| | | |
|:---|:---|:---|
| **Title of each class** | **Trading Symbol(s)** | **Name of each exchange on which registered** |
| **Ordinary Shares** | **UPC** | **The Nasdaq Stock Market** |

---

Securities registered or to be registered pursuant to Section 12(g) of the Act.

**None**

(Title of Class)

Securities for which there is a reporting obligation pursuant to Section 15(d) of the Act.

**None**

(Title of Class)

Indicate the number of outstanding shares of each of the issuer's classes of capital or common stock as of the close of the period covered by the annual report.

An aggregate of 563,338 ordinary shares, par value $11.25 per share, as of September 30, 2025.

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.

Yes ☐ No ☒

If this report is an annual or transition report, indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934.

Yes ☐ No ☒

Note – Checking the box above will not relieve any registrant required to file reports pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 from their obligations under those Sections.

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or an emerging growth company. See definition of "large accelerated filer," "accelerated filer," and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer ☐ Accelerated filer ☐ <br> Non-accelerated filer ☒ Emerging growth company ☒

If an emerging growth company that prepares its financial statements in accordance with U.S. GAAP, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant has filed a report on and attestation to its management's assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report. ☐

If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant included in the filing reflect the correction of an error to previously issued financial statements. ☐

Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive- based compensation received by any of the registrant's executive officers during the relevant recovery period pursuant to §240.10D-1(b). ☐

Indicate by check mark which basis of accounting the registrant has used to prepare the financial statements included in this filing:

U.S. GAAP ☒ International Financial Reporting Standards as issued by the International Accounting Standards Board ☐ Other ☐

\* If "Other" has been checked in response to the previous question, indicate by check mark which financial statement item the registrant has elected to follow. Item 17 ☐ Item 18 ☐

If this is an annual report, indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

(APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY PROCEEDINGS DURING THE PAST FIVE YEARS)

Indicate by check mark whether the registrant has filed all documents and reports required to be filed by Sections 12, 13 or 15(d) of the Securities Exchange Act of 1934 subsequent to the distribution of securities under a plan confirmed by a court. Yes ☐ No ☐

**TABLE OF CONTENTS**

---

| | | |
|:---|:---|:---|
| [INTRODUCTION](#a_001) | [INTRODUCTION](#a_001) | ii |
| [PART I](#a_002) | [PART I](#a_002) | 1 |
| ITEM 1. | [IDENTITY OF DIRECTORS, SENIOR MANAGEMENT AND ADVISERS](#a_003) | 1 |
| ITEM 2. | [OFFER STATISTICS AND EXPECTED TIMETABLE](#a_004) | 1 |
| ITEM 3. | [KEY INFORMATION](#a_005) | 1 |
| ITEM 4. | [INFORMATION ON THE COMPANY](#a_006) | 36 |
| ITEM 4A. | [UNRESOLVED STAFF COMMENTS](#a_007) | 60 |
| ITEM 5. | [OPERATING AND FINANCIAL REVIEW AND PROSPECTS](#a_008) | 60 |
| ITEM 6. | [DIRECTORS, SENIOR MANAGEMENT AND EMPLOYEES](#a_009) | 82 |
| ITEM 7. | [MAJOR SHAREHOLDERS AND RELATED PARTY TRANSACTIONS](#a_010) | 86 |
| ITEM 8. | [FINANCIAL INFORMATION](#a_011) | 88 |
| ITEM 9. | [THE OFFER AND LISTING](#a_012) | 89 |
| ITEM 10. | [ADDITIONAL INFORMATION](#a_013) | 90 |
| ITEM 11. | [QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK](#a_014) | 107 |
| ITEM 12. | [DESCRIPTION OF SECURITIES OTHER THAN EQUITY SECURITIES](#a_015) | 107 |
| [PART II](#a_016) | [PART II](#a_016) | 108 |
| ITEM 13. | [DEFAULTS, DIVIDEND ARREARAGES AND DELINQUENCIES](#a_017) | 108 |
| ITEM 14. | [MATERIAL MODIFICATIONS TO THE RIGHTS OF SECURITY HOLDERS AND USE OF PROCEEDS](#a_018) | 108 |
| ITEM 15. | [CONTROLS AND PROCEDURES](#a_019) | 108 |
| ITEM 16. | [\[RESERVED\]](#a_020) | 109 |
| ITEM 16A. | [AUDIT COMMITTEE FINANCIAL EXPERT](#a_021) | 109 |
| ITEM 16B. | [CODE OF ETHICS](#a_022) | 110 |
| ITEM 16C. | [PRINCIPAL ACCOUNTANT FEES AND SERVICES](#a_023) | 110 |
| ITEM 16D. | [EXEMPTIONS FROM THE LISTING STANDARDS FOR AUDIT COMMITTEES](#a_024) | 110 |
| ITEM 16E. | [PURCHASES OF EQUITY SECURITIES BY THE ISSUER AND AFFILIATED PURCHASERS](#a_025) | 110 |
| ITEM 16F. | [CHANGE IN REGISTRANT'S CERTIFYING ACCOUNTANT](#a_026) | 110 |
| ITEM 16G. | [CORPORATE GOVERNANCE](#a_027) | 111 |
| ITEM 16H. | [MINE SAFETY DISCLOSURE](#a_028) | 111 |
| ITEM 16I. | [DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS](#a_029) | 111 |
| ITEM 16J. | [INSIDER TRADING POLICIES](#a_030) | 111 |
| ITEM 16K. | [CYBERSECURITY](#a_031) | 111 |
| [PART III](#a_032) | [PART III](#a_032) | 112 |
| ITEM 17. | [FINANCIAL STATEMENTS](#a_033) | 112 |
| ITEM 18. | [FINANCIAL STATEMENTS](#a_033) | 112 |
| ITEM 19. | [EXHIBITS](#a_035) | 112 |

---

i

**INTRODUCTION**

In this annual report on Form 20-F, unless the context otherwise requires, references to:

● "China" or the "PRC" are to the People's Republic of China, including the special administrative regions of Hong Kong and Macau and excluding Taiwan for the purposes of this annual report only;

● "Exchange Act" are to the Securities Exchange Act of 1934, as amended;

● "fiscal year" are to the period from October 1 to September 30 of the next calendar year;

● "Jiangxi Universe" are to Jiangxi Universe Pharmaceuticals Co., Ltd., a limited liability company organized under the laws of the PRC, which is wholly owned by Universe Technology (as defined below) and an indirect wholly owned subsidiary of the Company;

● "PRC operating entities" are to Jiangxi Universe and its subsidiaries;

● "RMB" and Renminbi" are to the legal currency of China;

● "shares" or "ordinary shares" are to the ordinary shares of the Company, par value $11.25 per share;

● "SEC" are to the U.S. Securities Exchange Commission;

● "Securities Act" are to the Securities Act of 1933, as amended;

● "TCM" are to traditional Chinese medicine;

● "TCMD" are to traditional Chinese medicine derivatives;

● "Universe Hanhe" are to Guangzhou Universe Hanhe Medical Research Co., Ltd., a PRC formed on May 12, 2021, a wholly-owned subsidiary of Jiangxi Universe;

● "Universe HK" are to the Company's wholly owned subsidiary, Universe Pharmaceuticals Group (International) Limited, a company incorporated in Hong Kong;

● "Universe Technology" are to Jiangxi Universe Pharmaceuticals Technology Co., Ltd., a limited liability company organized under the laws of the PRC and wholly owned by Universe HK;

● "Universe Trade" are to Jiangxi Universe Pharmaceuticals Trade Co., Ltd., a PRC company formed in 2010, a wholly-owned subsidiary of Jiangxi Universe;

● "US$," "U.S. dollars," "$" and "dollars" are to the legal currency of the United States; and

● "we," "us," "our Company," or the "Company", are to one or more of Universe Pharmaceuticals INC, an exempted company incorporated in the Cayman Islands.

This annual report on Form 20-F includes our audited consolidated financial statements for the fiscal years ended September 30, 2025, 2024, and 2023. In this annual report, we refer to assets, obligations, commitments, and liabilities in our consolidated financial statements in United States dollars. These dollar references are based on the exchange rate of RMB to United States dollars, determined as of a specific date or for a specific period. Changes in the exchange rate will affect the amount of our obligations and the value of our assets in terms of United States dollars which may result in an increase or decrease in the amount of our obligations and the value of our assets.

This annual report contains translations of certain RMB amounts into U.S. dollars at specified rates. Unless otherwise stated, the following exchange rates are used in this annual report:

---

| | | | |
|:---|:---|:---|:---|
| | **September 30,** | **September 30,** | **September 30,** |
| <br>**US$ Exchange Rate** | **2025** | **2024** | **2023** |
| At the end of the fiscal year - RMB | RMB7.1190 to $1.00 | RMB7.0176 to $1.00 | RMB7.2960 to $1.00 |
| Average rate for the fiscal year - RMB | RMB7.2125 to $1.00 | RMB7.2043 to $1.00 | RMB7.0533 to $1.00 |

---

ii

**Part I**

**ITEM 1. IDENTITY OF DIRECTORS, SENIOR MANAGEMENT AND ADVISERS**

Not Applicable.

**ITEM 2. OFFER STATISTICS AND EXPECTED TIMETABLE**

Not Applicable.

**ITEM 3. KEY INFORMATION**

This annual report refers to (i) Universe Pharmaceuticals INC, the Cayman Islands holding company, as "we", "our", "us", or the "Company", (ii) the Company's subsidiaries, as "our subsidiaries," (iii) Jiangxi Universe Pharmaceuticals Co., Ltd., the Company's indirect wholly owned subsidiary in China ("Jiangxi Universe") and its subsidiaries, which are domiciled in China and conducting business operations in China, as the "PRC operating entities." The Company does not conduct any operations.

We are a Cayman Islands holding company with no operations of our own and not a PRC operating company. Our operations are conducted in China by our PRC subsidiaries. Investors in our securities are not purchasing equity interests in our subsidiaries but instead are purchasing equity interests in the ultimate Cayman Islands holding company. Therefore, you will not directly hold any equity interests in our operating companies. The Chinese regulatory authorities could disallow this structure, which would likely result in a material change in our operations and/or a material change in the value of the securities we are registering for sale, including that it could cause the value of such securities to significantly decline or become worthless. For risks facing our Company as a result of our organizational structure and doing business in China, see "Item 3. Key Information—D. Risk Factors—Risks Related to Doing Business in China." We directly hold 100% equity interests in our subsidiaries, and we do not currently use a variable interest entity ("VIE") structure.

We face legal and operational risks associated with having all of our operations in China, which could significantly limit or completely hinder our ability to offer securities to investors and cause the value of our securities to significantly decline or be worthless. The Chinese government has significant authority to exert influence on the ability of a China-based company, such as us, to conduct its business. Therefore, investors of our Company and our business face potential uncertainty from the PRC government. Changes in China's economic, political or social conditions or government policies could materially adversely affect our business and results of operations. These risks could result in a material change in our operations and/or the value of our ordinary shares or could significantly limit or completely hinder our ability to offer or continue to offer securities to investors and cause the value of such securities to significantly decline or be worthless. In particular, certain statements and regulatory actions by China's government, such as those related to the use of variable interest entities and data security or anti-monopoly concerns, as well as the ability of the U.S. Public Company Accounting Oversight Board, or the PCAOB, to inspect our auditor, may impact our Company's ability to conduct our business, accept foreign investments, or be listed on a U.S. or other foreign stock exchange. See "Item 3. Key Information — D. Risk Factors — Risks Related to Doing Business in China — The PRC government has significant authority to intervene or influence the China operations of an offshore holding company, such as ours, at any time. The PRC government may exert more control over offerings conducted overseas and/or foreign investment in China-based issuers. If the PRC government exerts more oversight and control over offerings that are conducted overseas and/or foreign investment in China-based issuers and we were to be subject to such oversight and control, it may result in a material adverse change to our business operations, significantly limit or completely hinder our ability to offer or continue to offer securities to investors, and cause the ordinary shares to significantly decline in value or become worthless" and "Item 3. Key Information — D. Risk Factors — Risks Related to Doing Business in China — Uncertainties arising from the legal system in China, including uncertainties regarding the interpretation and enforcement of PRC laws and the possibility that regulations and rules can change quickly with little advance notice, could hinder our ability to offer or continue to offer the ordinary shares, result in a material adverse change to our business operations, and damage our reputation, which would materially and adversely affect our financial condition and results of operations and cause the ordinary shares to significantly decline in value or become worthless."

As of the date of this annual report, we and our subsidiaries have not been involved in any investigations on cybersecurity review initiated by any PRC regulatory authority, nor have any of them received any inquiry, notice, or sanction. As advised by our PRC counsel, AllBright Law Offices (Fuzhou), we are not subject to cybersecurity review by the Cyberspace Administration of China, or the CAC, since we currently do not possess any personal information of users in our business operations. It is unlikely for us to have over one million users' personal information and we do not anticipate that we will be collecting over one million users' personal information in the foreseeable future, which we understand might otherwise subject us to the Cybersecurity Review Measures. Pursuant to the Regulations on Network Data Security Administration (the "Data Security Administration") which became effective on January 1, 2025, we are not subject to network data security review by the government authorities, because we currently do not have over one million users' personal information, we do not collect data that affect or may affect national security and we do not anticipate that we will be collecting over one million users' personal information or data that affect or may affect national security in the foreseeable future, which we understand might otherwise subject us to the Data Security Administration.

On February 17, 2023, the China Securities Regulatory Commission (the "CSRC") issued the Trial Administrative Measures of Overseas Securities Offering and Listing by Domestic Enterprises (the "Trial Measures") and five supporting guidelines (collectively, the "Overseas Listings Rules"), which became effective on March 31, 2023. These rules propose to establish a new filing-based regime to regulate overseas offerings and listings by Chinese domestic companies. Under the Overseas Listings Rules, Chinese domestic companies conducting overseas securities offering and listing activities, either in direct or indirect form, shall complete filing procedures with the CSRC pursuant to the requirements of the Trial Measures within three working days following its submission of initial public offering or listing application. Since the date of effectiveness of the Trial Measures, the domestic enterprises otherwise subject to filing that have been listed overseas or met the following circumstances are considered existing enterprises: the application of such enterprises for indirect overseas securities issuance and listing has been approved by the applicable overseas regulators or overseas stock exchanges (e.g., an applicable registration statement has been declared effective by the U.S. Securities and Exchange Commission (the "SEC")) before the effectiveness of the Trial Measures, and are not required to re-perform issuance and listing supervision procedures with the overseas regulators or overseas stock exchanges, and the overseas issuance and listing of such enterprises have been completed by September 30, 2023. Existing enterprises are not required to file immediately, and filing should be made as required if they conduct refinancing activities or other matters requiring filings in the future. In the opinion of our PRC legal counsel, AllBright Law Offices (Fuzhou), as a domestic company listed on the Nasdaq Stock Market ("Nasdaq") since March 2021, and not currently conducting refinancing or other activities that require filings, we are not required to file with the CSRC in accordance with the Trial Measures at this time. However, in the event that we conduct subsequent offerings, we could be subject to filing requirements with the CSRC. In the event that filings with the CSRC are required, we cannot assure you that we can complete the filing procedures, obtain the approvals or complete other compliance procedures in a timely manner, or at all, or that any completion of filing or approval or other compliance procedures would not be rescinded. Any such failure would subject us to sanctions by the CSRC or other PRC regulatory authorities. These regulatory authorities may impose restrictions and penalties on the operations in China, significantly limit or completely hinder our ability to launch any new offering of our securities, limit our ability to pay dividends outside of China, delay or restrict the repatriation of the proceeds from future capital raising activities into China, or take other actions that could materially and adversely affect our business, results of operations, financial condition and prospects, as well as the trading price of our ordinary shares. Furthermore, the PRC government authorities may further strengthen oversight and control over listings and offerings that are conducted overseas. Any such action may adversely affect our operations and significantly limit or completely hinder our ability to offer or continue to offer securities to you and cause the value of such securities to significantly decline or be worthless. See "Item 3. Key Information—Risk Factors—Risks Relating to Doing Business in China— The approval and/or other requirements of the China Securities Regulatory Commission, or the CSRC, or other PRC governmental authorities may be required in connection with an offering under PRC rules, regulations or policies, and, if required, we cannot predict whether or how soon we will be able to obtain such approval."

If we do not receive or maintain any required approvals, or we inadvertently conclude that such approvals are not required, or applicable laws, regulations, or interpretations change such that we are required to obtain approval in the future, we may be subject to an investigation by competent regulators, fines or penalties, ordered to suspend our relevant business and rectify, prohibited from engaging in relevant business, or subject to an order prohibiting us from conducting an offering, and these risks could result in a material adverse change in our operations, significantly limit or completely hinder our ability to continue to offer securities to investors, or cause such securities to significantly decline in value or become worthless. See "Item 3. Key Information—Risk Factors—Risks Relating to Doing Business in China—Failure to comply with cybersecurity, data privacy, data protection, or any other laws and regulations related to data may materially and adversely affect our business, financial condition, and results of operations."

In addition, trading in our securities may be prohibited under the Holding Foreign Companies Accountable Act if the PCAOB determines that it cannot inspect the workpapers prepared by our auditor, and that as a result an exchange may determine to delist our securities. On June 22, 2021, the U.S. Senate passed the Accelerating Holding Foreign Companies Accountable Act, which, if passed by the U.S. House of Representatives and signed into law, would reduce the period of time for foreign companies to comply with PCAOB audits to two consecutive years instead of three, thus reducing the time period for triggering the prohibition on trading. On December 16, 2021, the PCAOB issued a report on its determination that it is unable to inspect or investigate completely PCAOB-registered public accounting firms headquartered in mainland China and in Hong Kong because of positions taken by mainland China and Hong Kong authorities in those jurisdictions. Our auditor, Enrome LLP, the independent registered public accounting firm that issues the audit report included elsewhere in this annual report, as an auditor of companies that are traded publicly in the U.S. and a firm registered with the PCAOB, is subject to laws in the U.S., pursuant to which the PCAOB conducts regular inspections to assess its compliance with the applicable professional standards. Our auditor, Enrome LLP, is headquartered in Singapore, and subject to inspect by the PCAOB on a regular basis. Our auditor is not subject to the determination issued by the PCAOB on December 16, 2021. On August 26, 2022, the CSRC, the Ministry of Finance of the PRC, and the PCAOB signed a Statement of Protocol (the "Protocol"), governing inspections and investigations of audit firms based in mainland China and Hong Kong. Pursuant to the fact sheet with respect to the Protocol disclosed by the SEC, the PCAOB shall have independent discretion to select any issuer audits for inspection or investigation and has the unfettered ability to transfer information to the SEC. On December 15, 2022, the PCAOB Board determined that the PCAOB was able to secure complete access to inspect and investigate registered public accounting firms headquartered in mainland China and Hong Kong and voted to vacate its previous determinations to the contrary. However, should PRC authorities obstruct or otherwise fail to facilitate the PCAOB's access in the future, the PCAOB Board will consider the need to issue a new determination. See "Item 3. Key Information — D. Risk Factors — Risks Related to Doing Business in China — Our ordinary shares may be delisted or prohibited from being traded over-the-counter under the Holding Foreign Companies Accountable Act, if the PCAOB is unable to inspect our auditor. The delisting or the cessation of trading of our ordinary shares, or the threat of their being delisted or prohibited from being traded, may materially and adversely affect the value of your investment. Additionally, the inability of the PCAOB to conduct inspections would deprive our investors with the benefits of such inspections. Our auditor has not been inspected by the PCAOB, but according to our auditor, it will be inspected by the PCAOB on a regular basis."

Our Cayman Islands holding company has not declared or paid dividends or made any distributions to our shareholders in the past, nor were any dividends or distributions made by a subsidiary to the Cayman Islands holding company. Our board of directors has complete discretion on whether to distribute dividends, subject to applicable laws. We intend to keep any future earnings to finance the expansion of our business, and we do not have any current plan to declare or pay any cash dividends on our ordinary shares in the foreseeable future. See "Item 3. Key Information — D. Risk Factors — Risks Related to Our Ordinary Shares—We currently do not expect to pay dividends on our ordinary shares in the foreseeable future." If we determine to pay dividends on any of our ordinary shares in the future, as a holding company, we will rely on payments from subsidiaries of Jiangxi Universe to Jiangxi Universe, and from Jiangxi Universe to Universe Technology, and the distribution of such payments to Universe HK, and then to our Company.

Subject to certain contractual, legal and regulatory restrictions, and our internal cash management policy, cash and capital contributions may be transferred among our Cayman Islands holding company and our subsidiaries. If needed, our Cayman Islands holding company can transfer cash to our PRC subsidiaries through loans and/or capital contributions, and our PRC subsidiaries can transfer cash to our Cayman Islands holding company through issuing dividends or other distributions. Our finance department supervises cash management, following the instructions of our management. Our finance department is responsible for establishing our cash operation plan and coordinating cash management matters among our subsidiaries and departments. Each subsidiary and department initiate a cash request by putting forward a cash demand plan, which explains the specific amount and timing of cash requested, and submitting it to our finance department. The finance department reviews the cash demand plan and prepares a summary for the management of our Company. Management examines and approves the allocation of cash based on the sources of cash and the priorities of the needs. Other than the above, we currently do not have other cash management policies or procedures that dictate how funds are transferred. Cash flows have occurred between our Cayman Islands holding company and our subsidiaries. From October 1, 2025 to the date of this annual report, the Cayman Islands holding company did not receive cash transfer from its subsidiaries. For the fiscal years ended September 30, 2025, 2024 and 2023, the Cayman Islands holding company received cash in the amount of $302,023, $100,062 and $127,827 from its subsidiary in Hong Kong for the payment of directors' compensation and professional service fees, respectively. There was no distribution of earnings by our PRC subsidiaries to the Cayman Islands holding company during the fiscal years ended September 30, 2023, 2024 and 2025, and from October 1, 2025 to the date of this annual report. In the fiscal year ended September 30, 2025, the Cayman Islands holding company transferred $9,028,787 to its PRC subsidiaries. In the fiscal years ended September 30, 2023 and 2024, there was no cash transferred from the Cayman Islands holding company to its PRC subsidiaries. From October 1, 2025 to the date of this annual report, there was no cash transferred from the Cayman Islands holding company to its PRC subsidiaries. See also "Item 8. Financial Information—A. Consolidated Statements and Other Financial Information—Dividend Policy" and our audited consolidated financial statements for the fiscal years ended September 30, 2025, 2024, and 2023.

Cash transfers from our Cayman Islands holding company are subject to applicable PRC laws and regulations on loans and direct investment. We may rely on dividends from our subsidiaries in China for our cash requirements, including any payment of dividends to our shareholders. PRC regulations may restrict the ability of our PRC subsidiaries to pay dividends to us, and as a holding company, we will be dependent on receipt of funds from our Hong Kong subsidiary, Universe HK.

Current PRC regulations permit our indirect PRC subsidiaries to pay dividends to Universe HK only out of their respective accumulated profits, if any, determined in accordance with Chinese accounting standards and regulations. In addition, each of our subsidiaries in China is required to set aside at least 10% of its after-tax profits each year, if any, to fund a statutory reserve until such reserve reaches 50% of its registered capital. Each of such entity in China is also required to further set aside a portion of its after-tax profits to fund the employee welfare fund, although the amount to be set aside, if any, is determined at the discretion of its board of directors. Although the statutory reserves can be used, among other ways, to increase the registered capital and eliminate future losses in excess of retained earnings of the respective companies, the reserve funds are not distributable as cash dividends except in the event of liquidation.

The PRC government also imposes controls on the conversion of RMB into foreign currencies and the remittance of currencies out of the PRC. Therefore, we may experience difficulties in complying with the administrative requirements necessary to obtain and remit foreign currency for the payment of dividends from our profits, if any. Furthermore, if our subsidiaries and affiliates in the PRC incur debt on their own in the future, the instruments governing the debt may restrict their ability to pay dividends or make other payments. If we or our subsidiaries are unable to receive all of the revenue from our operations, we may be unable to pay dividends on our ordinary shares.

Cash dividends, if any, on our ordinary shares will be paid in U.S. dollars. Universe HK may be considered a non-resident enterprise for tax purposes, so that any dividends our PRC subsidiaries pay to Universe HK may be regarded as China-sourced income and as a result may be subject to PRC withholding tax at a rate of up to 10%. See "Item 10. Additional Information—E. Taxation—People's Republic of China Taxation."

In order for us to pay dividends to our shareholders, we will rely on payments made from Universe Technology's subsidiary, Jiangxi Universe, to Universe Technology and from Universe Technology to Universe HK and then to our Company. According to the Enterprise Income Tax Law, or the EIT Law, such payments from subsidiaries to parent companies in China are subject to the PRC enterprise income tax at a rate of 25%. In addition, if Jiangxi Universe or its subsidiary or branches incur debt on their own behalf in the future, the instruments governing the debt may restrict its ability to pay dividends or make other distributions to us.

Pursuant to the Double Tax Avoidance Arrangement, the 10% withholding tax rate may be lowered to 5% if a Hong Kong resident enterprise owns no less than 25% of a PRC project. The 5% withholding tax rate, however, does not automatically apply and certain requirements must be satisfied, including without limitation that (a) the Hong Kong project must be the beneficial owner of the relevant dividends; and (b) the Hong Kong project must directly hold no less than 25% share ownership in the PRC project during the 12 consecutive months preceding its receipt of the dividends. In current practice, a Hong Kong project must obtain a tax resident certificate from the Hong Kong tax authority to apply for the 5% lower PRC withholding tax rate. As the Hong Kong tax authority will issue such a tax resident certificate on a case-by-case basis, we cannot assure you that we will be able to obtain the tax resident certificate from the relevant Hong Kong tax authority and enjoy the preferential withholding tax rate of 5% under the Double Taxation Arrangement with respect to any dividends paid by our PRC subsidiaries to its immediate holding company, Universe HK. As of the date of this annual report, we have not applied for the tax resident certificate from the relevant Hong Kong tax authority. Universe HK intends to apply for the tax resident certificate if and when Universe Technology plans to declare and pay dividends to Universe HK. See "Item 3. Key Information—D. Risk Factors— There are significant uncertainties under the EIT Law, relating to the withholding tax liabilities of our PRC subsidiaries, and dividends payable by our PRC subsidiaries to our offshore subsidiaries may not qualify to enjoy certain treaty benefits."

To the extent cash is located in the PRC or within a PRC domiciled entity and may need to be used to fund operations outside of the PRC, the funds may not be available due to limitations placed on us and our subsidiaries by the PRC government. To the extent cash in and assets of the business is in the PRC or a PRC entity, the funds and assets may not be available to fund operations or for other use outside of the PRC due to interventions in or the imposition of restrictions and limitations on the ability of us or our subsidiaries by the PRC government to transfer cash and assets. See "Item 3. Key Information—D. Risk Factors — Risks Related to Doing Business in China — To the extent cash and assets of in the business is in the PRC or a PRC entity, the funds may not be available to fund operations or for other use outside of the PRC due to interventions in or the imposition of restrictions and limitations on the ability of our Company or our subsidiaries by the PRC government to transfer cash and assets."

**Recent Development**

***The Capital Reorganization***

On September 2, 2025, the Company re-convened its annual general meeting of shareholders, originally convened on August 26, 2025 (the "2025 Annual General Meeting") at 10:00 a.m., Beijing Time, at 265 Jingjiu Avenue, Jinggangshan Economy and Technology Development Zone, Ji'an City, Jiangxi 343100, the People's Republic of China.

At the 2025 Annual General Meeting, the shareholders of the Company adopted a special resolution approving the reorganization of the Company's share capital. The full text of the resolution is set forth below:

"It is resolved as a special resolution that, subject to and conditional upon, amongst other things: (i) approval from the Grand Court of the Cayman Islands (the "Court") of the Capital Reduction (as defined below); (ii) registration by the Registrar of Companies of the Cayman Islands of the order of the Court confirming the Capital Reduction and the minute approved by the Court containing the particulars required under the Companies Act (Revised) (the "Act") in respect of the Capital Reduction and compliance with any conditions the Court may impose; (iii) compliance with the relevant procedures and requirements under the applicable laws of the Cayman Islands to effect the Capital Reduction; and (iv) obtaining of all necessary approvals from the regulatory authorities or otherwise as may be required in respect of the Capital Reduction, with effect from the date on which these conditions are fulfilled:

&nbsp;&nbsp;&nbsp;&nbsp;a) the par value of each issued
Ordinary Share of par value US$11.25 each in the share capital of the Company be reduced to par value US$0.00001 each (the "Capital
Reduction") by cancelling the paid-up capital to the extent of US$11.24999 on each of the then issued Ordinary Shares of par value
US$11.25 each;

&nbsp;&nbsp;&nbsp;&nbsp;b) the credit arising from the Capital Reduction be transferred to a distributable reserve account of the Company which may be utilized by the Company as the board of directors of the Company may deem fit and as permitted under the Act, the amended and restated memorandum of association adopted by special resolution passed on 1 March 2025 and unanimous written director resolutions passed on 20 February 2025 and made effective on 17 March 2025 (the "Existing Memorandum"), the second amended and restated articles of association of the Company adopted by special resolution passed on 23 September 2022 (the "Existing Articles"), and all relevant applicable laws, including, without limitation, eliminating or setting off any accumulated losses of the Company (if any) from time to time;

&nbsp;&nbsp;&nbsp;&nbsp;c) immediately following the Capital Reduction, pursuant to section 13 of the Act and article 8.1(d) of the Existing Articles, each of the authorized but unissued Ordinary Shares of par value US$11.25 each be sub-divided into 1,125,000 ordinary shares of par value US$0.00001 each (the "Sub-division");

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&nbsp;&nbsp;&nbsp;&nbsp;d) immediately following the Capital Reduction and the Sub-division, the authorized share capital of the Company be altered by the cancellation of: (i) the 1,250,000 unissued Preferred Shares of par value US$11.25 each; and (ii) 12,020,495,313,338 of the unissued ordinary shares of par value US$0.00001 each, such that the authorized share capital is altered:

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***from*** US$134,287,453.13338 divided into: (i) 12,022,495,313,338 ordinary shares of par value US$0.00001 each; and (ii) 1,250,000 Preferred Shares of par value US$11.25 each;

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***to*** US$20,000 divided into 2,000,000,000 ordinary shares of par value US$0.00001 each

(the "Capital Alteration");

&nbsp;&nbsp;&nbsp;&nbsp;e) immediately following the Capital Alteration:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. the authorized and issued share
capital of the Company be divided into two separate classes as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. US$18,000 divided into 1,800,000,000
class A ordinary shares of par value US$0.00001 each (the "Class A Ordinary Shares"); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii. US$2,000 divided into 200,000,000
class B ordinary shares of par value US$0.00001 each (the "Class B Ordinary Shares" and, together with the Class A Ordinary
Shares, the "New Share Classes"),

it being noted that the terms of, and rights attaching to the New Share Classes will be materially identical to the existing ordinary shares of par value US$0.00001 each in the capital of the Company save that the Class B Ordinary Shares: (i) shall have 100 times the voting rights per share of Class A Ordinary Shares; and (ii) shall be convertible into Class A Ordinary Shares;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. the issued shares in the Company outstanding following the Capital Alteration be re-designated, as follows:

i. the 559,868 ordinary shares of par value US$0.00001 each held by Cede & Co be re-designated as 559,868 Class A Ordinary Shares;

ii. the 1 ordinary share of par value US$0.00001 held by Christopher Lin be re-designated as 1 Class A Ordinary Share;

iii. the 1 ordinary share of par value US$0.00001 held by Michael Olson be re-designated as 1 Class A Ordinary Share;

iv. the 1 ordinary share of par value US$0.00001 held by Daniel J Sleiman be re-designated as 1 Class A Ordinary Share; and

v. the 3,467 ordinary shares of par value US$0.00001 each held by Sununion Holding Group Limited be re-designated as 3,467 Class B Ordinary Shares,

(steps (a) to (e) (inclusive) above shall be collectively referred to as the "Capital Reorganization"),

&nbsp;&nbsp;&nbsp;&nbsp;f) any one or more of the directors
of the Company be and is/are hereby authorized to do all such acts and things and execute all such documents, which are in connection
with and/or ancillary to the Capital Reorganization and any of the foregoing steps and of administrative nature, on behalf of the Company,
including under seal where applicable, as they consider necessary, desirable or expedient to give effect to the foregoing arrangements
for the Capital Reorganization and (where applicable) to aggregate all fractional Class A Ordinary Shares and/or Class B Ordinary Shares
and sell them for the benefit of the Company."

On January 16, 2026, the Company received an order (the "Order") from the Court approving the Capital Reduction. As of the date of this annual report, the Company is still in the process of registering the Order with the Registrar of Companies of the Cayman Islands and completing other necessary procedures in respect of the Capital Reduction. Accordingly, the conditions of the Capital Reorganization have not been fully met and the Capital Reorganization has not taken effect.

**A. <u>[Reserved]</u>**

**B. <u>Capitalization and Indebtedness</u>**

Not applicable.

**C. <u>Reasons for the Offer and Use of Proceeds</u>**

Not applicable.

**D. <u>Risk Factors</u>**

**Summary of Risk Factors**

Investing in our securities involves significant risks. You should carefully consider all of the information in this annual report before investing in our securities. Below is a summary of the principal risks we face. These risks are discussed more fully under "Item 3. Key Information—D. Risk Factors."

***Risks Related to Our Business and Industry (for a more detailed discussion, see "Item 3. Key Information—D. Risk Factors—Risks Related to Our Business and Industry")***

Risks and uncertainties related to our business include, but are not limited to, the following:

● We have incurred recurring net losses, and our ability to achieve profitability remains uncertain, which could adversely affect our financial condition and ability to fund our operations.

● Our reliance on bank loans and related party guarantees exposes us to refinancing risk and potential financial strain, which could adversely impact our liquidity and operations.

● price increases in raw materials and sourced products could harm our financial results;

● high quality materials for our products may be difficult to obtain or substantially increase our production costs;

● we are exposed to a number of risks related to our supply chain for the materials required to manufacture our products which could adversely affect our business operations and future development;

● we operate in a highly competitive industry. Our failure to compete effectively could adversely affect our market share, revenues and growth prospects;

● high quality materials for our products may be difficult to obtain or substantially increase our production costs;

● our future success depends in part on our ability to increase our production capacity, and we may not be able to do so in a cost-effective manner. We have engaged a third-party sub-contractor to build manufacturing facilities and an office building for us, and we may encounter challenges relating to the construction, management and operation of such facilities;

● we are subject to evolving regulatory requirements, non-compliance with which, or changes in which, may adversely affect our business and prospects; and

● if we fail to maintain or renew requisite licenses, permits, registrations and filings applicable to our business operations, or fail to obtain additional licenses, permits, registrations or filings that become necessary as a result of new enactment or promulgation of government policies, laws or regulations or the expansion of our business, our business and results of operations may be materially and adversely affected.

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***Risks Related to Doing Business in China (for a more detailed discussion, see "Item 3. Key Information—D. Risk Factors—Risks Related to Doing Business in China")***

We face risks and uncertainties relating to doing business in the PRC in general, including, but not limited to, the following:

● the PRC government has significant authority to intervene or influence the China operations of an offshore holding company, such as ours, at any time. The PRC government may exert more control over offerings conducted overseas and/or foreign investment in China-based issuers. If the PRC government exerts more oversight and control over offerings that are conducted overseas and/or foreign investment in China-based issuers and we were to be subject to such oversight and control, it may result in a material adverse change to our business operations, significantly limit or completely hinder our ability to offer or continue to offer securities to investors, and cause the ordinary shares to significantly decline in value or become worthless;

● uncertainties arising from the legal system in China, including uncertainties regarding the interpretation and enforcement of PRC laws and the possibility that regulations and rules can change quickly with little advance notice, could hinder our ability to offer or continue to offer the ordinary shares, result in a material adverse change to our business operations, and damage our reputation, which would materially and adversely affect our financial condition and results of operations and cause the ordinary shares to significantly decline in value or become worthless;

● our ordinary shares may be delisted or prohibited from being traded over-the-counter under the Holding Foreign Companies Accountable Act, if the PCAOB is unable to inspect our auditor. The delisting or the cessation of trading of our ordinary shares, or the threat of their being delisted or prohibited from being traded, may materially and adversely affect the value of your investment. Additionally, the inability of the PCAOB to conduct inspections would deprive our investors with the benefits of such inspections. Our auditor has not been inspected by the PCAOB, but according to our auditor, it will be inspected by the PCAOB on a regular basis;

● failure to comply with cybersecurity, data privacy, data protection, or any other laws and regulations related to data may materially and adversely affect our business, financial condition, and results of operations;

● the approval and/or other requirements of the CSRC or other PRC governmental authorities may be required in connection with an offering under PRC rules, regulations or policies, and, if required, we cannot predict whether or how soon we will be able to obtain such approval;

● PRC regulation of loans to, and direct investments in, PRC entities by offshore holding companies may delay or prevent us from using proceeds from our offerings and/or other financing activities to make loans or additional capital contributions to our PRC operating subsidiaries;

● adverse changes in political, economic and social conditions, as well as government policies in China could have a material adverse effect on our business results of operations, financial conditions and prospects;

● changes to the PRC legal system could have an adverse effect on us;

● recent greater oversight by the Cyberspace Administration of China over data security, particularly for companies seeking to list on a foreign exchange, could adversely impact our business and our offering. See "Risk Factors—Risks Related to Doing Business in China—Recent greater oversight by the Cyberspace Administration of China over data security, particularly for companies seeking to list on a foreign exchange, could adversely impact our business and our offering"; and

● to the extent cash and assets of in the business is in the PRC or a PRC entity, the funds may not be available to fund operations or for other use outside of the PRC due to interventions in or the imposition of restrictions and limitations on the ability of our Company or our subsidiaries by the PRC government to transfer cash and assets. See "Risk Factors—Risks Related to Doing Business in China—To the extent cash and assets of in the business is in the PRC or a PRC entity, the funds may not be available to fund operations or for other use outside of the PRC due to interventions in or the imposition of restrictions and limitations on the ability of our Company or our subsidiaries by the PRC government to transfer cash and assets."

***Risks Relating to Our Ordinary Shares and the Trading Market (for a more detailed discussion, see "Item 3. Key Information—D. Risk Factors—Risks Relating to Our Ordinary Shares")***

In addition to the risks described above, we are subject to general risks and uncertainties relating to our ordinary shares and the trading market, including, but not limited to, the following:

● Our share price has recently declined substantially, and our ordinary shares could be delisted from Nasdaq or trading could be suspended;

● we may issue additional ordinary shares or other equity securities without your approval, which would dilute your ownership interests and may depress the market price of our ordinary shares;

● as a foreign private issuer, we are not subject to certain U.S. securities law disclosure requirements that apply to a domestic U.S. issuer, which may limit the information publicly available to our shareholders; and

● as a foreign private issuer, we are permitted to adopt certain home country practices in relation to corporate governance matters that differ significantly from the Nasdaq listing standards. These practices may afford less protection to shareholders than they would enjoy if we complied fully with corporate governance listing standards.

**Risks Related to Our Business and Industry**

***We have incurred recurring net losses, and our ability to achieve profitability remains uncertain, which could adversely affect our financial condition and ability to fund our operations.***

 ****

We have experienced net losses of $6,581,024 for the fiscal year ended September 30, 2023, $8,727,298 for the fiscal year ended September 30, 2024, and $3,672,055 for the fiscal year ended September 30, 2025. Our revenues have declined from $32,308,735 for the fiscal year ended September 30, 2023 to $23,024,458 for the fiscal year ended September 30, 2024, and further decreased to $17,858,732 for the fiscal year ended September 30, 2025. This revenue decline was driven by a 29.1% decrease in sales volume for the fiscal year ended September 30, 2024 due to global economic slowdown that led to a decline in customers' spending power, and a 5.9% decrease in average per unit selling price of our TCMD products and a 37.3% decrease in average per unit selling price of third-party products for the fiscal year ended September 30, 2025.

These recurring losses have resulted in accumulated deficit of $13,843,623 as of September 30, 2025. Our ability to achieve profitability will depend on our capacity to increase sales volumes, maintain competitive pricing in light of China's centralized drug procurement policy, manage our operating expenses effectively, and successfully expand our market presence. If we are unable to achieve and sustain profitability, we may face difficulties in funding our operations, meeting our financial obligations, and executing our growth strategy, which could have a material adverse effect on our business and financial condition.

***Our reliance on bank loans and related party guarantees exposes us to refinancing risk and potential financial strain, which could adversely impact our liquidity and operations.***

As of September 30, 2025, we had short-term bank loans of $7,149,881 and current portion of long-term bank loans of $2,107,038, resulting in total debt obligations of $9,256,919 due within one year. We obtained these loans from several PRC banks for working capital purposes. Many of our bank loans require personal guarantees from our Chief Executive Officer, Mr. Gang Lai, and/or guarantees from our subsidiaries, and certain loans are secured by pledges of our trademarks and buildings.

Our substantial reliance on debt financing, coupled with our recurring losses, creates several risks. First, while we expect that we will be able to renew all of the existing bank loans upon their maturity based on our past experiences and our outstanding credit history, there can be no assurance that we will be able to refinance these obligations on favorable terms or at all, particularly given our loss-making position. Second, our dependence on personal guarantees from our CEO creates concentration risk and potential complications in the event of management changes. Third, we recorded total interest expense of $289,385 for the year ended September 30, 2025, which represents an ongoing cash outflow that strains our working capital. Finally, in addition to our debt service obligations, we have capital expenditure commitments totaling $13,456,946 for our construction-in-progress project and $2,247,507 for property purchases, with approximately $3,511,729 required within the next 12 months.

If we are unable to renew or refinance our bank loans when they mature, or if our lenders call their loans or decline to extend further credit, we may be forced to seek alternative, potentially more expensive financing, liquidate assets, curtail our operations, or delay our construction projects, any of which could materially and adversely affect our business, financial condition, and results of operations.

***Price increases in raw materials and sourced products could harm our financial results.***

Our principal raw materials include angelica, codonopsis, poria mushroom isatis root, ginseng, and other herbs and plant extracts. These raw materials are subject to price volatility and inflationary pressures. Our success is dependent, in part, on our ability to reduce our exposure to increases in such costs through a variety of ways, while maintaining and improving margins and market share. The manufacturers of such raw materials are also subject to price volatility and labor cost and other inflationary pressures, which may in turn result in an increase in the amount we pay for sourced products. Raw materials and sourced product price increases may offset our productivity gains and price increases and may adversely impact our financial results.

 ****

***High quality materials for our products may be difficult to obtain or substantially increase our production costs.***

Raw materials account for a portion of our manufacturing costs and we rely on third-party suppliers to provide almost all raw materials. Suppliers may be unable or unwilling to provide the raw materials we need in the quantities requested, at prices we are willing to pay, or that meet our quality standards. We are also subject to potential delays in the delivery of raw materials caused by events beyond our control, including transportation interruptions, delivery delays, labor disputes, other supply chain issues, and changes in government regulations. See also "—We are exposed to a number of risks related to our supply chain for the materials required to manufacture our products" for details. Our business could be adversely affected if we are unable to obtain reliable sources of the raw materials used in the manufacturing of our products that meet our quality standards. Any significant delay in or disruption of the supply of raw materials could, among other things, substantially increase the cost of such materials, require reformulation or repackaging of products, require the qualification of new suppliers, or result in our inability to meet customer demands, which could in turn adversely affect our financial results.

 ****

***We are exposed to a number of risks related to our supply chain for the materials required to manufacture our products which could adversely affect our business operations and future development.***

We rely on third-party suppliers to provide almost all raw materials, and manufacturing our products is highly complex and requires sourcing specialty materials or materials with quality standards. Many of the risks associated with the complexity of manufacturing our products are applicable to the manufacture and supply of the raw materials. Minor deviations in the manufacturing process for these raw materials could result in supply disruption and reduced production yields for our products, which is beyond our control. In addition, we rely on third parties for the supply of these materials exposing us to similar risks of reliance on third parties for final products. See "—We face risks related to our sales of products obtained from third-party suppliers" for further details.

Our manufacturing processes requires many equipment and raw materials such as medicinal plants. We established supplier qualification procedures to verify the operation conditions, production capabilities, credit-worthiness and quality standard of potential suppliers, in order to procure quality raw materials in a timely manner. Although we are not relying on a single supplier for any of our raw materials, we may in the future rely on sole source vendors or a limited number of vendors for some of our equipment and materials. We currently depend on a limited number of suppliers for certain materials and equipment used in the manufacture of our products. Some of these suppliers are small companies with limited resources and experience to support commercial production and may be ill-equipped to support our needs from time to time. Accordingly, we may experience delays in receiving key materials and equipment to support manufacturing. An inability to continue to source product from any of these suppliers, which could be due to regulatory actions or requirements affecting the supplier, adverse financial or other strategic developments experienced by a supplier, labor disputes or shortages, unexpected demands, or quality issues, could adversely affect our ability to satisfy demand for our products, which could adversely and materially affect our product sales and operating results or our ability to conduct clinical trials, either of which could significantly harm our business.

As we continue to develop and scale our manufacturing process, we expect that we will need to obtain supplies of certain raw materials and equipment to be used as part of that process. We may not be able to obtain rights to such materials on commercially reasonable terms, or at all, and if we are unable to alter our process in a commercially viable manner to avoid the use of such materials or find a suitable substitute, it would have a material adverse effect on our business. Even if we are able to alter our process so as to use other materials or equipment, such a change may lead to a delay in our clinical development and/or commercialization plans.

***We operate in a highly competitive industry. Our failure to compete effectively could adversely affect our market share, revenues and growth prospects****.*

The Chinese patent medicine industry in the PRC is subject to significant competition and pricing pressures. We will experience significant competitive pricing pressures as well as competitive products. Several significant competitors may offer products at the same or lower prices than our products. The market is highly sensitive to the introduction of new products, which may rapidly capture a significant share of the market. It is possible that one or more of our competitors could develop a significant research advantage over us that allows them to provide superior products that are more attractive to consumers, which could put us in a competitive disadvantage. Continued pricing pressure or improvements in research and shifts in customer preference could adversely impact our customer base or pricing structure and have a material and adverse effect on our business, financial conditions, results of operations and cash flows.

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***Failure to maintain or enhance our brands or image could have a material adverse effect on our business and results of operations.***

We believe several of our brands, such as "Bai Nian Dan (百年丹)", "Hu Zhuo Ren (胡卓仁)" and "Long Zhong (龙种)", are well-recognized among our clients and other Chinese patent medicine industry players. Our brand is integral to our sales and marketing efforts. Our continued success in maintaining and enhancing our brand and image depends to a large extent on our ability to satisfy customer needs by further developing effective and better-quality products, as well as our ability to respond to competitive pressures. If we are unable to satisfy customer needs or if our public image or reputation were otherwise diminished, our business transactions with our customers may decline, which could in turn adversely affect our results of operations.

***Our failure to appropriately respond to changing consumer preferences and demand for new products could significantly harm our customer relationships and product sales.***

Our business is particularly subject to changing consumer trends and preferences. Our continued success depends in part on our ability to anticipate and respond to these changes, and we may not be able to respond in a timely or commercially appropriate manner to these changes. If we are unable to do so, our customer relationships and product sales could be harmed significantly.

Furthermore, the Chinese patent medicine industry is characterized by rapid and frequent changes in demand and new product introductions. Our failure to accurately depict these trends could negatively impact consumer opinion of our stores as a source for latest products. This could harm our customer relationships and cause losses to our market share. The success of our new product offerings depends upon a number of factors, including our ability to: accurately anticipate customer needs; innovate and develop new products; successfully commercialize new products in a timely manner; price our products competitively; manufacture and deliver our products in sufficient volumes and in a timely manner; and differentiate our product offerings from those our competitors.

If we do not introduce new products or make enhancements to meet the changing needs of our customers in a timely manner, some of our products could become obsolete, which could have a material adverse effect on our revenues and operating results.

***If our products do not have the effects intended or cause undesirable side effects, our business may suffer*.**

Many of the ingredients in our current products have a long history of human consumption, and although we believe that all of these products and the combinations of ingredients in them are safe when taken as directed, the products could have certain undesirable side effects if not taken as directed or if taken by a consumer who has certain medical conditions. In addition, these products may not have the effect intended if they are not taken in accordance with instructions, which may include dietary restrictions. Furthermore, there can be no assurance that any of these products, even when used as directed, will have the effects intended or will not have harmful side effects in an unforeseen way or on an unforeseen cohort. If any of our products or products we develop or commercialize in the future are shown to be harmful or generate negative publicity from perceived harmful effects, our business, financial condition, results of operations, and prospects could be harmed significantly.

***We have made substantial investment in advertising our products in order to improve our brand awareness and our market position, which efforts may not be successful, and in such event, our financial position and results of operations may be materially and negatively affected.***

We have made substantial investment in advertising our products in order to improve our brand awareness and our market position. For the fiscal year ended September 30, 2023, we entered into an advertising service agreement with a third-party, Health Headline Technology Co., Ltd. ("Health Headline"), pursuant to which, Health Headline provided media advertising services to promote our brand on the Health Headline website and mobile app, with a service period of ten months from March 1, 2023 to December 31, 2023. For the fiscal year ended September 30, 2024, we renewed the advertising services arrangement with Health Headline by entering into a new service agreement with Health Headline with a service period of ten months from March 1, 2024 to December 31, 2024. For the fiscal year ended September 30, 2025, we renewed the advertising services arrangement with Health Headline by entering into a new service agreement with Health Headline with a service period from March 1, 2025 to December 31, 2026. In addition, we incurred substantial advertising expenditures to maintain and enhance our brand and our products, which may not prove successful. Television advertising and other brand promotion activities may not generate customer awareness or increase revenue, and even if they do, any increase in revenue may not offset the expenses we incur in building our brand. Additionally, there could be a negative reaction to certain advertising campaigns. If we fail to promote our brand, or if we incur excessive expenses in this effort, we may fail to attract or retain customers necessary to realize a sufficient return on our brand-building efforts or to achieve the desired brand awareness that is critical for our success.

***Our future success depends in part on our ability to increase our production capacity, and we may not be able to do so in a cost-effective manner. We have engaged a third-party sub-contractor to build manufacturing facilities and an office building for us, and we may encounter challenges relating to the construction, management and operation of such facilities.***

To the extent we are successful in growing our business, we may need to increase our production capacity. We entered into a construction agreement with a sub-contractor for the construction of four manufacturing factories and an office building, with a total maximum budget of approximately RMB165 million (US$23.5 million). Construction commenced on August 8, 2021, with an originally estimated completion date of August 7, 2023. However, due to the COVID-19 pandemic, which resulted in logistic disruptions, material and labor shortages, and domestic travel restrictions, the construction work was delayed. At the beginning of 2024, the Company estimated that the construction work would be completed in December 2024. During 2024, new information was discovered about the topographical and surface structures of the land, which required the subcontractor to redo the geological survey. As a result, the construction work was further delayed, and the construction of the four manufacturing factory buildings and the office building was expected to be fully completed and put into use by December 2025 and December 2026, respectively. In April 2025, the Ministry of Emergency Management of the PRC issued the Specification for Safety Management of Fine Chemical Enterprises, pursuant to which enterprises are prohibited from setting up employee dormitories within factory premises. The Company was required to redesign the project, and the expected completion date has been further delayed to June 30, 2028. Our ability to construct such additional facilities is subject to risks and uncertainties. The construction of any new facilities will be subject to risks inherent in development and construction, including risks of delays and cost overruns as a result of factors outside of our control, which may include delays in government approvals, burdensome permitting conditions, and delays in the delivery of manufacturing equipment or raw materials required for construction. Additionally, we depend on the third-party sub-contractor for the development of new facilities, and as such, we are subject to the risk that such third party does not fulfill its obligations to us under the construction agreement. To mitigate capacity constraints during the construction period, the Company implemented interim capacity enhancements through newly acquired automated equipment that became operational in September 2025.

If the sub-contractor is unable to deliver the new facilities to us on time, or if we are unable to expand our manufacturing facilities in general, we may be unable to further scale our business, which would negatively affect our results of operations and financial condition. If we are unable to transition manufacturing operations to such new facilities in a cost-efficient and timely manner, then we may experience disruptions in operations, which could negatively impact our business and financial results. Further, if the demand for our products decreases or if we do not produce the expected output after any such new facilities are operational, we may not be able to spread a significant amount of our fixed costs over the production volume, thereby increasing our per product fixed cost, which would have a negative impact on our business, financial condition and results of operations.

***We are subject to evolving regulatory requirements, non-compliance with which, or changes in which, may adversely affect our business and prospects.***

As a manufacturer of products designed for human consumption, we are subject to legal and regulatory requirements applicable to the Chinese patent medicine industry in the PRC. We have been subject to penalties by PRC regulatory authorities in the past due to our failure to comply with their requirements, including noncompliance with the Good Manufacturing Practice for Drugs and the National Drug Standard.

The regulations to which we are subject in this area are evolving. As a result, the interpretation of these laws and their enforcement is often uncertain. Predicting the application of these laws can be difficult, and unexpected outcomes in the interpretation and enforcement of the applicable regulations may have an adverse impact on our business and operations. Additionally, any future changes in regulations may render our business non-compliant or require changes to our business practices or licensing arrangements to ensure compliance. These changes may involve significant costs, which in turn may adversely affect our business and financial prospects.

Various regulatory authorities of the PRC government regulate the manufacturing and trading of Chinese patent medicine. Violations of regulations may lead to the imposition of significant penalties which may affect our business, operations, reputation and financial prospects. See "Item 4. Information on the Company—B. Business Overview—Regulations" for details.

As we introduce new products to our customers, we may be required to comply with additional laws and regulations that are yet to be determined. To comply with such additional laws and regulations, we may be required to obtain necessary certificates, licenses or permits, as well as expend additional resources to monitor regulatory and policy developments. Our failure to adequately comply with such additional laws and regulations may delay, or possibly prevent, some of our products from being offered to customers, which may have a material adverse effect on our business, financial condition and results of operations.

***If we fail to maintain or renew requisite licenses, permits, registrations and filings applicable to our business operations, or fail to obtain additional licenses, permits, registrations or filings that become necessary as a result of new enactment or promulgation of government policies, laws or regulations or the expansion of our business, our business and results of operations may be materially and adversely affected.***

The Chinese patent medicine industry in China is highly regulated, and multiple licenses, permits, filings and approvals are required to operate our business. Currently, through our PRC subsidiaries, we have obtained a valid pharmaceutical manufacturing license, a medical device selling license, and a pharmaceutical trade license. We have made efforts to obtain all applicable approvals, licenses and permits, but due to the complexities, uncertainties and frequent changes in laws, rules, regulations and their interpretation and implementation, we may not always be able to do so, and we may be penalized by governmental authorities for conducting pharmaceutical manufacturing or sales activities without proper approvals, licenses or permits. Moreover, as we continue to increase our product variety, we may also become subject to new or existing laws and regulations that did not affect us in the past. Failure to obtain, renew or retain requisite licenses, permits or approvals may adversely affect our ability to conduct or expand our business, and may have a material adverse impact on our business prospects, results of operations and financial condition.

***Our business is subject to inherent risks relating to product liability and personal injury claims.***

As a manufacturer of products designed for human consumption, we are subject to product liability claims if the use of our products is alleged to have resulted in injury. For instance, adverse reactions resulting from human consumption of the ingredients contained in our products could occur. We may also be obligated to recall affected products. If we are found liable for product liability claims, we could be required to pay substantial monetary damages. Furthermore, even if we successfully defend ourselves against this type of claim, we could be required to spend significant management, financial and other resources, which could disrupt our business, and our reputation as well as our brand name may also suffer. We, like many other similar companies in China, do not carry product liability insurance. As a result, any imposition of product liability could materially harm our business, financial condition and results of operations. In addition, we do not have any business interruption insurance, due to the limited coverage of any available business interruption insurance in China, and as a result, any business disruption or natural disaster could severely disrupt our business and operations and significantly decrease our revenue and profitability.

***We may not be successful in expanding a distribution network.***

Although we intend to expand our distribution network to include additional cities and rural areas in the PRC in an effort to increase our geographic presence, our distribution, logistics and products may encounter competition from various similar or substitutive businesses. Therefore, the success of expansion will depend upon many factors, including our ability to form relationships with, and manage an increasing number of, customers base and optimize our distribution network. If we fail to expand our distribution network as planned, our business, financial condition and results of operations may be materially and adversely affected.

***We are dependent on certain key personnel and loss of these key personnel could have a material effect on our business, financial condition and results of operations.***

Our success is, to a certain extent, attributable to the management, sales and marketing, and research and development expertise of key personnel. We are dependent upon the services of Mr. Gang Lai, the chairman of our board of directors and our chief executive officer, for the continued growth and operation of our Company, due to his industry experiences and management experiences. Although we have no reason to believe that Mr. Gang Lai will discontinue his services with us, the interruption or loss of his services would adversely affect our ability to effectively run our business and pursue our business strategy as well as our results of operation. We currently do not have "key person" insurance on any of our executives or employees. There can be no assurance that we will be able to retain our key personnel after the terms of their employment expire. The loss of the services of one or more of our key personnel could have a material adverse effect upon our business, financial condition, and results of operations.

***We may not effectively manage our growth, which could materially harm our business***.

We expect that our business will grow in the long run, which may place a significant strain on our management, personnel, systems and resources. We must continue to improve our operational and financial systems and managerial controls and procedures, and we will need to continue to expand, train and manage our technology and workforce. We must also maintain close coordination among our compliance, accounting, finance, marketing and sales organizations. We cannot assure you that we will manage our growth effectively. If we fail to do so, our business could be materially harmed.

Our continued growth will require an increased investment by us in technology, facilities, personnel and financial and management systems and controls. It also will require expansion of our procedures for monitoring and assuring our compliance with applicable regulations, and we will need to integrate, train and manage a growing employee base. The expansion of our existing businesses, any expansion into new businesses and the resulting growth of our employee base will increase our need for internal audit and monitoring processes that are more extensive and broader in scope than those we have historically acquired. We may not be successful in identifying or implementing all of the processes that are necessary. Further, unless our growth results in an increase in our revenues that is proportionate to the increase in our costs associated with this growth, our operating margins and profitability will be adversely affected.

***We may not be able to hire and retain qualified personnel to support our growth and if we are unable to retain and hire these personnel in the future, our ability to improve our products and implement our business objects could be adversely affected.***

We must attract, recruit and retain a sizeable workforce of technically competent employees. Competition for senior management and personnel in the PRC is intense and the pool of qualified candidates in the PRC is very limited. We may not be able to retain the services of our senior executives or personnel, or attract and retain high-quality senior executives or personnel in the future. This failure could materially and adversely affect our future growth and financial condition.

***Our success depends on our ability to protect our intellectual property.***

We currently own 54 patents and 98 trademarks in China. We believe that our success depends on our ability to obtain and maintain patent protection for products developed utilizing our technologies, in the PRC and in other countries, and to enforce these patents. There is no assurance that any of our existing and future patents will be deemed to be valid and enforceable against third-party infringement or that our products will not infringe any third-party patent or intellectual property by a court or administrative body having jurisdiction over such matters. Although we have filed additional patent applications with Patent Administration Department of PRC, there is no assurance that they will be granted.

Any patents relating to our technologies may not be sufficiently broad to protect our products. In addition, our patents may be challenged, potentially invalidated or potentially circumvented. Our patents may not afford us protection against competitors with similar technology or permit the commercialization of our products without infringing third-party patents or other intellectual property rights.

We also rely, or intend to rely, on our trademarks, trade names and brand names to distinguish our products from the products of our competitors, and have registered or will apply to register a number of these trademarks. However, third parties may oppose our trademark applications or otherwise challenge our use of the trademarks. In the event that our trademarks are successfully challenged, we could be forced to rebrand our products, which could result in loss of brand recognition and could require us to devote resources to advertising and marketing these new brands. Further, our competitors may infringe our trademarks, or we may not have adequate resources to enforce our trademarks.

In addition, we also have trade secrets, non-patented proprietary expertise and continuing technological innovations that we expect to seek to protect, in part, by entering into confidentiality agreements with licensees, suppliers, employees and consultants. These agreements may be breached and there may not be adequate remedies in the event of a breach. Disputes may arise concerning the ownership of intellectual property or the applicability of confidentiality agreements. Moreover, our trade secrets and proprietary technology may otherwise become known or be independently developed by our competitors. If patents are not issued with respect to products arising from research, we may not be able to maintain the confidentiality of information relating to these products.

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Further, the application and interpretation of China's intellectual property laws are still evolving and are uncertain. If we are found to have violated the intellectual property rights of others, we may be subject to liability and penalty for our infringement activities or may be prohibited from using such intellectual property, and we may incur licensing fees or be forced to develop alternatives of our own. In addition, we may incur significant expenses, and may be forced to divert management's time and other resources from our business and operations to defend against these infringement claims, regardless of their merits. Successful infringement or licensing claims made against us may result in significant monetary liabilities and may materially disrupt our reputation, business and operations by restricting or prohibiting our use of the intellectual property at issue.

***Because we rely on our manufacturing operations to produce a significant amount of the products we sell, disruptions in our manufacturing system or losses of manufacturing certifications could adversely affect our sales and customer relationships.***

Our manufacturing operations produced approximately 74.3%, 60.9% and 57.5% of the total value of the products we sold for the fiscal year ended September 30, 2025, 2024 and 2023, respectively. Our products are produced in our manufacturing facility located in Jinggangshan, Jiangxi Province, China. For the fiscal year ended September 30, 2025, one supplier accounted for 35.4% of our total purchases. For the fiscal year ended September 30, 2024, two suppliers accounted for 28.0% and 13.4% of our total purchases, respectively. For the fiscal year ended September 30, 2023, one supplier accounted for 29.6% of our total purchases. No other suppliers individually accounted for more than 10% of our total purchases in the fiscal years ended September 30, 2025, 2024 and 2023. In the event any of our third-party suppliers or vendors becomes unable or unwilling to continue to provide raw materials in the required volumes or quality levels or in a timely manner, we would be required to identify and obtain acceptable replacement supply sources. If we are unable to identity and obtain alternative supply sources, our business could be adversely affected. Any significant disruption in our operations at our manufacturing facility for any reason, including government-imposed regulatory requirements, the loss of certifications, power interruptions, fires, war, or other force of nature, could disrupt our supply of products, adversely affecting our sales and customer relationships.

***We face risks related to our sales of products obtained from third-party suppliers.***

We sell a significant number of products that are manufactured by third-party suppliers over which we have no direct control. While we have implemented processes and procedures to try to ensure that the suppliers we use are complying with all applicable regulations, there can be no assurance that such suppliers in all instances will comply with such processes and procedures or otherwise with applicable regulations. Noncompliance could result in our marketing and distribution of contaminated or dangerous products which would subject us to liabilities and could result in the imposition by government authorities of penalties that could restrict or eliminate our ability to purchase products. Any or all of these effects could adversely affect our business, financial condition and results of operation.

***The growth of our business depends on our ability to finance new product innovations and these increased costs may reduce our cash flows and, if the products in which we have invested fail, it would reduce our profitability.***

We operate in the Chinese patent medicine industry, which is characterized by significant competition and rapid change. New products appear with increasing frequency to supplant existing products. If we fail to adapt to those conditions in a timely and efficient manner, our revenues and profits would likely decline. To remain competitive, we must continue to incur significant costs in product research and development, marketing, equipment and facilities and to make capital investment. These costs may increase, resulting in greater fixed costs and operating expenses.

In the fiscal year ended September 30, 2025, we incurred $0.7 million in research and development expenses, a 77.8% decrease compared to the expenses in the fiscal year ended September 30, 2024. In the fiscal year ended September 30, 2024, we incurred $3.0 million in research and development expenses, a 37.6% decrease compared to the expenses in the fiscal year ended September 30, 2023. In the fiscal year ended September 30, 2023, we incurred $4.9 million research and development expenses, a 36.4% decrease compared to the expenses in the fiscal year ended September 30, 2022. The reduction in research and development expenses over the past three fiscal years reflects the completion of certain core technology improvements and production process enhancements that were successfully integrated into the Company's manufacturing operations. The Company believes that these prior investments have yielded sustainable improvements that do not require ongoing incremental expenditure at the same level. The Company remains committed to continued investment in research and development activities and does not anticipate that the recent reductions will materially impair its product pipeline or innovation capabilities.

Our future operating results will depend to a significant extent on our ability to continue to provide new products that compare favorably based on time to market, cost and performance with the design and manufacturing capabilities and competing third-party suppliers and technologies. Furthermore, our research and development efforts may not produce successful results, and our new products may not achieve market acceptance, create additional revenue for us, or bring us profits. Our failure to increase our net sales sufficient to offset these increased costs would reduce our profitability and may materially and adversely affect our business operations and results of operations.

***Future acquisitions may have an adverse effect on our ability to manage our business.***

We may acquire businesses, technologies, services or products which are complementary to our core business of manufacturing and selling TCMD products. Future acquisitions may expose us to potential risks, including risks associated with: (i) the integration of new products, services and personnel; unforeseen or hidden liabilities; (ii) the diversion of resources from our existing business; (iii) our potential inability to generate sufficient revenue to offset new costs; the expenses of acquisitions; or (iv) the potential loss of or harm to relationships with both employees and advertising clients resulting from our integration of new businesses.

Any of the potential risks listed above could have a material and adverse effect on our ability to manage our business, our revenues and net income. We may need to raise additional debt funding or sell additional equity securities to make such acquisitions. The raising of additional debt funding by us, if required, would result in increased debt service obligations and could result in additional operating and financing covenants, or liens on our assets, that could restrict our operations. The sale of additional equity securities could result in additional dilution to our shareholders.

***Increase in labor costs in the PRC may adversely affect our business and our profitability.***

China's economy has experienced increases in labor costs in recent years, and the average wage in China are expected to continue to grow. The average wage level for our employees has also increased in recent years. We expect that our labor costs, including wages and employee benefits, will continue to increase as we continue to grow our business. Unless we are able to pass on these increased labor costs to our customers by increasing prices for our products or services, our profitability and results of operations may be materially adversely affected.

In addition, we have been subject to stricter regulatory requirements in terms of entering into labor contracts with our employees and paying various statutory employee benefits, including pensions, housing fund, medical insurance, work-related injury insurance, unemployment insurance and childbearing insurance to designated government agencies for the benefit of our employees. Pursuant to the PRC Labor Contract Law (《中华人民共和国劳动法》) (the "Labor Contract Law") that became effective in January 2008 and its implementing rules that became effective in September 2008 and its amendments that became effective in July 2013, employers are subject to stricter requirements in terms of signing labor contracts, minimum wages, paying remuneration, determining the term of employees' probation and unilaterally terminating labor contracts. In the event that we decide to terminate some of our employees or otherwise change our employment or labor practices, the Labor Contract Law and its implementation rules may limit our ability to effect any such terminations or those changes in a desirable or cost-effective manner, which could adversely affect our business and results of operations.

As of the date of this annual report, we believe that we are in substantial compliance with labor-related laws and regulations in China, and we have not been notified of any instance of noncompliance. As the interpretation and implementation of labor-related laws and regulations are still evolving, we cannot assure you that our employment practice will not violate labor-related laws and regulations in China, which may subject us to labor disputes or government investigations. If we are deemed to have violated relevant labor laws and regulations, we could be required to provide additional compensation to our employees and our business, financial condition and results of operations could be materially and adversely affected.

***Natural disasters (whether or not caused by climate change), unusually adverse weather conditions, pandemic outbreaks, terrorist acts and global political events could cause permanent or temporary distribution center or store closures, impair our ability to purchase, receive or replenish inventory, or cause customer traffic to decline, all of which could result in lost sales and otherwise adversely affect our financial performance.***

The occurrence of one or more natural disasters, such as hurricanes, fires, floods and earthquakes (whether or not caused by climate change), unusually adverse weather conditions, pandemic outbreaks, terrorist acts or disruptive global political events, such as civil unrest in countries in which our suppliers are located, or similar disruptions could adversely affect our operations and financial performance. To the extent these events result in the closure of one or more of our distribution centers, a significant number of stores, a manufacturing facility or our corporate headquarters, or impact one or more of our key suppliers, our operations and financial performance could be materially adversely affected through an inability to make deliveries to our stores and through lost sales. In addition, these events could result in increases in fuel (or other energy) prices or a fuel shortage, decrease in available raw materials of sufficient quality and in sufficient amounts, delays in opening new stores, the temporary lack of an adequate work force in a market, the temporary or long-term disruption in the supply of products from some local and overseas suppliers, the temporary disruption in the transport of goods from overseas, delay in the delivery of goods to our distribution centers or stores, the temporary reduction in the availability of products in our stores and disruption to our information systems. These events also could have indirect consequences, such as increases in the cost of insurance, if any of such events was to result in significant loss of property or other insurable damage.

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**Risks Related to Doing Business in China**

***The PRC government has significant authority to intervene or influence the China operations of an offshore holding company, such as ours, at any time. The PRC government may exert more control over offerings conducted overseas and/or foreign investment in China-based issuers. If the PRC government exerts more oversight and control over offerings that are conducted overseas and/or foreign investment in China-based issuers and we were to be subject to such oversight and control, it may result in a material adverse change to our business operations, significantly limit or completely hinder our ability to offer or continue to offer securities to investors, and cause the ordinary shares to significantly decline in value or become worthless.***

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Our business, prospects, financial condition, and results of operations may be influenced to a significant degree by political, economic, and social conditions in China generally. The PRC government has significant authority to intervene or influence the China operations of an offshore holding company at any time, which could result in a material adverse change to our operations and the value of the ordinary shares. The PRC government has recently indicated an intent to exert more oversight and control over listings conducted overseas and/or foreign investment in China-based issuers. Any such action may hinder our ability to offer or continue to offer our securities to investors, result in a material adverse change to our business operations, and damage our reputation, which could cause the ordinary shares to significantly decline in value or become worthless. See also "—Failure to comply with cybersecurity, data privacy, data protection, or any other laws and regulations related to data may materially and adversely affect our business, financial condition, and results of operations."

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***Uncertainties arising from the legal system in China, including uncertainties regarding the interpretation and enforcement of PRC laws and the possibility that regulations and rules can change quickly with little advance notice, could hinder our ability to offer or continue to offer the ordinary shares, result in a material adverse change to our business operations, and damage our reputation, which would materially and adversely affect our financial condition and results of operations and cause the ordinary shares to significantly decline in value or become worthless.***

The legal system in China is a civil law system based on written statutes. Unlike common law systems, it is a system in which decided legal cases may be cited for reference but have less precedential value. The laws, regulations, and legal requirements in China are quickly evolving and their interpretation and enforcement involve uncertainties. These uncertainties could limit the legal protections available to you and us. In addition, we cannot predict the effect of future developments in the PRC legal system, particularly with regard to new economies, including the promulgation of new laws, changes to existing laws or the interpretation or enforcement thereof, or the preemption of local regulations by national laws. Furthermore, the PRC legal system is based in part on government policies and internal rules, some of which are not published on a timely basis or at all. As a result, we may not be aware of our potential violation of these policies and rules. In addition, any administrative and court proceedings in China may be protracted and result in substantial costs and diversion of resources and management attention.

New laws and regulations may be enacted from time to time and substantial uncertainties exist regarding the interpretation and implementation of current and any future PRC laws and regulations applicable to our businesses. In particular, the PRC government authorities may continue to promulgate new laws, regulations, rules and guidelines governing companies in the patent medicine industry with respect to a wide range of issues, such as intellectual property, unfair competition and antitrust, privacy and data protection, and other matters. Compliance with these laws, regulations, rules, guidelines, and implementations may be costly, and any incompliance or associated inquiries, investigations, and other governmental actions may divert significant management time and attention and our financial resources, bring negative publicity, subject us to liabilities or administrative penalties, or materially and adversely affect our business, financial condition, results of operations, and the value of the ordinary shares.

***Our ordinary shares may be delisted or prohibited from being traded over-the-counter under the Holding Foreign Companies Accountable Act, if the PCAOB is unable to inspect our auditor. The delisting or the cessation of trading of our ordinary shares, or the threat of their being delisted or prohibited from being traded, may materially and adversely affect the value of your investment. Additionally, the inability of the PCAOB to conduct inspections would deprive our investors with the benefits of such inspections. Our auditor has not been inspected by the PCAOB, but according to our auditor, it will be inspected by the PCAOB on a regular basis.***

The Holding Foreign Companies Accountable Act was enacted on December 18, 2020. The Holding Foreign Companies Accountable Act, as amended by the Accelerating Holding Foreign Companies Accountable Act, states if the SEC determines that we have filed audit reports issued by a registered public accounting firm that has not been subject to inspection by the PCAOB for three consecutive years, the SEC shall prohibit our shares from being traded on a national securities exchange or in the over-the-counter trading market in the U.S.

Our auditor, Enrome LLP, the independent registered public accounting firm that issues the audit report included elsewhere in this annual report, as an auditor of companies that are traded publicly in the United States and a firm registered with the PCAOB, is subject to laws in the United States pursuant to which the PCAOB conducts regular inspections to assess its compliance with the applicable professional standards. Our auditor, Enrome LLP, is based in Singapore, and is subject to inspection by the PCAOB.

On March 24, 2021, the SEC adopted interim final rules relating to the implementation of certain disclosure and documentation requirements of the Holding Foreign Companies Accountable Act. We will be required to comply with these rules if the SEC identifies us as having a "non-inspection" year under a process to be subsequently established by the SEC. The SEC is assessing how to implement other requirements of the Holding Foreign Companies Accountable Act, including the listing and trading prohibition requirements described above. In May 2021, the PCAOB issued for public comment a proposed rule related to the PCAOB's responsibilities under the Holding Foreign Companies Accountable Act, which, according to the PCAOB, would establish a framework for the PCAOB to use when determining, as contemplated under the Holding Foreign Companies Accountable Act, whether the PCAOB is unable to inspect or investigate completely registered public accounting firms located in a foreign jurisdiction because of a position taken by one or more authorities in that jurisdiction. The proposed rule was adopted by the PCAOB in September 2021, pending the final approval of the SEC to become effective.

On June 22, 2021, the U.S. Senate passed the Accelerating Holding Foreign Companies Accountable Act, which was signed into law as part of the fiscal year 2023 omnibus spending legislation on December 29, 2022 and reduced the number of consecutive non-inspection years required for triggering the prohibitions under the Holding Foreign Companies Accountable Act from three years to two.

On December 2, 2021, the SEC issued amendments to finalize rules implementing the submission and disclosure requirements in the Holding Foreign Companies Accountable Act. The rules apply to registrants that the SEC identifies as having filed an annual report with an audit report issued by a registered public accounting firm that is located in a foreign jurisdiction and that PCAOB is unable to inspect or investigate completely because of a position taken by an authority in foreign jurisdictions.

On December 16, 2021, the PCAOB issued a report on its determination that it is unable to inspect or investigate completely PCAOB-registered public accounting firms headquartered in China and in Hong Kong because of positions taken by PRC and Hong Kong authorities in those jurisdictions. The PCAOB has made such determination as mandated under the Holding Foreign Companies Accountable Act. Pursuant to each annual determination by the PCAOB, the SEC will, on an annual basis, identify issuers that have used non-inspected audit firms and thus are at risk of such suspensions in the future. Our auditor is headquartered in California and is not subject to this determination announced by the PCAOB.

On December 15, 2022, the PCAOB announced that it has completed a test inspection of two selected auditing firms in mainland China and Hong Kong and has voted to vacate its previous Determination Report, which concluded in December 2021 that it could not inspect or investigate completely registered public accounting firms based in mainland China or Hong Kong. Moving forward, the PCAOB will continue to demand complete access in mainland China and Hong Kong. Despite the PCAOB's announcement, Chinese authorities will need to ensure that the PCAOB continues to have full access for inspections and investigations in 2026 and beyond, or the threat for Chinese companies listed on U.S. stock exchanges has not been relieved.

Our auditor, Enrome LLP, is headquartered in Singapore. Enrome LLP has been subject to PCAOB inspections and was not subject to the determinations announced by the PCAOB on December 16, 2021. If, for whatever reason, the PCAOB is unable to conduct full inspections of our auditor, uncertainty under the Holding Foreign Companies Accountable Act could cause the market price of our ordinary shares to be materially and adversely affected, and our securities could be delisted or prohibited from being traded "over-the-counter." The risk and uncertainty associated with a potential delisting would have a negative impact on the price of our ordinary shares.

The foregoing recent developments would add uncertainties to our future offerings and may result in prohibitions on the trading of our ordinary shares on the Nasdaq Stock Market, if our auditor fails to meet the PCAOB inspection requirement in time.

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***Failure to comply with cybersecurity, data privacy, data protection, or any other laws and regulations related to data may materially and adversely affect our business, financial condition, and results of operations.***

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We may be subject to a variety of cybersecurity, data privacy, data protection, and other laws and regulations related to data, including those relating to the collection, use, sharing, retention, security, disclosure, and transfer of confidential and private information, such as personal information and other data. These laws and regulations apply not only to third-party transactions, but also to transfers of information within our organization. These laws and regulations may restrict our business activities and require us to incur increased costs and efforts to comply, and any breach or noncompliance may subject us to proceedings against us, damage our reputation, or result in penalties and other significant legal liabilities, and thus may materially and adversely affect our business, financial condition, and results of operations.

In China, the cybersecurity, data privacy, data protection, or other data-related laws and regulations are relatively new and evolving, and their interpretation and application may be uncertain. For example, on September 24, 2024, the Data Security Administration was promulgated by the Standing Committee of the National People's Congress (the "SCNPC"), which took effect on January 1, 2025. According to the Data Security Administration, data processors shall, in accordance with relevant state provisions, apply for cybersecurity review when carrying out the following activities: (i) the merger, reorganization, or separation of internet platform operators that have acquired a large number of data resources related to national security, economic development, or public interests, which affect or may affect national security; (ii) data processors that handle personal data of more than one million individuals intend to list on a foreign stock exchange; (iii) data processors that intend to list on Hong Kong exchange, which affects or may affect national security; and (iv) other data processing activities that affect or may affect national security.

As of the date of this annual report, we have not engaged in the relevant businesses provided in the Data Security Administration. As such, we currently do not expect the Data Security Administration or other recent regulations will have an impact on our business or results of operations, and we believe that we are compliant with the regulations and policies that have been issued by the government authorities to date. As of the date of this annual report, we have not received any investigation, notice, warning, or sanction from applicable government authorities (including the CAC) with regard to our business operations concerning any issues related to cybersecurity and data security. In addition, we have not been involved in any review, investigation, enquiry, penalty, or other legal proceedings initiated by applicable governmental or regulatory authorities or third parties in relation to in relation to cyber security or data protection. However, we still face uncertainties regarding the interpretation and implementation of these laws and regulations in the future. Cybersecurity review could result in disruption in our operations, negative publicity with respect to our Company, and diversion of our managerial and financial resources. Furthermore, if we were found to be in violation of applicable laws and regulations in China during such review, we could be subject to fines or other government sanctions and reputational damage. Therefore, potential cybersecurity review, if applicable to us, could materially and adversely affect our business, financial condition, and results of operations.

In addition, the PRC Data Security Law, which was promulgated by the SCNPC on June 10, 2021 and took effect on September 1, 2021, requires data collection to be conducted in a legitimate and proper manner, and stipulates that, for the purpose of data protection, data processing activities must be conducted based on data classification and hierarchical protection system for data security. Furthermore, the recently issued Opinions on Strictly Cracking Down Illegal Securities Activities require (i) speeding up the revision of the provisions on strengthening the confidentiality and archives management relating to overseas issuance and listing of securities and (ii) improving the laws and regulations relating to data security, cross-border data flow, and management of confidential information. The PRC Personal Information Protection Law, which was promulgated by the SCNPC on August 20, 2021 and took effect on November 1, 2021, integrates the scattered rules with respect to personal information rights and privacy protection and applies to the processing of personal information within China as well as certain personal information processing activities outside China, including those for the provision of products and services to natural persons within China or for the analysis and assessment of acts of natural persons within China. There remain uncertainties regarding the further interpretation and implementation of those laws and regulations, if they are deemed to be applicable to us, we cannot assure you that we will be compliant with such new regulations in all respects, and we may be ordered to rectify and terminate any actions that are deemed illegal by the government authorities and become subject to fines and other government sanctions, which may materially and adversely affect our business, financial condition, and results of operations.

***Recent greater oversight by the Cyberspace Administration of China over data security, particularly for companies seeking to list on a foreign exchange, could adversely impact our business and operations.***

On December 28, 2021, the CAC and other relevant PRC governmental authorities jointly promulgated the Cybersecurity Review Measures, which took effect on February 15, 2022. The Cybersecurity Review Measures provide that, in addition to critical information infrastructure operators (the "CIIOs") that intend to purchase Internet products and services, net platform operators engaging in data processing activities that affect or may affect national security must be subject to cybersecurity review by the Cybersecurity Review Office of the PRC. According to the Cybersecurity Review Measures, a cybersecurity review assesses potential national security risks that may be brought about by any procurement, data processing, or overseas listing. The Cybersecurity Review Measures require that an online platform operator which possesses the personal information of at least one million users must apply for a cybersecurity review by the CAC if it intends to be listed in foreign countries.

On September 24, 2024, the SCNPC published the Data Security Administration, which became effective on January 1, 2025. The Data Security Administration provides that data processing operators engaging in data processing activities that affect or may affect national security must be subject to network data security review by the relevant Cyberspace Administration of the PRC. According to the Data Security Administration, data processing operators who possess personal data of at least one million users or collect data that affects or may affect national security must be subject to network data security review by the relevant Cyberspace Administration of the PRC.

As of the date of this annual report, we have not received any notice from any authorities identifying our PRC subsidiaries or the PRC operating entities as CIIOs or requiring us to go through cybersecurity review or network data security review by the CAC. As advised by our PRC counsel, AllBright Law Offices (Fuzhou), neither the operations of our PRC subsidiaries, nor of the PRC operating entities are expected to be affected, and that we will not be subject to cybersecurity review by the CAC under the Cybersecurity Review Measures, nor is any such entity subject to the Data Security Administration, given that our PRC subsidiaries and the PRC operating entities possess personal data of fewer than one million individual clients and do not collect data that affects or may affect national security in their business operations as of the date of this annual report and do not anticipate that they will be collecting over one million users' personal information or data that affects or may affect national security in the near future. In general, we believe we are compliant with the regulations or policies that have been issued by the government authorities to date. There remains uncertainty, however, as to how the Cybersecurity Review Measures and the Data Security Administration will be interpreted or implemented and whether the PRC regulatory agencies, including the CAC, may adopt new laws, regulations, rules, or detailed implementation and interpretation related to the Cybersecurity Review Measures and the Data Security Administration. If any such new laws, regulations, rules, or implementation and interpretation come into effect, we will take all reasonable measures and actions to comply and to minimize the adverse effect of such laws on us. We cannot assure you that PRC regulatory agencies, including the CAC, would take the same view as we do. In the event that we are subject to any mandatory cybersecurity review and other specific actions required by the CAC, we face uncertainty as to whether any clearance or other required actions can be timely completed, or at all. If we inadvertently conclude that such approval is not required, fail to obtain and maintain such approvals, licenses, or permits required for our business or respond to changes in the regulatory environment, we could be subject to liabilities, penalties and operational disruption, which may materially and adversely affect our business, operating results, financial condition, and the value of our securities, significantly limit or completely hinder our ability to offer or continue to offer securities to investors, or cause such securities to significantly decline in value or become worthless.

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***The approval and/or other requirements of the CSRC or other PRC governmental authorities may be required in connection with an offering under PRC rules, regulations or policies, and, if required, we cannot predict whether or how soon we will be able to obtain such approval.***

The Regulations on Mergers and Acquisitions of Domestic Enterprises by Foreign Investors, or the M&A Rules, purport to require offshore special purpose vehicles that are controlled by PRC companies or individuals and that have been formed for the purpose of seeking a public listing on an overseas stock exchange through acquisitions of PRC domestic companies or assets to obtain CSRC approval prior to publicly listing their securities on an overseas stock exchange. The interpretation and application of the regulations remain unclear. If a governmental approval is required, it is uncertain how long it will take for us to obtain such approval, and, even if we obtain such approval, the approval could be rescinded. Any failure or delay in obtaining the requisite governmental approval for an offering, or a rescission of such CSRC approval, if obtained by us, may subject us to sanctions imposed by the relevant PRC regulatory authority, which could include fines and penalties on our operations in China, restrictions or limitations on our ability to pay dividends outside of China, and other forms of sanctions that may materially and adversely affect our business, financial condition, and results of operations.

On February 17, 2023, the CSRC issued the Trial Measures, and five supporting guidelines, which became effective on March 31, 2023. Pursuant to the Overseas Listings Rules, companies in mainland China that directly or indirectly offer or list their securities in an overseas market, including a company in mainland China limited by shares and an offshore company whose main business operations are in mainland China and intends to offer shares or be listed in an overseas market based on its equities, assets or similar interests in mainland China are required to file with the CSRC within three business days after submitting their listing application documents to the regulator in the place of intended listing. If the company fails to complete the filing procedure or conceals any material fact or falsifies any major content in its filing documents, it may be subject to administrative penalties, such as order to rectify, warnings, fines, and its controlling shareholders, actual controllers, the person directly in charge and other directly liable persons may also be subject to administrative penalties, such as warnings and fines. The Overseas Listings Rules also provide that a company in mainland China must file with the CSRC within three business days for its follow on offering of securities after it is listed in an overseas market. On February 17, 2023, the CSRC also issued the Notice on Administration of the Filing of Overseas Offering and Listing by Domestic Companies and held a press conference for the release of the Overseas Listings Rules, which, among others, clarified that the companies in mainland China that have been listed overseas before March 31, 2023 are not required to file with the CSRC immediately, but these companies should complete filing with the CSRC for their refinancing activities in accordance with the Overseas Listings Rules. A fine between RMB1 million (approximately $157,255) and RMB10 million (approximately $1,572,550) may be imposed if an applicant fails to fulfill the filing requirements with the CSRC or conducts an overseas offering or listing in violation of the Overseas Listings Rules, and in cases of severe violations, a parallel order to suspend relevant businesses or halt operations for rectification may be issued, and relevant business permits or operational license revoked.

On February 24, 2023, the CSRC, jointly with other relevant governmental authorities, published the Provisions on Strengthening Confidentiality and Archives Management of Overseas Securities Issuance and Listing by Domestic Enterprises, or the Confidentiality and Archives Management Provisions, which became effective on March 31, 2023. Pursuant to the Confidentiality and Archives Management Provisions, China-based companies that offer and list securities in overseas markets shall establish confidentiality and archives system. The "China-based companies" refer to companies in mainland China limited by shares which are directly listed on a foreign stock exchange and the domestic operating entities of an offshore company being indirectly listed on a foreign stock exchange. These China-based companies shall obtain the approvals from relevant authorities and file with the competent confidential administration authorities when providing or publicly filing documents and materials related to state secrets or secrets of the government authorities to the relevant securities companies, securities service agencies or the offshore regulatory authorities, or providing or publicly filing such documents and materials through its offshore listing entity. In addition, China-based companies shall complete corresponding procedures when (i) providing or publicly filing documents and materials which may adversely affect national security and public interests to the relevant securities companies, securities service agencies or the offshore regulatory authorities, (ii) providing or publicly filing such documents and materials through its offshore listing entity, or (iii) providing accounting files or copies to relevant securities companies, securities service institutions, overseas regulators and individuals. These China-based companies are also required to provide written statements as to whether they have completed the approval or filing procedures as above when providing documents and materials to securities companies and securities service providers, and the securities companies and securities service providers should properly retain such written statements for inspection. If a China-based company finds that the documents and materials related to state secrets or secrets of the government authorities or other materials, which may adversely affect national security and public interests, have been leaked or have leakage risks, it should take remedial measures immediately and report to the relevant authorities.

In the opinion of our PRC legal counsel, AllBright Law Offices (Fuzhou), as a domestic company listed on Nasdaq since March 2021, and not currently conducting refinancing or other activities that require filings, we are not required to file with the CSRC in accordance with the Overseas Listing Rules at this time. However, in the event that we conduct subsequent offerings, we could be subject to filing requirements with the CSRC. In the event that filings with the CSRC are required, we cannot assure you that we can complete the filing procedures, obtain the approvals or complete other compliance procedures in a timely manner, or at all, or that any completion of filing or approval or other compliance procedures would not be rescinded. Any such failure would subject us to sanctions by the CSRC or other PRC regulatory authorities. These regulatory authorities may impose restrictions and penalties on the operations in China, significantly limit or completely hinder our ability to launch any new offering of our securities, limit our ability to pay dividends outside of China, delay or restrict the repatriation of the proceeds from future capital raising activities into China, or take other actions that could materially and adversely affect our business, results of operations, financial condition and prospects, as well as the trading price of our ordinary shares. Furthermore, the PRC government authorities may further strengthen oversight and control over listings and offerings that are conducted overseas. Any such action may adversely affect our operations and significantly limit or completely hinder our ability to offer or continue to offer securities to you and cause the value of such securities to significantly decline or be worthless.

Furthermore, the governmental authorities may impose restrictions and penalties on our operations in China, such as the suspension of our apps and services, revocation of our licenses, shutting down part or all of our operations, limiting our ability to pay dividends outside of China, delaying or restricting the repatriation of the proceeds from an offering into China, or may take other actions that could have a material adverse effect on our business, financial condition, results of operations and prospects, as well as the trading price of the ordinary shares. The PRC governmental authorities may also take actions requiring us, or making it advisable for us, to halt an offering before settlement and delivery of the ordinary shares offered hereby. Consequently, if you engage in market trading or other activities in anticipation of and prior to settlement and delivery, you do so at the risk that settlement and delivery may not occur. In addition, if the PRC governmental authorities later promulgate new rules or requirements that we obtain their approvals for filings, registrations or other kinds of authorizations for an offering, we cannot assure you that we can obtain the approval, authorizations, or complete required procedures or other requirements in a timely manner, or at all, or obtain a waiver of the requisite requirements if and when procedures are established to obtain such a waiver.

***PRC regulation of loans to, and direct investments in, PRC entities by offshore holding companies may delay or prevent us from using proceeds from our offerings and/or other financing activities to make loans or additional capital contributions to our PRC operating subsidiaries.***

As an offshore holding company with PRC subsidiaries, we may transfer funds to our PRC subsidiaries or finance our operating entities by means of loans or capital contributions. Any capital contributions or loans that we, as an offshore entity, make to our Company's PRC subsidiaries are subject to PRC regulations. Any loans to our PRC subsidiaries, which are foreign-invested enterprises, cannot exceed statutory limits based on the difference between the amount of our investments and registered capital in such subsidiaries, and shall be registered with China's State Administration of Foreign Exchange ("SAFE"), or its local counterparts. Furthermore, any capital increase contributions we make to our PRC subsidiaries, which are foreign-invested enterprises, are subject to the requirement of making necessary filings in the Foreign Investment Comprehensive Management Information System, or FICMIS, and registration with other government authorities in China. We may not be able to obtain these government registrations or approvals on a timely basis, if at all. If we fail to obtain such approvals or make such registration, our ability to make equity contributions or provide loans to our Company's PRC subsidiaries or to fund their operations may be negatively affected, which may adversely affect their liquidity and ability to fund their working capital and expansion projects and meet their obligations and commitments. As a result, our liquidity and our ability to fund and expand our business may be negatively affected.

***We must remit proceeds of any future offerings to China before they may be used to benefit our business in China, and this process may take several months to complete.***

The proceeds of our future offerings must be sent back to China, and the process for sending such proceeds back to China may take as long as six months after the closing of an offering. As an offshore holding company of our PRC operating subsidiaries, we may make loans to our PRC subsidiaries, or we may make additional capital contributions to our PRC subsidiaries. Any loans to our PRC subsidiaries are subject to PRC regulations. For example, loans by us to our subsidiaries in China, which are foreign-invested enterprises, to finance their activities cannot exceed statutory limits and must be registered with SAFE.

To remit the proceeds of our offerings, we must take the following steps:

● First, we will open a special foreign exchange account for capital account transactions. To open this account, we must submit to SAFE certain application forms, identity documents, transaction documents, form of foreign exchange registration of overseas investments of the domestic residents, and foreign exchange registration certificate of the invested company.

● Second, we will remit the offering proceeds into this special foreign exchange account.

● Third, we will apply for settlement of the foreign exchange. In order to do so, we must submit to SAFE certain application forms, identity documents, payment order to a designated person, and a tax certificate.

The timing of the process is difficult to estimate because the efficiencies of different SAFE branches can vary significantly. Ordinarily the process takes several months but is required by law to be accomplished within 180 days of application.

We may also decide to finance our subsidiaries by means of capital contributions. These capital contributions must be subject to the requirement of making necessary filings in the FICMIS, and registration with other government authorities in China. We cannot assure you that we will be able to obtain these government approvals on a timely basis, if at all, with respect to future capital contributions by us to our subsidiaries. If we fail to receive such approvals, our ability to use the proceeds of any future offerings and to capitalize our Chinese operations may be negatively affected, which could adversely affect our liquidity and our ability to fund and expand our business. If we fail to receive such approvals, our ability to use the proceeds of our future offerings and to capitalize our Chinese operations may be negatively affected, which could adversely affect our liquidity and our ability to fund and expand our business.

***We may rely on dividends paid by our subsidiaries for our cash needs, and any limitation on the ability of our subsidiaries to make payments to us could have a material adverse effect on our ability to conduct business.***

As a holding company, we conduct all of our business through the PRC operating entities incorporated in China. We may rely on dividends paid by these PRC subsidiaries for our cash needs, including the funds necessary to pay any dividends and other cash distributions to our shareholders, to service any debt we may incur and to pay our operating expenses. The payment of dividends by entities established in China is subject to limitations. Regulations in China currently permit payment of dividends only out of accumulated profits as determined in accordance with accounting standards and regulations in China. In accordance with the Article 166, 168 of the Company Law of the PRC (Amended in 2018) (the "PRC Company Law"), each of our PRC subsidiaries is required to set aside at least 10% of its after-tax profit based on PRC accounting standards each year to its general reserves or statutory capital reserve fund until the aggregate amount of such reserves reaches 50% of its respective registered capital. A company may discontinue the contribution when the aggregate sum of the statutory surplus reserve is more than 50% of its registered capital. The statutory common reserve fund of a company shall be used to cover the losses of the company, expand the business and production of the company or be converted into additional capital. As a result, our PRC subsidiaries are restricted in their ability to transfer a portion of their net assets to us in the form of dividends. In addition, if any of our PRC subsidiaries incurs debt on its own behalf in the future, the instruments governing the debt may restrict its ability to pay dividends or make other distributions to us. Any limitations on the ability of our PRC subsidiaries to transfer funds to us could materially and adversely limit our ability to grow, make investments or acquisitions that could be beneficial to our business, pay dividends and otherwise fund and conduct our business.

***Adverse changes in political, economic and social conditions, as well as government policies in China could have a material adverse effect on our business results of operations, financial conditions and prospects.***

All of our business operations are conducted in China. Accordingly, our financial condition, results of operations and prospects are, to a material extent, subject to economic, political and legal developments in China. The economy in China differs from the economies of developed countries in many respects, including, among other things, the degree of government involvement, control of investment, level of economic development, growth rate, foreign exchange controls and resource allocation. Although the economy in China has been transitioning from a planned economy to a more market-oriented economy for about four decades, a substantial portion of productive assets in China is still owned by the PRC government. The PRC government also exercises significant control over the economic growth of China through allocating resources, controlling payments of foreign currency denominated obligations, setting monetary policy and providing preferential treatment to particular industries or companies. In recent years, the PRC government has implemented measures emphasizing the utilization of market forces in economic reform, the reduction of state ownership of productive assets and the establishment of sound corporate governance practices in business enterprises. Some of these measures benefit the overall economy in China, but may adversely affect us. For example, our financial condition and results of operations may be adversely affected by government policies on the Chinese patent medicine industry in China or changes in tax regulations applicable to us. If the business environment in China deteriorates, our business in China may also be materially and adversely affected.

***Changes to the PRC legal system could have an adverse effect on us.***

The PRC legal system is a civil law system based on written statutes. Unlike the common law system, prior court decisions under the civil law system may be cited for reference but have limited precedential value. Since these laws and regulations are relatively new and the PRC legal system continues to rapidly evolve, the interpretations of many laws, regulations and rules are not always uniform and the enforcement of these laws, regulations and rules involves uncertainties.

In 1979, the PRC government began to promulgate a comprehensive system of laws and regulations governing economic matters in general. The overall effect of legislation over the past decades has significantly enhanced the protections afforded to various forms of foreign investments in China. However, recently enacted laws and regulations may not sufficiently cover all aspects of economic activities in China. In particular, the interpretation and enforcement of these laws and regulations involve uncertainties. Since PRC administrative and court authorities have significant discretion in interpreting and implementing statutory provisions and contractual terms, it may be difficult to evaluate the outcome of administrative and court proceedings and the level of legal protection we enjoy. These uncertainties may affect our judgment on the relevance of legal requirements and our ability to enforce our contractual rights or tort claims.

Furthermore, the PRC legal system is based in part on government policies and internal rules, some of which are not published on a timely basis or at all and may have retroactive effect. As a result, we may not be aware of our violation of any of these policies and rules until sometime after the violation. In addition, any administrative and court proceedings in China may be protracted, resulting in substantial costs and diversion of resources and management attention.

***Labor Contract Law and other labor-related laws in the PRC may adversely affect our business and our results of operations.***

On December 28, 2012, the PRC government released the revision of the Labor Contract Law, which became effective on July 1, 2013. Pursuant to the Labor Contract Law, employers are subject to stricter requirements in terms of signing labor contracts, minimum wages, paying remuneration, determining the term of employees' probation and unilaterally terminating labor contracts. In the event that we decide to terminate some of our employees or otherwise change our employment or labor practices, the Labor Contract Law and its implementation rules may limit our ability to effect those changes in a desirable or cost-effective manner, which could adversely affect our business and results of operations. According to the PRC Social Insurance Law (《中华人民共和国社会保险法》), employees must participate in pension insurance, work-related injury insurance, medical insurance, unemployment insurance and maternity insurance and the employers must, together with their employees or separately, pay the social insurance premiums for such employees. In accordance with the Regulations on the Management of Housing Fund which was promulgated by the State Council in 1999 and amended in 2002 and 2019, employers must register at the designated administrative centers and open bank accounts for depositing employees' housing funds. As the interpretation and implementation of labor-related laws and regulations are still evolving, we cannot assure you that our employment practices do not and will not violate labor-related laws and regulations in China, which may subject us to labor disputes or government investigations. As of the date of this annual report, we believe that we are in substantial compliance with labor-related laws and regulations in China, and we have not been notified of any instance of noncompliance. We cannot assure you that we will be able to comply with all labor-related law and regulations regarding including those relating to obligations to make social insurance payments and contribute to the housing provident fund. If we are deemed to have violated relevant labor laws and regulations, we could be required to provide additional compensation to our employees and our business, financial condition and results of operations will be adversely affected.

***There are significant uncertainties under the EIT Law, relating to the withholding tax liabilities of our PRC subsidiaries, and dividends payable by our PRC subsidiaries to our offshore subsidiaries may not qualify to enjoy certain treaty benefits.***

Under the PRC EIT Law and its implementation rules, the profits of a foreign invested enterprise generated through operations, which are distributed to its immediate holding company outside the PRC, will be subject to a withholding tax rate of 10%. Pursuant to a special arrangement between Hong Kong and the PRC, such rate may be reduced to 5% if a Hong Kong resident enterprise owns more than 25% of the equity interest in the PRC company. Our PRC subsidiaries, Universe Technology, Jiangxi Universe, Universe Trade and Universe Hanhe, are wholly-owned by our Hong Kong subsidiary. Moreover, under the Notice of the State Administration of Taxation on Issues regarding the Administration of the Dividend Provision in Tax Treaties promulgated on February 20, 2009, the taxpayer needs to satisfy certain conditions to enjoy the benefits under a tax treaty. The beneficial owner of the relevant dividends and the corporate shareholder to receive dividends from the PRC subsidiary must have continuously met the direct ownership thresholds during the 12 consecutive months preceding the receipt of the dividends. Further, the State Administration of Taxation (the "SAT") promulgated the Notice on How to Comprehend and Determine the "Beneficial Owner" in Tax Treaties (《国家税务总局关于税收协定中"受益所有人"有关问题的公告》) on February 3, 2018, which limits the "beneficial owner" to individuals, projects or other organizations normally engaged in substantive operations, and sets forth certain detailed factors in determining the "beneficial owner" status. In current practice, a Hong Kong enterprise must obtain a tax resident certificate from the relevant Hong Kong tax authority to apply for the 5% lower PRC withholding tax rate. As the Hong Kong tax authority will issue such a tax resident certificate on a case-by-case basis, we cannot assure you that we will be able to obtain the tax resident certificate from the relevant Hong Kong tax authority. As of the date of this annual report, we have not commenced the application process for a Hong Kong tax resident certificate from the relevant Hong Kong tax authority, and there is no assurance that we will be granted such a Hong Kong tax resident certificate.

Even after we obtain the Hong Kong tax resident certificate, we are required by applicable tax laws and regulations to file required forms and materials with relevant PRC tax authorities to prove that we can enjoy 5% lower PRC withholding tax rate. Universe HK intends to obtain the required materials and file with the relevant tax authorities when it plans to declare and pay dividends, but there is no assurance that the PRC tax authorities will approve the 5% withholding tax rate on dividends received from Universe HK.

***Failure to qualify for or obtain any preferential tax treatments that are available in China could adversely affect our results of operations and financial condition.***

The EIT Law and its implementation rules generally impose a uniform income tax rate of 25% on all enterprises, but grant preferential treatment to "high and new technology enterprises strongly supported by the state," or HNTEs, with a preferential enterprise tax rate of 15%. Our subsidiaries, Jiangxi Universe and Universe Trade, were accredited as HNTE and enjoy the reduced income tax rate of 15% for three years through October 2028 and December 2023, respectively. Universe Trade did not successfully renew its HNTE status at the end of December 2023 and, therefore, has been subject to the standard PRC enterprise income tax rate of 25% starting from January 2024. According to the relevant administrative measures, to qualify as an "HNTE," a company must meet certain financial and non-financial criteria and complete verification procedures with the administrative authorities. Continued qualification as an HNTE is subject to review by the relevant government authorities in China every three years, and in practice, certain local tax authorities may require annual evaluation of the qualification. In the event that Jiangxi Universe fails to renew its status as HNTE with the local tax authority upon expiration of its HNTE status in October 2028, it will be subject to the standard PRC enterprise income tax rate of 25%.

***Under the EIT Law, we may be classified as a "Resident Enterprise" of China. Such classification will likely result in unfavorable tax consequences to us and our non-PRC shareholders.***

Under the EIT Law, an enterprise established outside of China with "de facto management bodies" within China is considered a "resident enterprise," meaning that it can be treated in a manner similar to a Chinese enterprise for enterprise income tax purposes. The implementing rules of the EIT Law define de facto management as "substantial and overall management and control over the production and operations, personnel, accounting, and properties" of the enterprise.

If the PRC tax authorities determine that we are a "resident enterprise" for PRC enterprise income tax purposes, a number of unfavorable PRC tax consequences could follow. First, we may be subject to the enterprise income tax at a rate of 25% on our worldwide taxable income as well as PRC enterprise income tax reporting obligations. In our case, this would mean that income such as non-China source income would be subject to PRC enterprise income tax at a rate of 25%. Currently, we do not have any non-China source income, as we conduct our sales in China. Second, under the EIT Law and its implementing rules, dividends paid to us from our PRC subsidiaries would be deemed as "qualified investment income between resident enterprises" and therefore qualify as "tax-exempt income" pursuant to the clause 26 of the EIT Law. Finally, it is possible that future guidance issued with respect to the new "resident enterprise" classification could result in a situation in which the dividends we pay with respect to our ordinary shares, or the gain our non-PRC shareholders may realize from the transfer of our ordinary shares, may be treated as PRC-sourced income and may therefore be subject to a 10% PRC withholding tax. The EIT Law and its implementing regulations are, however, relatively new and ambiguities exist with respect to the interpretation and identification of PRC-sourced income, and the application and assessment of withholding taxes. If we are required under the EIT Law and its implementing regulations to withhold PRC income tax on dividends payable to our non-PRC shareholders, or if non-PRC shareholders are required to pay PRC income tax on gains on the transfer of their ordinary shares, our business could be negatively impacted and the value of your investment may be materially reduced. Further, if we were to be treated as a "resident enterprise" by PRC tax authorities, we would be subject to taxation in both China and such countries in which we have taxable income, and our PRC tax may not be creditable against such other taxes. ****

***To the extent cash in and assets of the business is in the PRC or a PRC entity, the funds and assets may not be available to fund operations or for other use outside of the PRC due to interventions in or the imposition of restrictions and limitations on the ability of our Company or our subsidiaries by the PRC government to transfer cash and assets.***

Relevant PRC laws and regulations permit the companies in mainland China to pay dividends only out of their retained earnings, if any, as determined in accordance with PRC accounting standards and regulations. Additionally, each of the companies in mainland China are required to set aside at least 10% of its after-tax profits each year, if any, to fund a statutory reserve until such reserve reaches 50% of its registered capital. The companies in mainland China are also required to further set aside a portion of their after-tax profits to fund the employee welfare fund, although the amount to be set aside, if any, is determined at their discretion. These reserves are not distributable as cash dividends. Furthermore, if we determine to pay dividends on any of our ordinary shares in the future, as a holding company, we will rely on payments from subsidiaries of Jiangxi Universe to Jiangxi Universe, and from Jiangxi Universe to Universe Technology, and the distribution of such payments to Universe HK, and then to our Company. If our PRC subsidiaries incur debt on their own behalf in the future, the instruments governing the debt may restrict their ability to pay dividends or make other payments to us.

Our cash dividends, if any, will be paid in U.S. dollars. If we are considered a tax resident enterprise of mainland China for tax purposes, any dividends we pay to our overseas shareholders may be regarded as China-sourced income and as a result may be subject to PRC withholding tax. See "—Under the EIT Law, we may be classified as a 'Resident Enterprise' of China. Such classification will likely result in unfavorable tax consequences to us and our non-PRC shareholders."

The PRC government also imposes controls on the convertibility of Renminbi into foreign currencies and, in certain cases, the remittance of currency out of mainland China. The majority of our and the PRC operating entities' income is received in Renminbi and shortages in foreign currencies may restrict our ability to pay dividends or other payments, or otherwise satisfy our foreign currency denominated obligations, if any. Under existing PRC foreign exchange regulations, payments of current account items, including profit distributions, interest payments and expenditures from trade-related transactions, can be made in foreign currencies without prior approval from the State Administration of Foreign Exchange as long as certain procedural requirements are met. Approval from appropriate government authorities is required if Renminbi is converted into foreign currency and remitted out of mainland China to pay capital expenses such as the repayment of loans denominated in foreign currencies. The PRC government may, at its discretion, impose restrictions on access to foreign currencies for current account transactions and if this occurs in the future, we may not be able to pay dividends in foreign currencies to our shareholders.

Any limitation on the ability of our PRC subsidiaries and the PRC operating entities to distribute dividends or other payments to their respective shareholders could materially and adversely limit our ability to conduct operations, make investments, engage in acquisitions, or undertake other activities requiring working capital. However, our operations and business, including investment and/or acquisitions by our PRC subsidiaries and the PRC operating entities within mainland China, will not be affected as long as the capital is not transferred in or out of mainland China.

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***We may be exposed to liabilities under the Foreign Corrupt Practices Act and Chinese anti-corruption law.***

We are subject to the U.S. Foreign Corrupt Practices Act (the "FCPA"), and other laws that prohibit improper payments or offers of payments to foreign governments and their officials and political parties by U.S. persons and issuers, as defined by the statute, for the purpose of obtaining or retaining business. We are also subject to Chinese anti-corruption laws, which strictly prohibit the payment of bribes to government officials. We have operations, agreements with third parties, and make sales in China, which may expose us to claims of corruption. Our activities in China create the risk of unauthorized payments or offers of payments by one of the employees of our Company, because these parties are not always subject to our control.

Although we believe that, as of the date of this annual report, we have complied in all material respects with the provisions of the FCPA and Chinese anti-corruption law, our existing safeguards and any future improvements may prove to be less than effective, and the employees of our Company may engage in conduct for which we might be held responsible. Violations of the FCPA or Chinese anti-corruption law may result in severe criminal or civil sanctions, and we may be subject to other liabilities, which could negatively affect our business, operating results and financial condition. In addition, the government may seek to hold our Company liable for successor liability FCPA violations committed by companies in which we invest or that we acquire.

***The enforcement of stricter advertisement laws and regulations in the PRC may adversely affect our business and our profitability.***

In October 2018, the SCNPC promulgated the PRC Advertising Law, effective on October 26, 2018. According to the Advertising Law, advertisements shall not have any false or misleading content, or defraud or mislead consumers. Furthermore, an advertisement will be deemed as a "false advertisement" if any of the following situations exist: (i) the advertised product or service does not exist; (ii) there is any inconsistency that has a material impact on the decision to purchase in what is included in the advertisement with the actual circumstances with respect to the product's performance, functions, place of production, uses, quality, specification, ingredient, price, producer, term of validity, sales condition, and honors received, among others, or the service's contents, provider, form, quality, price, sales condition, and honors received, among others, or any commitments, among others, made on the product or service; (iii) fabricated, forged or unverifiable scientific research results, statistical data, investigation results, excerpts, quotations, or other information have been used as supporting material; (iv) effect or results of using the good or receiving the service are fabricated; or (v) other circumstances where consumers are defrauded or misled by any false or misleading content.

Our current marketing relies on advertisements on media platforms. The laws and regulations of advertising are relatively new and evolving and there is substantial uncertainty as to the interpretation of "false advertisement" by the State Administration for Industry and Commerce of the PRC (the "SAIC"). If any of the advertisements published by our customers is deemed to be a "false advertisement" by the SAIC or its local branch, we could be subject to various penalties, such as discontinuation of publishing the target advertisement, imposition of fines and obligations to eliminate any adverse effects incurred by such false advertisement. Any such penalties may disrupt our business and our competition with competitors, and could affect our results of operations and financial conditions.

***We were not in compliance with the PRC's regulations relating to employee's social insurance and housing funds prior to April 2020, and as a result, we may be subject to penalties for such non-compliance.***

Pursuant to the Social Insurance Law of the PRC (the "Social Insurance Law"), which was promulgated by the SCNPC on October 28, 2010 and amended on December 29, 2018, and the Administrative Regulations on the Housing Provident Funds, which was promulgated by the State Council on April 3, 1999 and last amended on March 24, 2019, employers are required to make contributions, on behalf of their employees, to a number of social security funds, including funds for basic pension insurance, unemployment insurance, basic medical insurance, occupational injury insurance, maternity insurance and to housing provident funds. Prior to April 2020, we only contributed to the social insurance and housing provident funds for some, but not all, of our employees. Since April 2020, we have started contributing to the social insurance and housing funds for our eligible full-time employees in accordance with the aforementioned PRC laws and regulations. Even though we are currently making contributions in accordance with applicable PRC laws, there is a risk that the labor security administration authority may take enforcement action to collect from us all the outstanding contributions of the social insurance required to be made for the employees in the past, and we may be subject to a late charge at the rate of 0.05% per day on the total outstanding contribution.

***U.S. regulatory bodies may be limited in their ability to conduct investigations or inspections of our operations in China.***

The SEC, the U.S. Department of Justice and other U.S. authorities may also have difficulties in bringing and enforcing actions against us or our directors or executive officers in the PRC. The SEC has stated that there are significant legal and other obstacles to obtaining information needed for investigations or litigation in China. Although the authorities in China may establish a regulatory cooperation mechanism with the securities regulatory authorities of another country or region to implement cross-border supervision and administration, such cooperation with the securities regulatory authorities in Hong Kong or other jurisdictions may not be efficient in the absence of mutual and practical cooperation mechanism. Furthermore, China has recently adopted a revised securities law that became effective on March 1, 2020, Article 177 of which provides, among other things, that no overseas securities regulator is allowed to directly conduct investigation or evidence collection activities within the territory of the PRC. Accordingly, without governmental approval in China, no entity or individual in China may provide documents and information relating to securities business activities to overseas regulators when it is under direct investigation or evidence discovery conducted by overseas regulators. While detailed interpretation of or implementation rules under Article 177 have yet to be promulgated, it could present significant legal and other obstacles to obtaining information needed for investigations and litigation conducted outside of China, which may further increase difficulties faced by you in protecting your interests. See also "—You may experience difficulty in effecting service of process, enforcing foreign judgments or bringing actions against our directors and officers."

***You may experience difficulty in effecting service of process, enforcing foreign judgments or bringing actions against our directors and officers.***

We are a Cayman Islands exempted company with limited liability and most of our assets are located outside of the United States. In addition, all of our directors and officers are nationals or residents of the PRC, including our chief executive officer and chairman of the board of directors, Mr. Gang Lai, our chief financial officer, Ms. Lin Yang, and our directors, Mr. Jiawen Pang, Mr. Yongping Yu and Mr. Ding Zheng, and all or a substantial portion of their assets are located outside the United States. As a result, it may be difficult or impossible for you to effect service of process within the United States upon our directors and executive officers. It may also be difficult for you to enforce in the United States courts judgments obtained in the United States courts based on the civil liability provisions of the United States federal securities laws against us and our officers and directors who reside and whose assets are located outside the United States.

We have been advised by our Cayman Islands legal counsel, Ogier (Cayman) LLP, that the courts of the Cayman Islands are unlikely (i) to recognize or enforce against us, judgments of courts of the United States obtained against us or our directors or officers predicated upon the civil liability provisions of the securities laws of the United States or any state in the United States; and (ii) in original actions brought in the Cayman Islands, to impose liabilities against us or our directors or officers predicated upon the civil liability provisions of the securities laws of the United States or any state in the United States, so far as the liabilities imposed by those provisions are penal in nature. In those circumstances, although there is currently no statutory enforcement or treaty between the United States and the Cayman Islands providing for enforcement of judgments obtained in the United States. The courts of the Cayman Islands will recognize and enforce a foreign money judgment of a foreign court of competent jurisdiction without retrial on the merits based on the principle that a judgment of a competent foreign court imposes upon the judgment debtor an obligation to pay the sum for which judgment has been given provided certain conditions are met. For a foreign judgment to be enforced in the Cayman Islands, such judgment must be final and conclusive, given by a court of competent jurisdiction (the courts of the Cayman Islands will apply the rules of Cayman Islands private international law to determine whether the foreign court is a court of competent jurisdiction), and must not be in respect of taxes or a fine or penalty, inconsistent with a Cayman Islands judgment in respect of the same matter, impeachable on the grounds of fraud or obtained in a manner, and or be of a kind the enforcement of which is, contrary to natural justice or the public policy of the Cayman Islands. Furthermore, it is uncertain that Cayman Islands courts would enforce: (1) judgments of U.S. courts obtained in actions against us or other persons that are predicated upon the civil liability provisions of the U.S. federal securities laws; or (2) original actions brought against us or other persons predicated upon the Securities Act. Ogier has informed us that there is uncertainty with regard to Cayman Islands law relating to whether a judgment obtained from U.S. courts under civil liability provisions of the securities laws will be determined by the courts of the Cayman Islands as penal, punitive in nature. A Cayman Islands Court may stay enforcement proceedings if concurrent proceedings are being brought elsewhere.

In addition, there is uncertainty as to whether the courts of the PRC would recognize or enforce judgments of the United States courts against us or such persons predicated upon the civil liability provisions of the securities laws of the United States or any state. The recognition and enforcement of foreign judgments are provided for under the PRC Civil Procedures Law. PRC courts may recognize and enforce foreign judgments in accordance with the requirements of the PRC Civil Procedures Law based either on treaties between China and the country where the judgment is made or on principles of reciprocity between jurisdictions. China does not have any treaties or other forms of reciprocity with the United States that provide for the reciprocal recognition and enforcement of foreign judgments. In addition, according to the PRC Civil Procedures Law, the PRC courts will not enforce a foreign judgment against us or our directors and officers if they decide that the judgment violates the basic principles of PRC laws or national sovereignty, security or public interest. As a result, it is uncertain whether and on what basis a PRC court would enforce a judgment rendered by a court in the United States.

Further, pursuant to the PRC Civil Procedures Law, any matter, including matters arising under U.S. federal securities laws, in relation to assets or personal relationships may be brought as an original action in China, only if the institution of such action satisfies the conditions specified in the PRC Civil Procedures Law. As a result of the conditions set forth in the PRC Civil Procedures Law and the discretion of the PRC courts to determine whether the conditions are satisfied and whether to accept the action for adjudication, there remains uncertainty as to whether an investor will be able to bring an original action in a PRC court based on U.S. federal securities laws.

***Because our business is conducted in the RMB and the price of our ordinary shares is quoted in United States dollars, changes in currency conversion rates may affect the value of your investments.***

Our business is conducted in the PRC, our books and records are maintained in the RMB, the legal currency of the PRC, and the financial statements that we file with the SEC and provide to our shareholders are presented in United States dollars. Changes in the exchange rate between the RMB and U.S. dollars affect the value of our assets and the results of our operations in U.S. dollars. The value of the RMB against the U.S. dollar and other currencies may fluctuate and is affected by, among other things, changes in the PRC's political and economic conditions and perceived changes in the economy of the PRC and the United States. Any significant revaluation of the RMB may materially and adversely affect our cash flows, revenue and financial condition. Further, our securities will be offered in United States dollars, and we will need to convert any net proceeds we receive into RMB in order to use the funds for our business. Changes in the conversion rate between the United States dollar and the RMB will affect that amount of proceeds we will have available for our business.

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***Government control in currency conversion may adversely affect our financial condition, our ability to remit dividends, and the value of your investment.***

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The PRC government imposes controls on the convertibility of the Renminbi into foreign currencies and, in certain cases, the remittance of currency out of China. We receive substantially all of our revenues in Renminbi. Under our current corporate structure, our Cayman Islands holding company may rely on dividend payments from our PRC subsidiaries to fund any cash and financing requirements we may have.

Under existing PRC foreign exchange regulations, the Renminbi cannot be freely converted into any foreign currency, and conversion and remittance of foreign currencies are subject to PRC foreign exchange regulations. It cannot be guaranteed that under a certain exchange rate, we will have sufficient foreign exchange to meet our foreign exchange requirements. Under the current PRC foreign exchange control system, foreign exchange transactions under the current account conducted by us, including the payment of dividends, do not require advance approval from SAFE, but we are required to present documentary evidence of such transactions and conduct such transactions at designated foreign exchange banks within China that have the licenses to carry out foreign exchange business. Foreign exchange transactions under the capital account conducted by us, however, must be approved in advance by SAFE.

Under existing foreign exchange regulations, we are able to pay dividends in foreign currencies without prior approval from SAFE by complying with certain procedural requirements. However, we cannot assure you that these foreign exchange policies regarding payment of dividends in foreign currencies will continue in the future.

In fact, in light of the flood of capital outflows of China in 2016 due to the weakening Renminbi, the PRC government has imposed more restrictive foreign exchange policies and stepped up scrutiny of major outbound capital movement including overseas direct investment. More restrictions and substantial vetting process may be put in place by SAFE to regulate cross-border transactions falling under the capital account. If any of our shareholders regulated by such policies fails to satisfy the applicable overseas direct investment filing or approval requirement timely or at all, it may be subject to penalties from the relevant PRC authorities. The PRC government may, at its discretion, further restrict access in the future to foreign currencies for current account transactions. If the foreign exchange control system prevents us from obtaining sufficient foreign currencies to satisfy our foreign currency demands, we may not be able to pay dividends in foreign currencies to our shareholders, including holders of the ordinary shares. Our capital expenditure plans and our business, operating results and financial condition may be materially and adversely affected.

***Our business may be materially and adversely affected if any of our PRC subsidiaries declare bankruptcy or become subject a dissolution or liquidation proceeding.***

The Enterprise Bankruptcy Law of the PRC, or the Bankruptcy Law, came into effect on June 1, 2007. The Bankruptcy Law provides that an enterprise will be liquidated if the enterprise fails to settle its debts as and when they fall due and if the enterprise's assets are, or are demonstrably, insufficient to clear such debts.

Our PRC subsidiaries hold certain assets that are important to our business operations. If any of our PRC subsidiaries undergoes a voluntary or involuntary liquidation proceeding, unrelated third-party creditors may claim rights to some or all of these assets, thereby hindering our ability to operate our business, which could materially and adversely affect our business, financial condition and results of operations.

If any of our PRC subsidiaries undergoes a voluntary or involuntary liquidation proceeding, prior approval from SAFE for remittance of foreign exchange to our shareholders abroad is no longer required, but we still need to conduct a registration process with the SAFE local branch. It is not clear whether "registration" is a mere formality or involves the kind of substantive review process undertaken by SAFE and its relevant branches in the past.

***Our current corporate structure and business operations may be affected by the PRC Foreign Investment Law.***

On March 15, 2019, the National People's Congress approved the Foreign Investment Law, which became effective on January 1, 2020. The PRC Foreign Investment Law defines the "foreign investment" as the investment activities in China conducted directly or indirectly by foreign investors in the following manners: (i) the foreign investor, by itself or together with other investors establishes a foreign invested enterprises in China; (ii) the foreign investor acquires shares, equities, asset tranches, or similar rights and interests of enterprises in China; (iii) the foreign investor, by itself or together with other investors, invests and establishes new projects in China; (iv) the foreign investor invests through other approaches as stipulated by laws, administrative regulations or otherwise regulated by the State Council. If our PRC subsidiaries are recognized as "foreign investment enterprises," PRC governmental authorities will regulate foreign investment by applying the principle of re-entry national treatment together with a "negative list," which will be promulgated by or promulgated with approval by the State Council. Foreign investors are prohibited from making any investments in the industries which are listed as "prohibited" in such negative list; and, after satisfying certain additional requirements and conditions as set forth in the "negative list," are allowed to make investments in industries which are listed as "restricted" in such negative list. For any foreign investor that fails to comply with the negative list, the competent authorities are entitled to ban its investment activities, require such investor to take measures to correct its non-compliance and impose other penalties.

Pharmaceutical production and distribution activities that we conduct through our PRC subsidiaries are not subject to foreign investment restrictions or prohibitions set forth in the Special Administrative Measures for the Access of Foreign Investment (Negative List) (Edition 2024) (the "2024 Negative List"). We do not intend to conduct any types of business activities restricted or prohibited under the 2024 Negative List in the future. However, it is unclear whether any updated "negative list" to be published by the State Council in the future will be different from the 2024 Negative List. If future laws, administrative regulations or provisions of the State Council set forth restrictions or prohibitions on foreign investment in our current business activities, and that our PRC subsidiaries are recognized as "foreign investment enterprises," we may be required to take appropriate and timely measures to comply with such regulatory requirements. If we fail to do so, our business operations could be materially and adversely affected.

***Failure to comply with PRC regulations relating to the establishment of offshore special purpose companies by PRC residents may subject our PRC resident shareholders to personal liability, may limit our ability to acquire PRC companies or to inject capital into our PRC subsidiaries, may limit the ability of our PRC subsidiaries to distribute profits to us or may otherwise materially and adversely affect us***.

Pursuant to the Circular on relevant issues concerning Foreign Exchange Administration of Overseas Investment and Financing and Return Investments Conducted by Domestic Residents through Overseas Special Purpose Vehicle (the "Circular 37"), which was promulgated by SAFE, and became effective on July 4, 2014, (1) a PRC resident must register with the local SAFE branch before he or she contributes assets or equity interests in an overseas special purpose vehicle, or an Overseas SPV, that is directly established or indirectly controlled by the PRC resident for the purpose of conducting investment or financing; and (2) following the initial registration, the PRC resident is also required to register with the local SAFE branch for any major change, in respect of the Overseas SPV, including, among other things, a change in the Overseas SPV's PRC resident shareholder, name of the Overseas SPV, term of operation, or any increase or reduction of the contributions by the PRC resident, share transfer or swap, and merger or division. Additionally, pursuant to the Circular of SAFE on Further Simplifying and Improving the Direct Investment-related Foreign Exchange Administration Policies (the "Circular 13"), which was promulgated on February 13, 2015 and became effective on June 1, 2015, the aforesaid registration shall be directly reviewed and handled by qualified banks in accordance with the Circular 13, and SAFE and its branches shall perform indirect regulation over the foreign exchange registration via qualified banks.

Mr. Gang Lai completed the initial foreign exchange registration on June 3, 2019. As it remains unclear how Circular 37 and Circular 13 will be interpreted and implemented, and how or whether SAFE will apply them to us. Therefore, we cannot predict how they will affect our business operations or future strategies. For example, the ability of our present and prospective PRC subsidiaries to conduct foreign exchange activities, such as the remittance of dividends and foreign currency-denominated borrowings, may be subject to compliance with Circular 37 and Circular 13 by our PRC resident beneficial holders. In addition, as we have little control over either our present or prospective, direct or indirect shareholders or the outcome of such registration procedures, we cannot assure you that these shareholders who are PRC residents will amend or update their registration as required under Circular 37 and Circular 13 in a timely manner or at all. Failure of our present or future shareholders who are PRC residents to comply with Circular 37 and Circular 13 could subject these shareholders to fines or legal sanctions, restrict our overseas or cross-border investment activities, limit the ability of our PRC subsidiaries to make distributions or pay dividends or affect our ownership structure, which could adversely affect our business and prospects.

***We may be unable to complete a business combination transaction efficiently or on favorable terms due to complicated merger and acquisition regulations and certain other PRC regulations.***

On August 8, 2006, six PRC regulatory authorities, including the Ministry of Commerce of the People's Republic of China, or MOFCOM, the State Assets Supervision and Administration Commission, the SAT, the SAIC, the CSRC and the SAFE, jointly issued the M&A Rules, which became effective on September 8, 2006 and was amended in June 2009. The M&A Rules, governing the approval process by which a PRC company may participate in an acquisition of assets or equity interests by foreign investors, requires the PRC parties to make a series of applications and supplemental applications to the government agencies, depending on the structure of the transaction. In some instances, the application process may require presentation of economic data concerning a transaction, including appraisals of the target business and evaluations of the acquirer, which are designed to allow the government to assess the transaction. Accordingly, due to the M&A Rules, our ability to engage in business combination transactions has become significantly more complicated, time-consuming and expensive, and we may not be able to negotiate a transaction that is acceptable to our Shareholders or sufficiently protect their interests in a transaction.

The M&A Rules allow PRC government agencies to assess the economic terms of a business combination transaction. Parties to a business combination transaction may have to submit to the MOFCOM and other relevant government agencies an appraisal report, an evaluation report and the acquisition agreement, all of which form part of the application for approval, depending on the structure of the transaction. The M&A Rules also prohibit a transaction at an acquisition price obviously lower than the appraised value of the business or assets in China and in certain transaction structures, require that consideration must be paid within defined periods, generally not in excess of a year. In addition, the M&A Rules also limit our ability to negotiate various terms of the acquisition, including aspects of the initial consideration, contingent consideration, holdback provisions, indemnification provisions and provisions relating to the assumption and allocation of assets and liabilities. Transaction structures involving trusts, nominees and similar entities are prohibited. Therefore, such regulation may impede our ability to negotiate and complete a business combination transaction on legal and/or financial terms that satisfy our investors and protect our shareholders' economic interests.

***We face uncertainties with respect to indirect transfers of equity interests in PRC resident enterprises by their non-PRC holding companies.***

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The SAT released a circular on December 15, 2009 that addresses the transfer of shares by nonresident companies, generally referred to as Circular 698. Circular 698, which became effective retroactively to January 1, 2008, may have a significant impact on many companies that use offshore holding companies to invest in China. Circular 698 has the effect of taxing foreign companies on gains derived from the indirect sale of a PRC company. Where a foreign investor indirectly transfers equity interests in a PRC resident enterprise by selling the shares in an offshore holding company, and the latter is located in a country or jurisdiction that has an effective tax rate less than 12.5% or does not tax foreign income of its residents, the foreign investor must report this indirect transfer to the tax authority in charge of that PRC resident enterprise. Using a "substance over form" principle, the PRC tax authority may disregard the existence of the overseas holding company if it lacks a reasonable commercial purpose and was established for the purpose of avoiding PRC tax. As a result, gains derived from such indirect transfer may be subject to PRC withholding tax at a rate of up to 10.0%.

SAT subsequently released public notices to clarify issues relating to Circular 698, including the Announcement on Several Issues concerning the EIT on the Indirect Transfers of Properties by Nonresident Enterprises (the "SAT Notice 7"), which became effective on February 3, 2015. SAT Notice 7 abolished the compulsive reporting obligations originally set out in Circular 698. Under SAT Notice 7, if a non-resident enterprise transfers its shares in an overseas holding company, which directly or indirectly owns PRC taxable properties, including shares in a PRC company, via an arrangement without reasonable commercial purpose, such transfer shall be deemed as indirect transfer of the underlying PRC taxable properties. Accordingly, the transferee shall be deemed as a withholding agent with the obligation to withhold and remit the EIT to the competent PRC tax authorities. Factors that may be taken into consideration when determining whether there is a "reasonable commercial purpose" include, among other factors, the economic essence of the transferred shares, the economic essence of the assets held by the overseas holding company, the taxability of the transaction in offshore jurisdictions, and economic essence and duration of the offshore structure. SAT Notice 7 also sets out safe harbors for the "reasonable commercial purpose" test.

On October 17, 2017, the SAT released the Notice on Several Issues concerning the Withholding and Collection of Income Tax of Non-resident Enterprises from the Source (the "SAT Notice 37"). SAT Notice 37 clarifies: (1) matters concerning the withholding and collection of corporate income tax, and property transfer of non-resident enterprises based on the EIT Law; (2) the currencies required to be used by the withholding agents (when the payments is made in a currency rather than RMB), as well as the time, venue and business for the performance of the withholding and collection obligations; and (3) the abolishment of Circular 698.

There is little guidance and practical experience regarding the application of SAT Notice 7 and SAT Notice 37 and the related SAT notices. Moreover, the relevant authority has not yet promulgated any formal provisions or formally declared or stated how to calculate the effective tax rates in foreign tax jurisdictions. As a result, due to our complex offshore restructuring, we may become at risk of being taxed under SAT Notice 7 and SAT Notice 37 and we may be required to expend valuable resources to comply with SAT Notice 7 and SAT Notice 37 or to establish that we should not be taxed under SAT Notice 7 and SAT Notice 37, which could have a material adverse effect on our financial condition and results of operations.

**Risks Related to our Ordinary Shares and the Trading Market**

***Our share price may be volatile and could decline substantially, which could result in substantial losses to our investors.***

The trading price of our ordinary shares is likely to continue to be volatile and could fluctuate widely due to factors beyond our control. This may happen because of broad market and industry factors, including the performance and fluctuation of the market prices of other companies with business operations located mainly in China that have listed their securities in the United States. The securities of some of these companies have experienced significant volatility since their initial public offerings, including, in some cases, substantial price declines in their trading prices. The trading performances of other Chinese companies' securities after their offerings may affect the attitudes of investors toward Chinese companies listed in the United States in general and consequently may impact the trading performance of our shares, regardless of our actual operating performance.

The market price of our ordinary shares may be volatile, both because of actual and perceived changes in the company's financial results and prospects, and because of general volatility in the stock market. The factors that could cause fluctuations in our share price may include, among other factors discussed in this section, the following:

● actual or anticipated variations in the financial results and prospects of the company or other companies in the pharmaceutical business;

● changes in financial estimates by research analysts;

● changes in the market valuations of other companies in the Chinese patent medicine industry;

● announcements by us or our competitors of new education services, expansions, investments, acquisitions, strategic partnerships or joint ventures;

● mergers or other business combinations involving us;

● additions and departures of key personnel and senior management;

● changes in accounting principles;

● the passage of legislation or other developments affecting us or our industry;

● the trading volume of our ordinary shares in the public market;

● the release of lockup, escrow or other transfer restrictions on our outstanding equity securities or sales of additional equity securities;

● potential litigation or regulatory investigations;

● changes in economic conditions, including fluctuations in global and Chinese economies;

● financial market conditions;

● natural disasters, terrorist acts, acts of war or periods of civil unrest; and

● the realization of some or all of the risks described in this section.

The listing of our ordinary shares on the Nasdaq Capital Market is contingent on our compliance with the Nasdaq Capital Market's conditions for continued listing. A decline in the closing price of our ordinary shares could result in a breach of the requirements for listing on the Nasdaq Capital Market. If we do not maintain compliance, Nasdaq could commence suspension or delisting procedures in respect of our ordinary shares. The commencement of suspension or delisting procedures by an exchange remains at the discretion of such exchange and would be publicly announced by the exchange. If a suspension or delisting were to occur, there would be significantly less liquidity in the suspended or delisted securities. In addition, our ability to raise additional necessary capital through equity or debt financing would be greatly impaired. Furthermore, with respect to any suspended or delisted ordinary shares, we would expect decreases in institutional and other investor demand, analyst coverage, market making activity and information available concerning trading prices and volume, and fewer broker-dealers would be willing to execute trades with respect to such ordinary shares. A suspension or delisting would likely decrease the attractiveness of our ordinary shares to investors and cause the trading volume of our ordinary shares to decline, which could result in a further decline in the market price of our ordinary shares.

In addition, the stock markets have experienced significant price and trading volume fluctuations from time to time, and the market prices of the equity securities of pharmaceutical companies are sometimes subject to sharp price and trading volume changes. These broad market fluctuations may materially and adversely affect the market price of our ordinary shares.

***We may issue additional ordinary shares or other equity securities without your approval, which would dilute your ownership interests and may depress the market price of our ordinary shares.***

We may issue additional ordinary shares or our other securities to investors. We may also issue additional ordinary shares or other equity securities of equal or senior rank in the future for any reason or in connection with, among other things, future acquisitions or repayment of outstanding indebtedness, without shareholder approval, in a number of circumstances.

Our issuance of additional ordinary shares or other equity securities of equal or senior rank would have the following effects:

● our existing shareholders' proportionate ownership interest in us will decrease;

● the amount of cash available per share, including for payment of dividends in the future, may decrease;

● the relative voting strength of each previously outstanding share may be diminished; and

● the market price of our ordinary shares may decline.

***We currently do not expect to pay dividends on our ordinary shares in the foreseeable future.***

We currently do not expect to pay dividends on our ordinary shares in the foreseeable future. Instead, for the foreseeable future, it is expected that we will continue to retain any earnings to finance the development and expansion of its business, and not to pay any cash dividends on its ordinary shares. Consequently, you should not rely on an investment in the Company as a source for any future dividend income.

Our board of directors has complete discretion as to whether to distribute dividends, subject to applicable laws. Even if our board of directors decides to declare and pay dividends, the timing, amount and form of future dividends, if any, will depend on, among other things, our future results of operations and cash flow, our capital requirements and surplus, the amount of distributions, if any, received by us from our subsidiaries, our financial condition, contractual restrictions and other factors deemed relevant by our board of directors. Accordingly, the return on your investment in our ordinary shares will likely depend entirely upon any future price appreciation of our ordinary shares. We cannot guarantee that our ordinary shares will appreciate in value or even maintain the price at which you purchased the ordinary shares. You may not realize a return on your investment in our ordinary shares and you may even lose your entire investment in our ordinary shares.

***If securities or industry analysts do not publish research or publish inaccurate or unfavorable research about us or our business, our ordinary share price and trading volume could decline.***

The trading market for our ordinary shares will depend in part on the research and reports that securities or industry analysts publish about us or our business. Securities and industry analysts do not currently, and may never, publish research on us. If no securities or industry analysts commence coverage of our Company, the trading price for its ordinary shares would likely be negatively impacted. In the event securities or industry analysts initiate coverage, if one or more of the analysts who cover us downgrade its securities or publish inaccurate or unfavorable research about its business, its stock price would likely decline. If one or more of these analysts cease coverage of our Company or fail to publish reports on our Company, demand for its ordinary shares could decrease, which might cause its ordinary share price and trading volume to decline.

***A sale or perceived sale of a substantial number of our ordinary shares may cause the price of our ordinary shares to decline.***

If our shareholders sell substantial amounts of our ordinary shares in the public market, the market price of our ordinary shares could fall. Moreover, the perceived risk of this potential dilution could cause shareholders to attempt to sell their shares and investors to short our ordinary shares. These sales also make it more difficult for us to sell equity-related securities in the future at a time and price that we deem reasonable or appropriate.

***We incur substantial increased costs being a public company.***

We incur significant legal, accounting and other expenses as a public company that we did not incur as a private company. The Sarbanes-Oxley Act of 2002, as well as rules subsequently implemented by the SEC and Nasdaq, impose various requirements on the corporate governance practices of public companies.

Compliance with these rules and regulations increases our legal and financial compliance costs and makes some corporate activities more time-consuming and costlier. We have incurred and expect to continue incurring additional costs associated with our public company reporting requirements. It may also be more difficult for us to find qualified persons to serve on our board of directors or as executive officers.

We are an "emerging growth company," as defined in the JOBS Act and will remain an emerging growth company until the earlier of (1) the last day of the fiscal year (a) following the fifth anniversary of the completion of our initial public offering, (b) in which we have total annual gross revenue of at least $1.235 billion, or (c) in which we are deemed to be a large accelerated filer, which means the market value of our ordinary shares that is held by non-affiliates exceeds $700 million as of the prior March 31, and (2) the date on which we have issued more than $1.0 billion in non-convertible debt during the prior three-year period. An emerging growth company may take advantage of specified reduced reporting and other requirements that are otherwise applicable generally to public companies. These provisions include exemption from the auditor attestation requirement under Section 404 in the assessment of the emerging growth company's internal control over financial reporting and permission to delay adopting new or revised accounting standards until such time as those standards apply to private companies.

After we are no longer an "emerging growth company," or until five years following the completion of our initial public offering, whichever is earlier, we expect to incur significant additional expenses and devote substantial management effort toward ensuring compliance with the requirements of Section 404 and the other rules and regulations of the SEC. For example, as a public company, we have been required to increase the number of independent directors and adopt policies regarding internal controls and disclosure controls and procedures.

We are currently evaluating and monitoring developments with respect to these rules and regulations, and we cannot predict or estimate with any degree of certainty the amount of additional costs we may incur or the timing of such costs.

***There can be no assurance that we will not be a passive foreign investment company ("PFIC") for United States federal income tax purposes for any taxable year, which could subject United States holders of our ordinary shares could be subject to adverse United States federal income tax consequences.***

A non-United States corporation will be a PFIC for United States federal income tax purposes for any taxable year if either (i) at least 75% of its gross income for such taxable year is passive income or (ii) at least 50% of the value of its assets (based on average of the quarterly values of the assets) during such year is attributable to assets that that produce or are held for the production of passive income. Based on the current and anticipated value of our assets and the composition of our income assets, we are not currently a PFIC under the current PFIC rules for United States federal income tax purposes. However, the determination of whether or not we are a PFIC according to the PFIC rules is made on an annual basis and depends on the composition of our income and assets and the value of our assets from time to time. Therefore, changes in the composition of our income or assets or value of our assets may cause us to become a PFIC. The determination of the value of our assets (including goodwill not reflected on our balance sheet) may be based, in part, on the quarterly market value of ordinary shares, which is subject to change and may be volatile.

The classification of certain of our income as active or passive, and certain of our assets as producing active or passive income, and hence whether we are or will become a PFIC, depends on the interpretation of certain United States Treasury Regulations as well as certain IRS guidance relating to the classification of assets as producing active or passive income. Such regulations guidance is potentially subject to different interpretations. If due to different interpretations of such regulations and guidance the percentage of our passive income or the percentage of our assets treated as producing passive income increases, we may be a PFIC in one or more taxable years.

If we are a PFIC for any taxable year during which a United States person holds ordinary shares, certain adverse United States federal income tax consequences could apply to such United States person. See "Item 10. Additional Information—E. Taxation—United States Federal Income Taxation—PFIC."

***For as long as we are an emerging growth company, we will not be required to comply with certain reporting requirements, including those relating to accounting standards and disclosure about our executive compensation, that apply to other public companies.***

We are classified as an "emerging growth company" under the JOBS Act. For as long as we are an emerging growth company, unlike other public companies, we will not be required to, among other things, (i) provide an auditor's attestation report on management's assessment of the effectiveness of our system of internal control over financial reporting pursuant to Section 404(b) of the Sarbanes-Oxley Act, (ii) comply with any new requirements adopted by the PCAOB, requiring mandatory audit firm rotation or a supplement to the auditor's report in which the auditor would be required to provide additional information about the audit and the financial statements of the issuer, (iii) provide certain disclosure regarding executive compensation required of larger public companies, or (iv) hold nonbinding advisory votes on executive compensation. We will remain an emerging growth company for up to five years, although we will lose that status sooner if we have more than $1.235 billion of revenues in a fiscal year, have more than $700 million in market value of our ordinary shares held by non-affiliates, or issue more than $1.0 billion of non-convertible debt over a three-year period.

To the extent that we rely on any of the exemptions available to emerging growth companies, you will receive less information about our executive compensation and internal control over financial reporting than issuers that are not emerging growth companies. If some investors find our ordinary shares to be less attractive as a result, there may be a less active trading market for our ordinary shares and our share price may be more volatile.

***Our ability to produce accurate financial statements have been materially adversely affected by our failure to establish proper internal financial reporting controls. If we fail to establish and maintain proper internal financial reporting controls in a reasonably timely manner, our ability to produce accurate financial statements or comply with applicable regulations may continue to be impaired.***

Our independent registered public accounting firm has not conducted an audit of our internal control over financial reporting. In the course of auditing our consolidated financial statements for the fiscal year ended September 30, 2025, we identified material weaknesses in our internal control over financial reporting and other control deficiencies as of September 30, 2025. A "material weakness" is a deficiency, or a combination of deficiencies, in internal control over financial reporting, such that there is a reasonable possibility that a material misstatement of the company's annual or interim financial statements will not be prevented or detected on a timely basis.

The material weakness identified to date relates to a lack of accounting staff and resources with appropriate knowledge of generally accepted accounting principles in the United States ("U.S. GAAP") and SEC reporting and compliance requirements.

Following the identification of the material weaknesses and control deficiencies, we have undertaken certain remedial steps and plan to continue taking remedial measures, including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) recruiting qualified accounting personnel with relevant U.S. GAAP and SEC reporting experience and qualifications to strengthen the financial reporting function and to set up a financial and system control framework. Since very few companies in Ji'an, Jiangxi Province, the area in which our main PRC operating subsidiaries are located, have sought public listing on a U.S. exchange, we have difficulty identifying qualified accounting candidates with U.S. GAAP experience and expertise. We plan to search for qualified personnel in other regions of China; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) implementing regular and continuous U.S. GAAP accounting and financial reporting training programs for our accounting and financial reporting personnel.

The implementation of these measures may not fully address the material weaknesses in our internal control over financial reporting, and we cannot conclude that they have been fully remedied. Our failure to correct theses material weaknesses or our failure to discover and address any other material weaknesses could result in inaccuracies in our financial statements and could also impair our ability to comply with applicable financial reporting requirements and related regulatory filings on a timely basis. As a result, our business, financial condition, results of operations and prospects, as well as the trading price of our ordinary shares, may be materially and adversely affected. Moreover, ineffective internal control over financial reporting significantly hinders our ability to prevent fraud.

As a public company, we are subject to Sarbanes-Oxley Act of 2002, or Sarbanes-Oxley Act. We qualify as an "emerging growth company" pursuant to the JOBS Act with less than US$1.235 billion in revenue for our last fiscal year. An emerging growth company may take advantage of specified reduced reporting and other requirements that are otherwise applicable generally to public companies. These provisions include exemption from the auditor attestation requirement under Section 404 of the Sarbanes-Oxley Act of 2002, or Section 404, in the assessment of the emerging growth company's internal control over financial reporting. Moreover, even if management concludes that our internal control over financial reporting is effective, our independent registered public accounting firm, after conducting its own independent testing, may issue a report that is qualified if it is not satisfied with our internal controls or the level at which our controls are documented, designed, operated or reviewed, or if it interprets the relevant requirements differently from us.

During the course of documenting and testing our internal control procedures, we may identify other weaknesses and deficiencies in its internal control over financial reporting. In addition, if we fail to maintain the adequacy of our internal control over financial reporting, as these standards are modified, supplemented or amended from time to time, we may not be able to conclude on an ongoing basis that we have effective internal control over financial reporting in accordance with Section 404. Generally speaking, if we fail to achieve and maintain an effective internal control environment, we could suffer material misstatements in our financial statements and fail to meet our reporting obligations, which would likely cause investors to lose confidence in our reported financial information. This could in turn limit our access to capital markets, harm our results of operations, and lead to a decline in the trading price of our securities. Additionally, ineffective internal control over financial reporting could expose us to increased risk of fraud or misuse of corporate assets and subject us to potential delisting from the stock exchange on which we list, regulatory investigations and civil or criminal sanctions.

***As a foreign private issuer, we are not subject to certain U.S. securities law disclosure requirements that apply to a domestic U.S. issuer, which may limit the information publicly available to our shareholders.***

As a foreign private issuer, we are not required to comply with all of the periodic disclosure and current reporting requirements of the Exchange Act and therefore there may be less publicly available information about us than if we were a U.S. domestic issuer. We are exempt from certain provisions of the securities rules and regulations in the United States that are applicable to U.S. domestic issuers, including:

● the rules under the Exchange Act requiring the filing with the SEC of quarterly reports on Form 10-Q or current reports on Form 8-K;

● the sections of the Exchange Act regulating the solicitation of proxies, consents, or authorizations in respect of a security registered under the Exchange Act;

● the sections of the Exchange Act imposing liability for insiders who profit from trades made in a short period of time and the selective disclosure rules by issuers of material non-public information under Regulation FD.

Effective March 18, 2026, pursuant to the Holding Foreign Insiders Accountable Act, directors and officers of foreign private issuers, including us, are required to comply with the reporting requirements of Section 16(a) of the Exchange Act. Notwithstanding the foregoing, directors and officers of a "foreign private issuer" remain exempt from Section 16(b) (short -swing profit liability) and Section 16(c) (short sale prohibitions).

We are required to file an annual report on Form 20-F within four months of the end of each fiscal year. However, the information we are required to file with or furnish to the SEC will be less extensive and less timely compared to that required to be filed with the SEC by U.S. domestic issuers. As a result, you may not be afforded the same protections or information that would be made available to you were you investing in a U.S. domestic issuer.

***As a foreign private issuer, we are permitted to adopt certain home country practices in relation to corporate governance matters that differ significantly from the Nasdaq listing standards. These practices may afford less protection to shareholders than they would enjoy if we complied fully with corporate governance listing standards.***

As a foreign private issuer, we are permitted to take advantage of certain provisions in the Nasdaq listing standards that allow us to follow Cayman Islands law for certain governance matters. Certain corporate governance practices in the Cayman Islands may differ significantly from corporate governance listing standards as, except for general fiduciary duties and duties of care, Cayman Islands law does not have a comparable corporate governance regime applicable to the Company which prescribes specific corporate governance standards.

Nasdaq Listing Rule 5635 generally provides that shareholder approval is required of U.S. domestic companies listed on the Nasdaq Capital Market prior to issuance (or potential issuance) of securities (i) equaling 20% or more of the company's common stock or voting power for less than the greater of market or book value (ii) resulting in a change of control of the company; and (iii) which is being issued pursuant to a stock option or purchase plan to be established or materially amended or other equity compensation arrangement made or materially amended. Notwithstanding this general requirement, Nasdaq Listing Rule 5615(a)(3)(A) permits foreign private issuers to follow their home country practice rather than these shareholder approval requirements. The Cayman Islands do not require shareholder approval prior to any of the foregoing types of issuances. The Company, therefore, is not required to obtain such shareholder approval prior to entering into a transaction with the potential to issue securities as described above. The board of directors of the Company has elected to follow the Company's home country rules as to such issuances and will not be required to seek shareholder approval prior to entering into such a transaction.

Other than the above, we do not currently intend to follow any additional home country practices in lieu of Nasdaq requirements. However, if we choose to follow such other home country practice in the future, our shareholders may be afforded less protection than they otherwise would have under corporate governance listing standards applicable to U.S. domestic issuers.

***We may lose our foreign private issuer status in the future, which could result in significant additional costs and expenses.***

As discussed above, we are a foreign private issuer, and therefore, we are not required to comply with all of the periodic disclosure and current reporting requirements of the Exchange Act. The determination of foreign private issuer status is made annually on the last business day of an issuer's most recently completed second fiscal quarter. We would lose our foreign private issuer status if, for example, more than 50% of our ordinary shares are directly or indirectly held by residents of the U.S. and we fail to meet additional requirements necessary to maintain our foreign private issuer status. If we lose our foreign private issuer status on this date, we will be required to file with the SEC periodic reports and registration statements on U.S. domestic issuer forms, which are more detailed and extensive than the forms available to a foreign private issuer. We will also have to mandatorily comply with U.S. federal proxy requirements, and our officers, directors and principal shareholders will become subject to the short-swing profit disclosure and recovery provisions of Section 16(b) of the Exchange Act. In addition, we will lose our ability to rely upon exemptions from certain corporate governance requirements under the Nasdaq listing standards. As a U.S. listed public company that is not a foreign private issuer, we will incur significant additional legal, accounting and other expenses that we will not incur as a foreign private issuer, and accounting, reporting and other expenses in order to maintain a listing on a U.S. securities exchange.

***The laws of the Cayman Islands may not provide our shareholders with benefits comparable to those provided to shareholders of corporations incorporated in the United States.***

Our corporate affairs are governed by our amended and restated memorandum and articles of association, by the Companies Act (Revised) of the Cayman Islands and by the common law of the Cayman Islands. The rights of shareholders to take action against our directors, actions by minority shareholders and the fiduciary responsibilities of our directors to us under Cayman Islands law are to a large extent governed by the common law of the Cayman Islands. The common law in the Cayman Islands is derived in part from comparatively limited judicial precedent in the Cayman Islands and from English common law. Appeals from the Cayman Islands Courts to the Privy Council (which is the final Court of Appeal for British overseas territories such as the Cayman Islands) are binding on courts in the Cayman Islands. Decisions of the English courts, and particularly the Supreme Court and the Court of Appeal are generally of persuasive authority but are not binding in the courts of the Cayman Islands. Decisions of courts in other Commonwealth jurisdictions are similarly of persuasive but not binding authority. The rights of our shareholders and the fiduciary responsibilities of our directors under Cayman Islands law are not as clearly established as they would be under statutes or judicial precedents in the United States. In particular, the Cayman Islands has a less developed body of securities laws relative to the United States. Therefore, our public shareholders may have more difficulty protecting their interests in the face of actions by our management, directors or controlling shareholders than would shareholders of a corporation incorporated in a jurisdiction in the United States.

***You may be unable to present proposals before annual general meetings or extraordinary general meetings not called by shareholders.***

Cayman Islands law provides shareholders with only limited rights to requisition a general meeting, and does not provide shareholders with any right to put any proposal before a general meeting. These rights, however, may be provided in a company's amended and restated articles of association. Our amended and restated articles of association allow our shareholders holding shares representing in aggregate not less than 10% of our voting share capital in issue, to requisition a general meeting of our shareholders, in which case our directors are obliged to call such meeting. Advance notice of at least 21 clear days is required for the convening of our annual general shareholders' meeting and at least 14 days' notice any other general meeting of our shareholders. A quorum required for a meeting of shareholders consists of at least one shareholder present or by proxy, representing not less than one-third of the total outstanding shares carrying the right to vote at such general meeting of the Company.

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***The obligation to disclose information publicly may put us at a disadvantage to competitors that are private companies.***

We are a public company in the United States. As a public company, we are required to file periodic reports with the SEC upon the occurrence of matters that are material to our Company and shareholders. Although we may be able to attain confidential treatment of some of our developments, in some cases, we may need to disclose material agreements or results of financial operations that we would not be required to disclose if we were a private company. Our competitors may have access to this information, which would otherwise be confidential. This may give them advantages in competing with our Company. Similarly, as a U.S. public company, we are governed by U.S. laws that our competitors, which are mostly private Chinese companies, are not required to follow. To the extent compliance with U.S. laws increases our expenses or decreases our competitiveness against such companies, our public company status could affect our results of operations.

**Item 4. INFORMATION ON THE COMPANY**

**A. <u>History and Development of the Company</u>**

**Our Corporate History and Structure**

We are an offshore holding company incorporated in the Cayman Islands. As a holding company with no operations of our own, our operations are conducted in China through our wholly owned indirect PRC subsidiary, Jiangxi Universe, and its subsidiaries. Investors in our securities are not holding equity interests in our subsidiaries but instead are holding equity interests in the ultimate Cayman Islands holding company, and therefore are not directly holding any equity interests in the operating entities. The Chinese regulatory authorities could disallow this structure, which would likely result in a material change in our operations and/or a material change in the value of the securities we are registering for sale, including that it could cause the value of such securities to significantly decline or become worthless. For risks facing our Company as a result of our organizational structure and doing business in China, see "Item 3. Key Information—D. Risk Factors—Risks Related to Doing Business in China."

We initially conducted our business through Jiangxi Universe, a PRC company formed in 1998 and Universe Trade, a PRC company formed in 2010, a wholly-owned subsidiary of Jiangxi Universe.

With the growth of our business and in order to facilitate international capital investment in our Company, we underwent an offshore reorganization in 2019 and 2020. On December 11, 2019, our holding company, Universe Pharmaceuticals INC, was incorporated under the laws of the Cayman Islands as an exempted company with limited liability. Our wholly owned subsidiary Universe HK was formed in Hong Kong on May 21, 2014 as an intermediate holding company. Universe HK in turn holds all the capital stocks of Universe Technology, a wholly foreign owned enterprise incorporated in China on Aril 8, 2019. Universe Technology holds all the capital stocks and controls Jiangxi Universe. Jiangxi Universe holds 100% of the equity interests in Universe Trade.

Our holding company has no business operation other than holding the shares in Universe HK. Universe HK is a pass-through entity with no business operation. Universe Technology is exclusively engaged in the business of managing the operation of Jiangxi Universe. Jiangxi Universe specializes in manufacturing our own TCMD products. Universe Trade specializes in the distribution and sales of our own TCMD products and third-party pharmaceutical products.

Foshan Shangyu Investment Holding Co., Ltd. ("Foshan Shangyu") is our affiliated entity, 90% owned by and controlled by Mr. Gang Lai, our chief executive officer and chairman of the board of directors. Foshan Shangyu was formed in 2004 in China as a holding company of Mr. Gang Lai. Foshan Shangyu has no business operations.

On May 12, 2021, we formed Guangzhou Universe Hanhe Medical Research Co., Ltd. in the PRC, as a wholly-owned subsidiary of Jiangxi Universe. Through Universe Hanhe, we conduct certain research and development activities and Universe Hanhe has entered into two technical cooperation agreements with Jinggangshan University. See "Item 4. Information on the Company—B. Business Overview—Research and Development."

On September 10, 2025, Jiangxi Universe and Universe Technology entered into an equity transfer agreement, pursuant to which Jiangxi Universe agreed to transfer 100% of the equity interests in Universe Trade to Universe Technology in consideration for RMB4.8 million (approximately US$0.67 million).

The following diagram illustrates our corporate structure as of the date of this annual report:

![](image_001.jpg)

**Corporate Information**

Our principal executive offices are located at 265 Jingjiu Avenue, Jinggangshan Economic and Technological Development Zone, Ji'an, Jiangxi Province, People's Republic of China, and our phone number is +86-0796-8403309. Our registered office in the Cayman Islands is located at Vistra (Cayman) Limited, P.O. Box 31119 Grand Pavilion, Hibiscus Way, 802 West Bay Road, Grand Cayman, KYI – 1205 Cayman Islands, and the phone number of our registered office is +1-(345)769-9372. We maintain a corporate website at http://www.universe-pharmacy.com. The information contained in, or accessible from, our website or any other website does not constitute a part of this annual report.

The SEC maintains a website at www.sec.gov that contains reports, proxies, and information statements, and other information regarding issuers that file electronically with the SEC using its EDGAR system.

For information regarding our principal capital expenditures, see "Item 5. Operating and Financial Review and Prospects—B. Liquidity and Capital Resources—Capital Expenditures."

**B. <u>Business Overview</u>**

**Overview**

TCM is a comprehensive form of healthcare that has been widely adopted in China for more than 23 centuries. TCM rests upon the assumption that the human body is an ecosystem, embodying the fusion of Shen (psyche), Essence (soma), Qi, Moisture (body fluids), and Blood (tissue). Health in the context of TCM is more than just the absence of diseases, but to identify imbalance in human body and restore harmony. TCM is not only intended to cure diseases but to enhance the capacity for fulfillment, happiness and general well-being of people.

Through the PRC operating entities, we are a pharmaceutical company based in Jiangxi, China, specializing in the manufacturing, marketing, sales and distribution of TCMD products targeting the elderly with the goal of addressing their physical conditions in the aging process and to promote their general well-being. The PRC operating entities have registered and obtained approval for 26 varieties of TCMD products from the National Medical Products Administration (the "NMPA"), and we currently produce 13 varieties of TCMD products, which are sold in approximately 261 cities of 30 provinces in China. In addition, through our subsidiary Universe Trade, we sell not only our own TCMD products, but also biomedical drugs medical instruments, Traditional Chinese Medicine Pieces ("TCMPs"), and dietary supplements manufactured by third-party pharmaceutical companies.

*Products manufactured by us.* The 13 TCMD products currently manufactured by us fall into two categories: (1) treatment and relief for common chronic health conditions in the elderly designed to achieve physical wellness and longevity ("chronic condition treatments"), and (2) cold and flu medications.

● **Chronic condition treatments**: Guben Yanling Pill, Shenrong Weisheng Pill, Quanlu Pill, Yangxue Danggui Syrup, Wuzi Yanzong Oral Liquid, Fengtong Medicinal Liquor, Shenrong Medicinal Liquor, Qishe Medicinal Liquor, Fengshitong Medicinal Liquor, and Shiquan Dabu Medicinal Liquor.

● **Cold and flu medicines**: Paracetamol Granule for Children, Isatis Root Granule and Qiangli Pipa Syrup.

As people age, they have an increasing risk of developing chronic health conditions. According to a report published by the Chinese Center for Disease Control and Prevention in March 2019, 75.8% of seniors have at least one chronic health condition, and 35.1% of them have two or more. According to the "Blue Book of Elderly Health (2020-2021)" released in December 2021 by the Chinese Academy of Medical Sciences, the School of Public Health of Peking Union Medical College and the Social Sciences Literature Publishing House, the prevalence of hypertension, diabetes and hypercholesterolemia in Chinese residents aged 60 and above is 58.3%, 19.4% and 10.5%, respectively, and more than 3/4 of the residents have multiple disease coexistence, and with the increase of age, the prevalence of chronic diseases increases. Some of the most common chronic diseases in the elderly include arthritis, chronic kidney disease, fatigue, and low back pain. The PRC operating entities' products under the category of chronic condition treatments are designed to address some of the aforementioned diseases. The PRC operating entities' cold and flu medicines, on the other hand, include products designed to treat and relieve symptoms of respiratory illnesses caused by bacteria and viruses.

*The PRC operating entities' third-party products.* Through our subsidiary, Universe Trade, we also distribute and sell products manufactured by third-party producers, including biomedical drugs, medical instruments, TCMPs and dietary supplements. For the fiscal years ended September 30, 2025, 2024 and 2023, we distributed around 2,188, 2,552 and 2,239 types of third-party products, respectively.

*The PRC operating entities' Customers.* The PRC operating entities' major customers are pharmaceutical distributors, hospitals, clinics and drugstore chains, primarily located in Jiangxi Province, Jiangsu Province, Guangdong Province, Hubei Province, Fujian Province, Guangxi Province and Shandong Province, and 23 other provinces in China.

The PRC operating entities' customer base increased from 2,541 as of September 30, 2023 to 2,561 as of September 30, 2024, and decreased to 1,906 as of September 30, 2025. The revenues from selling the PRC operating entities' own products decreased from $18,572,658 for the fiscal year ended September 30, 2023 to $14,026,049 for the fiscal year ended September 30, 2024 because sales volume decreased by 29.1% as global economic slowdown had led to a decline in customers' spending power, and decreased to $13,260,650 for the fiscal year ended September 30, 2025 because the average per unit selling price of our TCMD products decreased by 5.9% year over year. The revenues from distributing and selling third-party products decreased from $13,736,077 for the fiscal year ended September 30, 2023 to $8,998,409 for the fiscal year ended September 30, 2024 because sales volume decreased by 28.0%, and decreased to $4,598,082 for the fiscal year ended September 30, 2025 because the average per unit selling price of third-party products decreased by 37.3% year over year. Our net loss was $6,581,024 for the fiscal year ended September 30, 2023, $8,727,298 for the fiscal year ended September 30, 2024, and $3,672,055 for the fiscal year ended September 30, 2025.

**Our Competitive Strengths**

We believe we have the following competitive strengths:

***A recognized manufacturer of TCMD products in China's rapidly growing health and wellness market***

We are a recognized manufacturer of TCMD products in China's rapidly growing health and wellness market. We own a number of famous brands in the industry, which are also our registered trademarks in China. For instance, our brand "Hu Zhuo Ren (胡卓仁)" is especially well-recognized in Jiangxi Province. Further, our brand "Bai Nian Dan (百年丹)" is famous for specializing in products targeted at the physical wellness of older population. Our other recognized brands include "Long Zhong (龙种)", "Yi Ke Ting (益克停)", "Xue Li (血力)", "Duo Lai Mei (朵来美)", "Shu Er Kang (舒儿康)", "Hu Zhuo Ren (胡卓仁)", "Ai Bi Xin (爱必欣)", and "Yong He Shuang Feng (永和双凤)".

We attribute our success to our recognized brand names, strong relationships with our suppliers, loyal and stable customer base, and proven capability to develop and manufacture TCMD products aligned with the preferences of end consumers.

***Rigorous quality control standards and manufacturing protocols***

We believe that the quality of our products is crucial to our success as a pharmaceutical company, and we have implemented an overall quality control system, as well as strict manufacturing protocols specifically designed for each product. Our quality control system starts from procurement. The raw materials we source from our suppliers must first be examined and certified for quality. We review the performance of our suppliers based on the quality of their products and adjust future orders from them accordingly. Further, an average of three inspections are made by our personnel throughout the manufacturing process to ensure that the manufacturing protocols are strictly followed, and that the quality of semi-products are at or above standard. After completion of manufacturing, our personnel will perform an overall quality examination. Through the implementation of a quality control system, we are able to identify the weakness in our production process and improve our operations over time. We believe our quality control standards and manufacturing protocols have contributed to the high quality and consistency of our products.

***Visionary management team with substantial industry experience***

Our visionary management team is the bedrock of our success. Many members of our leadership possess extensive experience in the pharmaceutical, biomedical, chemical and related industries. For instance, our chief executive officer, Mr. Gang Lai, has about 34 years of corporate management experiences. Mr. Xiaojun Deng, the deputy manufacturing manager of Jiangxi Universe, holds a degree in Traditional Chinese Medicine Manufacturing from Jiangxi Medical School with over 29 years of working experience in the Chinese patent medicine industry. Ms. Lin Yang, our chief financial officer, has over 17 years of finance and management experience working in pharmaceutical companies. Mr. Yajun Hu, the general manager of Jiangxi Universe, has over 11 years of experiences in managing a pharmaceutical company. Mr. Baochang Liu, our chief operating officer, has over 20 years of experience in pharmaceutical marketing and had previously held marketing and management positions at a number of listed pharmaceutical companies in China. Moreover, many members of the team have worked together for an extended period of time and helped build the Company from the ground up. The rapport that the team has built extends beyond the talent and skills of individual team members and contributes to a collective sense of mission.

**Our Growth Strategy**

***Build a Strong Brand Image to Achieve National Recognition***

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We believe that broader recognition and favorable perception of our brand by consumers in our target markets are crucial to our future success. Our brand has gained a solid reputation in Southern China, especially Jiangxi Province, and we plan to increase the awareness of our brand among consumers in other parts of China. Specifically, we plan to build a strong brand image that we are a TCMD producer specializing in the development and manufacture of products designed to address the physical conditions of the elderly during the aging process and to promote their general well-being. To achieve our goal, we plan to spend most of our efforts on the development and marketing of our brand "Bai Nian Dan (百年丹)" as the brand to be associated with our ideal brand image because "Bai Nian" (百年) signifies longevity in the Chinese language, and "Dan" (丹) alludes to our signature product, Guben Yanling Pill.

We have been advertising our products through television advertisement. We also intend to advertise targeting older customers, including transmitting our advertisements through additional traditional media platforms such as live radio stations, newspapers, as well as in-person marketing at drug stores and clinics. In the fiscal year ended September 30, 2023, our marketing strategies were primarily focused on digital marketing and brand promotion, and we launched in-app advertising campaigns and created brand films to enhance our recognition among potential customers. In the fiscal year ended September 30, 2024, we continued adopting our marketing strategies for the fiscal year ended September 30, 2023, with a focus on promoting our products with in-app advertising campaigns through Health Headline. In the fiscal year ended September 30, 2025, we continued our digital marketing and brand promotion strategies while expanding our omni-channel integrated marketing approach. We placed advertisements on China Central Television (CCTV) and displayed elevator media advertisements in residential and commercial buildings. We maintained our traditional media advertising to precisely reach our target audience and strengthened face-to-face marketing at drugstores and clinics through optimized terminal displays, professional training for store staff, and community health consultation events to comprehensively reach our core customer base of middle-aged and elderly consumers, thereby improving product conversion rates and customer loyalty.

***Enhance Our Distribution Network to Increase Market Penetration and Customer Stickiness***

Currently, our products are sold in 30 provinces in China. We plan to enter the markets in other parts of China. To achieve this goal, we have made efforts to further strengthen and expand our distribution network through connecting with more local distributors, chain drugstores, malls and supermarkets in other parts of China. Currently, our strategic focus is to attract more marketing talents and build a stronger sales and marketing team to keep us on top of the latest information of local markets, customer preferences and industry trends. We also plan to create an online store to reach a wider consumer demographic. In the future, we plan to start our own retail chain stores, and provide training programs to sales personnel to improve their skills and acquire knowledge of our products, in order to further diversify our distribution channels to increase our market penetration and customer base.

***Integrate Our Internal Manufacturing Capability to Ensure Productivity, Supply, and Selection of Products***

We plan to further optimize our production facilities to increase the productivity, supply and selection of our products, so that we may gain competitive edges over our competitors. Specifically, we intend to increase productivity and supply by expanding the existing production lines and converting them into automated production lines. To increase the selection of our products, we plan to build additional production facilities for our licensed TCMD products to be launched in the future.

The timeline for expanding production capacity through new facilities is subject to the completion of the construction-in-progress project currently expected by June 30, 2028. See "Item 3. Key Information—D. Risk Factors— Risks Related to Our Business and Industry—Our future success depends in part on our ability to increase our production capacity, and we may not be able to do so in a cost-effective manner. We have engaged a third-party sub-contractor to build manufacturing facilities and an office building for us, and we may encounter challenges relating to the construction, management and operation of such facilities." However, the Company has already taken steps to enhance production capacity through the acquisition of new automated production equipment, independent of the ongoing construction project, to ensure operational continuity and scalability.

***Further Grow Our Research and Development Capacities***

The size of the Chinese patent medicine market has been growing steadily. To respond to increasing market demand, we will continue to provide financial and operational resources to focus on the research and development of TCMD products and dietary supplements designed to address the physical conditions of the elderly during the aging process and promote their general well-being.

**Our Manufactured Products**

We manufacture, market and sell 13 different TCMD products to customers in 30 different provinces in China. Our TCMD products fall under two categories: chronic condition treatments and cold and flu medications. The following list outlines our current products:

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | | | **Percentage of Gross Sales** | **Percentage of Gross Sales** | **Percentage of Gross Sales** | |
| <br>**Product Category** | <br>**Product Name** | <br>**Posology** | **2025** | **2024** | **2023** | <br>**Intended Uses** |
| **Chronic Condition Treatments** | Guben Yanling Pill | Pills | 43.2% | 37.2% | 36.4% | To relieve fatigue, palpitation, low back pain, and generalized weakness and soreness. |
|  | Shenrong Weisheng Pill | Pills | 5.6% | 4.4% | 3.5% | To relieve fatigue, dizziness, excessive sweating, and pain in the waist and the knees. |
|  | Quanlu Pill | Pills | 4.8% | 2.3% | 1.9% | To improve kidney functions and spleen functions, and relieve fatigue, low back pain, and knee pain. |
|  | Wuzi Yanzong Oral Liquid | Oral liquid | 0.7% | 0.1% | 0.1% | To improve kidney functions. |
|  | Yangxue Danggui Syrup | Syrup | 1.8% | 0.8% | 0.3% | To improve blood circulation and treating dizziness, headaches and menstrual pains. |
|  | Fengshitong Medicinal Liquor | Medicinal liquor | -% | -% | 0.8% | To treat low back pain and numbness in the feet and hands, and relieve rheumatoid arthritis pain. |
|  | Shiquan Dabu Medicinal Liquor | Medicinal liquor | 1.8% | 1.0% | 1.1% | To treat dizziness, palpitation, fatigue, and weakness, and ease menstrual flow. |
|  | Fengtong Medicinal Liquor | Medicinal liquor | 0.8% | 0.6% | -% | To treat low back pain and numbness in the feet and hands, and relieve symptoms of arthritis. |
|  | Shenrong Medicinal Liquor | Medicinal liquor | 2.6% | 1.2% | 0.6% | To improve blood circulation and relieve symptoms of fatigue, low back pain and leg pain. |
|  | Qishe Medicinal Liquor | Medicinal liquor | 0.5% | 0.3% | 0.3% | To treat blood stasis, arthritis, and numbness in the feet and hands. |
| **Cold and Flu Medicines Medicinal Liquor** | Qiangli Pipa Syrup | Syrup | 3.8% | 3.7% | 4.9% | Relieve cough and reduce mucus and phlegm. |
|  | Paracetamol Granule for Children | Granules | 6.2% | 2.2% | 3.4% | To relieve children's headaches, muscle aches, toothaches, colds and fevers. |
|  | Isatis Root Granule | Granules | 2.3% | 7.0% | 4.3% | To treat common colds and other infections of the upper respiratory tract. |

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Among the 13 TCMD products we manufacture, Guben Yanling Pill is our signature product. For the fiscal years ended September 30, 2025, 2024 and 2023, revenue derived from the sale of Guben Yanling Pill represented 43.2%, 37.2% and 36.4% of our total revenue, respectively.

***Our Manufacturing Process***

The following chart illustrates our main manufacturing process from raw material purchase to marketing:

![](image_002.jpg)

*Our Raw Materials and Suppliers*

We select our raw materials for the manufacturing of our products strictly in accordance with the guidance in Pharmacopoeia of the People's Republic of China (《中华药典》) (the "PPRC"), an official compendium of drugs covering both TCM and western medications complied by the Pharmacopoeia Commission of the Ministry of Health of People's Republic of China. The PPRC specifies the standards of description, dosage, purity, storage, and other material information for each drug. In the manufacturing of our TCMD products, more than 110 types of raw materials are regularly used, among which angelica, codonopsis, poria mushroom, isatis root, ginseng loquat leaves, safflower, and Baijiu liquor represent our main raw materials.

Currently, we have stable access to all the raw materials necessary for our production. There are many suppliers in the industry for the regularly used raw materials, and therefore we are not relying on a single supplier for any of our raw materials. If we are unable to purchase any of the raw materials from one supplier, we do not expect to face material difficulties in locating another supplier at substantially the same price. While the prices of such raw materials may vary greatly from time to time due to market forces beyond our control, we believe we can hedge such risk by adjusting our price, or absorbing higher costs if and when necessary.

To source the raw materials required for our products, we regularly contract with our suppliers by placing bulk orders with them at below market prices. Our raw material suppliers include mostly traditional Chinese medicine manufacturers and pharmaceutical trading companies. After years of business cooperation, we believe that our relationships with our current suppliers are strong and stable.

We consider our raw materials suppliers whose sales to us accounted for more than 10% of our overall purchases in any given period to be our major suppliers for such period. For the fiscal year ended September 30, 2025, one supplier accounted for 35.4% of our total purchases. For the fiscal year ended September 30, 2024, two suppliers accounted for 28.0% and 13.4% of our total purchases, respectively. For the fiscal year ended September 30, 2023, one supplier accounted for 29.6% of the total purchases. No other supplier individually accounted for more than 10% of our total purchases for the fiscal years ended September 30, 2025, 2024 and 2023.

*Manufacturing Process*

The following is a brief description of the manufacturing process of the TCMD products we currently produce by dosage forms.

<u>Pill Products</u>

 

To make our pill products, the raw materials first go through a preparation process, during which such materials are dried, roughly ground and sterilized. Processed raw materials are then finely ground, mixed with honey, and made into pills before they are finally packaged.

<u>Granule Products</u>

 

The raw materials of our granule products typically go through a purifying process, during which such materials are stewed, filtered, condensed, and let stand. Processed raw materials are then mixed with supplemental ingredients before they are made into granules, dried, and finally packaged.

<u>Syrup Products</u>

The raw materials of our syrup products are first stewed together and condensed. Condensed liquid is then filtered and mixed with supplemental ingredients before it is bottled and packaged.

<u>Oral Liquid Products</u>

The raw materials of our oral liquid products are first filtered, condensed, and fixed with other supplemental ingredients. The processed materials are then further filtered and sterilized before being bottled and packaged.

<u>Medicinal Liquor Products</u>

The raw materials of our medicinal liquor products first go through a purifying process, during which such materials are selected, cut, rinsed, stewed, and refrigerated. Processed raw materials then go through an extraction process that involves mixing with solvents and filtering. Then, the liquor products are bottled and packaged.

*Quality Control and Assurance*

We seek to ensure the high quality of our products through our quality control system and by conducting product testing and review. Our entire manufacturing process is strictly supervised pursuant to internal quality control standards that have been set up in strict adherence to the guidelines provided in PPRC. We conduct our quality testing by examining the quality of each and every type of raw materials. If the raw materials meet our quality standards, we start the manufacturing process, during which we continue our quality testing for every substantial procedure, including filtering, grinding, mixing, and pill making. After our products are packaged, we will examine various features of our final products thoroughly, including appearance, weight, taste, water content, and microorganism content.

**Third-party Product Distribution**

In addition to manufacturing our own products, we also distribute and sell, through our subsidiary Universe Trade, biomedical drugs, medical instruments, TCMPs and dietary supplements manufactured by third-party pharmaceutical companies. For the fiscal year ended September 30, 2025, we had distributed roughly 2,188 third-party products, of which approximately 62.9% are biochemical drugs, such as liquid glucose, prednisolone, and citicoline, approximately 4.4% are medical instruments, such as drug-eluting stents, surgical tubes and syringes, approximately 32.7% are TCMPs, such as red sage tables, Longdan Xiegan pills, and Chinese skullcap capsules. For the fiscal year ended September 30, 2024, we had distributed roughly 2,532 third-party products, of which approximately 39.0% are biochemical drugs, such as liquid glucose, prednisolone, and citicoline, approximately 9.0% are medical instruments, such as drug-eluting stents, surgical tubes and syringes, approximately 48.0% are TCMPs, such as red sage tables, Longdan Xiegan pills, and Chinese skullcap capsules, and approximately 4.0% are dietary supplements. For the fiscal year ended September 30, 2023, we had distributed roughly 2,239 third-party products, of which approximately 91.69% are biochemical drugs, such as liquid glucose, prednisolone, and citicoline, approximately 8.29% are medical instruments, such as drug-eluting stents, surgical tubes and syringes, approximately 0.02% are TCMPs, such as red sage tables, Longdan Xiegan pills, and Chinese skullcap capsules.

***Our Suppliers of Third-party Products***

We source third-party pharmaceutical products from their manufacturers in China. Our third-party product suppliers include mostly medical instrument manufacturers, pharmaceutical product manufacturers and dietary supplement manufacturers. For all of the products that we source and sell, we can generally find similar replacements in the market from the competitors of our current suppliers. Accordingly, we do not have any continuous or long-term supply agreements with any of these suppliers. We purchase third-party medical products from our suppliers on a per purchase order basis.

For the fiscal years ended September 30, 2025, 2024 and 2023, we purchased products from over 411, 598 and 661 suppliers, respectively. For the fiscal years ended September 30, 2025, 2024 and 2023, we did not have any supplier of third-party products whose sales to us accounted for more than 10% of our overall purchases of that fiscal year.

**Our Customers**

Our customers are mostly pharmaceutical distributors, hospitals, clinics and drugstore chains with pharmaceutical business qualification certificates, awarded and authorized by the NMPA and are authorized to sell and deliver our products to end consumers. As of the date of this annual report, our customers are scattered over 261 cities of 30 provinces in China. We determine whether to establish long-term business relationships with our customers primarily based on two factors, their ability to promote our products and their ability to make payments on time.

As of September 30, 2025, we had a total of 1,906 customers, of which 801 were pharmaceutical distributors, 38 were clinics, 858 were drug stores, and 209 were hospitals. As of September 30, 2024, we had a total of 2,561 customers, of which 1,276 were pharmaceutical distributors, 231 were clinics, 358 were drug stores, and 696 were hospitals.

For the fiscal year ended September 30, 2025, our revenues generated from sales to pharmaceutical distributors, hospitals, clinics and drugstore chains represented 46.41%, 13.16%, 0.74%, and 39.69% of our total revenues, respectively. For the fiscal year ended September 30, 2024, our revenues generated from sales to pharmaceutical distributors, hospitals, clinics and drugstore chains represented 65.68%, 20.77%, 9.07% and 4.49% of our total revenues, respectively. For the fiscal year ended September 30, 2023, our revenues generated from sales to pharmaceutical distributors, hospitals, clinics and drugstore chains represented 59.26%, 22.02%, 13.50% and 5.22% of our total revenues, respectively.

None of our customers generated more than 10% of our revenue for the fiscal years ended September 30, 2025, 2024 and 2023. However, our top 10 customers aggregately accounted for 21.3%, 22.5% and 27.2% of our total revenue for the fiscal years ended September 30, 2025, 2024 and 2023, respectively.

**Marketing and Sales**

We believe that marketing activities are crucial to our success in the competitive Chinese patent medicine industry. As of September 30, 2025, we had a total of 69 employees in our marketing department. Employees in our marketing department are mainly responsible for performing various marketing activities, including researching the most updated industry and market information, analyzing market trends and consumer preferences, setting up marketing strategies, executing sales contracts, communicating with existing customers and networking with potential customers.

Our marketing and sales initiatives for the next several years will focus on three objectives: developing a strong brand image, building a successful marketing team, and expanding retail channels. To develop our brand image as a producer of TCMD products aiming at addressing the physical conditions of the elderly during the aging process and promoting their general well-being, we seek to promote our brand "Bai Nian Dan (百年丹)" utilizing both online marketing channels such as WeChat official account and other social media and traditional platforms such as television, newspapers, and live radio stations. In the fiscal year ended September 30, 2025, we continued our digital marketing and brand promotion strategies while expanding our omni-channel integrated marketing approach. We placed advertisements on China Central Television (CCTV) and displayed elevator media advertisements in residential and commercial buildings. We maintained our traditional media advertising to precisely reach our target audience and strengthened face-to-face marketing at drugstores and clinics through optimized terminal displays, professional training for store staff, and community health consultation events to comprehensively reach our core customer base of middle-aged and elderly consumers, thereby improving product conversion rates and customer loyalty. As part of the efforts to build a successful marketing team, we intend to hire additional sales talents and provide monetary and equity incentives to sales employees. For the purpose of expanding our retail channels, we plan to open an online retail store, and according to the preferences of online shoppers, we may adjust the sizes, packaging, or prices of our products.

**Research and Development**

We established a research and development department in 1998. Our research and development team has been focusing on the upgrade of current products and the development of production techniques to increase productivity. After years of continued development, our research and development department has become the core of our technological innovation efforts. As of September 30, 2025, we had 22 employees dedicated to research and development.

***Research and Development ("R&D") Achievements***

Our research and development team has invented patented technologies to enhance the quality of our products and our manufacturing efficiency. For instance, our patented TCM mixer is able to mix powders more evenly and thoroughly compared to a traditional mixing machine, thereby increasing the quality of the mixed medicine powder. The special design of our patented TCM concentration device is able to increase the contact area of the liquid medicine as compared to a regular concentration device, thereby increasing the manufacturing efficiency of our products in liquid dosage form.

As a result of our efforts, our subsidiary, Jiangxi Universe, is certified as a high and new technology enterprise by the Science and Technology Department of Jiangxi Province, with the current certification expiring in October 2028. This certification entitles Jiangxi Universe to a favorable corporate income tax of 15%, rather than the unified tax rate of 25% it would pay if it were not certified.

***R&D Development Plan***

To further our strong brand image, we plan to develop products designed to address the physical conditions of the elderly during the aging process and promoting their general well-being, including TCMD products and dietary supplements. In the upcoming years, we intend to focus on the development of immunity boost products and sleep aids.

***Research and Development Agreements***

Through Universe Hanhe, the Company has entered into two technical cooperation agreements with Jinggangshan University (the "University") for research and development services. Under the first agreement dated May 16, 2025, the University is engaged to conduct research on the effects of tennis exercise combined with Guben Yanling Pills on antioxidant enzymes and immune function in middle-aged and elderly populations, for total consideration of RMB210,000 (approximately US$29,499), with delivery required within 300 working days from execution. Under the second agreement dated November 17, 2025, the University is retained to develop functional food products utilizing purslane (*Portulaca oleracea*) for blood lipid reduction, including optimization of polysaccharide extraction techniques, freeze-drying processes, and formulation of ready-to-drink functional food products, for aggregate compensation of RMB350,000 (approximately US$49,164) (consisting of an initial RMB210,000 (approximately US$29,499) plus supplemental payment of RMB140,000 (approximately US$19,666)), with project completion required by December 15, 2025. The project was completed in December 2025 and the Company received a project report from the University.

Intellectual property rights allocation differs between the agreements. Under the first agreement, intellectual property rights in independently developed results vest exclusively with the developing party, while jointly developed results and associated intellectual property rights are shared by both parties. Under the second agreement, intellectual property rights for work completed independently by the University vest with the Company. Both agreements contain payment penalty provisions for late payment and provide for dispute resolution through arbitration or litigation in Ji'an, Jiangxi Province, the PRC.

These agreements are part of the Company's ongoing research and development activities and may impact the Company's product development pipeline and future revenue opportunities.

**Competition**

We compete with pharmaceutical companies in China that manufacture and sell products similar to ours. Furthermore, many of these companies are more established than we are, and have significantly greater financial, technical, and other resources than we presently possess. Some of our competitors may be able to respond more quickly to new opportunities, market changes or changes of customer preferences, and may be able to undertake more extensive promotional activities, offer more attractive terms to distributors, and adopt more aggressive pricing strategies than we are. Despite that, we believe we are well-positioned to compete in this market with our diversified product portfolio, recognized brand name, established sales and marketing network and experienced management team with a proven track record.

***Competitors of our products***

The following table sets forth the competitors of our products.

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| | |
|:---|:---|
| **Products** | **Competitors** |
| Guben Yanling Pill | Taiyuan Daningtang Pharmaceuticals Co., Ltd.;<br> Shenyang Dongxin Pharmaceutical Industry Co., Ltd. |
| Shenrong Weisheng Pill | China Beijing Tong Ren Tang Group Co., Ltd.;<br> Jiangxi Zhongyuan Pharmaceutical Co., Ltd. |
| Quanlu Pill | Renhe Pharmaceuticals Co.;<br> Guangzhou Pharmaceutical Co., Ltd. |
| Fuzi Lizhong Pill | China Beijing Tong Ren Tang Group Co., Ltd. |
| Yangxue Danggui Syrup | Sichuan Tiancheng Pharmaceuticals Co., Ltd. |
| Qiangli Pipa Syrup | Jiangzhong Pharmaceuticals Co., Ltd.;<br> China Resources Sanjiu Medical & Pharmaceuticals Co., Ltd.;<br> Jiangxi Tengwangge Pharmaceuticals Co., Ltd. |
| Paracetamol and Chlorpheniramine Maleate<br> Granules for Children | China Resources Sanjiu Medical & Pharmaceuticals Co., Ltd.;<br> Sunflower Pharmaceutical Group Co., Ltd. |
| Isatis Root Granules | Guangzhou Pharmaceuticals Co., Ltd.;<br> China Resources Sanjiu Medicine & Pharmaceuticals Co., Ltd.;<br> China Beijing Tong Ren Tang Group Co., Ltd. |
| Wuzi Yanzong Oral Liquid | China Beijing Tong Ren Tang Group Co., Ltd. |
| Shuquan Dabu Medicinal Liquor | Jiangxi Puzheng Pharmaceuticals Co., Ltd. |
| Shenrong Medicinal Liquor | Jiangxi Puzheng Pharmaceuticals Co., Ltd. |
| Qishe Medicinal Liquor | Jiangxi Zhongyuan Pharmaceuticals Co., Ltd. |
| Fengtong Medicinal Liquor | Jiangxi Zhongyuan Pharmaceuticals Co., Ltd. |

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***Competitors of Third-party Products***

Our competitors of pharmaceutical products, including biochemical drugs and TCMPs, are many internationally and nationally well-known manufacturers and distributors, including China Beijing Tong Ren Tang Group Co., Ltd., Yunnan Baiyao Group, China Resources Sanjiu Medicine & Pharmaceuticals Co., Ltd., and Guangzhou Baiyunshan Pharmaceutical Holdings Co., Ltd.

Our competitors in the medical instrument market include many well-known manufacturers and distributors of medical instruments, including Shinva Medical Instrument Co., Ltd., Jiangsu Yuyue Medical Equipment & Supply Co., Ltd., Lepu Medical Technology (Beijing) Co., Ltd., and Shanghai Runda Medical Technology Co., Ltd.

Our competitors in the dietary supplement market include internationally and nationally well-known manufacturers and distributors of dietary supplements, such as By-health Co., Ltd., Amway (China) Co., Ltd., and Perfect (China) Co., Ltd.

We intend to compete with these larger companies by appealing to the specific needs and preferences of our customers and offering competitive prices.

**Employees**

As of September 30, 2025, 2024 and 2023, we had a total of 216, 225 and 225 employees, all of whom are located in China. The following table sets forth the number of our employees by function as of September 30, 2025.

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| | | |
|:---|:---|:---|
| **Function** | **Number of<br> Employees** | **% of**<br> **Total** |
| Purchasing Department | 3 | 1% |
| Warehouse Department | 8 | 4% |
| Manufacturing Department | 89 | 42% |
| Quality Control Department | 9 | 4% |
| Research and Development Department | 22 | 10% |
| Marketing Department | 69 | 32% |
| Finance Department | 7 | 3% |
| Administration Department | 9 | 4% |
| **Total** | **216** | **100%** |

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Our success depends on our ability to attract, retain and motivate qualified personnel. As part of our human resources strategy, we offer employees competitive salaries and other bonuses and incentives.

We primarily recruit our employees in China through direct hiring. We provide training to new employees that we hire. We also conduct regular and specialized internal training to meet the needs of our employees in different departments. We believe that such training is effective in equipping our employees with the skill set and work ethics we require.

As required under PRC regulations, we participate in various employee social security plans that are organized by applicable local municipal and provincial governments, including housing, pension, medical, work-related injury, maternity and unemployment benefit plans.

We enter into standard contracts and agreements regarding confidentiality, intellectual property, employment, ethic policies and non-competition with most of our executive officers, managers and employees. These contracts typically include a non-competition provision effective during and up to one year after termination of their employment with us and a confidentiality provision effective during and up to one year after their employment with us.

Our employees have not formed any employee union or association. We believe that we maintain a good working relationship with our employees and we have not experienced any difficulty in recruiting staff for our operations as of the date of this annual report.

**Properties and Facilities**

Our corporate headquarters are located in Jinggangshan, Jiangxi Province, China. We own properties in Jingggangshan as office spaces, storage facilities and manufacturing facilities with an aggregate gross floor area of approximately 825,563 square feet. We believe that our existing facilities are generally adequate to meet our current needs, but we expect to seek additional space as needed to accommodate future growth. Following is a list of our properties all of which we own the land use rights to:

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **No.** | **Land Use<br> Right Holder** | **Property Address** | **Use of<br> Property** | **Area in<br> Square Feet** | **Terms of<br> Use** |
| 1 | Jiangxi Universe | 265 Jingjiu Avenue, Economy and Technology Development District, Jinggangshan, Ji'an, Jiangxi, China | Manufacturing | 173467 | October 2053 |
| 2 | Jiangxi Universe | 265 Jingjiu Avenue, Economy and Technology Development District, Jinggangshan, Ji'an, Jiangxi, China | Manufacturing | 470921 | October 2053 |
| 3 | Jiangxi Universe | 265 Jingjiu Avenue, Economy and Technology Development District, Jinggangshan, Ji'an, Jiangxi, China | Manufacturing | 57010 | October 2053 |
| 4 | Jiangxi Universe | 265 Jingjiu Avenue, Economy and Technology Development District, Jinggangshan, Ji'an, Jiangxi, China | Storage facilities | 27426 | October 2053 |
| 5 | Jiangxi Universe | 265 Jingjiu Avenue, Economy and Technology Development District, Jinggangshan, Ji'an, Jiangxi, China | Manufacturing | 29276 | October 2053 |
| 6 | Jiangxi Universe | 265 Jingjiu Avenue, Economy and Technology Development District, Jinggangshan, Ji'an, Jiangxi, China | Storage facilities | 57083 | October 2053 |
| 7 | Jiangxi Universe | 265 Jingjiu Avenue, Economy and Technology Development District, Jinggangshan, Ji'an, Jiangxi, China | Manufacturing | 10380 | October 2053 |

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We manufacture all of our products at the properties listed above. Currently, we are capable of producing a maximum of approximately 12 million bottles of liquid products, 13 million boxes of pill products, and 10 million boxes of solid products annually.

**Intellectual Property**

We regard our patents, trademarks, domain names and other intellectual property critical to our business operations. We rely on laws and regulations on patents, trademarks and domain names to protect our intellectual property. As of the date of this annual report, we have registered 54 patents in China, including 13 utility model patents, 17 design patents, and 24 invention patents, and 98 trademarks in China, including our well-recognized brands "Bai Nian Dan (百年丹)", "Hu Zhuo Ren (胡卓仁)" and "Long Zhong (龙种)." Under certain trademark licensing agreements entered into by and between Jiangxi Universe and Guangzhou Ningjing Investment Co., Ltd ("Guangzhou Ningjing"), a related company controlled by Mr. Gang Lai, our chief executive officer and chairman of the Board of Directors, Jiangxi Universe is authorized to use three trademarks held by Guangzhou Ningjing for commercial purposes, with the licensing authorization for two of such trademarks expiring on August 14, 2028 and one expiring on January 9, 2029. Jiangxi Universe is obligated to pay an aggregate of RMB500,000 (approximately US$71,249) to Guangzhou Nanjing annually as trademark licensing fees.

We implement a set of comprehensive measures to protect our intellectual property, in addition to making trademark and patent registration application. Key measures include: (i) timely registration, filing and application for ownership of our intellectual property, (ii) actively tracking the registration and authorization status of our intellectual property and take action in a timely manner if any potential conflicts with our intellectual property are identified, and (iii) clearly stating all rights and obligations regarding the ownership and protection of our intellectual property in all employment contracts and commercial contracts we enter into.

As of the date of this annual report, we have not been subject to any material dispute or claims for infringement upon third parties' trademarks, licenses and other intellectual property rights in China.

**Seasonality**

We currently do not experience seasonality in our business.

**Environmental Matters**

We comply with the Environmental Protection Law of China as well as applicable local regulations. In addition to statutory and regulatory compliance, we actively ensure the environmental sustainability of our operations. Parties may be levied upon us if we fail to adhere to and maintain certain standards. Such failure has not occurred in the past, and we generally do not anticipate that it will occur in the future, but no assurance can be given in this regard.

**Insurance**

We maintain certain insurance policies to safeguard us against risks and unexpected events. For example, we provide social security insurance including pension insurance, unemployment insurance, work-related injury insurance and medical insurance for our employees in compliance with applicable PRC laws. We do not maintain directors' and officers' liability insurance, business interruption insurance or product liability insurance, which are not mandatory under PRC laws. We do not maintain key man insurance, insurance policies covering damages to our network infrastructures or information technology systems nor any insurance policies for our properties. During the fiscal years ended September 30, 2025, 2024 and 2023, we did not make any material insurance claims in relation to our business.

**Legal Proceedings**

We may from time to time become a party to various legal administrative proceedings arising in our ordinary course of our business. As of the date of this annual report, neither we nor any of our subsidiaries is a party of any material legal proceeding.

**Regulations**

This section sets forth a summary of the principal PRC laws, regulations, and rules relevant to our PRC operating entities' business and operations in China.

We are a pharmaceutical manufacturer in China. This section sets forth a summary of applicable laws, rules, regulations, government and industry policies and requirement that have a significant impact on our operations and business in China. This summary does not purport to be a complete description of all laws and regulations, which apply to our business and operations. Investors should note that the following summary is based on relevant laws and regulations in force as of the date of this annual report, which may be subject to change.

**Major Regulatory Authorities**

The pharmaceutical industry in the PRC is mainly administered by four governmental agencies: (i) the NMPA, a department under the State Administration for Market Regulation (the "SAMR") (国家市场监督管理总局), (ii) the National Health Commission (the "NHC") (国家卫生健康委员会), (iii) the National Administration of Traditional Chinese Medicine (the "NATCM") (国家中医药管理局), and (iv) the National Healthcare Bureau (the "NHB") (国家医疗保障局).

The NMPA, whose predecessor is the China Food and Drug Administration, or the CFDA, is the primary regulator of almost all key stages of the life-cycle of pharmaceutical products, including non-clinical researches, clinical trials, marketing approvals, manufacturing, advertising and promotion, distribution and pharmacovigilance.

The NHC, formerly known as the National Health and Family Planning Commission, is the principal regulator of healthcare in China. It is primarily responsible for drafting national healthcare policies and regulating public health, medical services and health contingency system, coordinating the healthcare reform and overseeing the operation of medical institutions and professional practice of medical personnel. The NHC is responsible for (1) the research, production, circulation and use of Chinese medicines, including traditional Chinese medicine; (2) the preparation and publication of the Chinese Pharmacopoeia; and (3) the supervision of the selection, approval, distribution and revision of the National OTC Drug Catalogue. In addition, the CFDA and its local administrative authorities may take a number of enforcement actions to enforce their regulations.

The NATCM is an agency under the NHC that oversees China's traditional Chinese medicine industry.

The NHB, a new authority established in May 2018, is responsible for (1) drafting and implementing policies, plans and standards on medical insurance, maternity insurance and medical assistance; (2) administering healthcare fund; (3) formulating a uniform medical insurance catalogue and payment standards on drugs, medical disposables and healthcare services; and (4) formulating and administering the bidding and tendering policies for drugs and medical disposables.

**Regulations Related to Pharmaceutical Manufacture**

***Manufacturing License***

Pursuant to the Pharmaceutical Administration Law of the People's Republic of China (《中华人民共和国药品管理法》), which was promulgated in 1984 by the SCNPC and last amended in August 2019, a pharmaceutical manufacturer is required to obtain its manufacturing license from the NMPA before it starts to manufacture pharmaceutical products. Prior to granting such permit, the relevant government authority will inspect the applicant's production facilities, and assess whether the sanitary conditions, quality assurance system, management structure and equipment at the production facilities have met the required standards. A manufacturing license is valid for a period of five years and the manufacturer is required to apply for renewal within six months prior to its expiration date. The manufacturer will be subject to reassessment by the authority in accordance with then prevailing legal and regulatory requirements for the purposes of such renewal. Currently, our subsidiary Jiangxi Universe holds a valid manufacturing license from the NMPA issued on November 20, 2025 and valid until November 19, 2030.

***Contract Manufacturing of Drugs***

Pursuant to the Administrative Regulations for the Contract Manufacturing of Drugs (《药品委托生产监督管理规定》) (the "Contract Manufacturing Regulations") issued by the NMPA in August 2014, in the event that a drug manufacturer in China with drug marketing authorization temporarily lacks manufacturing capability as a result of technology upgrade or is unable to meet market demand due to insufficient manufacturing capacity, it may use contract manufacturer for its drug manufacturing. Contract manufacturing arrangements need to be approved by the provincial branch of the NMPA. The Contract Manufacturing Regulations prohibit contract manufacturing arrangements for certain special drugs, including narcotic drugs, psychoactive drugs, biochemical drugs and active pharmaceutical ingredients.

**Other Regulations in relation to the Pharmaceutical Industry**

***"Two-vote system" for drug sales***

The NHC and other six ministries and commissions issued the Notice on the Opinions on the Implementation of the "Two-Invoice System" in Drug Procurement by Public Medical Institutions (for Trial Implementation) (《关于在公立医疗机构药品采购中推行"两票制"的实施意见 (试行) 的通知》) (the "Notice on Two-Invoice System") on January 11, 2017. "Two-invoice system" means that one invoice shall be issued by a pharmaceutical manufacturer to a distributor, and another invoice shall be issued by the distributor to a hospital. An internal transfer of drugs from a group pharmaceutical distributor to its wholly owned or controlled subsidiary or a transfer of drugs between such wholly owned subsidiaries may not be deemed as "one invoice" however, the invoicing for the whole group can be done only once. Pharmaceutical manufacturers and distributors shall reasonably determine the markup level in the spirit of fairness, legality, legitimacy and integrity. Public medical institutions are encouraged to settle the payment for drugs directly with pharmaceutical manufacturers, and pharmaceutical manufacturers and are encouraged to settle the delivery cost with distributors.

In the sale of drugs, drug manufacturers and distributors shall issue value-added tax ("VAT") special invoices or normal VAT invoices in accordance with the regulations regarding invoice control. The sold drug shall also be delivered in a way that confirms to the requirements of the Good Supply Practice for Pharmaceutical Products (2016 version) (《药品经营质量管理规范(2016修订)》), and the names of the purchaser and seller on the invoices shall be consistent with the delivery form, payment flow and amount.

***Drug Advertisements***

Pursuant to the Interim Administrative Measures for the Review of Advertisements for Drugs, Medical Devices, Health Food and Formula Food for Special Medical Purposes (《药品、医疗器械、保健食品、特殊医学用途配方食品广告审查管理暂行办法》) promulgated on December 24, 2019 and effective on March 1, 2020, an enterprise seeking to advertise its drugs must apply for an advertising approval code. An advertising approval code shall expire on the earlier of the expiration dates of the product's registration certificate, filing certificate or production license. If an expiration date is not prescribed in the product's registration certificate, filing certificate or production license, the advertising approval code shall be valid for two years. The contents of an approved advertisement shall not be altered without prior approval. Where an advertisement needs to be edited, the enterprise shall submit an application for a new advertisement approval code.

***Insert Sheet, Labels and Packaging of Pharmaceutical Products***

According to the Measures for the Administration of the Insert Sheets and Labels of Drugs (《药品说明书和标签管理规定》) effective on June 1, 2006, the insert sheets and labels of a pharmaceutical product shall be reviewed and approved by the NMPA. A drug insert sheet should include the scientific data, conclusions and information concerning drug safety and efficacy in order to direct the safe and reasonable use of pharmaceutical products. The inner label of a pharmaceutical product shall indicate the product name, indication or function, strength, dose and usage, production date, batch number, expiration date and drug manufacturer, and the outer label of a pharmaceutical product shall indicate the product name, ingredients, description, indication or function, strength, dose and usage and adverse reactions.

According to the Measures for the Administration of Pharmaceutical Packaging (《药品包装管理办法》) effective on September 1, 1988, pharmaceutical packaging must comply with national and professional standards. If no national or professional standards are available, a manufacturer can formulate and implement its own standards after it receives approval from the provincial food and drug administration or bureau of standards. The company shall reapply for approval if it were to change its own packaging standards. Pharmaceutical products with no approved packing standards shall not be sold or traded in the PRC, except for drugs for military use.

***Drug Technology Transfer***

On August 19, 2009, the NMPA promulgated the Administrative Regulations for Technology Transfer Registration of Drugs (《药品技术转让注册管理规定》) (the "Technology Transfer Regulations") to regulate the drug technology transfer process, including the application, evaluation, examination, approval and monitoring of, drug technology transfer. Drug technology transfer means that the owner transfers its pharmaceutical manufacturing technology to a pharmaceutical manufacturer and that the transferee applies for drug registration pursuant to the Technology Transfer Regulations. Drug technology transfer includes the transfer of new drug technology and drug manufacturing technology.

Applications for drug technology transfer shall be submitted to the provincial drug regulatory authority where the transferee is located. The drug regulatory authority examines application materials and conducts on-site inspections of the transferee's manufacturing facilities. If the transferor and the transferee are located in different provinces, the provincial drug regulatory authority where the transferor is located shall issue examination opinions as well. The Center for Drug Evaluation (the "CDE"), a branch of the NMPA, shall further review the application materials, provide technical evaluation opinions and form a comprehensive evaluation opinion based on the on-site inspection reports and the testing results of the samples. The NMPA shall determine whether to approve the application according to the comprehensive evaluation opinion of the CDE. An approval letter of supplementary application and a drug approval number will be issued for qualified applications.

***Price of drugs***

Pursuant to the Drug Administration Law (《药品管理法》), for those drugs whose prices are determined by market, manufacturers and distributors of pharmaceutical products and medical institutions shall set the prices in accordance with the principles of fairness, rationality, and good faith, and provide consumers with drugs at reasonable prices. Pharmaceutical product manufacturers, distributors and medical institutions shall determine and indicate their products' retail prices in accordance with the regulations over drug prices promulgated by the pricing department of the State Council of the People's Republic of China (the "State Council").

On May 4, 2015, the National Development and Reform Commission, the National Health and Family Planning Commission, the Ministry of Human Resources and Social Security, the Ministry of Industry and Information Technology, the Ministry of Finance, the MOFCOM and the NMPA jointly issued the Notice Regarding Reforms to the Price of Medical Products (《关于印发推进药品价格改革意见的通知》), pursuant to which, since June 1, 2015, other than anesthetics and Class 1 psychotropic drugs, the actual price of pharmaceutical products shall be decided by market instead of by the government. As of the date of this annual report, the actual price of all products we sell, including TCMD products and third-party products, are determined by market.

As of the date of this annual report, we are engaged in the business of manufacturing and selling drugs. We obtained our latest drug manufacturing license on November 20, 2025 which is valid until November 19, 2030, in compliance with the applicable PRC laws and regulations.

**Regulation relating to Company Establishment and Foreign Investment**

The PRC Company Law applies to the establishment, operation and management of both PRC domestic companies and foreign-invested enterprises. Foreign investment in the PRC corporate entities are also regulated by the foreign-Owned Enterprise Law of the PRC (《中华人民共和国外资企业法》) (the "Foreign-Owned Enterprise Law") promulgated on April 12, 1986 and amended on October 31, 2000 and September 3, 2016, the Implementing Rules for the Foreign-Owned Enterprise Law of the PRC (《中华人民共和国外资企业法实施细则》) promulgated on December 12, 1990 and amended on April 12, 2001 and February 19, 2014, and the Interim Administrative Measures for the Record-filing of the Incorporation and Change of Foreign-invested Enterprises (《外商投资企业设立及变更备案管理暂行办法》) (the "Record-filing Measures") promulgated on October 8, 2016 and amended on July 30, 2017 and June 29, 2018. Under these laws and regulations, the establishment of a wholly foreign-owned enterprise is subject to the approval of, or the filing with the MOFCOM or its local counterpart, and such wholly foreign-owned enterprises must register and file with the appropriate administrative bureau of industry and commerce.

The Foreign Investment Law of the People's Republic of China (《中华人民共和国外商投资法》) (the "Foreign Investment Law"), which was promulgated by the National People's Congress On March 15, 2019, and came into effect on January 1, 2020, provides that foreign investment refers to the investment activities in China carried out directly or indirectly by foreign natural persons, enterprises or other organizations (the "Foreign Investors"), including the following: (1) Foreign Investors establishing foreign-invested enterprises in China alone or collectively with other investors; (2) Foreign Investors acquiring shares, equities, properties or other similar rights of Chinese domestic enterprises; (3) Foreign Investors investing in new projects in China alone or collectively with other investors; and (4) Foreign Investors investing through other ways prescribed by laws and regulations or the State Council. The State adopts the management system of pre-establishment national treatment and negative list for foreign investment. The pre-entry national treatment means the treatment given to Foreign Investors and their investments at the stage of investment access is not lower than that of domestic investors and their investments. The negative list management system means that the state implements special administrative measures for access of foreign investment in specific fields. Foreign investors shall not invest in any forbidden fields stipulated in the negative list and shall mean the conditions stipulated in the negative list before investing in any restricted fields. The negative list is released upon approval of the State Council. After the Foreign Investment Law came into effect, it replaced the Foreign-Owned Enterprise Law.

The Implementation Regulations for the Foreign Investment Law of the PRC (《中华人民共和国外商投资法实施条例》) (the "Implementation Regulations for the FIL") was adopted at the 74th executive meeting of the State Council on December 12, 2019 and came into effect on January 1, 2020. The purpose of the Implementation Regulations for the FIL is to encourage and promote foreign investment, protect the legitimate rights and interests of investors, regulate the administration of foreign investment, and continuously optimize the foreign investment environment. For those foreign-invested enterprises established prior to the implementation of the Foreign Investment Law and established in accordance with the Law of the People's Republic of China on Sino-foreign Joint Ventures (《中华人民共和国中外合资经营企业法》), the Law of the People's Republic of China on Foreign-invested Enterprises, and the Law of the People's Republic of China on Sino-Foreign Cooperative Enterprises, they can modify or retain their organizational forms and organizational structures in accordance with the PRC Company Law, Partnership Law of the People's Republic of China and other applicable laws within 5 years since the implementation of the Foreign Investment Law.

Foreign investment in China shall comply with the Catalogue for Encouraged Foreign Investment (2022 Revision) (《鼓励外商投资产业目录(2022年版)》), or the 2022 Catalogue, and the Special Administrative Measures for the Access of Foreign Investment (Negative List) (Edition 2024) (《外商投资准入特别管理措施(负面清单) (2024年版)》), or the 2024 Negative List, which came into effect on November 1, 2024. The 2024 Negative List, among other things, sets out on a unified basis the special administrative measures regarding equity and senior management personnel requirements for foreign investment access. Areas not covered in the 2024 Negative List for Foreign Investment Access shall be subject to administration pursuant to the principle of equal treatment for domestic and foreign investments. The relevant provisions of the 2024 Negative List for Market Access shall apply to both domestic and foreign investors uniformly.

The M&A Rules were jointly promulgated by the MOFCOM, the State-Owned Assets Supervision and Administration Commission of the State Council, the SAT, the SAIC, the CSRC, and the SAFE on August 8, 2006 and was amended by MOFCOM on June 22, 2009. The M&A Rules provides that a foreign investor is required to obtain necessary approvals when it: (1) acquires equity interests in a domestic enterprise or subscribes to additional shares in a domestic enterprise; (2) purchases the assets of a domestic enterprise through establishment of a foreign-invested enterprise; or (3) establishes a foreign-invested enterprise through which it purchases the assets of a domestic enterprise and operates these assets. In particular, any PRC company, enterprise or individual is required to obtain approval from the MOFCOM and comply with applicable laws and regulations if it establishes an offshore company and attempts to acquire a domestic enterprise related to such offshore company.

**Regulations Related to Overseas Listing**

The Overseas Listings Rules refine the regulatory system for domestic company's overseas offering and listing by subjecting both direct and indirect overseas offering and listing activities to the filing-based administration, and clearly define the circumstances where provisions for direct and indirect overseas offering and listing apply and the relevant regulatory requirements.

According to the Overseas Listings Rules, among other things, a domestic company in the PRC that seeks to offer and list securities on overseas markets shall fulfill the filing procedures with the CSRC as per requirement of the Trial Measures. Where a domestic company seeks to directly offer and list securities on overseas markets, the issuer shall file with the CSRC. Where a domestic company seeks to indirectly offer and list securities on overseas markets, the issuer shall designate a major domestic operating entity, which shall, as the domestic responsible entity, file with the CSRC. Initial public offerings or listings on overseas markets shall be filed with the CSRC within three working days after the relevant application is submitted overseas. If an issuer subsequently offers securities on the same overseas market where it has previously offered and listed securities, filings shall be made with the CSRC within three working days after the offering is completed. Upon occurrence of any material event, such as change of control, investigations or sanctions imposed by overseas securities regulatory agencies or other relevant competent authorities, change of listing status or transfer of listing segment, or voluntary or mandatory delisting, after an issuer has offered and listed securities on an overseas market, the issuer shall submit a report thereof to the CSRC within three working days after the occurrence and public disclosure of such event.

The Trial Measures provide that an overseas listing or offering is explicitly prohibited, if any of the following happens: (i) such securities offering and listing is explicitly prohibited by provisions in laws, administrative regulations, and relevant state rules; (ii) the intended securities offering and listing may endanger national security as reviewed and determined by competent authorities under the State Council in accordance with law; (iii) the domestic company intending to make the securities offering and listing, or its controlling shareholder(s) and the actual controller(s), have committed relevant crimes such as corruption, bribery, embezzlement, misappropriation of property, or undermining the order of the socialist market economy during the latest three years; (iv) the domestic company intending to make the securities offering and listing is currently under investigations for suspicion of criminal offenses or major violations of laws and regulations, and no conclusion has yet been made thereof; or (v) there are material ownership disputes over equity held by the domestic company's controlling shareholder(s) or by other shareholder(s) that are controlled by the controlling shareholder(s) and/or actual controller. Moreover, a domestic company that seeks to offer and list securities on overseas markets shall abide by certain other regulatory requirements as set out in the Trial Measures, including compliance with laws of national secrecy, foreign investment, cybersecurity, data security, cross-border investment and financing, foreign exchange, and other laws and relevant provisions.

The Trial Measures also provide that if the issuer meets the following criteria, the overseas securities offering and listing conducted by such issuer will be deemed to be an indirect overseas offering by PRC domestic companies: (i) domestic companies accounted for 50% or more of any of the issuer's operating revenue, total profit, total assets, or net assets as documented in its audited consolidated financial statements for the most recent fiscal year; and (ii) the main parts of the issuer's business activities are conducted in mainland China, or its main place(s) of business are located in mainland China, or the majority of senior management staff in charge of its business operations and management are PRC citizens or have their usual place(s) of residence located in mainland China.

Under the Trial Measures, if a domestic company fails to fulfill the filing procedures or offers and lists securities on an overseas market in violation of the relevant provisions of the Trial Measures, the CSRC shall order rectification, issue warnings to such domestic company, and impose a fine between RMB1,000,000 (approximately US$0.14 million) and RMB10,000,000 (approximately US$1.42 million). Directly liable persons-in-charge and other directly liable persons shall be warned and each subject to a fine between RMB500,000 (approximately US$0.07 million) and RMB5,000,000 (approximately US$0.71 million). Controlling shareholders and actual controllers of the domestic company that organize or instruct the aforementioned violations shall be subject to a fine between RMB1,000,000 (approximately US$0.14 million) and RMB10,000,000 (approximately US$1.42 million).

On February 24, 2023, the CSRC promulgated the Provisions on Strengthening Confidentiality and Archives Administration of Overseas Securities Offering and Listing by Domestic Companies (the "Confidentiality and Archives Administration Provisions"), which became effective on March 31, 2023. According to the Confidentiality and Archives Administration Provisions, domestic companies that seek overseas offering and listing (either in direct or indirect means) and the securities companies and securities service providers (either incorporated domestically or overseas) that undertake relevant businesses shall institute a sound confidentiality and archives administration system and take necessary measures to fulfill confidentiality and archives administration obligations. They shall not leak any state secret or working secret of government agencies, or harm national security and public interests. Therefore, a domestic company that plans to, either directly or through its overseas listed entity, publicly disclose or provide to relevant individuals or entities, including securities companies, securities service providers, and overseas regulators, any documents and materials that contain state secrets or working secrets of government agencies, shall first obtain approval from competent authorities according to laws, and file with the secrecy administrative department at the same level. Moreover, if the leakage of any other documents and materials which a domestic company plans to publicly disclose or provide to relevant individuals and entities aforementioned, either directly or through its overseas listed entity, will be detrimental to national security or public interest, the domestic company shall strictly fulfill relevant procedures stipulated by applicable regulations.

Furthermore, the Confidentiality and Archives Administration Provisions stipulate that a domestic company that provides accounting archives or copies of accounting archives to any entities, including securities companies, securities service providers, and overseas regulators and individuals, shall fulfill due procedures in compliance with applicable regulations. Working papers produced in mainland China by securities companies and securities service providers in the process of undertaking businesses related to overseas offering and listing by domestic companies shall be retained in mainland China. Where such documents need to be transferred or transmitted to areas outside of mainland China, relevant approval procedures stipulated by regulations shall be followed.

**Laws and Regulations Related to Cyber Security and Data Protection**

**Data Security Law of the PRC**

The Data Security Law of the PRC (the "Data Security Law") was promulgated by the SCNPC on June 10, 2021, and took effect on September 1, 2021. Pursuant to the Data Security Law, data refers to any record of information in electronic or any other form and data processing including the collection, storage, use, processing, transmission, provision, and public disclosure of data. The Data Security Law establishes a classified and tiered system for data protection based on the level of importance of the data to the economic and social development, as well as the level of danger of the data imposed on national security, public interests, or the legal interests of individuals and organizations upon any manipulation, destruction, leakage, illegal acquisition, or illegal usage thereof. The data processors shall comply with the provisions of laws and regulations when conducting data processing activities, establish and improve a whole-process data security management system, organize data security educational trainings, and take corresponding technical measures and other necessary measures to safeguard data security.

**Regulations on Network Data Security Administration**

The Data Security Administration was promulgated by SCNPC on September 24, 2024 and took effect on January 1, 2025. According to the Data Security Regulations, data processors shall, in accordance with relevant state provisions, apply for cybersecurity review when carrying out the following activities: (i) the merger, reorganization, or separation of internet platform operators that have acquired a large number of data resources related to national security, economic development, or public interests, which affect or may affect national security; (ii) data processors that handle personal data of more than one million individuals intend to list on a foreign stock exchange; (iii) data processors that intend to list on Hong Kong exchange, which affects or may affect national security; and (iv) other data processing activities that affect or may affect national security.

**Cybersecurity Review Measures**

On December 28, 2021, 13 government departments, including the CAC, jointly promulgated the Cybersecurity Review Measures, which became effective on February 15, 2022. Under the Cybersecurity Review Measures, (i) where a critical information infrastructure operator procures network products and services, it shall anticipate the national security risks that may be posed by the products and services once they are put into use. Those that affect or may affect national security shall be reported to the Cybersecurity Review Office of the PRC for cybersecurity review; (ii) online platform operators controlling personal information of more than one million users, which are listed on a foreign exchange, must apply for a cybersecurity review with the Cybersecurity Review Office of the PRC; and (iii) the Cybersecurity Review Office of the PRC will conduct a cybersecurity review on critical information infrastructure operators and network platform operators in accordance with the laws if it considers necessary.

AllBright Law Offices (Fuzhou), our PRC legal counsel, has advised us that, as of the date of this annual report, the PRC operating entities are not subject to cybersecurity review with the CAC, since they currently do not have over one million users' personal information and do not anticipate that they will be collecting over one million users' personal information in the foreseeable future, which we understand might otherwise subject the PRC operating entities to the cybersecurity review with the CAC.

**Laws and Regulations Related to Personal Information Protection**

The Personal Information Protection Law of the PRC (the "Personal Informational Protection Law") was promulgated by the SCNPC on August 20, 2021 and became effective on November 1, 2021. The Personal Informational Protection Law stipulates, among others, that (i) the processing of personal information should have a clear and reasonable purpose, which should be directly related to the processing purpose, in a method that has the least impact on personal rights and interests, and (ii) the collection of personal information shall be limited to the minimum scope necessary for achieving the processing purpose and shall not be excessive. Personal information processors shall bear responsibilities and take necessary measures to guarantee the security of the personal information they handle. Otherwise, the personal information processors could be ordered to correct, suspend or terminate services, and face confiscation of illegal income, fines, or other penalties.

AllBright Law Offices (Fuzhou), our PRC legal counsel has advised us that, as of the date of this annual report, neither we nor our PRC subsidiaries have received any notification of non-compliance related to personal information protection from any Chinese authorities.

**Regulation in relation to Intellectual Property Rights**

In terms of international conventions, China has entered into (including but not limited to) the Agreement on Trade-Related Aspects of Intellectual Property Rights (《与贸易有关的知识产权协定》), the Paris Convention for the Protection of Industrial Property (《保护工业产权巴黎公约》), the Madrid Agreement Concerning the International Registration of Marks (《商标国际注册马德里协定》) and the Patent Cooperation Treaty (《专利合作协定》).

***Patents***

Pursuant to the Patent Law of the PRC (《中华人民共和国专利法》), or the Patent Law, promulgated by the SCNPC on March 12, 1984 and last amended on October 17, 2020 and effective from June 1, 2021 and the Implementation Rules of the Patent Law of the PRC (《中华人民共和国专利法实施细则》), promulgated by the State Council on June 15, 2001 and amended on December 28, 2002 and January 9, 2010, respectively, patents in China fall into three categories: invention patents, utility model patents and design patents. The term of patent protection starts from the date of application and lasts 20 years for invention patents and 10 years for utility model patents and design patents. Any individual or entity that utilizes a patent or conducts any other activity that infringes a patent without the patent holder's authorization shall pay compensation to the patent holder and be subject to a fine imposed by regulatory authorities and, if such behavior constitutes a crime, shall be held criminally liable in accordance with applicable laws. According to the Patent Law, for public health purposes, the State Intellectual Property Office of the PRC, or SIPO, may grant a compulsory license for manufacturing patented drugs and exporting them to countries or regions covered under relevant international treaties to which PRC has acceded. In addition, under the Patent Law, any organization or individual that applies for a patent in a foreign country for an invention or utility model patent established in China is required to report to the SIPO for confidentiality examination. Patent holders may apply for extending the terms of patented drugs to compensate for commercialization delays due to regulatory review, and may seek punitive damages for willful patent infringement under severe circumstances.

***Trade Secrets***

Pursuant to the PRC Anti-Unfair Competition Law (《中华人民共和国反不正当竞争法》) promulgated by the SCNPC in September 1993, as amended on November 4, 2017 and April 23, 2019 respectively, the term "trade secrets" refers to technical and business information that is unknown to the public, has utility, may create business interests or profits for its legal owners or holders, and is maintained as a secret by its legal owners or holders. Under the PRC Anti-Unfair Competition Law, business persons are prohibited from infringing others' trade secrets by: (1) obtaining trade secrets from the legal owners or holders by any unfair methods, such as theft, bribery, fraud, coercion, electronic intrusion, or any other illicit means; (2) disclosing, using or permitting others to use the trade secrets obtained illegally under item (1) above; or (3) disclosing, using or permitting others to use the trade secrets, in violation of any contractual agreements or any requirements of the legal owners or holders to keep such trade secrets in confidence. If a third party knows or should have known of the above- mentioned illegal conduct but nevertheless obtains, uses or discloses trade secrets of others, the third party may be deemed to have committed a misappropriation of the others' trade secrets. The parties whose trade secrets are being misappropriated may petition for administrative corrections, and regulatory authorities may stop any illegal activities and impose fines on the infringing parties.

***Trademarks***

In accordance with the Trademark Law of the PRC (《中华人民共和国商标法》) (the "Trademark Law"), which was promulgated by the SCNPC on August 23, 1982, and was last amended on April 23, 2019 and came into effect on November 1, 2019, any trademark which is registered with the approval of the Trademark Office is a registered trademark, including commodity trademark, service trademark, collective trademark, certification trademark, and the trademark registrant has the exclusive right to use a registered trademark and such right is protected by law. A registered trademark is valid for a period of 10 years commencing from the date on which the registration is approved. Upon expiration of the trademark, the registrant shall apply for renewal within twelve months prior to the expiration date if it intends to maintain exclusive use of the trademark. If the registrant fails to apply for renewal, a grace period of six months may be granted. In the absence of a renewal upon the expiration of a trademark registration, the registered trademark shall be canceled. Use of a trademark that is identical with or similar to a registered trademark, for the same kind of or similar commodities, without authorization of the trademark registrant, constitutes infringement of the exclusive right to use a registered trademark. Industrial and commercial administrative authorities have the authority to investigate any behavior that may constitute an infringement of the exclusive right under a registered trademark.

***Domain names***

Domain names are protected under the Administrative Measures on the Internet Domain Names (《互联网域名管理办法》), which was promulgated by the Ministry of Industry and Information Technology, or the MIIT, on August 24, 2017 and came into effect on November 1, 2017, and the Implementing Rules of China Internet Network Information Center on the Registration of Domain Names (《中国互联网络信息中心域名注册实施细则》) issued by China Internet Network Information Center (the "CNNIC") on May 28, 2012 and came into effect on May 29, 2012. Domain name registrations are handled through domain name service agencies established under the relevant regulations, and the applicant becomes domain name holder upon successful registration. Domain name disputes shall be submitted to an organization authorized by CNNIC for resolution.

**Other laws**

***Product Liability***

The Product Quality Law of the PRC (《中华人民共和国产品质量法》), promulgated by the SCNPC on February 22, 1993 and last amended on December 29, 2018, governs the supervision and administration of product quality and specifies the liabilities of manufacturers and sellers. A manufacture shall be liable for compensating for any bodily injuries or property damages, other than the defective product itself, resulting from the defects in the product, unless the manufacturer is able to prove that: (1) the product has never been distributed; (2) the defects causing injuries or damage did not exist at the time when the product was distributed; or (3) the science and technology at the time when the product was distributed was at a level incapable of detecting the defects. A seller shall pay compensation if it fails to indicate either the manufacturer or the supplier of the defective product. A person who is injured or whose property is damaged by the defects in the product may claim for compensation from the manufacturer or the seller.

Pursuant to the Civil Code of the People's Republic of China (《中华人民共和国民法典》), promulgated by the SCNPC on May 28, 2020 and became effective on January 1, 2021, manufacturers shall assume tort liabilities where the defects in products cause damage to others. Sellers shall assume tort liability where the defects in products that have caused damage to others are attributable to the sellers. The aggrieved party may claim for compensation from the manufacturer or the seller of the defected product that has caused damage.

***Environmental Protection***

Pursuant to the Environmental Protection Law of the PRC (《中华人民共和国环境保护法》) promulgated by the SCNPC on December 26, 1989 and amended on April 24, 2014, the Environmental Impact Assessment Law of the PRC (《中华人民共和国环境影响评价法》), promulgated by the SCNPC on October 28, 2002 and amended on July 2, 2016 and December 29, 2018 respectively, the Administrative Regulations on the Environmental Protection of Construction Project (《建设项目环境保护管理条例》) promulgated by the State Council on November 29, 1998 and amended on July 16, 2017, and other applicable environmental laws and regulations, an enterprise with a project construction plan shall submit an environmental impact assessment report, stating the environmental impacts the project is likely to have, to the administrative authority of environmental protection for approval. Enterprises shall engage qualified institutions to issue the environmental impact assessment reports.

According to the Law of the PRC on the Prevention and Control of Water Pollution (《中华人民共和国水污染防治法》) promulgated by the SCNPC on May 11, 1984 and last amended on June 27, 2017, and effective on January 1, 2018, the Law of the PRC on the Prevention and Control of Atmospheric Pollution (《中华人民共和国大气污染防治法》) promulgated by the SCNPC on September 5, 1987 and last amended on October 26, 2018, the Law of the PRC on the Prevention and Control of Pollution from Environmental Noise (《中华人民共和国环境噪声污染防治法》) promulgated by the SCNPC on October 29, 1996 and amended on December 29, 2018, and the Law of the PRC on the Prevention and Control of Environmental Pollution of Solid Waste (《中华人民共和国固体废物污染环境防治法》), promulgated by the SCNPC on October 30, 1995 and last amended on April 29, 2020, all the enterprises that may cause environmental pollution in the course of their business operation shall implement preventive and curative environmental protection measures in their plants and establish a reliable environmental protection system.

We strictly complied with the applicable environmental laws and regulations in constructing our factory. On December 8, 2004, the environmental protection bureau of local government determined that the environmental protection facilities we constructed for our factory satisfied the relevant standards. According to the certificate issued by the ecological environment bureau of local government (the "Bureau"), our factory has not been assessed on its environmental impacts since its establishment in 2004. Although there were certain procedural defects in the original construction process, we constructed our environmental protection facilities for our factory in strict compliance with the requirements of applicable PRC environmental laws and regulations. Our environmental protection facilities were approved by the Bureau in December 2004 and have since been under normal operations. As of the date of the date of this annual report, we have not been found in violation of applicable environmental laws or regulations, or imposed of administrative penalties by environmental protection authorities in the past three years. No environmental pollution incident has occurred on our manufacturing facility.

***Foreign Exchange Control***

Pursuant to the Foreign Exchange Administration Regulations of the PRC (《中华人民共和国外汇管理条例》), as amended on August 5, 2008, and the Regulation on the Administration of the Foreign Exchange Settlement, Sales and Payment (《结汇、售汇及付汇管理规定》), or the Settlement Regulations, promulgated by the People's Bank of China on June 20, 1996 and came into effect on July 1, 1996, foreign exchanges required for profit distributions and dividend payments may be purchased from designated foreign exchange banks in the PRC upon presentation of a board resolution authorizing distribution of profits or payment of dividends.

According to the Notice of SAFE on Further Improving and Adjusting Foreign Exchange Administration Policies on Direct Investment (《国家外汇管理局关于进一步改进和调整直接投资外汇管理政策的通知》) (the "Circular No. 59"), promulgated on November 19, 2012 and last amended on December 30, 2019 by the State Administration of Exchange Control, or the SAFE, (1) the opening of and payment into foreign exchange accounts under direct investment accounts are no longer subject to approval by the SAFE; (2) reinvestment with legal income of foreign investors in China is no longer subject to approval by SAFE; (3) the procedures for capital verification and confirmation that foreign-funded enterprises need to go through are simplified; (4) purchase and external payment of foreign exchange under direct investment accounts are no longer subject to approval by SAFE; (5) domestic transfer of foreign exchange under direct investment account is no longer subject to approval by SAFE; and (6) the administration over the conversion of foreign exchange capital of foreign-invested enterprises is improved.

Pursuant to the Circular on Further Simplifying and Improving the Direct Investment-related Foreign Exchange Administration Policies (《关于进一步简化和改进直接投资外汇管理政策的通知》) (the "SAFE Circular No. 13"), which was promulgated on February 13, 2015 and became effective on June 1, 2015, the foreign exchange registration under domestic direct investment and the foreign exchange registration under foreign direct investment is directly reviewed and handled by banks in accordance with the Circular No. 13, and the SAFE and its branches shall perform indirect regulation over the foreign exchange registration via banks.

Pursuant to the Circular on the Reform of the Management Method for the Settlement of Foreign Exchange Capital of Foreign-invested Enterprises (《国家外汇管理局关于改革外商投资企业外汇资本金结汇管理方式的通知》) promulgated by the SAFE on March 30, 2015 and became effective on June 1, 2015, and the Circular on the Reform and Standardization of the Management Policy of the Settlement of Capital Projects (《国家外汇管理局关于改革和规范资本项目结汇管理政策的通知》) promulgated by the SAFE on June 9, 2016, the settlement of foreign exchange by foreign invested enterprises shall be governed by the policy of foreign exchange settlement on a discretionary basis. However, the settlement of foreign exchange shall only be used for its own operation purposes within the business scope of the foreign invested enterprises in accordance with the principle of authenticity.

Pursuant to the Circular 37, a PRC resident shall register with the local SAFE branch before he or she contributes assets or equity interests in an overseas special purpose vehicle ("Overseas SPV"), which is directly established or controlled by the PRC Resident for the purpose of conducting investment for financing. Failure to comply with the SAFE registration requirements could result in penalties for evasion of foreign exchange controls. The Circular No. 13 provides that banks can directly handle the initial foreign exchange registration and amendment registration under the Circular 37. Mr. Gang Lai completed the initial foreign registration on June 3, 2019.

***Labor and Social Insurance***

Pursuant to the Labor Contract Law (《中华人民共和国劳动合同法》), which was promulgated by the SCNPC on June 29, 2007 and became effective on January 1, 2008, and amended on December 28, 2012 and became effective on July 1, 2013, and the Implementing Regulations of the Labor Contracts Law of the PRC (《中华人民共和国劳动合同法实施条例》), which was promulgated by the State Council on September 18, 2008, labor contracts shall be concluded in writing if employment relationships are to be or have been established between employers and employees. In addition, employee wages cannot be lower than local standards on minimum wages.

Pursuant to the Labor Law of the PRC (《中华人民共和国劳动法》), which was promulgated by the SCNPC on July 5, 1994 and last amended and came into effect on December 29, 2018, employers shall establish and improve their system of workplace safety and sanitation, strictly abide by state rules and standards on workplace safety, educate employees in occupational safety and sanitation in the PRC. Occupational safety and sanitation facilities shall comply with state-fixed standards. Enterprises and institutions shall provide employees whose work involves occupational hazards with health examinations on a regular basis.

According to the Social Insurance Law, the Interim Regulations on the Collection and Payment of Social Security Funds (《社会保险费征缴暂行条例》), which was promulgated by the State Council on January 22, 1999 and amended on March 24, 2019, and the Administrative Regulations on the Housing Provident Funds (《住房公积金管理条例》), which was promulgated by the State Council on April 3, 1999 and last amended on March 24, 2019, employers are required to make contributions, on behalf of their employees, to a number of social security funds, including funds for basic pension insurance, unemployment insurance, basic medical insurance, occupational injury insurance, maternity insurance and to housing provident funds. Any employer who fails to make contributions may be fined and ordered to make good the deficit within a stipulated time limit.

Prior to April 2020, we only contributed to the social insurance and housing provident funds for some, but not all, of our employees. There is a risk that the labor security administration authority may take enforcement action to collect from us all the outstanding contributions of the social insurance and housing provident funds required to be made for the employees in the past, and we may be subject to a late charge at the rate of 0.2% per day on the total outstanding contribution. We started to contribute to the social insurance and housing provident funds for all of our employees since April 2020.

Since April 2020, we have been contributing to the social insurance and housing provident funds for our employees in accordance with the minimum contribution requirements. Pursuant to the aforementioned applicable laws and regulations, the government or an employee has the right to demand us to contribute to the employee's social insurance and housing provident funds calculated based on his or her actual salary, and an employee who has not received contributions from us has the right to demand us to contribute to his or her social insurance and housing provident funds. As confirmed in writing by the local government, our contributions of the social insurance and housing provident funds are in compliance with the PRC laws and the local regulations and policies, and therefore the local government is very unlikely to impose any penalty on us for our contributions since April 2020.

***Enterprise Income Tax***

According to the EIT Law, promulgated by the National People's Congress on March 16, 2007, effective on January 1, 2008 and last amended on December 29, 2018, and the Implementation Regulations for the Enterprise Income Tax Law of the PRC (《中华人民共和国企业所得税法实施条例》) promulgated by the State Council on December 6, 2007 and amended on April 23, 2019, other than a few exceptions, the income tax rate for both domestic enterprises and foreign-invested enterprises is 25%. Enterprise taxpayers are classified as either resident enterprises or non-resident enterprises. Resident enterprises are defined as enterprises that are established in China in accordance with PRC laws, or that are established in accordance with the laws of foreign countries but whose actual or de facto management bodies are located in China. Non-resident enterprise refers to an entity established under foreign law whose de facto management bodies are not within the PRC but which have an establishment or place of business in the PRC, or which do not have an establishment or place of business in the PRC but have income sourced within the PRC. An income tax rate of 10% will normally be applicable to dividends declared to non-PRC resident enterprise investors that do not have an establishment or place of business in the PRC, or that have such establishment or place of business but the relevant income is not effectively connected with the establishment or place of business, to the extent such dividends are derived from sources within the PRC.

Pursuant to the Arrangement between the Mainland of China and the Hong Kong Special Administrative Region for the Avoidance of Double Taxation and Prevention of Fiscal Evasion with respect to Taxes on Incomes (《内地和香港特别行政区关于对所得避免双重征税和防止偷漏税的安排》), or the Double Tax Avoidance Arrangement, and other applicable PRC laws, 5% withholding tax rate shall apply to the dividends paid by a PRC company to a Hong Kong resident, provided that such Hong Kong resident directly holds at least 25% of the equity interests in the PRC company, and 10% of withholding tax rate shall apply if the Hong Kong resident holds less than 25% of the equity interests in the PRC company. However, pursuant to the Circular on Certain Issues Relating to the Implementation of Dividend Provisions in Tax Treaties (《关于执行税收协定股息条款有关问题的通知》) issued on February 20, 2009 by the SAT, if a PRC tax authority determines, in its discretion, that a company benefits from such reduced income tax rate as a result of an arrangement that is primarily tax-driven, such PRC tax authority may adjust the preferential tax treatment of the company. Based on the Announcement on Certain Issues with Respect to the Beneficial Owner in Tax Treaties (《国家税务总局关于税收协定中受益所有人有关问题的公告》) issued by the SAT on February 3, 2018 and effective on April 1, 2018, if an applicant's business activities do not constitute substantive business activities, it could result in the negative determination of the applicant's status as a beneficial owner, and consequently, the applicant could be precluded from enjoying the above-mentioned reduced income tax rate of 5% under the Double Tax Avoidance Arrangement.

**C. <u>Organizational Structure</u>**

See "—A. History and Development of the Company."

**D. <u>Property, Plants and Equipment</u>**

See "—B. Business Overview—Properties and Facilities."

**Item 4A. UNRESOLVED STAFF COMMENTS**

Not applicable.

**Item 5. OPERATING AND FINANCIAL REVIEW AND PROSPECTS**

The following discussion of our financial condition and results of operations is based upon and should be read in conjunction with our consolidated financial statements and their related notes included elsewhere in this annual report. This report contains forward-looking statements. In evaluating our business, you should carefully consider the information provided under the caption "Item 3. Key Information—D. Risk Factors" in this annual report. We caution you that our businesses and financial performance are subject to substantial risks and uncertainties.

**A. <u>Operating Results</u>**

**Overview**

Through the PRC operating entities in China, the Company is a pharmaceutical company specializing in the development, manufacturing, marketing and sale of TCMD products targeted to the elderly to address their physical conditions in the aging process and to promote their general well-being. We have registered and obtained approval for 26 varieties of TCMD products from the National Medical Products Administration (the "NMPA"), and we currently produce 13 varieties of TCMD products and sell them in 261 cities in 30 provinces in China as of the date of this annual report. In addition, we also sell biomedical drugs, medical instruments, TCMPs and dietary supplements manufactured by third-party pharmaceutical companies (collectively referred to as "third-party products").

Our major customers are pharmaceutical companies, hospitals, clinics and drugstore chains, primarily located in Jiangxi Province, Jiangsu Province, Guangdong Province, Hubei Province, Fujian Province, Guangxi Province and Shandong Province, and 23 other provinces in China.

**Key Factors that Affect Our Results of Operations**

We believe the following key factors may affect our financial condition and results of operations:

 ****

***Our Ability to Attract Additional Customers and Increase the Spending Per Customer***

Our major customers are pharmaceutical distributors, hospitals, clinics and drugstore chains. We currently sell our products to these customers in 261 cities in 30 provinces in China, with significant customers located in Jiangxi Province, Jiangsu Province, Guangdong Province, Hubei Province, Fujian Province, Guangxi Province and Shandong Province in China. Our top 10 customers in the aggregate accounted for 21.3%, 22.5% and 27.2% of our total revenues for the fiscal years ended September 30, 2025, 2024 and 2023, respectively. No single customer contributed to more than 10% of our total revenues for the fiscal years ended September 30, 2025, 2024 and 2023. The concentration decline is attributable to our effort to expand retail channels and develop new customers. Our dependence on a small number of larger customers could expose us to the risk of substantial losses if any single large customer stops purchasing our products, purchases fewer of our products or goes out of business and we cannot find substitute customers on equivalent terms. If any of our significant customers reduces the quantity of the products they purchase from us or stops purchasing from us, our net revenues would be materially and adversely affected. Therefore, the success of our business in the future depends on our effective marketing efforts to expand our distribution network including additional cities and rural areas in the PRC in an effort to increase our geographic appearance. The success of expansion will depend upon many factors, including our ability to form relationships with, and manage an increasing number of, customers base and optimize our distribution network. If our marketing efforts fail to convince customers to accept our products, we may find it difficult to maintain the existing level of sales or to increase such sales. Should this happen, our net revenues would decline and our growth prospects would be severely impaired.

***Our Ability to Increase Awareness of Our Brand and Develop Customer Loyalty***

 ****

Our brands, such as "Bai Nian Dan (百年丹)" and "Hu Zhuo Ren (胡卓仁)", are well-recognized among our clients and other Chinese medicine industry players. Our brand is integral to our sales and marketing efforts. We believe that maintaining and enhancing our brand name recognition in a cost-effective manner is critical to achieving widespread acceptance of our current and future products and is an important element in our effort to increase our customer base. Successful promotion of our brand name will depend largely on our marketing efforts and ability to provide reliable and quality products at competitive prices. Brand promotion activities may not necessarily yield increased revenue, and even if they do, any increased revenue may not offset the expenses we will incur in marketing activities. If we fail to successfully promote and maintain our brand, if we incur substantial expenses in an unsuccessful attempt to promote and maintain our brand, or if we fail to generate the desired level of brand recognition and awareness through our recent television advertising efforts, or at all, we may fail to attract new customers or retain our existing customers, in which case our business, operating results and financial condition, would be materially adversely affected.

***Our Ability to Control Costs and Expenses and Improve Our Operating Efficiency***

Our business growth is dependent on our ability to attract and retain qualified and productive employees, identify business opportunities, secure new contracts with customers, and our ability to control costs and expenses to improve our operating efficiency. Our inventory costs (including raw materials, labor, packaging cost, depreciation and amortization, freight costs, overhead and third-party products purchase costs) have a direct impact on our profitability. The raw materials used in manufacturing of our TCMD products are subject to price volatility and inflationary pressures. Our success is dependent, in part, on our ability to reduce our exposure to increase in those costs through a variety of ways, while maintaining and improving margins and market share. We also rely on third-party manufacturers as a source for a portion of the components used for producing our products. These manufacturers are also subject to price volatility, labor costs and other inflationary pressures, which may, in turn, result in an increase in the amount we pay for sourced products. Raw materials and sourced product price increases may offset our productivity gains and price increases and may adversely impact our financial results. In addition, our staffing costs (including payroll and employee benefit expense) and administrative expenses also have a direct impact on our profitability. Our ability to drive the productivity of our staff and enhance our operating efficiency affects our profitability. To the extent that the costs we are required to pay to our suppliers and our staffs exceed our estimates, our profit may be impaired. If we fail to implement initiatives to control costs and improve our operating efficiency over time, our profitability will be negatively impacted.

 ****

***Our Ability to Compete Successfully***

The Chinese patent medicine industry we are in is highly competitive and evolving in China. The development and commercialization of new pharmaceutical products is highly competitive, and the industry currently is characterized by rapidly changing technologies, significant competition and a strong emphasis on intellectual property. We will face competition with respect to our current and future pharmaceutical product candidates from major pharmaceutical companies in China. Potential competitors also include academic institutions, government agencies and other public and private research organizations that conduct research, seek patent protection and establish collaborative arrangements for research, development, manufacturing and commercialization of pharmaceutical products. Some of our current or potential competitors may have significantly greater financial resources and expertise in research and development, manufacturing, product testing, obtaining regulatory approvals and marketing approved products than we do, and in the event that any of these happens, our competitors may be able to establish a strong market position before our new products are able to enter the market. Additionally, technologies developed by our competitors may render our product candidates uneconomical or obsolete. If we do not compete effectively, our operating results could be harmed.

 ****

***General Economic Conditions and Industry Trends in China***

All of our business operations are conducted in China. Accordingly, our business, prospects, financial condition and results of operations may be influenced to a significant degree by political, economic and social conditions in China. Economic growth directly influences disposable income and consumer spending power, which in turn affects demand for pharmaceutical products. The nationwide centralized drug procurement policy has materially impacted the Company's results of operations, mainly by driving down the per unit sale price of third-party products via its "volume-for-price" mechanism. Our business is also affected by factors driving the Chinese patent medicine industry, such as aging population, rising prevalence of chronic diseases and growing health awareness among consumers. Additionally, changes in healthcare policies, regulatory frameworks, and reimbursement systems can significantly impact market dynamics and our competitive position. As a result, unfavorable changes in any of these general economic conditions or industry trends could materially and adversely affect demand for our products and our results of operations.

**Key Financial Performance Indicators**

In assessing our financial performance, we consider a variety of financial performance measures, including principal growth in net revenue and gross profit, our ability to control costs and operating expenses to improve our operating efficiency and net income. Our review of these indicators facilitates timely evaluation of the performance of our business and effective communication of results and key decisions, allowing our business to respond promptly to competitive market conditions and different demands and preferences from our customers. The key measures that we use to evaluate the performance of our business are set forth below.

 ****

***Net Revenue***

Our revenue is reported net of all value added taxes ("VAT"). Our products are sold with no right of return and we do not provide other credits or sales incentive to customers. Our revenue is driven by sales volume, selling price, and mix of products sold.

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **For the Fiscal Years Ended September 30,** | **For the Fiscal Years Ended September 30,** | **For the Fiscal Years Ended September 30,** | **Variance<br> comparing<br> Fiscal Year 2025 to<br> Fiscal Year 2024** | **Variance<br> comparing<br> Fiscal Year 2024 to<br> Fiscal Year 2023** |
|  | **2025** | **2024** | **2023** | **%** | **%** |
| Revenue from sales of self-manufactured TCMD products | 74.3% | 60.9% | 57.5% | 13.3% | 3.4% |
| Revenue from sales of third-party products | 25.7% | 39.1% | 42.5% | (13.3)% | (3.4)% |
| Total revenue | 100.0% | 100.0% | 100.0% |  |  |
| Sales volume by unit- TCMD products | 11924621 | 11881087 | 16753432 | 0.4% | (29.1)% |
| Sales volume by unit- third party products | 5168119 | 6321624 | 8777877 | (18.2)% | (28.0)% |
| Total sales volume | 17092740 | 18202711 | 25531309 | (6.1)% | (28.7)% |
| Average selling price per unit- TCMD products | $1.11 | $1.18 | $1.11 | (5.9)% | 6.3% |
| Average selling price per unit- Third-party products | $0.89 | $1.42 | $1.56 | (37.3)% | (9.0)% |

---

Revenues from sales of TCMD products manufactured by us accounted for 74.3%, 60.9% and 57.5% of our total revenues for the fiscal years ended September 30, 2025, 2024 and 2023, respectively. The 13 TCMD products manufactured by us fall into two categories: (i) treatment and relief for common chronic health conditions in the elderly designed to achieve physical wellness and longevity (the "Chronic Condition Treatments") and (ii) cold and flu medications. Our Chronic Condition Treatments primarily include Guben Yanling Pill, Shenrong Weisheng Pill, Quanlu Pill, Yangxue Danggui Syrup, Wuzi Yanzong Oral Liquid, Fengtong Medicinal Liquor, Shenrong Medicinal Liquor, Qishe Medicinal Liquor, Fengshitong Medicinal Liquor, and Shiquan Dabu Medicinal Liquor, and our cold and flu medications primarily include Paracetamol Granule for Children, Isatis Root Granule and Qiangli Pipa Syrup.

In order to diversify our product offerings and product mix, in addition to selling our self-manufactured TCMD products, we also sell products manufactured by third-party pharmaceutical companies, including (i) biomedical drugs, such as liquid glucose, prednisolone, and citicoline, (ii) medical instruments, such as drug-eluting stents, surgical tubes and syringes, (iii) TCMPs, such as red sage tables, Longdan Xiegan pills, and Chinese skullcap capsules, and (iv) dietary supplements, such as vitamins, probiotic powder, and calcium tablets. Revenues from sales of third-party products accounted for 25.7%, 39.1% and 42.5% of our total revenues for the fiscal years ended September 30, 2025, 2024 and 2023, respectively.

***Gross Profit***

 ****

Gross profit is equal to net revenue minus cost of goods sold. Cost of goods sold primarily includes inventory costs (raw materials, labor, packaging costs, depreciation and amortization, third-party products purchase price, freight costs and overhead). Cost of goods sold generally changes as our production costs change, as these are affected by factors including the market price of raw materials, labor productivity, or the purchase price of third-party products, and as the customer and product mix changes. Our cost of revenues accounted for 64.7%, 73.6% and 68.1% of our total revenue for the fiscal years ended September 30, 2025, 2024 and 2023, respectively. We expect our cost of revenues to increase as we further expand our operations in the foreseeable future.

Our gross margin was 35.3%, 26.4% and 31.9% for the fiscal years ended September 30, 2025, 2024 and 2023, respectively. Our gross profit and gross margin are affected by the different product mix, the average selling price and unit cost of those products sold during each fiscal year. See detailed discussion under "––Results of Operation".

 **

***Operating Expenses***

 **

Our operating expenses consist of selling expenses, general and administrative expenses and research and development expenses.

 ****

Our selling expenses primarily include salary and welfare benefit expenses paid to our sales personnel, advertising expenses to increase the awareness of our brand, shipping and delivery expenses, expenses incurred for our business travel, meals and other sales promotion and marketing activities related expenses. Our selling expenses accounted for 26.9%, 35.5% and 21.0% of our total revenue for the fiscal years ended September 30, 2025, 2024 and 2023, respectively. We expect our overall selling expenses, including but not limited to, advertising expenses and brand promotion expenses and salaries, to increase in the foreseeable future and facilitate the growth of our business, especially when we continue to expand our business and promote our products to customers located at extended geographic areas.

Our general and administrative expenses primarily consist of employee salaries, welfare and insurance expenses, depreciation, bad debt reserve expenses, inspection and maintenance expenses, office supply and utility expenses, business travel and meals expenses, land and property taxes and professional service expenses. General and administrative expenses were 21.0%, 12.6% and 8.2% of our revenue for the fiscal years ended September 30, 2025, 2024 and 2023, respectively. We expect our general and administrative expenses, including, but not limited to, salaries and business consulting expenses, to increase in the foreseeable future, as we plan to hire additional personnel and incur additional expenses in connection with the expansion of our business operations.

The Chinese patent medicine industry is characterized by rapid and frequent changes in customer demand and launches of new products. If we do not launch new products or improve our existing products to meet the changing demands of our customers in a timely manner, some of our products could become uncompetitive in the market, thereby adversely affecting on our revenues and operating results. Our research and development expenses primarily consist of salaries, welfare and insurance expenses paid to our employees involved in the research and development activities, materials and supplies used in the development and testing of new TCMD products, depreciation, and other miscellaneous expenses. Research and development expenses accounted for 3.8%, 13.2% and 15.0% of our revenue for the fiscal years ended September 30, 2025, 2024 and 2023, respectively. As we continue to develop new products and diversify our product offerings to satisfy customer demand, we expect our research and development expenses to increase in the foreseeable future.

**Fiscal year ended September 30, 2025 compared to fiscal year ended September 30, 2024**

The following table summarizes the results of our operations during the fiscal years ended September 30, 2025 and 2024, respectively, and provides information regarding the dollar and percentage increase or (decrease) during such periods.

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **For the Fiscal Years Ended September 30,** | **For the Fiscal Years Ended September 30,** | **For the Fiscal Years Ended September 30,** | **For the Fiscal Years Ended September 30,** | **For the Fiscal Years Ended September 30,** | **For the Fiscal Years Ended September 30,** |
|  | **2025** | **2025** | **2024** | **2024** | **Variance** | **Variance** |
|  | **Amount** | **% of<br> revenue** | **Amount** | **% of<br> revenue** | **Amount** | **%** |
| REVENUE | $17858732 | 100.0% | $23024458 | 100.0% | $(5165726) | (22.4)% |
| COST OF REVENUE | 11557563 | 64.7% | 16952556 | 73.6% | (5394993) | (31.8)% |
| GROSS PROFIT | 6301169 | 35.3% | 6071902 | 26.4% | 229267 | 3.8% |
| OPERATING EXPENSES |  |  |  |  |  |  |
| Selling expenses | 4797622 | 26.9% | 8170975 | 35.5% | (3373353) | (41.3)% |
| General and administrative expenses | 3747705 | 21.0% | 2889652 | 12.6% | 858053 | 29.7% |
| Research and development expenses | 671761 | 3.8% | 3031115 | 13.2% | (2359354) | (77.8)% |
| Total operating expenses | 9217088 | 51.6% | 14091742 | 61.2% | (4874654) | (34.6)% |
| LOSS FROM OPERATIONS | (2915919) | (16.3)% | (8019840) | (34.8)% | 5103921 | (63.6)% |
| OTHER INCOME (EXPENSE) |  |  |  |  |  |  |
| Interest expense, net | (232041) | (1.3)% | (278172) | (1.2)% | 46131 | (16.6)% |
| Other (expense) income, net | (108044) | (0.6)% | 145476 | 0.6% | (253520) | (174.3)% |
| Impairment of prepayments for construction in progress | (481109) | (2.7)% |  | -% | (481109) | (100)% |
| Equity investment income | 65058 | 0.4% | 31942 | 0.1% | 33116 | 103.7% |
| Total other expense, net | (756136) | (4.2)% | (100754) | (0.4)% | (655382) | 650.5% |
| LOSS BEFORE INCOME TAX | (3672055) | (20.6)% | (8120594) | (35.3)% | 4448539 | (54.8)% |
| INCOME TAX EXPENSE | - | -% | 606704 | 2.6% | (606704) | (100.0)% |
| NET LOSS | $(3672055) | (20.6)% | $(8727298) | (37.9)% | $5055243 | (57.9)% |

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***Revenues.*** We currently produce and sell 13 varieties of TCMD products and also sell products manufactured by third-party pharmaceutical companies, to our customers.

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the Fiscal Years Ended September 30,** | **For the Fiscal Years Ended September 30,** | **For the Fiscal Years Ended September 30,** | **For the Fiscal Years Ended September 30,** |
|  | **2025** | **2024** | **Change** | **Change** |
|  | **Amount** | **Amount** | **Amount** | **%** |
| Revenue from sales of self-manufactured TCMD products | $13260650 | $14026049 | $(765399) | (5.5)% |
| Revenue from sales of third-party products | 4598082 | 8998409 | (4400327) | (48.9)% |
| Total revenue | $17858732 | $23024458 | $(5165726) | (22.4)% |

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Our revenues decreased by $5,165,726, or 22.4%, to $17,858,732 for the fiscal year ended September 30, 2025, from $23,024,458 for the fiscal year ended September 30, 2024.

 ****

***Revenue from sales of our TCMD products***

Sales of TCMD products decreased by $765,399, or 5.5%, to $13,260,650 for the fiscal year ended September 30, 2025, from $14,026,049 for the fiscal year ended September 30, 2024. The decrease in the sales of our TCMD product was due to the following specific reasons:

&nbsp;&nbsp;&nbsp;&nbsp;a) The average selling price of
our TCMD products decreased by $0.07 per unit, or 5.9%, to $1.11 per unit for the fiscal year ended September 30, 2025, from $1.18 per
unit for the fiscal year ended September 30, 2024, due to a change in product mix.

&nbsp;&nbsp;&nbsp;&nbsp;b) As a result of our new pricing
strategy, sales volume of TCMD products increased slightly by 0.4%, to 11,924,621 units sold for the fiscal year ended September 30,
2025, from 11,881,087 units sold for the fiscal year ended September 30, 2024.

  **

***Revenue from sales of third-party products***

 **

Sales of third-party products decreased by $4,400,327, or 48.9%, to $4,598,082 for the fiscal year ended September 30, 2025, from $8,998,409 for the fiscal year ended September 30, 2024. Average selling price of third-party products decreased by $0.53 per unit, or 37.3%, to $0.89 per unit in the fiscal year ended September 30, 2025, from $1.42 per unit in the fiscal year ended September 30, 2024. Sales volume of third-party products decreased by 1,153,505 units, or 18.2%, to 5,168,119 units sold in the fiscal year ended September 30, 2025, from 6,321,624 units sold in the fiscal year ended September 30, 2024. The nationwide centralized drug procurement policy implemented in China led to a significant decrease in the prices of third-party products, intensified the industry's differentiation, making it difficult for small and medium-sized enterprises to compete with leading enterprises, and our sales volume of third-party products decreased. See also "—Key Factors that Affect our Results of Operations—General Economic Conditions and Industry Trends in China."

***Cost of Revenues.*** Our cost of revenues primarily consists of inventory costs (raw materials, labor, packaging cost, depreciation and amortization, third-party products purchase price, freight costs and overhead) and business tax. Cost of revenues generally changes as our production costs change, which are affected by factors including the market price of raw materials, labor productivity, and the purchase price of third-party products, and as the customer and product mix changes.

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the Fiscal Years Ended September 30,** | **For the Fiscal Years Ended September 30,** | **For the Fiscal Years Ended September 30,** | **For the Fiscal Years Ended September 30,** |
|  | **2025** | **2024** | **Change** | **Change** |
|  | **Amount** | **Amount** | **Amount** | **%** |
| Cost of revenue- TCMD products | $8844452 | $11145847 | $(2301395) | (20.6)% |
| Cost of revenue- third-party products | 2713111 | 5806709 | (3093598) | (53.3)% |
| Total cost of revenue | $11557563 | $16952556 | $(5394993) | (31.8)% |

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Cost of revenues decreased by $5,394,993, or 31.8%, to $11,557,563 for the fiscal year ended September 30, 2025, from $16,952,556 for the fiscal year ended September 30, 2024, mainly due to a decrease in average cost of our TCMD products and third-party products.

***Cost of revenues of TCMD products***

 ****

Cost of revenues of TCMD products accounted for 76.5% and 65.7% of our total costs of revenues for the fiscal years ended September 30, 2025 and 2024, respectively. Cost of revenues of TCMD products decreased by $2,301,395, or 20.6%, from $11,145,847 for the fiscal year ended September 30, 2024 to $8,844,452 for the fiscal year ended September 30, 2025. The decrease in cost of revenues of our TCMD products was due to the following reasons:

&nbsp;&nbsp;&nbsp;&nbsp;(1) Sales volume of our TCMD products
increased slightly by 0.4%, to 11,924,621 units sold in the fiscal year ended September 30, 2025, from 11,881,087 units sold in the fiscal
year ended September 30, 2024.

&nbsp;&nbsp;&nbsp;&nbsp;(2) In the summer of 2023, severe
floods struck Anhui and Hubei Provinces, the core production regions of traditional Chinese medicinal materials in China, which initially
caused a reduction in raw material supply and an increase in prices of traditional Chinese medicinal raw materials during the fiscal
year ended September 30, 2024. However, driven by factors such as the government's emergency supply guarantee policies and the
expansion of alternative planting areas, the supply of traditional Chinese medicinal raw materials increased, and the prices of such
raw materials decreased during the fiscal year ended September 30, 2025. The average per unit cost of our TCMD products decreased by
$0.20, or 20.9%, from $0.94 per unit for the fiscal year ended September 30, 2024 to $0.74
per unit for the fiscal year ended September 30, 2025.

***Cost of revenues of third-party products***

Cost of revenues of third-party products accounted for 23.5% and 34.3% of our total costs of revenues for the fiscal years ended September 30, 2025 and 2024, respectively.

Cost of revenues of third-party products decreased by $3,093,598, or 53.3%, from $5,806,709 for the fiscal year ended September 30, 2025 to $2,713,111 for the fiscal year ended September 30, 2024, because of the decrease in sales volume of third-party products by 18.2%, from 6,321,624 units sold in the fiscal year ended September 30, 2024 to 5,168,119 units sold in the fiscal year ended September 30, 2025. The average per unit cost of third-party products decreased by $0.40 per unit, or 42.8%, from $0.92 per unit for the fiscal year ended September 30, 2024 to $0.52 per unit for the fiscal year ended September 30, 2025, due to the nationwide centralized drug procurement policy discussed above.

***Gross profit***

Our gross profit increased by $229,267, to $6,301,169 for the fiscal year ended September 30, 2025, from $6,071,902 for the fiscal year ended September 30, 2024. Our margin increased by 8.9%, to 35.3% for the fiscal year ended September 30, 2025, from 26.4% for the fiscal year ended September 30, 2024.

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the Fiscal Years Ended September 30,** | **For the Fiscal Years Ended September 30,** | **For the Fiscal Years Ended September 30,** | **For the Fiscal Years Ended September 30,** |
|  | **2025** | **2024** | **Change** | **Change** |
|  | **Amount** | **Amount** | **Amount** | **%** |
| Gross profit- TCMD products | $4416198 | $2880202 | $1535996 | 53.3% |
| Gross profit- third-party products | 1884971 | 3191700 | (1306729) | (40.9)% |
| Total gross profit | $6301169 | $6071902 | $229267 | 3.8% |
| Gross margin- TCMD products | 33.3% | 20.5% |  | 12.8% |
| Gross margin- third party products | 41.0% | 35.5% |  | 5.5% |
| Total gross margin | 35.3% | 26.4% |  | 8.9% |
| Average selling price per unit- TCMD products | $1.11 | $1.18 | $(0.07) | (5.9)% |
| Average cost per unit- TCMD products | $0.74 | $0.94 | $(0.20) | (20.9)% |
| Average selling price per unit- third party products | $0.89 | $1.42 | $(0.53) | (37.3)% |
| Average cost per unit - third party products | $0.52 | $0.92 | $(0.40) | (42.8)% |

---

Gross profit from the sales of our TCMD products increased by $1,535,996, or 53.3%, from $2,880,202 for the fiscal year ended September 30, 2024 to $4,416,198 for the fiscal year ended September 30, 2025, and the gross margin of our TCMD products increased by 12.8%, from 20.5% for the fiscal year ended September 30, 2024 to 33.3% for the fiscal year ended September 30, 2025. The increase in our gross profit from the sales of TCMD products was affected by the decrease in the average per unit cost and the increase in sales volume, and partially offset by the decrease in the average unit selling price.

Gross profit from third-party product sales decreased by $1,306,729, or 40.9%, from $3,191,700 for the fiscal year ended September 30, 2024 to $1,884,971 for the fiscal year ended September 30, 2025, while the gross margin of third-party product sales slightly increased by 5.5%, from 35.5% for the fiscal year ended September 30, 2024 to 41.0% for the fiscal year ended September 30, 2025. The decrease in our gross profit from third-party products was affected by the decrease in sales volume and the average unit selling price, and partially offset by the decrease in the average per unit cost.

***Operating expenses***

The following table sets forth the breakdown of our operating expenses for the fiscal years ended September 30, 2025 and 2024:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **For the Fiscal Years Ended September 30,** | **For the Fiscal Years Ended September 30,** | **For the Fiscal Years Ended September 30,** | **For the Fiscal Years Ended September 30,** | **For the Fiscal Years Ended September 30,** | **For the Fiscal Years Ended September 30,** |
|  | **2025** | **2025** | **2024** | **2024** | **Variance** | **Variance** |
|  | **Amount** | **% of<br> revenue** | **Amount** | **% of<br> revenue** | **Amount** | **%** |
| **Total revenue** | $**17858732** | **100.0%** | $**23024458** | **100.0%** | $**(5165726)** | **(22.4)%** |
| Operating expenses: |  |  |  |  |  |  |
| Selling expenses | 4797622 | 26.9% | 8170975 | 35.5% | (3373353) | (41.3)% |
| General and administrative expenses | 3747705 | 21.0% | 2889652 | 12.6% | 858053 | 29.7% |
| Research and development expenses | 671761 | 3.8% | 3031115 | 13.2% | (2359354) | (77.8)% |
| **Total operating expenses** | $9217088 | 51.6% | $14091742 | 61.2% | $(4874654) | (34.6)% |

---

***Selling expenses***

Our selling expenses primarily include salaries and welfare benefit expenses paid to our sales personnel, advertising expenses to increase our brand awareness, shipping and delivery expenses, expenses incurred for our business travel, meals and other sales promotion and marketing activities related expenses.

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **For the Fiscal Years Ended September 30,** | **For the Fiscal Years Ended September 30,** | **For the Fiscal Years Ended September 30,** | **For the Fiscal Years Ended September 30,** | **For the Fiscal Years Ended September 30,** | **For the Fiscal Years Ended September 30,** |
|  | **2025** | **2025** | **2024** | **2024** | **Variance** | **Variance** |
|  | **Amount** | **%** | **Amount** | **%** | **Amount** | **%** |
| Salary and employee benefit expenses | $1001501 | 20.9% | $915850 | 11.2% | $85651 | 9.4% |
| Advertising expenses | 2523773 | 52.6% | 5144579 | 63.0% | (2620806) | (50.9)% |
| Shipping and delivery expenses | 846569 | 17.6% | 1183046 | 14.5% | (336477) | (28.4)% |
| Business travel and meals expenses | 384413 | 8.0% | 239237 | 2.9% | 145176 | 60.7% |
| Market research expenses |  | -% | 567312 | 6.9% | (567312) | (100.0)% |
| Other sales promotion related expenses | 41366 | 0.9% | 120951 | 1.5% | (79585) | (65.8)% |
| Total selling expenses | $4797622 | 100.0% | $8170975 | 100.0% | $(3373353) | (41.3)% |

---

Our selling expenses decreased by $3,373,353, or 41.3%, to $4,797,622 for the fiscal year ended September 30, 2025, from $8,170,975 for the fiscal year ended September 30, 2024, primarily attributable to (i) a decrease in advertising expenses by $2,620,806 and a decrease in market research expenses by $567,312. We incurred significant publicity expenses for our products and brand during the fiscal year ended September 30, 2024, but the effort made no remarkable difference, and we reduced our advertising expenses during the fiscal year ended September 30, 2025; (ii) a decrease in shipping and delivery expenses by $336,477, which is in line with the decrease in sales volume; and partially offset by (iii) an increase in business travel and meals expenses by $145,176, or 60.7%.

***General and Administrative Expenses***

 ****

Our general and administrative expenses primarily consist of employee salaries, welfare and insurance expenses, depreciation, bad debt reserve expenses, inspection and maintenance expenses, office supply and utility expenses, business travel and meals expenses, land and property taxes and professional service expenses.

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **For the Fiscal Years Ended September 30,** | **For the Fiscal Years Ended September 30,** | **For the Fiscal Years Ended September 30,** | **For the Fiscal Years Ended September 30,** | **For the Fiscal Years Ended September 30,** | **For the Fiscal Years Ended September 30,** |
|  | **2025** | **2025** | **2024** | **2024** | **Variance** | **Variance** |
|  | **Amount** | **%** | **Amount** | **%** | **Amount** | **%** |
| Salary and employee benefit expense | $645703 | 17.2% | $729515 | 25.2% | $(83812) | (11.5)% |
| Depreciation and amortization | 246336 | 6.6% | 209604 | 7.3% | 36732 | 17.5% |
| Bad debt reserve expenses | (113454) | (3.0) | 131581 | 4.6 | (245035) | (186.2)% |
| Land and property tax |  | -% | 1573 | 0.1% | (1573) | (100.0)% |
| Office supply and utility expense | 97458 | 2.6% | 180347 | 6.2% | (82889) | (46.0)% |
| Transportation, business travel and meals expense | 129802 | 3.5% | 152086 | 5.3% | (22284) | (14.7)% |
| Consulting fee | 2331771 | 62.2% | 1211434 | 41.9% | 1120337 | 92.5% |
| Inspection and maintenance fee | 17911 | 0.5% | 28844 | 1.0% | (10933) | (37.9)% |
| Stamp tax and other expenses | 392178 | 10.4% | 244668 | 8.4% | 147510 | 60.3% |
| Total general and administrative expenses | $3747705 | 100.0% | $2889652 | 100.0% | $858053 | 29.7% |

---

General and administrative expenses increased by $858,053, or 29.7%, to $3,747,705 for the fiscal year ended September 30, 2025, from $2,889,652 for the fiscal year ended September 30, 2024, primarily attributable to (i) an increase in consulting fees by $1,120,337 due to underwriting expense and legal fees in connection with the Company's registered direct offering with an aggregate offering amount of $15 million closed on December 6, 2024; (ii) an increase in stamp tax and other expenses by $147,510; and partially offset by (iii) a decrease in bad debt reserve expense by $245,035, as we reversed bad debt expenses based on our assessment of the collectability of the accounts receivable. We expected to collect substantially all accounts receivable balance as of September 30, 2025 due to our improved accounts receivable collection pattern during the fiscal year ended September 30, 2025.

***Research and development expenses***

Our research and development expenses primarily consist of salaries, welfare and insurance expenses paid to our employees involved in the research and development activities, materials and supplies used in the development and testing new TCMD products, depreciation and other miscellaneous expenses.

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **For the Fiscal Years Ended September 30,** | **For the Fiscal Years Ended September 30,** | **For the Fiscal Years Ended September 30,** | **For the Fiscal Years Ended September 30,** | **For the Fiscal Years Ended September 30,** | **For the Fiscal Years Ended September 30,** |
|  | **2025** | **2025** | **2024** | **2024** | **Variance** | **Variance** |
|  | **Amount** | **%** | **Amount** | **%** | **Amount** | **%** |
| Salary and employee benefit expenses to research and development staff | $108797 | 16.2% | $137423 | 4.5% | $(28626) | (20.8)% |
| Materials used in research and development activities | 388148 | 57.8% | 134532 | 4.4% | 253616 | 188.5% |
| Expenditure on new product development |  | -% | 2720597 | 89.8% | (2720597) | (100.0)% |
| Depreciation and others | 174816 | 26.0% | 38563 | 1.3% | 136253 | 353.3% |
| Total research and development expenses | $671761 | 100.0% | $3031115 | 100.0% | $(2359354) | (77.8)% |

---

Research and development expenses decreased by $2,359,354, or 77.8%, to $671,761 for the fiscal year ended September 30, 2025, from $3,031,115 for the fiscal year ended September 30, 2024, primarily attributable to (i) a decrease in development expenditure on improving production process of our Chinese medicine products in the amount of $2,720,597. We entered into two cooperative agreements with external academic and research institutions to jointly conduct research on action mechanism of our Guben Yanling Pill, with activities beginning in May 2024, and incurred significant amount of research and development expense in connection with such efforts during the fiscal year ended September 30, 2024. These development activities were completed and results were integrated in production in August 2024, and development expenditure decreased significantly during the fiscal year ended September 30, 2025; and partially offset by (ii) an increase in materials used in research and development activities by $253,616.

***Other income (expenses), net***

Total other expenses, net, increased by $655,382, to $756,136 for the fiscal year ended September 30, 2025 from $100,754 for the fiscal year ended September 30, 2024, mainly due to impairment of prepayments for the CIP project of $481,109.

***Income Tax Expense***

Income tax expense was $Nil for the fiscal year ended September 30, 2025, compared to $606,704 for the fiscal year ended September 30, 2024, due to decreased taxable income. As our principal PRC subsidiaries, Jiangxi Universe and Universe Trade, incurred net loss during the fiscal years ended September 30, 2024 and 2023, we evaluated the likelihood of the realization of deferred tax assets, determined that deferred tax assets arising from net operating loss carry-forwards in previous fiscal years might not be realized, and therefore recognized valuation allowance for all deferred tax assets as of September 30, 2025 and 2024.

 ****

***Net Loss***

Net loss was $3,672,055 for the fiscal year ended September 30, 2025, representing a $5,055,243 decrease from net loss of $8,727,298 for the fiscal year ended September 30, 2024.

Basic and diluted loss per share were $8.06 for the fiscal year ended September 30, 2025, compared with basic and diluted loss per share of $626.96 for the fiscal year ended September 30, 2024.

**Fiscal year ended September 30, 2024 compared to fiscal year ended September 30, 2023**

The following table summarizes the results of our operations during the fiscal years ended September 30, 2024 and 2023, respectively, and provides information regarding the dollar and percentage increase or (decrease) during such periods.

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **For the Fiscal Years Ended September 30,** | **For the Fiscal Years Ended September 30,** | **For the Fiscal Years Ended September 30,** | **For the Fiscal Years Ended September 30,** | **For the Fiscal Years Ended September 30,** | **For the Fiscal Years Ended September 30,** |
|  | **2024** | **2024** | **2023** | **2023** | **Variance** | **Variance** |
|  | **Amount** | **% of<br> revenue** | **Amount** | **% of<br> revenue** | **Amount** | **%** |
| REVENUE | $23024458 | 100.0% | $32308735 | 100.0% | $(9284277) | (28.7)% |
| COST OF REVENUE | 16952556 | 73.6% | 21993601 | 68.1% | (5041045) | (22.9)% |
| GROSS PROFIT | 6071902 | 26.4% | 10315134 | 31.9% | (4243232) | (41.1)% |
| OPERATING EXPENSES |  |  |  |  |  |  |
| Selling expenses | 8170975 | 35.5% | 6783703 | 21.0% | 1387272 | 20.5% |
| General and administrative expenses | 2889652 | 12.6% | 2638984 | 8.2% | 250668 | 9.5% |
| Research and development expenses | 3031115 | 13.2% | 4858548 | 15.0% | (1827433) | (37.6)% |
| Total operating expenses | 14091742 | 61.2% | 14281235 | 44.2% | (189493) | (1.3)% |
| LOSS FROM OPERATIONS | (8019840) | (34.8)% | (3966101) | (12.3)% | (4053739) | 102.2% |
| OTHER INCOME (EXPENSE) |  |  |  |  |  |  |
| Interest expense, net | (278172) | (1.2)% | (156788) | (0.5)% | (121384) | 77.4% |
| Other income (expense), net | 145476 | 0.6% | (235614) | (0.7)% | 381090 | (161.7)% |
| Equity investment income | 31942 | 0.1% | 31072 | 0.1% | 870 | 2.8% |
| Total other expense, net | (100754) | (0.4)% | (361330) | (1.1)% | 260576 | (72.1)% |
| LOSS BEFORE INCOME TAX | (8120594) | (35.3)% | (4327431) | (13.4)% | (3793163) | 87.7% |
| INCOME TAX EXPENSE | 606704 | 2.6% | 2253593 | 7.0% | (1646889) | (73.1)% |
| NET LOSS | $(8727298) | (37.9)% | $(6581024) | (20.4)% | $(2146274) | 32.6% |

---

***Revenues.*** We currently produce and sell 13 varieties of TCMD products and also sell products manufactured by third-party pharmaceutical companies, to our customers.

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the Fiscal Years Ended September 30,** | **For the Fiscal Years Ended September 30,** | **For the Fiscal Years Ended September 30,** | **For the Fiscal Years Ended September 30,** |
|  | **2024** | **2023** | **Change** | **Change** |
|  | **Amount** | **Amount** | **Amount** | **%** |
| Revenue from sales of self-manufactured TCMD products | $14026049 | $18572658 | $(4546609) | (24.5)% |
| Revenue from sales of third-party products | 8998409 | 13736077 | (4737668) | (34.5)% |
| Total revenue | $23024458 | $32308735 | $(9284277) | (28.7)% |

---

Our revenues decreased by $9,284,277, or 28.7%, to $23,024,458 for the fiscal year ended September 30, 2024, from $32,308,735 for the fiscal year ended September 30, 2023.

 ****

***Revenue from sales of our TCMD products***

Sales of TCMD products decreased by $4,546,609, or 24.5%, to $14,026,049 for the fiscal year ended September 30, 2024, from $18,572,658 for the fiscal year ended September 30, 2023. The decrease in the sales of our TCMD product was due to the following specific reasons:

&nbsp;&nbsp;&nbsp;&nbsp;a) Global economic slowdown has
led to a decline in customers' spending power, and sales volume of our TCMD products decreased by 29.1%, to 11,881,087 units sold
for the year ended September 30, 2024, from 16,753,432 units sold for the year ended September 30, 2023.

&nbsp;&nbsp;&nbsp;&nbsp;b) The average selling price of
our TCMD products increased by $0.07 per unit, or 6.3%, to $1.18 per unit for the fiscal year ended September 30, 2024, from $1.11 per
unit for the fiscal year ended September 30, 2023, due to a change in product mix.

&nbsp;&nbsp;&nbsp;&nbsp;c) The exchange rate between RMB
and US$ was US$1.00 to RMB7.2043 for the fiscal year ended September 30, 2023 as compared to US$1.00 to RMB7.0533 for the fiscal year
ended September 30, 2024. The depreciation of RMB against US$ had a 2.1% negative impact on our reported revenues.

 **

***Revenue from sales of third-party products***

 **

Sales of third-party products decreased by $4,737,668, or 34.5%, to $8,998,409 for the fiscal year ended September 30, 2024, from $13,736,077 for the fiscal year ended September 30, 2023. Sales volume of third-party products decreased by 28.0%, to 6,321,624 units sold in the fiscal year ended September 30, 2024, from 8,777,877 units sold in the fiscal year ended September 30, 2023. Average selling price of third-party products decreased by $0.14 per unit, or 9.0%, to $1.42 per unit in the fiscal year ended September 30, 2024, from $1.56 per unit in the fiscal year ended September 30, 2023, due to a change in our product mix and the 2.1% negative impact from foreign currency fluctuation as discussed above.

***Cost of Revenues.*** Our cost of revenues primarily consists of inventory costs (raw materials, labor, packaging cost, depreciation and amortization, third-party products purchase price, freight costs and overhead) and business tax. Cost of revenues generally changes as our production costs change, which are affected by factors including the market price of raw materials, labor productivity, and the purchase price of third-party products, and as the customer and product mix changes.

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the Fiscal Years Ended September 30,** | **For the Fiscal Years Ended September 30,** | **For the Fiscal Years Ended September 30,** | **For the Fiscal Years Ended September 30,** |
|  | **2024** | **2023** | **Change** | **Change** |
|  | **Amount** | **Amount** | **Amount** | **%** |
| Cost of revenue- TCMD products | $11145847 | $13404804 | $(2258957) | (16.9)% |
| Cost of revenue- third-party products | 5806709 | 8588797 | (2782088) | (32.4)% |
| Total cost of revenue | $16952556 | $21993601 | $(5041045) | (22.9)% |

---

Cost of revenues decreased by $5,041,045, or 22.9%, to $16,952,556 for the fiscal year ended September 30, 2024, from $21,993,601 for the fiscal year ended September 30, 2023, mainly due to a decrease in sales volume.

***Cost of revenues of TCMD products***

 ****

Cost of revenues of TCMD products accounted for 65.7% and 60.9% of our total costs of revenues for the fiscal years ended September 30, 2024 and 2023, respectively. Cost of revenues of TCMD products decreased by $2,258,957, or 16.9%, from $13,404,804 for the fiscal year ended September 30, 2023 to $11,145,847 for the fiscal year ended September 30, 2024. The decrease in cost of revenues of our TCMD products was due to the following reasons:

&nbsp;&nbsp;&nbsp;&nbsp;(1) Sales volume of our TCMD products
decreased by 29.1%, to 11,881,087 units sold in the fiscal year ended September 30, 2024, from 16,753,432 units sold in the fiscal year
ended September 30, 2023.

&nbsp;&nbsp;&nbsp;&nbsp;(2) In the summer of 2023, a severe
flood in Anhui Province and Hubei Province of China, which are two main producing areas of traditional Chinese medicinal materials, led
to a decrease in the supply of such materials, and the prices of the traditional Chinese medicine raw materials increased during the fiscal year ended September 30, 2024. The average per unit cost of our TCMD products increased
by $0.14, or 17.2%, from $0.80 per unit for the fiscal year ended September 30, 2023 to
$0.94 per unit for the fiscal year ended September 30, 2024.

&nbsp;&nbsp;&nbsp;&nbsp;(3) The 2.1% negative impact from
foreign currency fluctuation as discussed above.

***Cost of revenues of third-party products***

Cost of revenues of third-party products accounted for 34.3% and 39.1% of our total costs of revenues for the fiscal years ended September 30, 2024 and 2023, respectively. Cost of revenues of third-party products decreased by $2,782,088, or 32.4%, from $8,588,797 for the fiscal year ended September 30, 2023 to $5,806,709 for the fiscal year ended September 30, 2024, because of the decrease in sales volume of third-party products by 28.0%, from 8,777,877 units sold in the fiscal year ended September 30, 2023 to 6,321,624 units sold in the fiscal year ended September 30, 2024. The average per unit cost of third-party products decreased by $0.06 per unit, or 6.1%, from $0.98 per unit for the fiscal year ended September 30, 2023 to $0.92 per unit for the fiscal year ended September 30, 2024, due to a change in product mix and the 2.1% negative impact from foreign currency fluctuation as discussed above.

***Gross profit***

Our gross profit decreased by $4,243,232, to $6,071,902 for the fiscal year ended September 30, 2024, from $10,315,134 for the fiscal year ended September 30, 2023. Our margin decreased by 5.5%, to 26.4% for the fiscal year ended September 30, 2024, from 31.9% for the fiscal year ended September 30, 2023.

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the Fiscal Years Ended September 30,** | **For the Fiscal Years Ended September 30,** | **For the Fiscal Years Ended September 30,** | **For the Fiscal Years Ended September 30,** |
|  | **2024** | **2023** | **Change** | **Change** |
|  | **Amount** | **Amount** | **Amount** | **%** |
| Gross profit- TCMD products | $2880202 | $5167854 | $(2287652) | (44.3)% |
| Gross profit- third-party products | 3191700 | 5147280 | (1955580) | (38.0)% |
| Total gross profit | $6071902 | $10315134 | $(4243232) | (41.1)% |
| Gross margin- TCMD products | 20.5% | 27.8% |  | (7.3)% |
| Gross margin- third party products | 35.5% | 37.5% |  | (2.0)% |
| Total gross margin | 26.4% | 31.9% |  | (5.5)% |
| Average selling price per unit- TCMD products | $1.18 | $1.11 | $0.07 | 6.3% |
| Average cost per unit- TCMD products | $0.94 | $0.80 | $0.14 | 17.2% |
| Average selling price per unit- third party products | $1.42 | $1.56 | $(0.14) | (9.0)% |
| Average cost per unit - third party products | $0.92 | $0.98 | $(0.06) | (6.1)% |

---

Gross profit from the sales of our TCMD products decreased by $2,287,652, or 44.3%, from $5,167,854 for the fiscal year ended September 30, 2023 to $2,880,202 for the fiscal year ended September 30, 2024, and the gross margin of our TCMD products decreased by 7.3 percentage point, from 27.8% for the fiscal year ended September 30, 2023 to 20.5% for the fiscal year ended September 30, 2024. The decrease in our gross profit from the sales of TCMD products was affected by the decrease in sales volume, increase in the average per unit cost, and partially offset by the increase in the average unit selling price.

Gross profit from third-party product sales decreased by $1,955,580, or 38.0%, from $5,147,280 for the fiscal year ended September 30, 2023 to $3,191,700 for the fiscal year ended September 30, 2024, while the gross margin of third-party product sales slightly decreased by 2.0%, from 37.5% for the fiscal year ended September 30, 2023 to 35.5% for the fiscal year ended September 30, 2024. The decrease in our gross profit from third-party products was affected by the decrease in sales volume and the average unit selling price, and partially offset by the decrease in the average per unit cost.

***Operating expenses***

The following table sets forth the breakdown of our operating expenses for the fiscal years ended September 30, 2024 and 2023:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **For the Fiscal Years Ended September 30,** | **For the Fiscal Years Ended September 30,** | **For the Fiscal Years Ended September 30,** | **For the Fiscal Years Ended September 30,** | **For the Fiscal Years Ended September 30,** | **For the Fiscal Years Ended September 30,** |
|  | **2024** | **2024** | **2023** | **2023** | **Variance** | **Variance** |
|  | **Amount** | **% of<br> revenue** | **Amount** | **% of<br> revenue** | **Amount** | **%** |
| **Total revenue** | $**23024458** | **100.0%** | $**32308735** | **100.0%** | $**(9284277)** | **(28.7)%** |
| Operating expenses: |  |  |  |  |  |  |
| Selling expenses | 8170975 | 35.5% | 6783703 | 21.0% | 1387272 | 20.5% |
| General and administrative expenses | 2889652 | 12.6% | 2638984 | 8.2% | 250668 | 9.5% |
| Research and development expenses | 3031115 | 13.2% | 4858548 | 15.0% | (1827433) | (37.6)% |
| **Total operating expenses** | $14091742 | 61.2% | $14281235 | 44.2% | $(189493) | (1.3)% |

---

***Selling expenses***

Our selling expenses primarily include salaries and welfare benefit expenses paid to our sales personnel, advertising expenses to increase our brand awareness, shipping and delivery expenses, expenses incurred for our business travel, meals and other sales promotion and marketing activities related expenses.

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **For the Fiscal Years Ended September 30,** | **For the Fiscal Years Ended September 30,** | **For the Fiscal Years Ended September 30,** | **For the Fiscal Years Ended September 30,** | **For the Fiscal Years Ended September 30,** | **For the Fiscal Years Ended September 30,** |
|  | **2024** | **2024** | **2023** | **2023** | **Variance** | **Variance** |
|  | **Amount** | **%** | **Amount** | **%** | **Amount** | **%** |
| Salary and employee benefit expenses | $915850 | 11.2% | $778138 | 11.5% | $137712 | 17.7% |
| Advertising expenses | 5144579 | 63.0% | 4653633 | 68.6% | 490946 | 10.5% |
| Shipping and delivery expenses | 1183046 | 14.5% | 1033213 | 15.2% | 149833 | 14.5% |
| Business travel and meals expenses | 239237 | 2.9% | 208108 | 3.1% | 31129 | 15.0% |
| Market research expenses | 567312 | 6.9% | -% |  | 567312 | 100% |
| Other sales promotion related expenses | 120951 | 1.5% | 110611 | 1.6% | 10340 | 9.3% |
| Total selling expenses | $8170975 | 100.0% | $6783703 | 100.0% | $1387272 | 20.5% |

---

Our selling expenses increased by $1,387,272, or 20.5%, to $8,170,975 for the fiscal year ended September 30, 2024, from $6,783,703 for the fiscal year ended September 30, 2023, primarily attributable to (i) an increase in advertising expenses by $490,946 and increase in market research expenses by $567,312. We entered into advertising service agreement with Health Headline to promote our brand on Health Headline's website and mobile app. Due to global economic slowdown and intense competition in the Chinese patent medicine industry, we increased advertising and market research expenses to increase our brand awareness, maintain existing customer base and attract new customers. Customer number increased from 2,541 during the fiscal year ended September 30, 2023 to 2,561 during the fiscal year ended September 30, 2024; (ii) an increase in shipping and delivery expenses by $149,833, due to increased freight costs and rising fuel prices during the fiscal year ended September 30, 2024; and (iii) an increase in salary and employee benefit expenses by $137,712, or 17.7%, as we recruited new employees in the marketing department to promote sales of our products. ****

***General and Administrative Expenses***

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Our general and administrative expenses primarily consist of employee salaries, welfare and insurance expenses, depreciation, bad debt reserve expenses, inspection and maintenance expenses, office supply and utility expenses, business travel and meals expenses, land and property taxes and professional service expenses.

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **For the Fiscal Years Ended September 30,** | **For the Fiscal Years Ended September 30,** | **For the Fiscal Years Ended September 30,** | **For the Fiscal Years Ended September 30,** | **For the Fiscal Years Ended September 30,** | **For the Fiscal Years Ended September 30,** |
|  | **2024** | **2024** | **2023** | **2023** | **Variance** | **Variance** |
|  | **Amount** | **%** | **Amount** | **%** | **Amount** | **%** |
| Salary and employee benefit expense | $729515 | 25.2% | $728499 | 27.6% | $1016 | 0.1% |
| Depreciation and amortization | 209604 | 7.3% | 195451 | 7.4% | 14153 | 7.2% |
| Bad debt reserve expenses | 131581 | 4.6 |  |  | 131581 | 100% |
| Land and property tax | 1573 | 0.1% | 96412 | 3.7% | (94839) | (98.4)% |
| Office supply and utility expense | 180347 | 6.2% | 440873 | 16.7% | (260526) | (59.1)% |
| Transportation, business travel and meals expense | 152086 | 5.3% | 121122 | 4.6% | 30964 | 25.6% |
| Consulting fee | 1211434 | 41.9% | 926694 | 35.1% | 284740 | 30.7% |
| Inspection and maintenance fee | 28844 | 1.0% | 47154 | 1.8% | (18310) | (38.8)% |
| Stamp tax and other expenses | 244668 | 8.4% | 82779 | 3.1% | 161889 | 195.6% |
| Total general and administrative expenses | $2889652 | 100.0% | $2638984 | 100.0% | $250668 | 9.5% |

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General and administrative expenses increased by $250,668, or 9.5%, to $2,889,652 for the fiscal year ended September 30, 2024, from $2,638,984 for the fiscal year ended September 30, 2023, primarily attributable to (i) an increase in consulting fees by $284,740 due to increased legal fees in connection with our self-underwritten public offering closed in July 2024; (ii) bad debt reserve expense increased by $131,581, because we accrued bad debt expenses based on our assessment of the collectability of the accounts receivable; and partially offset by (iii) a decrease in office supply and utility expense by $260,526 due to decreased investor relations management expense.

***Research and development expenses***

Our research and development expenses primarily consist of salaries, welfare and insurance expenses paid to our employees involved in the research and development activities, materials and supplies used in the development and testing new TCMD products, depreciation and other miscellaneous expenses.

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **For the Fiscal Years Ended September 30,** | **For the Fiscal Years Ended September 30,** | **For the Fiscal Years Ended September 30,** | **For the Fiscal Years Ended September 30,** | **For the Fiscal Years Ended September 30,** | **For the Fiscal Years Ended September 30,** |
|  | **2024** | **2024** | **2023** | **2023** | **Variance** | **Variance** |
|  | **Amount** | **%** | **Amount** | **%** | **Amount** | **%** |
| Salary and employee benefit expenses to research and development staff | $137423 | 4.5% | $140528 | 2.9% | $(3105) | (2.2)% |
| Materials used in research and development activities | 134532 | 4.4% | 881753 | 18.1% | (747221) | (84.7)% |
| Expenditure on new product development | 2720597 | 89.8% | 3794464 | 78.1% | (1073867) | (28.3)% |
| Depreciation and others | 38563 | 1.3% | 41803 | 0.9% | (3240) | (7.8)% |
| Total research and development expenses | $3031115 | 100.0% | $4858548 | 100.0% | $(1827433) | (37.6)% |

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Research and development expenses decreased by $1,827,433, or 37.6%, to $3,031,115 for the fiscal year ended September 30, 2024, from $4,858,548 for the fiscal year ended September 30, 2023, primarily attributable to (i) a decrease in development expenditure on improving production process of our Chinese medicine products in the amount of $1,073,867. We entered into several cooperative agreements with external academic and research institutions to jointly conduct development of eight production process to improve production efficiency and product quality, with activities beginning in August 2022, and incurred significant amount of research and development expense in connection with such efforts during the fiscal year ended September 30, 2023. These development activities were completed and results were integrated in production in September 2023, and development expenditure decreased significantly during the fiscal year ended September 30, 2024; and (ii) a decrease in the materials used in the research and development activities by $747,221 in connection with development activities on improving production process.

***Other income (expenses), net***

Total other expenses, net, decreased by $260,576, to $100,754 for the fiscal year ended September 30, 2024 from $361,330 for the fiscal year ended September 30, 2023.

***Income Tax Expense***

Income tax expense was $606,704 for the fiscal year ended September 30, 2024, representing a decrease of $1,646,889, or 73.1%, from $2,253,593 for the fiscal year ended September 30, 2023, due to decreased taxable income. As our principal PRC subsidiaries, Jiangxi Universe and Universe Trade, incurred net loss during the fiscal years ended September 30, 2024 and 2023, we evaluated the likelihood of the realization of deferred tax assets, determined that deferred tax assets arising from net operating loss carry-forwards in previous fiscal years might not be realized, and therefore recognized $606,704 and $1,567,656 in valuation allowance for deferred tax assets during the fiscal years ended September 30, 2024 and 2023, respectively.

 ****

***Net Loss***

Net loss was $8,727,298 for the fiscal year ended September 30, 2024, representing a $2,146,274 increase from net loss of $6,581,024 for the fiscal year ended September 30, 2023.

**B. <u>Liquidity and Capital Resources</u>**

As of September 30, 2025, we had $33.6 million of cash on hand and $13.0 million in accounts receivable. Our accounts receivable primarily include balance due from customers for our pharmaceutical products sold and delivered to customers. As of date of this annual report, approximately 50.7%, or $6.6 million, of our net accounts receivable balance as of September 30, 2025 has been subsequently collected. Collected accounts receivable will be used as working capital in our operations, if necessary.

As of September 30, 2025, our inventory balance amounted to $2.2 million, primarily consisting of raw materials, work-in-progress and finished TCMD products, which we believe are able to be sold quickly based on the analysis of the current trends in demand for our products.

On June 25, 2021, we entered into a construction agreement with a sub-contractor, Jiangxi Chenyuan Construction Project Co., Ltd. ("Chenyuan"), for the construction of four manufacturing plant buildings and an office building with a total estimated budget of RMB165 million (approximately $23.2 million). As of September 30, 2025, we had made a prepayment of approximately RMB69.2 million (approximately $9.7 million) to Chenyuan and future additional capital expenditure on this constriction-in-process ("CIP") project was estimated to be approximately RMB95.8 million (equivalent to $13.5 million), among which approximately $3.5 million is required for the next 12 months. In April 2025, the Ministry of Emergency Management of the PRC issued the Specification for Safety Management of Fine Chemical Enterprises, pursuant to which enterprises are prohibited from setting up employee dormitories within factory premises. The Company was required to redesign the project, and the expected completion date has been further delayed to June 30, 2028. We currently plan to support our ongoing CIP project through cash collected from accounts receivable, and if necessary, borrowings from banks.

On May 6, 2021, we entered into a real estate property purchase agreement with a related party, Jiangxi Yueshang Investment Co., Ltd. ("Jiangxi Yueshang"), an entity in which our chief executive officer, Mr. Gang Lai, owned 5% of its equity interests as of the date of that agreement. Pursuant to this purchase agreement, Jiangxi Yueshang will sell and we will purchase certain residential apartments and commercial office space totaling 2,749.30 square meters, with a total purchase price of RMB32 million (approximately $4.5 million). As of September 30, 2025, we had made a prepayment of RMB16 million (approximately $2.25 million) to Jiangxi Yueshang. The remaining balance is expected to be paid upon reception of the Real Estate Ownership Certificate.

As of September 30, 2025, we also had short-term bank loans of $7.2 million and long-term bank loans of $2.1 million that we obtained from several PRC banks for working capital purposes. We expect that we will be able to renew all of the existing bank loans upon their maturity based on our past experiences and our outstanding credit history.

As of September 30, 2025, our working capital balance was $40.4 million. In assessing our liquidity, management monitors and analyzes our cash on-hand, our ability to generate sufficient revenue in the future, and our operating and capital expenditure commitments. We believe that our current cash and cash flows provided by operating activities, borrowings from banks and from our principal shareholders will be sufficient to meet our working capital needs in the next 12 months from the date of this annual report.

The following table sets forth summary of our cash flows for the periods indicated:

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| | | | |
|:---|:---|:---|:---|
|  | **For the Fiscal Years Ended September 30,** | **For the Fiscal Years Ended September 30,** | **For the Fiscal Years Ended September 30,** |
|  | **2025** | **2024** | **2023** |
| Net cash (used in) provided by operating activities | $(5052319) | $(9506683) | $1116775 |
| Net cash used in investing activities | (341807) | (361285) | (44169) |
| Net cash provided by (used in) financing activities | 9726130 | 33954325 | (1390646) |
| Effect of exchange rate change on cash | (237672) | 126089 | (108171) |
| Net increase (decrease) in cash | 4094332 | 24212446 | (426211) |
| Cash, beginning of year | 29497693 | 5285247 | 5711458 |
| Cash, end of year | $33592025 | $29497693 | $5285247 |

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***Operating Activities***

 ****

Net cash used in operating activities was $5,052,319 for the fiscal year ended September 30, 2025, primarily consisted of the following:

● Net loss of $3,672,055 for the fiscal year.

● A decrease in accounts payable of $3,132,705 due to the payment of prior-period payables.

● A decrease in other receivable of $3,299,589. On September 26, 2022, we entered into a letter of intent for an equity transfer with an individual, Mr. Xibo Liu, pursuant to which, Mr. Xibo Liu would transfer his 51% ownership in Yunnan Faxi to us at the price of RMB72 million (approximately $10.0 million). Based on contract terms, we prepaid RMB25 million (approximately $3.6 million) within three (3) business days upon signing the letter of intent. However, due to unsatisfactory performance of Yunnan Faxi, the equity transfer contract was terminated on December 20, 2024. The amount of $3,562,472 (RMB25 million) was recorded as other receivable as of September 30, 2024, and collected back in January 2025.

● An increase in advance to suppliers of $1,505,691 to ensure continuous high-quality supplies and favorable purchase prices of raw materials.

Net cash used in operating activities was $9,506,683 for the fiscal year ended September 30, 2024, primarily consisted of the following:

● Net loss of $8,727,298 for the period.

● A decrease in inventories of $1,643,131 due to our efforts to accelerate inventory turnover.

● An increase in accounts receivable of $1,547,834. We provided longer credit terms for our regular customers to maintain customer relationship and promote sales. As of date of this report, approximately 98.4%, or $12.8 million of our net accounts receivable balance as of September 30, 2024 has been subsequently collected.

● A decrease in other payable of $1,135,739 due to decreased unpaid advertising expense.

Net cash provided by operating activities was $1,116,775 for the fiscal year ended September 30, 2023, primarily consisted of the following:

● Net loss of $6,581,024 for the fiscal year.

● A decrease in accounts receivable of $4,718,118. Our accounts receivable primarily includes balance due from customers for our pharmaceutical products sold and delivered to customers. We enhanced our accounts receivable management and shortened accounts receivable collection period during the fiscal year ended September 30, 2023.

● An increase in accounts payable of $1,641,426 due to pending invoices from suppliers for raw materials purchased in the third quarter of 2023.

● An increase in inventory balance of $1,183,823 because we increased inventory stockpiles to reduce the negative impact from increased market price of Chinese traditional medicine raw materials.

***Investing Activities***

Net cash used in investing activities amounted to $341,807 for the fiscal year ended September 30, 2025, mainly due to purchase of fixed assets of $266,771, purchase of intangible asset of $80,416 and proceeds from disposal of property, plant and equipment of $5,380.

Net cash used in investing activities amounted to $361,285 for the fiscal year ended September 30, 2024, mainly due to purchase of fixed assets of $208,320, prepayments for construction in progress of $37,478 and purchase of intangible asset of $117,291.

Net cash used in investing activities amounted to $44,169 for the fiscal year ended September 30, 2023 due to purchase of fixed assets.

***Financing Activities***

 ****

Net cash provided by financing activities amounted to $9,726,130 for the fiscal year ended September 30, 2025, primarily include the following:

● Net proceeds from issuance of ordinary shares of $15,000,000.

● Proceeds from bank loans of $7,057,192 and repayment of bank loans of $5,698,440.

● Proceeds from related party borrowings of $3,213,428 and repayment of related party borrowings of $9,846,050. The balance due to related party mainly consisted of advances from Mr. Gang Lai for working capital purposes during our normal course of business. These advances were non-interest bearing and due on demand.

Net cash provided by financing activities amounted to $33,954,326 for the fiscal year ended September 30, 2024, primarily include the following:

● Net proceeds from issuance of ordinary shares of $24,999,992.

● Proceeds from bank loans of $7,787,016 and repayment of bank loans of $5,552,240.

● Proceeds from related party borrowings of $9,530,378 and repayment of related party borrowings of $2,810,821. The balance due to related party mainly consisted of advances from Mr. Gang Lai for working capital purposes during our normal course of business. These advances were non-interest bearing and due on demand.

Net cash used in financing activities amounted to $1,390,646 for the fiscal year ended September 30, 2023, primarily include the following:

● Proceeds from short-term bank loans of $5,671,104 and repayment of bank loans of $3,969,773.

● Proceeds from related party borrowings of $3,536,126 and repayment of related party borrowings of $6,628,103. The balance due to related party mainly consisted of advances from Mr. Gang Lai, the chairman of our board of directors and our chief executive officer, for working capital purposes during our normal course of business. These advances were non-interest bearing and due on demand.

**Commitments and contingencies**

From time to time, we may be a party to various legal actions arising in the ordinary course of business. We accrue costs associated with these matters when they become probable and the amount can be reasonably estimated. Legal costs incurred in connection with loss contingencies are expensed as incurred. For the fiscal years ended September 30, 2025, 2024 and 2023, we did not have any material legal claims or litigation that, individually or in aggregate, could have a material adverse impact on our consolidated financial position, results of operations and cash flows.

As of September 30, 2025, we had the following contractual obligations:

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | | **Payments Due by Period** | **Payments Due by Period** | **Payments Due by Period** | **Payments Due by Period** | **Payments Due by Period** |
| ***Contractual Obligations*** | ***Contractual Obligations*** | ***Total*** | ***Less than<br> 1 year*** | ***1-2 years*** | ***2-3 years*** | ***3-4 years*** |
| (1) | Debt Obligations | $9256919 | $9256919 | $- | $- | $- |
| (2) | Capital expenditure commitment on CIP project | 13456946 | 3511729 | 3511729 | 5274617 | 1158871 |
| (3) | Capital expenditure commitment for purchase of property | 2247507 | 2247507 | - | - | - |
| **Total** | **Total** | $**24961372** | $**15016155** | $**3511729** | $**5274617** | $**1158871** |

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(1) As of September 30, 2025, we had total of $7,149,881 in
 short-term borrowings and $2,107,038 in current portion of long-term borrowings from several PRC banks (see Footnotes
 11 and 12 of our consolidated financial statements and footnotes included elsewhere in this annual report for details).

(2) On June 25, 2021, we entered
into a construction agreement with Chenyuan for the construction of four manufacturing plant buildings and an office building, with a
total estimated budget of RMB165 million (approximately $23.2 million). As of September 30, 2025, we had made a prepayment of approximately
RMB69.2 million (approximately $9.7 million) to Chenyuan and future additional capital expenditure on this CIP project was estimated
to be approximately RMB95.8 million (approximately $13.5 million) (see Footnote 9 of our consolidated financial statements and footnotes
included elsewhere in this annual report, Prepayment for CIP project, for details).

(3) On May 6, 2021, we entered
into a real estate property purchase agreement with a related party, Jiangxi Yueshang, an entity in which our chief executive officer,
Mr. Gang Lai, owned 5% of its equity interests as of the date of that agreement. Pursuant to this purchase agreement, Jiangxi Yueshang
will sell and we will purchase certain residential apartments and commercial office space totaling 2,749.30 square meters, with a total
purchase price of RMB32 million (approximately $4.5 million). As of September 30, 2025, we had made a prepayment of RMB16 million (approximately
$2.25 million) to Jiangxi Yueshang. The remaining balance is expected to be paid upon reception of the Real Estate Ownership Certificate
(see Footnote 10 of our consolidated financial statements and footnotes included elsewhere in this annual report, Prepayment
for purchase of a property, for details).

**Trend Information**

Other than as disclosed elsewhere in this report, we are not aware of any trends, uncertainties, demands, commitments, or events that are reasonably likely to have a material effect on our net revenues, income from continuing operations, profitability, liquidity or capital resources, or that would cause reported financial information not necessarily to be indicative of future operating results or financial condition.

**Off-Balance Sheet Arrangements**

We do not have any off-balance sheet arrangements as of September 30, 2025 and 2024.

**Inflation**

Inflation does not materially affect our business or the results of our operations.

**Seasonality**

Seasonality does not materially affect our business or the results of our operations.

**C. <u>Research and Development, Patents and Licenses, etc.</u>**

See "Item 4. Information on the Company—B. Business Overview—Intellectual Property" and "Item 4. Information on the Company—B. Business Overview—Research and Development."

**D. <u>Trend Information</u>**

Other than as disclosed below and elsewhere in this annual report on Form 20-F, we are not aware of any trends, uncertainties, demands, commitments, or events for the period from October 1, 2024 to September 30, 2025 that are reasonably likely to have a material adverse effect on our net revenue, income, profitability, liquidity, or capital resources, or that caused the disclosed financial information to be not necessarily indicative of future operating results or financial condition.

**E. <u>Critical Accounting Policies and Estimates</u>**

Our discussion and analysis of our financial condition and results of operations are based upon our consolidated financial statements. These financial statements are prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP"), which requires us to make estimates and assumptions that affect the reported amounts of our assets and liabilities and revenues and expenses, to disclose contingent assets and liabilities on the date of the consolidated financial statements, and to disclose the reported amounts of revenues and expenses incurred during the financial reporting period. We continue to evaluate these estimates and assumptions that we believe to be reasonable under the circumstances. We rely on these evaluations as the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Since the use of estimates is an integral component of the financial reporting process, actual results could differ from those estimates. Some of our accounting policies require higher degrees of judgment than others in their application. We believe critical accounting policies as disclosed in this annual report reflect the more significant judgments and estimates used in preparation of our consolidated financial statements.

***Risks and Uncertainties***

Through our PRC subsidiaries, we conduct our operations in the PRC. Accordingly, our business, financial condition, and results of operations may be influenced by political, economic, and legal environments in the PRC, as well as by the general state of the PRC economy. Our results may be adversely affected by changes in the political, regulatory and social conditions in the PRC. Although we have not experienced losses from these situations and believes that we are in compliance with existing laws and regulations including our organization and structure, this may not be indicative of future results.

The development and commercialization of new pharmaceutical products is highly competitive, and the industry currently is characterized by rapidly changing technologies, significant competition and a strong emphasis on intellectual property. We may face competition with respect to our current and future pharmaceutical product candidates from major pharmaceutical companies in China.

Our business, financial condition and results of operations may also be negatively impacted by risks related to natural disasters, extreme weather conditions, health epidemics and other catastrophic incidents, which could significantly disrupt our operations.

The following critical accounting policies rely upon assumptions and estimates and were used in the preparation of our consolidated financial statements:

 ****

***Uses of estimates***

In preparing the consolidated financial statements in conformity with U.S. GAAP, management makes estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. These estimates are based on information as of the date of the consolidated financial statements. Significant estimates required to be made by management include, but are not limited to, the allowance for estimated uncollectible receivables, the realizability of advance to suppliers, inventory valuation, useful lives of property, plant and equipment, intangible assets, impairment assessment of long-lived assets, and realization of deferred tax assets. Changes in accounting estimate are accounted for in the period of change and prospective periods. Actual results could differ from those estimates.

 ****

 ****

***Accounts receivable, net***

Accounts receivables are presented net of allowance for credit loss. We determine the adequacy of reserves for credit loss based on individual account analysis and historical collection trends using the Current Expected Credit Loss model. We establish a provision for doubtful receivables when there is objective evidence that we may not be able to collect the amounts due. The allowance is based on management's best estimate of specific losses on individual exposures, as well as a provision on historical trends of collections. Actual amounts received may differ from management's estimate of credit worthiness and the economic environment. Delinquent account balances are written-off against the allowance for credit loss after management has determined that the likelihood of collection is not probable. Allowance for uncollectable balances amounted to $18,214 and $135,082 as of September 30, 2025 and 2024, respectively.

 ****

***Inventories, net***

Inventories are stated at net realizable value using weighted average method. Inventories primarily consist of raw materials and finished goods. Inventory costs include the purchase price and other expenditures that are directly attributable to bringing the inventories to their present location and condition. Any excess of the costs over the net realizable value of each item of inventories is recognized as a provision for diminution in the value of inventories. Net realizable value is the estimated selling price in the normal course of business less any costs to complete and sell products. We evaluate inventories on a quarterly basis for its net realizable value adjustments, and reduces the carrying value of those inventories that are obsolete or in excess of the forecasted usage to their estimated net realizable value based on various factors including aging, expiration dates, as applicable, taking into consideration historical and expected future product sales. We recorded inventory reserve of $122,739 and $124,512 as of September 30, 2025 and 2024, respectively.

***Revenue recognition***

To determine revenue recognition for contracts with customers, we perform the following five steps: (i) identify the contract(s) with the customer, (ii) identify the performance obligations in the contract, (iii) determine the transaction price, including variable consideration to the extent that it is probable that a significant future reversal will *not* occur, (iv) allocate the transaction price to the respective performance obligations in the contract, and (v) recognize revenue when (or as) we satisfy the performance obligation.

Revenue from sales of TCMD products and third-party products is recognized when the products are delivered to customers. Each customer order constitutes a distinct and separately identifiable performance obligation to deliver the ordered product in exchange for consideration. The transaction price is fixed at contract inception and is not subject to rebates, returns, or other variable consideration. As each customer order includes only one performance obligation and no variable consideration, no allocation of the transaction price is required. We recognize revenue at a point in time when control of the product sold has been transferred to customers. The transfer of control is considered complete when the product has been accepted and received by customers.

Revenue is presented on a gross basis, as we act as the principal in the transaction. This conclusion is based on the following considerations: (i) we are primarily responsible for fulfilling the promise to deliver the product to customers and are the primary contact for customer issues; (ii) we bear the inventory risk; and (iii) we have pricing discretion and bear market risk.

 ****

***Income Tax***

We account for current income tax in accordance with the laws of the relevant tax authorities. Deferred income tax is recognized when temporary differences exist between the tax bases of assets and liabilities and their reported amounts in the consolidated financial statements. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the fiscal years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period including the enactment date. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount expected to be realized.

An uncertain tax position is recognized only if it is "more likely than not" that the tax position would be sustained in a tax examination. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the "more likely than not" test, no tax benefit is recorded. Penalties and interest incurred related to underpayment of income tax are classified as income tax expense in the period incurred. No significant penalties or interest relating to income taxes were incurred during the fiscal years ended September 30, 2025, 2024 and 2023. We do not believe there were any uncertain tax provision as of September 30, 2025 and 2024.

Our operating subsidiaries in China are subject to the income tax laws of the PRC. No significant income was generated outside the PRC for the fiscal years ended September 30, 2025, 2024 and 2023. As of September 30, 2025 and 2024, all of our tax returns of our PRC subsidiaries remained open for statutory examination by PRC tax authorities.

***Recently Issued Accounting Pronouncements***

We consider the applicability and impact of all accounting standards updates ("ASUs"). Management periodically reviews new accounting standards that are issued. Under the Jumpstart Our Business Startups Act of 2012, as amended (the "JOBS Act"), we meet the definition of an emerging growth company, or EGC, and has elected the extended transition period for complying with new or revised accounting standards, which delays the adoption of these accounting standards until they would apply to private companies.

In March 2024, the FASB issued ASU 2024-01, Compensation—Stock Compensation (Topic 718): Scope Application of Profits Interest and Similar Awards. The amended guidance added an illustrative example that includes four fact patterns to demonstrate how an entity should apply the scope guidance in paragraph 718-10-15-3 to determine whether a profits interest award should be accounted for in accordance with Topic 718. The amendments guidance is effective for annual periods beginning after December 15, 2024, and interim periods within those annual periods. The guidance can be applied either prospectively or retrospectively. We are currently in the process of evaluating the impact this amended guidance may have on our consolidated financial statements.

In November 2024, the FASB issued ASU 2024-03, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses. The amended guidance improves the disclosures about a public business entity's expenses and address requests from investors for more detailed information about the types of expenses (including purchases of inventory, employee compensation, depreciation, amortization, and depletion) in commonly presented expense captions (such as cost of sales, SG&A, and research and development). The amended guidance is effective for annual reporting periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027. The requirements will be applied prospectively with the option for retrospective application. We are currently in the process of evaluating the impact this amended guidance may have on the footnotes to our consolidated financial statements.

In November 2024, the FASB issued ASU 2024-04, Debt—Debt with Conversion and Other Options (Subtopic 470-20): Induced Conversions of Convertible Debt Instruments. This guidance clarifies the assessment of whether a transaction should be accounted for as an induced conversion or extinguishment of convertible debt when changes are made to conversion features as part of an offer to settle the instrument. The amended guidance is effective for all entities for annual reporting periods beginning after December 15, 2025, and interim reporting periods within those annual reporting periods. The guidance can be applied either prospectively or retrospectively. We are currently in the process of evaluating the impact this amended guidance may have on our consolidated financial statements.

In January 2025, the FASB issued ASU 2025-01, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Clarifying the Effective Date. This guidance amends the effective date of Update 2024-03 to clarify that all public business entities are required to adopt the guidance in annual reporting periods beginning after December 15, 2026, and interim periods within annual reporting periods beginning after December 15, 2027. Early adoption of Update 2024-03 is permitted. We are currently in the process of evaluating the impact this amended guidance may have on the footnotes to our consolidated financial statements.

In July 2025, the FASB issued ASU 2025-05, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets. This Update is issued to address challenges encountered when applying the guidance in Topic 326, Financial Instruments—Credit Losses, to current accounts receivable and current contract assets arising from transactions accounted for under Topic 606, Revenue from Contracts with Customers. The amendments will be effective for annual reporting periods beginning after December 15, 2025, and interim reporting periods within those annual reporting periods. We are currently in the process of evaluating the impact this amended guidance may have on our consolidated financial statements.

In November 2025, the FASB issued ASU 2025-08, Financial Instruments—Credit Losses (Topic 326): Purchased Loans. This Update is issued to improve the decision usefulness of the financial reporting for acquired financial assets. The amendments in this update require that purchased seasoned loans be accounted for using the gross-up approach, which will enhance comparability and consistency in the accounting for acquired financial assets. The amendments in this update are effective for all entities for annual reporting periods beginning after December 15, 2026, and interim reporting periods within those annual reporting periods. We are currently in the process of evaluating the impact this amended guidance may have on our consolidated financial statements.

In December 2025, the FASB issued ASU 2025-10, Government Grants (Topic 832): Accounting for Government Grants Received by Business Entities. This Update is issued to improve generally accepted accounting principles (GAAP) by establishing authoritative guidance on the accounting for government grants received by business entities. For public business entities, the amendments in this Update are effective for annual reporting periods beginning after December 15, 2028, and interim reporting periods within those annual reporting periods. We are currently in the process of evaluating the impact this amended guidance may have on our consolidated financial statements.

Other accounting standards that have been issued by FASB that do not require adoption until a future date are not expected to have a material impact on the consolidated financial statements upon adoption. We do not discuss recent standards that are not anticipated to have an impact on or are unrelated to our consolidated financial condition, results of operations, cash flows or disclosures.

**Item 6. DIRECTORS, SENIOR MANAGEMENT AND EMPLOYEES**

**A. <u>Directors and Senior Management</u>**

The following table sets forth information regarding our directors and executive officers as of the date of this annual report.

---

| | | |
|:---|:---|:---|
| **Name** | **Age** | **Position(s)** |
| Gang Lai | 58 | Chairman of the Board of Directors and Chief Executive Officer |
| Lin Yang | 50 | Chief Financial Officer and Director |
| Baochang Liu | 46 | Chief Operating Officer |
| Jiawen Pang | 58 | Independent Director |
| Yongping Yu | 58 | Independent Director |
| Ding Zheng | 48 | Independent Director |

---

The following is a brief biography of each of our executive officers and directors:

***Mr. Gang Lai*** is our chief executive officer and chairman of the board. Mr. Lai has served as the chief executive officer of Jiangxi Universe since 2004 and founded Universe Trade in 2010. Before joining us, Mr. Lai was a successful entrepreneur. He founded Jiangxi Lvzhouyuan Timber Joint Stock Co., Ltd. in 2001, a company listed on PRC National Equities Exchange and Quotations (NEEQ: 838893), and has since served as its chairman of the board. Mr. Lai graduated from Jingdezhen Ceramic Institute in China with a bachelor's degree in mechanical engineering in 1988.

***Ms. Lin Yang*** is our chief financial officer and director. Ms. Lin Yang has served as the financial director of Jiangxi Universe since April 2006 and the financial director of Universe Trade since its formation in 2010. Before joining us, Ms. Yang served as an accountant at Jiangxi Automobile Engineering Plastic Co., Ltd. from 1998 to March 2006. Ms. Yang graduated from Jiangxi University of Finance and Economics in China with a bachelor's degree in accounting in1991.

***Mr. Baochang Liu*** has served as our chief operating officer since December 2021. Mr. Liu has over 17 years of experience in pharmaceutical marketing. From January 2020 to December 2021, Mr. Baochang Liu worked as the vice president of marketing at China Shineway Pharmaceutical Group Ltd. (HKEX: 2877), responsible for designing and implementing the company's overall marketing strategies. From November 2015 to December 2019, Mr. Baochang Liu served as the general manager of OTC department and director of marketing at Chengdu Kanghong Pharmaceutical Group Co., Ltd. (SHE: 002773), responsible for overseeing the implementation of the company's marketing strategies and brand building. Mr. Baochang Liu obtained his bachelor's degree in accounting and in marketing management from Harbin University of Commerce in 2004 and his master of business administration from Fudan University in 2020.

***Mr. Jiawen Pang*** has served as our independent director since March 2021. Since January 2021, Mr. Jiawen Pang has served as the vice president at Guangzhou Dahua Food Technology Co., Ltd., a food manufacturing company, where Mr. Pang is responsible for overseeing the company's general management and marketing function. From January 2018 to December 2020, Mr. Jiawen Pang served the general manager at Pangbei (Shanghai) Medical Technology Center, a medical device company, where Mr. Pang was responsible for overseeing the general management and marketing function of the company. Mr. Jiawen Pang graduated from Tianjin University of Commerce in China with a bachelor's degree in refrigeration and food freezing engineering in 1989 and from Sun Yat-sen University in China with a master of business administration in healthcare and medicine in 2004.

***Mr. Yongping Yu*** has served as our independent director since May 2023. Mr. Yongping Yu has served as the General Manager of Zhuhai Qirong Venture Capital Investment Management Co., Ltd. since August 2019, a venture capital company focused on the healthcare industry. Mr. Yongping Yu served as a director and Executive Deputy General Manager of Xinhua Kangmei Health Think Tank Co., Ltd. from May 2017 to July 2019. Mr. Yu obtained a Bachelor of Medicine degree from Nanchang University in the PRC in 1992 and obtained Bachelor of Arts degree in in Chinese language and literature from Tsinghua University in the PRC in 1995.

***Mr. Ding Zheng*** has served as our independent director since March 2021. Mr. Ding Zheng has served as the chairman of the board at Guangzhou Roujing Sunshade Energy-saving Technology Co., Ltd. since 2018. Mr. Zheng has also served as the general manager at Hande Manufacturing (China) Co., Ltd., since 2015. Mr. Zheng obtained a bachelor's degree in technology economics from Shanghai Jiao Tong University in China in 2000 and a master of business administration degree from Tsinghua University in China in 2005. Mr. Zheng studied business administration at New York University from September 2024 to January 2005. Mr. Zheng is a member of the China Institute of Certified Public Accountants (CICPA).

**Family Relationships**

None of our directors or executive officers has a family relationship as defined in Item 401 of Regulation S-K.

**B. <u>Compensation</u>**

For the fiscal year ended September 30, 2025, we paid an aggregate of approximately US$185,000 as compensation to our executive officers and directors. None of our non-employee directors have any service contracts with us that provide for benefits upon termination of employment. We have not set aside or accrued any amount to provide pension, retirement, or other similar benefits to our directors and executive officers. Our PRC subsidiaries are required by law to make contributions equal to certain percentages of each employee's salary for his or her pension insurance, medical insurance, unemployment insurance, and other statutory benefits and a housing provident fund.

**C. <u>Board Practices</u>**

**Board of Directors**

Our board of directors consists of five directors, including three independent directors. A director is not required to hold any shares in our company to qualify to serve as a director. A director shall not, as a director, vote in respect of any contract, transaction, arrangement or proposal in which they have an interest which (together with any interest of any person connected with them) is a material interest (otherwise then by virtue of their interests, direct or indirect, in shares or debentures or other securities of, or otherwise in or through, the Company) and if they shall do so their vote shall not be counted, nor in relation thereto shall they be counted in the quorum present at the meeting, but (in the absence of some other material interest than is mentioned below) none of these prohibitions shall apply to: (a) the giving of any security, guarantee or indemnity in respect of: (i) money lent or obligations incurred by them or by any other person for the benefit of the Company or any of its subsidiaries; or (ii) a debt or obligation of the Company or any of its subsidiaries for which a director has assumed responsibility in whole or in part and whether alone or jointly with others under a guarantee or indemnity or by the giving of security; (b) where the Company or any of its subsidiaries is offering securities in which offer the director is or may be entitled to participate as a holder of securities or in the underwriting or sub-underwriting of which the director is to or may participate; (c) any contract, transaction, arrangement or proposal affecting any other body corporate in which he is interested, directly or indirectly and whether as an officer, shareholder, creditor or otherwise howsoever, provided that he (together with persons connected with them) does not to their knowledge hold an interest representing one per cent or more of any class of the equity share capital of such body corporate (or of any third body corporate through which his interest is derived) or of the voting rights available to members of the relevant body corporate; (d) any act or thing done or to be done in respect of any arrangement for the benefit of the employees of the Company or any of its subsidiaries under which they are not accorded as a director any privilege or advantage not generally accorded to the employees to whom such arrangement relates; (e) any matter connected with the purchase or maintenance for any director of insurance against any liability or (to the extent permitted by the Companies Act (Revised) of the Cayman Islands) indemnities in favor of directors, the funding of expenditure by one or more directors in defending proceedings against him or them or the doing of anything to enable such director or directors to avoid incurring such expenditure; or (f) any contract, transaction, arrangement or proposal in which the director has an interest which is not a material interest. The directors may exercise all the powers of the company to borrow money, mortgage its undertaking, property and uncalled capital, and issue debentures or other securities whenever money is borrowed or as security for any obligation of the company or of any third party.

**Committees of the Board of Directors**

We have established three committees under the board of directors: an audit committee, a compensation committee, and a nominating and corporate governance committee. We have adopted a charter for each of the three committees. Each committee's members and functions are described below.

*Audit Committee.* Our audit committee consists of Jiawen Pang, Yongping Yu, and Ding Zheng. Ding Zheng serves as the chairman of our audit committee. We have determined that Jiawen Pang, Yongping Yu, and Ding Zheng satisfy the "independence" requirements of Rule 5605(a)(2) of the Listing Rules of the Nasdaq Stock Market and Rule 10A-3 under the Securities Exchange Act. Our board also has determined that Ding Zheng qualifies as an audit committee financial expert within the meaning of the SEC rules or possesses financial sophistication within the meaning of the Nasdaq corporate governance rules. The audit committee oversees our accounting and financial reporting processes and the audits of the financial statements of our company. The audit committee is responsible for, among other things:

● appointing the independent auditors and pre-approving all auditing and non-auditing services permitted to be performed by the independent auditors;

● reviewing with the independent auditors any audit problems or difficulties and management's response;

● discussing the annual audited financial statements with management and the independent auditors;

● reviewing the adequacy and effectiveness of our accounting and internal control policies and procedures and any steps taken to monitor and control major financial risk exposures;

● reviewing and approving all proposed related party transactions;

● meeting separately and periodically with management and the independent auditors; and

● monitoring compliance with our code of business conduct and ethics, including reviewing the adequacy and effectiveness of our procedures to ensure proper compliance.

*Compensation Committee.* Our compensation committee consists of Jiawen Pang, Yongping Yu, and Ding Zheng. Jiawen Pang serves as the chairperson of our compensation committee. We have determined that Jiawen Pang, Yongping Yu, and Ding Zheng satisfy the "independence" requirements of Rule 5605(a)(2) of the Listing Rules of the Nasdaq Stock Market and Rule 10C-1 under the Securities Exchange Act. The compensation committee assists the board in reviewing and approving the compensation structure, including all forms of compensation, relating to our directors and executive officers. Our chief executive officer may not be present at any committee meeting during which his compensation is deliberated. The compensation committee is responsible for, among other things:

● reviewing and approving the total compensation package for our most senior executive officers;

● approving and overseeing the total compensation package for our executives other than the most senior executive officers;

● reviewing and recommending to the board with respect to the compensation of our directors;

● reviewing periodically and approving any long-term incentive compensation or equity plans;

● selecting compensation consultants, legal counsel or other advisors after taking into consideration all factors relevant to that person's independence from management; and

● reviewing programs or similar arrangements, annual bonuses, employee pension and welfare benefit plans.

*Nominating and Corporate Governance Committee.* Our nominating and corporate governance committee consists of Jiawen Pang, Yongping Yu and Ding Zheng. Yongping Yu serves as the chairperson of our nominating and corporate governance committee. Jiawen Pang, Yongping Yu, and Ding Zheng satisfy the "independence" requirements of Rule 5605(a)(2) of the Listing Rules of the Nasdaq Stock Market. The nominating and corporate governance committee assists the board of directors in selecting individuals qualified to become our directors and in determining the composition of the board and its committees. The nominating and corporate governance committee is responsible for, among other things:

● identifying and recommending nominees for election or re-election to our board of directors or for appointment to fill any vacancy;

● reviewing annually with our board of directors its current composition in light of the characteristics of independence, age, skills, experience and availability of service to us;

● identifying and recommending to our board the directors to serve as members of committees;

● advising the board periodically with respect to significant developments in the law and practice of corporate governance as well as our compliance with applicable laws and regulations, and making recommendations to our board of directors on all matters of corporate governance and on any corrective action to be taken; and

● monitoring compliance with our code of business conduct and ethics, including reviewing the adequacy and effectiveness of our procedures to ensure proper compliance.

**Duties of Directors**

Under Cayman Islands law, all of our directors owe three types of duties to us: (i) statutory duties, (ii) fiduciary duties, and (iii) common law duties. The Companies Act (Revised) of the Cayman Islands imposes a number of statutory duties on a director. A Cayman Islands director's fiduciary duties are not codified, however, the courts of the Cayman Islands have held that a director owes the following fiduciary duties: (a) a duty to act in what the director *bona fide* considers to be in the best interests of the company, (b) a duty to exercise their powers for the purposes they were conferred, (c) a duty to avoid fettering his or her discretion in the future and (d) a duty to avoid conflicts of interest and of duty. The common law duties owed by a director are those to act with skill, care and diligence that may reasonably be expected of a person carrying out the same functions as are carried out by that director in relation to the company and, also, to act with the skill, care and diligence in keeping with a standard of care commensurate with any particular skill they have which enables them to meet a higher standard than a director without those skills. In fulfilling their duty of care to us, our directors must ensure compliance with our amended and restated articles of association. We have the right to seek damages if a duty owed by any of our directors is breached.

Our board of directors has all powers necessary for managing, and for directing and supervising, our business affairs. The functions and powers of our board of directors include, among others:

● convening shareholders' annual general meetings and reporting its work to shareholders at such meetings;

● declaring dividends and distributions;

● appointing officers and determining the terms of office of the officers;

● exercising the borrowing powers of our company and mortgaging the property of our Company; and

● approving the transfer of shares in our Company, including the registration of such shares in our share register.

**Terms of Directors and Executive Officers**

Our directors may be elected by a resolution of our board of directors or by an ordinary resolution of our shareholders. Unless re-appointed or removed from office pursuant to the provisions of our amended and restated articles of association, each director shall be appointed for a term expiring at the next-following annual general meeting of the Company. A director will cease to be a director if, among other things, the director (i) becomes bankrupt or makes any arrangement or composition with his creditors; (ii) in the opinion of a registered medical practitioner by whom the director is being treated, the director becomes physically or mentally incapable of acting as a director; (iii) resigned his or her office by notice in writing to the company; or (iv) without the consent of the other directors, is absent from meetings of directors for a continuous period of six months.

Our officers are elected by and serve at the discretion of the board of directors.

**Qualification**

There is currently no shareholding qualification for directors, although a shareholding qualification for directors may be fixed by our shareholders by ordinary resolution.

**Employment Agreements and Indemnification Agreements**

We have entered into employment agreements with each of our executive officers. Pursuant to these employment agreements, we agree to employ each of our executive officers for a specified time period, which may be renewed automatically unless either party gives the other party a two-month prior written notice before the end of the current employment term. We may terminate the employment for cause, at any time, without notice or remuneration, for certain acts of the executive officer, including but not limited to, the commitments of any serious or persistent breach or non-observance of the terms and conditions of the employment, conviction of a criminal offense, willful disobedience of a lawful and reasonable order, fraud or dishonesty, receipt of bribery, or severe neglect of his or her duties. An executive officer may terminate his or her employment at any time with two months' prior written notice. Each executive officer agrees to hold, both during and after the employment agreement expires, in strict confidence and not to use or disclose to any person, corporation or other entity without written consent, any confidential information.

We have also entered into indemnification agreements with each of our directors and executive officers. Under these agreements, we agree to indemnify our directors and executive officers against certain liabilities and expenses incurred by such persons in connection with claims made by reason of their being a director or officer of our Company.

**Insider Participation Concerning Executive Compensation**

Our director, Mr. Gang Lai, was making all determinations regarding executive officer compensation from the inception of the Company until our Compensation Committee was set up in March 2021.

**Code of Business Conduct and Ethics**

Our board of directors has adopted a code of business conduct and ethics, which is applicable to all of our directors, officers, and employees. Our code of business conduct and ethics is publicly available on our website.

**Compensation Recovery Policy** 

We have adopted a compensation recovery policy to provide for the recovery of erroneously-awarded incentive compensation, as required by the Dodd-Frank Wall Street Reform and Consumer Protection Act, final SEC rules and applicable listing standards.

**D. <u>Employees</u>**

See "Item 4. Information on the Company—B. Business Overview—Employees."

**E. <u>Share Ownership</u>**

The following table sets forth information with respect to the beneficial ownership, within the meaning of Rule 13d-3 under the Exchange Act, of our ordinary shares as of the date of this annual report for:

● each of our directors and executive officers; and

● each person known to us to own beneficially more than 5% of our ordinary shares.

Beneficial ownership includes voting or investment power with respect to the securities. Except as indicated below, and subject to applicable community property laws, the persons named in the table have sole voting and investment power with respect to all ordinary shares shown as beneficially owned by them. Percentage of beneficial ownership of each listed person is based on 563,338 ordinary shares outstanding as of the date of this annual report.

Information with respect to beneficial ownership has been furnished by each director, officer, or beneficial owner of 5% or more of our ordinary shares. Beneficial ownership is determined in accordance with the rules of the SEC and generally requires that such person have voting or investment power with respect to securities. In computing the number of ordinary shares beneficially owned by a person listed below and the percentage ownership of such person, ordinary shares underlying options, warrants, or convertible securities held by each such person that are exercisable or convertible within 60 days of the date of this annual report are deemed outstanding, but are not deemed outstanding for computing the percentage ownership of any other person.

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| | | | |
|:---|:---|:---|:---|
|  | **Ordinary Shares<br> Beneficially Owned** | **Ordinary Shares<br> Beneficially Owned** | |
|  | **Number** | **%** | **Voting<br> Power %** |
| **Directors and Executive Officers<sup>\*</sup>:** | | | |
| &nbsp;&nbsp;&nbsp;Gang Lai<sup>(1)</sup> | 3467 | 0.615% | 0.615% |
| &nbsp;&nbsp;&nbsp;Lin Yang |  |  |  |
| &nbsp;&nbsp;&nbsp;Baochang Liu |  |  |  |
| &nbsp;&nbsp;&nbsp;Jiawen Pang |  |  |  |
| &nbsp;&nbsp;&nbsp;Yongping Yu |  |  |  |
| &nbsp;&nbsp;&nbsp;Ding Zheng |  |  |  |
| **All directors and executive officers as a group:** | 3467 | 0.615% | 0.615% |
| **5% Shareholders:** |  |  |  |

---

\* Unless otherwise indicated, the business address of each of our directors and officers is 265 Jingjiu Avenue, Jinggangshan Economic and Technological Development Zone, Ji'an, Jiangxi, People's Republic of China.

(1) Represents 3,467 ordinary shares
held by Sununion Holding Group Limited, a business company incorporated in the British Virgin Islands, which is owned as to 100% and
controlled by Gang Lai. The registered address of Sununion Holding Group Limited is Vistra Corporate Services Centre, Wickhams Cay II,
Road Town, Tortola, VG1110, British Virgin Islands.

As of the date of this annual report, approximately 99.385% of our issued and outstanding ordinary shares are held in the United States by four record holders, including Cede and Company.

We are not aware of any other arrangement that may, at a subsequent date, result in a change of control of our Company.

**F. <u>Disclosure of a Registrant's Action to Recover Erroneously Awarded Compensation</u>**

Not applicable.

**Item 7. MAJOR SHAREHOLDERS AND RELATED PARTY TRANSACTIONS**

**A. <u>Major Shareholders</u>**

See "Item 6. Directors, Senior Management and Employees—E. Share Ownership."

**B. <u>Related Party Transactions</u>**

**Employment Agreements**

See "Item 6. Directors, Senior Management and Employees—C. Board Practices—Employment Agreements and Indemnification Agreements."

 

 

**Material Transactions with Related Parties**

**(a) Nature of relationships with related parties**

---

| | |
|:---|:---|
| **Name** | **Relationship with the Company** |
| Mr. Gang Lai | Chief Executive Officer and chairman of the Company's Board of Directors |
| Ms. Lin Yang | Chief Financial Officer of the Company |

---

**(b) Due to related parties**

---

| | | |
|:---|:---|:---|
| | **As of September 30,** | **As of September 30,** |
| <br>**Name** | **2025** | **2024** |
| Mr. Gang Lai | $446460 | $6900499 |
| Ms. Lin Yang | 85 | 85 |
| **Total due to related parties** | $446545 | $6900584 |

---

As of September 30, 2025 and 2024, the balance due to related parties mainly consisted of advances from Mr. Gang Lai, the Company's chief executive officer and the chairman of the board of directors, for working capital purposes during the Company's normal course of business, as well as payment of expenses made by Ms. Lin Yang on behalf of the Company. These advances are unsecured, non-interest bearing and due on demand.

**(c) Loan guarantee provided by related parties**

In connection with the Company's bank borrowings from certain commercial banks in China, Mr. Gang Lai signed guarantee agreements with these banks to provide credit guarantee for the Company's certain loans (see Note 11 of our audited consolidated financial statements and footnotes included elsewhere in this annual report).

**(d) Prepayment to related party for property purchase**

As disclosed in Note 10 of our audited consolidated financial statements and footnotes included elsewhere in this annual report, on May 6, 2021, the Company entered into a real estate property purchase agreement with a related party, Jiangxi Yueshang, to purchase certain residential apartment and commercial office space totaling 2,749.30 square meters with total purchase price of RMB32 million (approximately $4.5 million). As of September 30, 2025, the Company had made a prepayment of RMB16 million ($2.25 million) to Jiangxi Yueshang. The Real Estate Ownership Certificate of the property is in processing, and the remaining balance will be paid upon the receipt of the Real Estate Ownership Certificate.

On January 13, 2022, Mr. Gang Lai transferred the 5% equity interest he owned in Jiangxi Yueshang to a third party. As such, after this date, Jiangxi Yueshang is no longer the Company's related party.

**C. <u>Interests of Experts and Counsel</u>**

Not applicable.

**Item 8. FINANCIAL INFORMATION**

**A. <u>Consolidated Statements and Other Financial Information</u>**

We have appended consolidated financial statements filed as part of this annual report. See "Item 18. Financial Statements."

**Legal Proceedings**

From time to time, we may become a party to various legal or administrative proceedings arising in the ordinary course of our business, including actions with respect to intellectual property infringement, violation of third-party licenses or other rights, breach of contract, and labor and employment claims. We are currently not a party to, and we are not aware of any threat of, any legal or administrative proceedings that, in the opinion of our management, are likely to have any material and adverse effect on our business, financial condition, cash flow, or results of operations.

**Dividend Policy**

As of the date of this annual report, none of our subsidiaries have made any dividends or distributions to Universe Pharmaceuticals INC and Universe Pharmaceuticals INC has not made any dividends or distributions to U.S. investors. We intend to keep any future earnings to finance the expansion of our business, and we do not anticipate that any cash dividends will be paid in the foreseeable future. Subject to the PFIC rules, the gross amount of distributions we make to investors with respect to our ordinary shares (including the amount of any taxes withheld therefrom) will be taxable as a dividend, to the extent that the distribution is paid out of our current or accumulated earnings and profits, as determined under U.S. federal income tax principles.

Our board of directors has discretion on whether to distribute dividends. In addition, our shareholders may by ordinary resolution declare a dividend, but no dividend may exceed the amount recommended by our board of directors. In either case, all dividends are subject to certain restrictions under Cayman Islands law, namely that the company may only pay dividends out of profits or share premium, and provided always that in no circumstances may a dividend be paid if this would result in the company being unable to pay its debts as they fall due in the ordinary course of business. Even if we decide to pay dividends, the form, frequency and amount will depend upon our future operations and earnings, capital requirements and surplus, general financial condition, contractual restrictions and other factors that the board of directors may deem relevant.

We are an exempted company with limited liability incorporated in the Cayman Islands. We may rely on dividends from our subsidiaries in China for our cash requirements, including any payment of dividends to our shareholders. PRC regulations may restrict the ability of our PRC subsidiaries to pay dividends to us, and as a holding company, we will be dependent on receipt of funds from our Hong Kong subsidiary, Universe HK.

Current PRC regulations permit our indirect PRC subsidiaries to pay dividends to Universe HK only out of their accumulated profits, if any, determined in accordance with Chinese accounting standards and regulations. In addition, each of our subsidiaries in China is required to set aside at least 10% of its after-tax profits each year, if any, to fund a statutory reserve until such reserve reaches 50% of its registered capital. Each of such entity in China is also required to further set aside a portion of its after-tax profits to fund the employee welfare fund, although the amount to be set aside, if any, is determined at the discretion of its board of directors. Although the statutory reserves can be used, among other ways, to increase the registered capital and eliminate future losses in excess of retained earnings of the respective companies, the reserve funds are not distributable as cash dividends except in the event of liquidation.

The PRC government also imposes controls on the conversion of RMB into foreign currencies and the remittance of currencies out of the PRC. Therefore, we may experience difficulties in complying with the administrative requirements necessary to obtain and remit foreign currency for the payment of dividends from our profits, if any. Furthermore, if our subsidiaries and affiliates in the PRC incur debt on their own in the future, the instruments governing the debt may restrict their ability to pay dividends or make other payments. If we or our subsidiaries are unable to receive all of the revenue from our operations, we may be unable to pay dividends on our ordinary shares.

Cash dividends, if any, on our ordinary shares will be paid in U.S. dollars. Universe HK may be considered a non-resident enterprise for tax purposes, so that any dividends our PRC subsidiaries pay to Universe HK may be regarded as China-sourced income and as a result may be subject to PRC withholding tax at a rate of up to 10%. See "Item 10. Additional Information—E. Taxation—People's Republic of China Taxation."

In order for us to pay dividends to our shareholders, we will rely on payments made from Universe Technology's subsidiary, Jiangxi Universe, to Universe Technology and from Universe Technology to Universe HK and then to our Company. According to the EIT Law, such payments from subsidiaries to parent companies in China are subject to the PRC enterprise income tax at a rate of 25%. In addition, if Jiangxi Universe or its subsidiary or branches incur debt on their own behalf in the future, the instruments governing the debt may restrict its ability to pay dividends or make other distributions to us.

Pursuant to the Double Tax Avoidance Arrangement, the 10% withholding tax rate may be lowered to 5% if a Hong Kong resident enterprise owns no less than 25% of a PRC project. The 5% withholding tax rate, however, does not automatically apply and certain requirements must be satisfied, including without limitation that (a) the Hong Kong project must be the beneficial owner of the relevant dividends; and (b) the Hong Kong project must directly hold no less than 25% share ownership in the PRC project during the 12 consecutive months preceding its receipt of the dividends. In current practice, a Hong Kong project must obtain a tax resident certificate from the Hong Kong tax authority to apply for the 5% lower PRC withholding tax rate. As the Hong Kong tax authority will issue such a tax resident certificate on a case-by-case basis, we cannot assure you that we will be able to obtain the tax resident certificate from the relevant Hong Kong tax authority and enjoy the preferential withholding tax rate of 5% under the Double Taxation Arrangement with respect to any dividends paid by our PRC subsidiaries to its immediate holding company, Universe HK. As of the date of this annual report, we have not applied for the tax resident certificate from the relevant Hong Kong tax authority. Universe HK intends to apply for the tax resident certificate if and when Universe Technology plan to declare and pay dividends to Universe HK. See "Item 3. Key Information—D. Risk Factors— There are significant uncertainties under the Enterprise Income Tax Law, or the EIT Law, relating to the withholding tax liabilities of our PRC subsidiaries, and dividends payable by our PRC subsidiaries to our offshore subsidiaries may not qualify to enjoy certain treaty benefits."

**B. <u>Significant Changes</u>**

Except as disclosed elsewhere in this annual report, we have not experienced any significant changes since the date of our audited consolidated financial statements included elsewhere in this annual report.

**Item 9. THE OFFER AND LISTING**

**A. <u>Offer and Listing Details.</u>**

Our ordinary shares were listed on the Nasdaq Global Market from March 23, 2021 to January 31, 2024, and have been listed on the Nasdaq Capital Market since February 1, 2024 under the symbol "UPC."

**B. <u>Plan of Distribution</u>**

Not applicable.

**C. <u>Markets</u>**

Our ordinary shares were listed on the Nasdaq Global Market from March 23, 2021 to January 31, 2024, and have been listed on the Nasdaq Capital Market since February 1, 2024 under the symbol "UPC."

**D. <u>Selling Shareholders</u>**

Not applicable.

**E. <u>Dilution</u>**

Not applicable.

**F. <u>Expenses of the Issue</u>**

Not applicable.

**Item 10. ADDITIONAL INFORMATION**

**A. <u>Share Capital</u>**

Not applicable.

**B. <u>Memorandum and Articles of Association</u>**

We are an exempted company incorporated under the laws of the Cayman Islands and our affairs are governed by our amended and restated memorandum and articles of association, as amended and restated from time to time, and Companies Act (As Revised) of the Cayman Islands, which we refer to as the Companies Act below, and the common law of the Cayman Islands.

We incorporate by reference into this annual report the description of our fourth amended and restated memorandum of association and our second amended and restated articles of association, which is filed as Exhibit 1.1 to this annual report on Form 20-F.

**Registered Office**

Our registered office in the Cayman Islands is located at Vistra (Cayman) Limited, P.O. Box 31119 Grand Pavilion, Hibiscus Way, 802 West Bay Road, Grand Cayman, KYI – 1205 Cayman Islands, and the phone number of our registered office is +1-(345)769-9372.

**Board of Directors**

See "Item 6. Directors, Senior Management and Employees."

**Ordinary Shares**

***General***

All of our issued and outstanding ordinary shares are fully paid and non-assessable. Our ordinary shares are issued in registered form, and are issued when registered in our register of members. Unless the board of directors determine otherwise, each holder of our ordinary shares will not receive a certificate in respect of such ordinary shares. Our shareholders who are non-residents of the Cayman Islands may freely hold and vote their ordinary shares. We may not issue shares or warrants to bearer.

Our authorized share capital is $140,625,000 divided into 11,250,000 ordinary shares, par value $11.25 per share and 1,250,000 preferred shares, par value $11.25 per share. Subject to the provisions of the Companies Act and our articles regarding redemption and purchase of the shares, the directors have general and unconditional authority to allot (with or without confirming rights of renunciation), grant options over or otherwise deal with any unissued shares to such persons, at such times and on such terms and conditions as they may decide. Such authority could be exercised by the directors to allot shares which carry rights and privileges that are preferential to the rights attaching to ordinary shares. No share may be issued at a discount except in accordance with the provisions of the Companies Act. The directors may refuse to accept any application for shares, and may accept any application in whole or in part, for any reason or for no reason.

***Dividends***

Subject to the provisions of the Companies Act and any rights attaching to any class or classes of shares under and in accordance with the articles:

&nbsp;&nbsp;&nbsp;&nbsp;(a) the directors may declare dividends
or distributions out of our funds which are lawfully available for that purpose; and

&nbsp;&nbsp;&nbsp;&nbsp;(b) the Company's shareholders
may, by ordinary resolution, declare dividends but no such dividend shall exceed the amount recommended by the directors.

Subject to the requirements of the Companies Act regarding the application of a company's share premium account and with the sanction of an ordinary resolution, dividends may also be declared and paid out of any share premium account. The directors when paying dividends to shareholders may make such payment either in cash or in specie.

Unless provided by the rights attached to a share, no dividend shall bear interest.

***Voting Rights***

 

Subject to any rights or restrictions as to voting attached to any shares, unless any share carries special voting rights, on a show of hands every shareholder who is present in person and every person representing a shareholder by proxy shall have one vote per ordinary share. On a poll, every shareholder who is present in person and every person representing a shareholder by proxy shall have one vote for each share of which he or the person represented by proxy is the holder. In addition, all shareholders holding shares of a particular class are entitled to vote at a meeting of the holders of that class of shares. Votes may be given either personally or by proxy.

***Variation of Rights of Shares***

Whenever our capital is divided into different classes of shares, the rights attaching to any class of share (unless otherwise provided by the terms of issue of the shares of that class) may be varied either with the consent in writing of the holders of not less than two-thirds of the issued shares of that class, or with the sanction of a resolution passed by a majority of not less than two-thirds of the holders of shares of the class present in person or by proxy at a separate general meeting of the holders of shares of that class.

Unless the terms on which a class of shares was issued state otherwise, the rights conferred on the shareholder holding shares of any class shall not be deemed to be varied by the creation or issue of further shares ranking pari passu with the existing shares of that class.

***Alteration of Share Capital***

Subject to the Companies Act, our shareholders may, by ordinary resolution:

&nbsp;&nbsp;&nbsp;&nbsp;(a) increase our share capital by new shares of the amount fixed by that ordinary resolution and with the attached rights, priorities and privileges set out in that ordinary resolution;

&nbsp;&nbsp;&nbsp;&nbsp;(b) consolidate and divide all or any of our share capital into shares of larger amount than our existing shares;

&nbsp;&nbsp;&nbsp;&nbsp;(c) convert all or any of our paid up shares into stock, and reconvert that stock into paid up shares of any denomination;

&nbsp;&nbsp;&nbsp;&nbsp;(d) sub-divide our shares or any of them into shares of an amount smaller than that fixed, so, however, that in the sub-division, the proportion between the amount paid and the amount, if any, unpaid on each reduced share shall be the same as it was in case of the share from which the reduced share is derived; and

&nbsp;&nbsp;&nbsp;&nbsp;(e) cancel shares which, at the date of the passing of that ordinary resolution, have not been taken or agreed to be taken by any person and diminish the amount of our share capital by the amount of the shares so cancelled or, in the case of shares without nominal par value, diminish the number of shares into which our capital is divided.

Subject to the Companies Act and to any rights for the time being conferred on the shareholders holding a particular class of shares, our shareholders may, by special resolution, reduce its share capital in any way.

At the 2025 Annual General Meeting, the shareholders of the Company adopted a special resolution approving the Capital Reorganization. For details, see "Item 3. Key Information — Recent Development — The Capital Reorganization." As of the date of this annual report, the Company is still in the process of registering the Order with the Registrar of Companies of the Cayman Islands and completing other necessary procedures in respect of the Capital Reduction. Accordingly, the conditions of the Capital Reorganization have not been fully met and the Capital Reorganization has not taken effect.

***Calls on Shares and Forfeiture***

Subject to the terms of allotment, the directors may make calls on the shareholders in respect of any monies unpaid on their shares including any premium and each shareholder shall (subject to receiving at least 14 clear days' notice specifying when and where payment is to be made), pay to us the amount called on his shares. Shareholders registered as the joint holders of a share shall be jointly and severally liable to pay all calls in respect of the share. If a call remains unpaid after it has become due and payable the person from whom it is due and payable shall pay interest on the amount unpaid from the day it became due and payable until it is paid at the rate fixed by the terms of allotment of the share or in the notice of the call or if no rate is fixed, at the rate of ten percent per annum. The directors may, at their discretion, waive payment of the interest wholly or in part.

We have a first and paramount lien on all shares (whether fully paid up or not) registered in the name of a shareholder (whether solely or jointly with others). The lien is for all monies payable to us by the shareholder or the shareholder's estate:

&nbsp;&nbsp;&nbsp;&nbsp;(a) either alone or jointly with
any other person, whether or not that other person is a shareholder; and

&nbsp;&nbsp;&nbsp;&nbsp;(b) whether or not those monies
are presently payable.

At any time the directors may declare any share to be wholly or partly exempt from the lien on shares provisions of the articles.

We may sell, in such manner as the directors may determine, any share on which the sum in respect of which the lien exists is presently payable, if due notice that such sum is payable has been given (as prescribed by the articles) and, within 14 days of the date on which the notice is deemed to be given under the articles, such notice has not been complied with.

***Unclaimed Dividend***

A dividend that remains unclaimed for a period of six years after it became due for payment shall be forfeited to, and shall cease to remain owing by, the company.

***Forfeiture or Surrender of Shares***

If a shareholder fails to pay any capital call, the directors may give to such shareholder not less than 14 clear days' notice requiring payment and specifying the amount unpaid including any interest which may have accrued, any expenses which have been incurred by us due to that person's default and the place where payment is to be made. The notice shall also state the place where payment is to be made and contain a warning that if the notice is not complied with, the shares in respect of which the call is made will be liable to be forfeited.

If such notice is not complied with, the directors may, before the payment required by the notice has been received, resolve that any share the subject of that notice be forfeited (which forfeiture shall include all dividends or other monies payable in respect of the forfeited share and not paid before such forfeiture).

A forfeited share may be sold, re-allotted or otherwise disposed of on such terms and in such manner as the directors determine and at any time before a sale, re-allotment or disposition the forfeiture may be cancelled on such terms as the directors think fit.

A person whose shares have been forfeited shall cease to be a shareholder in respect of the forfeited shares, but shall, notwithstanding such forfeiture, remain liable to pay to us all monies which at the date of forfeiture were payable by him to us in respect of the shares, together with all expenses and interest from the date of forfeiture or surrender until payment, but his liability shall cease if and when we receive payment in full of the unpaid amount. The directors, however, may waive payment wholly or in part.

A declaration, whether statutory or under oath, made by a director or the secretary shall be conclusive evidence that the person making the declaration is our director or secretary and that the particular shares have been forfeited or surrendered on a particular date.

Subject to the execution of an instrument of transfer, if necessary, the declaration shall constitute good title to the shares.

***Share Premium Account***

The directors shall establish a share premium account and shall carry the credit of such account from time to time to a sum equal to the amount or value of the premium paid on the issue of any share or capital contributed or such other amounts required by the Companies Act.

***Redemption and Purchase of Own Shares***

Subject to the Companies Act and any rights for the time being conferred on the shareholders holding a particular class of shares, we may by action of our directors:

&nbsp;&nbsp;&nbsp;&nbsp;(a) issue shares that are to be redeemed or liable to be redeemed, at our option or the shareholder holding those redeemable shares, on the terms and in the manner our directors determine before the issue of those shares;

(b) with the consent by special resolution of the shareholders holding shares of a particular class, vary the rights attaching to that class of shares so as to provide that those shares are to be redeemed or are liable to be redeemed at our option on the terms and in the manner which the directors determine at the time of such variation; and

(c) purchase all or any of our own shares of any class including any redeemable shares on the terms and in the manner which the directors determine at the time of such purchase.

We may make a payment in respect of the redemption or purchase of its own shares in any manner authorized by the Companies Act, including out of any combination of capital, our profits and the proceeds of a fresh issue of shares.

When making a payment in respect of the redemption or purchase of shares, the directors may make the payment in cash or in specie (or partly in one and partly in the other) if so authorized by the terms of the allotment of those shares or by the terms applying to those shares, or otherwise by agreement with the shareholder holding those shares.

***Transfer of Shares***

Provided that a transfer of ordinary shares complies with applicable rules of Nasdaq, a shareholder may transfer ordinary shares to another person by completing an instrument of transfer in a common form or in a form prescribed by Nasdaq or in any other form approved by the directors, executed:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) where the ordinary shares are fully paid, by or on behalf of that shareholder; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) where the ordinary shares are partly paid, by or on behalf of that shareholder and the transferee.

The transferor shall be deemed to remain the holder of an ordinary share until the name of the transferee is entered into the register of members of the Company.

Our board of directors may, in its absolute discretion, decline to register any transfer of any ordinary share that has not been fully paid up or is subject to a company lien. Our board of directors may also decline to register any transfer of such ordinary share unless:

&nbsp;&nbsp;&nbsp;&nbsp;(a) the instrument of transfer is lodged with the Company, accompanied by the certificate for the ordinary shares to which it relates and such other evidence as our board of directors may reasonably require to show the right of the transferor to make the transfer;

&nbsp;&nbsp;&nbsp;&nbsp;(b) the instrument of transfer is in respect of only one class of shares;

(c) the instrument of transfer is properly stamped, if required;

&nbsp;&nbsp;&nbsp;&nbsp;(d) the ordinary shares transferred is fully paid and free of any lien in favor of us;

(e) any fee related to the transfer has been paid to us; and

(f) the transfer is not to more than four joint holders.

If our directors refuse to register a transfer, they are required, within three months after the date on which the instrument of transfer was lodged, to send to each of the transferor and the transferee notice of such refusal.

This, however, is unlikely to affect market transactions of the ordinary shares purchased by investors in the public offering. The legal title to such ordinary shares and the registration details of those ordinary shares in the Company's register of members will remain with Depository Trust Company ("DTC"). All market transactions with respect to those ordinary shares will then be carried out without the need for any kind of registration by the directors, as the market transactions will all be conducted through the DTC systems.

The registration of transfers may, on 14 calendar days' notice being given by advertisement in such one or more newspapers or by electronic means, be suspended and our register of members closed at such times and for such periods as our board of directors may from time to time determine. The registration of transfers, however, may not be suspended, and the register may not be closed, for more than 30 days in any year.

***Inspection of Books and Records***

Holders of our ordinary shares will have no general right under the Companies Act to inspect or obtain copies of our register of members or our corporate records.

***General Meetings***

As a Cayman Islands exempted company, we are not obligated by the Companies Act to call shareholders' annual general meetings; accordingly, we may, but shall not be obliged to, in each year hold a general meeting as an annual general meeting. Any annual general meeting held shall be held at such time and place as may be determined by our board of directors. All general meetings other than annual general meetings shall be called extraordinary general meetings.

The directors may convene general meetings whenever they think fit. General meetings shall also be convened on the written requisition of one or more of the shareholders entitled to attend and vote at our general meetings who (together) hold not less than ten percent of the rights to vote at such general meeting in accordance with the notice provisions in the articles, specifying the purpose of the meeting and signed by each of the shareholders making the requisition. If the directors do not convene such meeting for a date not later than 21 clear days' after the date of receipt of the written requisition, those shareholders who requested the meeting may convene the general meeting themselves within three months after the end of such period of 21 clear days in which case reasonable expenses incurred by them as a result of the directors failing to convene a meeting shall be reimbursed by us.

At least 14 days' notice of an extraordinary general meeting and 21 days' notice of an annual general meeting shall be given to shareholders entitled to attend and vote at such meeting. The notice shall specify the place, the day and the hour of the meeting and the general nature of that business. In addition, if a resolution is proposed as a special resolution, the text of that resolution shall be given to all shareholders. Notice of every general meeting shall also be given to the directors and our auditor.

Subject to the Companies Act and with the consent of the shareholders who, individually or collectively, hold at least 90 percent of the voting rights of all those who have a right to vote at a general meeting, a general meeting may be convened on shorter notice.

A quorum shall consist of the presence (whether in person or represented by proxy) of one or more shareholders holding shares that represent not less than one-third of the outstanding shares carrying the right to vote at such general meeting.

If, within 15 minutes from the time appointed for the general meeting, or at any time during the meeting, a quorum is not present, the meeting, if convened upon the requisition of shareholders, shall be cancelled. In any other case it shall stand adjourned to the same time and place seven days or to such other time or place as is determined by the directors.

The chairman may, with the consent of a meeting at which a quorum is present, adjourn the meeting. When a meeting is adjourned for seven days or more, notice of the adjourned meeting shall be given in accordance with the articles.

At any general meeting a resolution put to the vote of the meeting shall be decided on a show of hands, unless a poll is (before, or on, the declaration of the result of the show of hands) demanded by the chairman of the meeting or by at least two shareholders having the right to vote on the resolutions or one or more shareholders present who together hold not less than ten percent of the voting rights of all those who are entitled to vote on the resolution. Unless a poll is so demanded, a declaration by the chairman as to the result of a resolution and an entry to that effect in the minutes of the meeting, shall be conclusive evidence of the outcome of a show of hands, without proof of the number or proportion of the votes recorded in favor of, or against, that resolution.

If a poll is duly demanded it shall be taken in such manner as the chairman directs and the result of the poll shall be deemed to be the resolution of the meeting at which the poll was demanded.

In the case of an equality of votes, whether on a show of hands or on a poll, the chairman of the meeting at which the show of hands takes place or at which the poll is demanded, shall not be entitled to a second or casting vote.

***Directors***

We may by ordinary resolution, from time to time, fix the maximum and minimum number of directors to be appointed. Under the articles, we are required to have a minimum of one director and the maximum number of directors shall be unlimited.

A director may be appointed by ordinary resolution or by the directors. Any appointment may be to fill a vacancy or as an additional director.

Unless the remuneration of the directors is determined by the shareholders by ordinary resolution, the directors shall be entitled to such remuneration as the directors may determine.

The shareholding qualification for directors may be fixed by our shareholders by ordinary resolution and unless and until so fixed no share qualification shall be required.

Unless removed or re-appointed, each director shall be appointed for a term expiring at the next-following annual general meeting, if one is held. At any annual general meeting held, our directors will be elected by an ordinary resolution of our shareholders. At each annual general meeting, each director so elected shall hold office for a one-year term and until the election of their respective successors in office or removed.

A director may be removed by ordinary resolution.

A director may at any time resign or retire from office by giving us notice in writing. Unless the notice specifies a different date, the director shall be deemed to have resigned on the date that the notice is delivered to us.

Subject to the provisions of the articles, the office of a director may be terminated forthwith if:

&nbsp;&nbsp;&nbsp;&nbsp;(a) he is prohibited by the law
of the Cayman Islands from acting as a director;

&nbsp;&nbsp;&nbsp;&nbsp;(b) he is made bankrupt or makes
an arrangement or composition with his creditors generally;

&nbsp;&nbsp;&nbsp;&nbsp;(c) he resigns his office by notice
to us;

&nbsp;&nbsp;&nbsp;&nbsp;(d) he only held office as a director
for a fixed term and such term expires;

&nbsp;&nbsp;&nbsp;&nbsp;(e) in the opinion of a registered
medical practitioner by whom he is being treated he becomes physically or mentally incapable of acting as a director;

&nbsp;&nbsp;&nbsp;&nbsp;(f) he is given notice by the majority
of the other directors (not being less than two in number) to vacate office (without prejudice to any claim for damages for breach of
any agreement relating to the provision of the services of such director);

&nbsp;&nbsp;&nbsp;&nbsp;(g) he is made subject to any law
relating to mental health or incompetence, whether by court order or otherwise; or

&nbsp;&nbsp;&nbsp;&nbsp;(h) without the consent of the
other directors, he is absent from meetings of directors for continuous period of six months.

Each of the compensation committee and the nominating and corporate governance committee shall consist of at least three directors and the majority of the committee members shall be independent within the meaning of Rule 5605(a)(2) of the Listing Rules of the Nasdaq Stock Market. The audit committee shall consist of at least three directors, all of whom shall be independent within the meaning of Rule 5605(a)(2) of the Listing Rules of the Nasdaq Stock Market and will meet the criteria for independence set forth in Rule 10A-3 or Rule 10C-1 of the Exchange Act.

***Powers and Duties of Directors***

Subject to the provisions of the Companies Act and our memorandum and articles of association, our business shall be managed by the directors, who may exercise all our powers. No prior act of the directors shall be invalidated by any subsequent alteration of our memorandum or articles of association. To the extent allowed by the Companies Act, however, shareholders may by special resolution validate any prior or future act of the directors which would otherwise be in breach of their duties.

The directors may delegate any of their powers to any committee consisting of one or more persons who need not be shareholders and may include non-directors so long as the majority of those persons are directors; any committee so formed shall in the exercise of the powers so delegated conform to any regulations that may be imposed on it by the directors. Our board of directors have established an audit committee, compensation committee, and nomination and corporate governance committee.

The board of directors may establish any local or divisional board of directors or agency and delegate to it its powers and authorities (with power to sub-delegate) for managing any of our affairs whether in the Cayman Islands or elsewhere and may appoint any persons to be members of a local or divisional board of directors, or to be managers or agents, and may fix their remuneration.

The directors may from time to time and at any time by power of attorney or in any other manner they determine appoint any person, either generally or in respect of any specific matter, to be our agent with or without authority for that person to delegate all or any of that person's powers.

The directors may from time to time and at any time by power of attorney or in any other manner they determine appoint any person, whether nominated directly or indirectly by the directors, to be our attorney or our authorized signatory and for such period and subject to such conditions as they may think fit. The powers, authorities and discretions, however, must not exceed those vested in, or exercisable, by the directors under the articles.

The board of directors may remove any person so appointed and may revoke or vary the delegation.

The directors may exercise all of our powers to borrow money and to mortgage or charge its undertaking, property and assets both present and future and uncalled capital or any part thereof, to issue debentures and other securities whether outright or as collateral security for any debt, liability or obligation of ours or our parent undertaking (if any) or any subsidiary undertaking of us or of any third party.

A director shall not, as a director, vote in respect of any contract, transaction, arrangement or proposal in which he has an interest which (together with any interest of any person connected with him) is a material interest (otherwise than by virtue of his interests, direct or indirect, in shares or debentures or other securities of, or otherwise in or through, us) and if he shall do so his vote shall not be counted, nor in relation thereto shall he be counted in the quorum present at the meeting, but (in the absence of some other material interest than is mentioned below) none of these prohibitions shall apply to:

&nbsp;&nbsp;&nbsp;&nbsp;(a) the giving of any security,
guarantee or indemnity in respect of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) money lent or obligations incurred
by him or by any other person for our benefit or any of our subsidiaries; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) a debt or obligation of ours
or any of our subsidiaries for which the director himself has assumed responsibility in whole or in part and whether alone or jointly
with others under a guarantee or indemnity or by the giving of security;

&nbsp;&nbsp;&nbsp;&nbsp;(b) where we or any of our subsidiaries
is offering securities in which offer the director is or may be entitled to participate as a holder of securities or in the underwriting
or sub-underwriting of which the director is to or may participate;

&nbsp;&nbsp;&nbsp;&nbsp;(c) any contract, transaction,
arrangement or proposal affecting any other body corporate in which he is interested, directly or indirectly and whether as an officer,
shareholder, creditor or otherwise howsoever, provided that he (together with persons connected with him) does not to his knowledge hold
an interest representing one percent or more of any class of the equity share capital of such body corporate (or of any third body corporate
through which his interest is derived) or of the voting rights available to shareholders of the relevant body corporate;

&nbsp;&nbsp;&nbsp;&nbsp;(d) any act or thing done or to
be done in respect of any arrangement for the benefit of the employees of us or any of our subsidiaries under which he is not accorded
as a director any privilege or advantage not generally accorded to the employees to whom such arrangement relates; or

&nbsp;&nbsp;&nbsp;&nbsp;(e) any matter connected with the
purchase or maintenance for any director of insurance against any liability or (to the extent permitted by the Companies Act) indemnities
in favor of directors, the funding of expenditure by one or more directors in defending proceedings against him or them or the doing
of anything to enable such director or directors to avoid incurring such expenditure.

A director may, as a director, vote (and be counted in the quorum) in respect of any contract, transaction, arrangement or proposal in which he has an interest which is not a material interest or as described above.

***Capitalization of Profits***

The directors may resolve to capitalize:

&nbsp;&nbsp;&nbsp;&nbsp;(a) any part of our profits not
required for paying any preferential dividend (whether or not those profits are available for distribution); or

&nbsp;&nbsp;&nbsp;&nbsp;(b) any sum standing to the credit
of our share premium account or capital redemption reserve, if any.

The amount resolved to be capitalized must be appropriated to the shareholders who would have been entitled to it had it been distributed by way of dividend and in the same proportions.

***Liquidation Rights***

If we are wound up, the shareholders may, subject to the articles and any other sanction required by the Companies Act, pass a special resolution allowing the liquidator to do either or both of the following:

&nbsp;&nbsp;&nbsp;&nbsp;(a) to divide in specie among the
shareholders the whole or any part of our assets and, for that purpose, to value any assets and to determine how the division shall be
carried out as between the shareholders or different classes of shareholders; and

&nbsp;&nbsp;&nbsp;&nbsp;(b) to vest the whole or any part
of the assets in trustees for the benefit of shareholders and those liable to contribute to the winding up.

The directors have the authority to present a petition for our winding up to the Grand Court of the Cayman Islands on our behalf without the sanction of a resolution passed at a general meeting.

***Register of Members***

Under the Companies Act, we must keep a register of members and there should be entered therein:

● the names and addresses of our shareholders, a statement of the shares held by each shareholder, and of the amount paid or agreed to be considered as paid, on the shares of each shareholder;

● the date on which the name of any person was entered on the register as a shareholder; and

● the date on which any person ceased to be a shareholder.

Under the Companies Act, the register of members of our company is prima facie evidence of the matters set out therein (that is, the register of members will raise a presumption of fact on the matters referred to above unless rebutted) and a shareholder registered in the register of members is deemed as a matter of the Companies Act to have legal title to the shares as set against its name in the register of members.

If the name of any person is incorrectly entered in or omitted from our register of members, or if there is any default or unnecessary delay in entering on the register the fact of any person having ceased to be a shareholder of our company, the person or shareholder aggrieved (or any shareholder of our company or our company itself) may apply to the Grand Court of the Cayman Islands for an order that the register be rectified, and the Court may either refuse such application or it may, if satisfied of the justice of the case, make an order for the rectification of the register.

**Preferred Shares**

The directors are empowered to designate and issue from time to time one or more classes or series of preference shares and to fix and determine the relative rights, preferences, designations, qualifications, privileges, options, conversion rights, limitations and other special or relative rights of each such class or series so authorized. Such action could adversely affect the voting power and other rights of the holders of our ordinary shares or could have the effect of discouraging any attempt by a person or group to obtain control of us.

As of the date of this annual report, no preferred shares are issued and outstanding.

**C. <u>Material Contracts</u>**

We have not entered into any material contracts other than in the ordinary course of business and other than those described in "Item 4. Information on the Company" or elsewhere in this annual report.

**D. <u>Exchange Controls</u>**

See "Item 4. Information on the Company—B. Business Overview—Regulations—Other Laws—Foreign Exchange Control."

**E. <u>Taxation</u>**

**People's Republic of China Taxation**

The following brief description of Chinese enterprise laws is designed to highlight the enterprise-level taxation on our earnings, which will affect the amount of dividends, if any, we are ultimately able to pay to our shareholders.

*Enterprise Income Tax*

 

According to the Enterprise Income Tax Law of the People's Republic of China, or the EIT Law, which was promulgated by the SCNPC on March 16, 2007, and became effective on January 1, 2008, and then amended on February 24, 2017, and the Implementation Rules of the EIT Law, or the Implementation Rules, which were promulgated by the State Council on December 6, 2007, effective on January 1, 2008, and amended on April 23, 2019, enterprises are divided into resident enterprises and non-resident enterprises. Resident enterprises pay enterprise income tax on their incomes obtained in and outside the PRC at the rate of 25%. Non-resident enterprises setting up institutions in the PRC pay enterprise income tax on the incomes obtained by such institutions in and outside the PRC at the rate of 25%. Non-resident enterprises with no institutions in the PRC, and non-resident enterprises with income having no substantial connection with their institutions in the PRC, pay enterprise income tax on their income obtained in the PRC at a reduced rate of 10%.

We are an exempted company incorporated with limited liability in the Cayman Islands and we gain substantial income by way of dividends paid to us from our PRC subsidiaries, Universe Technology, Jiangxi Universe, and Universe Trade. The EIT Law and its implementation rules provide that China-sourced income of foreign enterprises, such as dividends paid by a PRC subsidiary to its equity holders that are non-resident enterprises, will normally be subject to PRC withholding tax at a rate of 10%, unless any such foreign investor's jurisdiction of incorporation has a tax treaty with China that provides for a preferential tax rate or a tax exemption.

Under the EIT Law, an enterprise established outside of China with a "de facto management body" within China is considered a "resident enterprise," which means that it is treated in a manner similar to a Chinese enterprise for enterprise income tax purposes. Although the implementation rules of the EIT Law define "de facto management body" as a managing body that actually, comprehensively manage and control the production and operation, staff, accounting, property and other aspects of an enterprise, the only official guidance for this definition currently available is set forth in SAT Notice 82, which provides guidance on the determination of the tax residence status of a Chinese-controlled offshore incorporated enterprise, defined as an enterprise that is incorporated under the laws of a foreign country or territory and that has a PRC enterprise or enterprise group as its primary controlling shareholder. Although the Company does not have a PRC enterprise or enterprise group as our primary controlling shareholder and is therefore not a Chinese-controlled offshore incorporated enterprise within the meaning of SAT Notice 82, in the absence of guidance specifically applicable to us, we have applied the guidance set forth in SAT Notice 82 to evaluate the tax residence status of the Company and its subsidiaries organized outside the PRC.

According to SAT Notice 82, a Chinese-controlled offshore incorporated enterprise will be regarded as a PRC tax resident by virtue of having a "de facto management body" in China and will be subject to PRC enterprise income tax on its worldwide income only if all of the following criteria are met: (i) the places where senior management and senior management departments that are responsible for daily production, operation and management of the enterprise perform their duties are mainly located within the territory of China; (ii) financial decisions (such as money borrowing, lending, financing and financial risk management) and personnel decisions (such as appointment, dismissal and salary and wages) are decided or need to be decided by organizations or persons located within the territory of China; (iii) main property, accounting books, corporate seal, the board of directors and files of the minutes of shareholders' meetings of the enterprise are located or preserved within the territory of China; and (iv) one half (or more) of the directors or senior management staff having the right to vote habitually reside within the territory of China.

We believe that we do not meet some of the conditions outlined in the immediately preceding paragraph. For example, as a holding company, the key assets and records of the Company, including the resolutions and meeting minutes of our board of directors and the resolutions and meeting minutes of our shareholders, are located and maintained outside the PRC. In addition, we are not aware of any offshore holding companies with a corporate structure similar to ours that has been deemed a PRC "resident enterprise" by the PRC tax authorities. Accordingly, we believe that the Company and its offshore subsidiaries should not be treated as a "resident enterprise" for PRC tax purposes if the criteria for "de facto management body" as set forth in SAT Notice 82 were deemed applicable to us. However, as the tax residency status of an enterprise is subject to determination by the PRC tax authorities and uncertainties remain with respect to the interpretation of the term "de facto management body" as applicable to our offshore entities, we will continue to monitor our tax status.

The implementation rules of the EIT law provides that, (i) if the enterprise that distributes dividends is domiciled in the PRC or (ii) if gains are realized from transferring equity interests of enterprises domiciled in the PRC, then such dividends or gains are treated as China-sourced income. It is not clear how "domicile" may be interpreted under the EIT Law, and it may be interpreted as the jurisdiction where the enterprise is a tax resident. Therefore, if we are considered as a PRC tax resident enterprise for PRC tax purposes, any dividends we pay to our overseas shareholders which are non-resident enterprises as well as gains realized by such shareholders from the transfer of our shares may be regarded as China-sourced income and as a result become subject to PRC withholding tax at a rate of up to 10%. AllBright Law Offices (Fuzhou), our PRC counsel, is unable to provide a "will" opinion because it believes that it is more likely than not that we and our offshore subsidiaries would be treated as non-resident enterprises for PRC tax purposes because we do not meet some of the conditions outlined in SAT Notice 82. In addition, AllBright Law Offices (Fuzhou) is not aware of any offshore holding companies with a corporate structure similar to ours that has been deemed a PRC "resident enterprise" by the PRC tax authorities as of the date of this annual report. Therefore, AllBright Law Offices (Fuzhou) believes that it is possible but highly unlikely that the income received by our overseas shareholders will be regarded as China-sourced income. See "Item 3. Key Information—Risk Factors—Risks Related to Doing Business in China—Under the EIT Law, we may be classified as a 'Resident Enterprise' of China. Such classification will likely result in unfavorable tax consequences to us and our non-PRC shareholders."

Currently, as resident enterprises in the PRC, Universe Technology as well as Jiangxi Universe and its subsidiaries in PRC are subject to the enterprise income tax at the rate of 25%, except that once an enterprise meets certain requirements and is identified as a small-scale minimal profit enterprise, the part of its taxable income not more than RMB1 million is subject to a reduced rate of 5% and the part between RMB1 million and 3 million is subject to a reduced rate of 10%. The EIT is calculated based on the entity's global income as determined under PRC tax laws and accounting standards. If the PRC tax authorities determine that Jiangxi Universe is a PRC resident enterprise for enterprise income tax purposes, we may be required to withhold a 10% withholding tax from dividends we pay to our shareholders that are non-resident enterprises. In addition, non-resident enterprise shareholders may be subject to a 10% PRC withholding tax on gains realized on the sale or other disposition of our ordinary shares, if such income is treated as sourced from within the PRC. It is unclear whether our non-PRC individual shareholders would be subject to any PRC tax on dividends or gains obtained by such non-PRC individual shareholders in the event we are determined to be a PRC resident enterprise. If any PRC tax were to apply to dividends or gains realized by non-PRC individuals, it would generally apply at a rate of 20% unless a reduced rate is available under an applicable tax treaty. However, it is also unclear whether our non-PRC shareholders would be able to claim the benefits of any tax treaties between their country of tax residence and the PRC in the event that we are treated as a PRC resident enterprise. There is no guidance from the PRC government to indicate whether or not any tax treaties between the PRC and other countries would apply in circumstances where a non-PRC company was deemed to be a PRC tax resident, and thus there is no basis for expecting how tax treaty between the PRC and other countries may impact non-resident enterprises.

*Value-added Tax*

Pursuant to the Provisional Regulations on Value-Added Tax of the PRC (《中华人民共和国增值税暂行条例》), or the VAT Regulations, which were promulgated by the State Council on December 13, 1993, and amended on November 10, 2008, February 6, 2016, and November 19, 2017, respectively, and the Implementation Rules of the Provisional Regulations on Value Added Tax of the PRC (《中华人民共和国增值税暂行条例实施细则》) promulgated by the MOF on December 25, 1993 and amended on December 15, 2008 and October 28, 2011, respectively, entities and individuals that sell goods or labor services of processing, repair or replacement, sell services, intangible assets, or immovables, or import goods within the territory of the People's Republic of China are taxpayers of value-added tax. The VAT rate is 17% for taxpayers selling goods, labor services, or tangible movable property leasing services or importing goods, except otherwise specified; 11% for taxpayers selling goods, labor services, or tangible movable property leasing services or importing goods, except otherwise specified; 6% for taxpayers selling services or intangible assets.

According to Provisions in the Notice on Adjusting the Value added Tax Rates (Cai Shui [2018] No. 32), or the Notice, issued by the SAT and the MOF, where taxpayers make VAT taxable sales or import goods, the applicable tax rates shall be adjusted from 17% to 16% and from 11% to 10%, respectively. The Notice took effect on May 1, 2018, and the adjusted VAT rates took effect at the same time.

On March 23, 2016, the MOF and the SAT jointly issued the Circular of Full Implementation of Business Tax to VAT Reform (the "Circular 36") (《关于全面推开营业税改征增值税试点的通知》), which confirms that business tax will be completely replaced by VAT from May 1, 2016. The Notice of the MOF and the SAT on the Adjustment to VAT Rates (《关于调整增值税税率的通知》), promulgated on April 4, 2018 and effective as of May 1, 2018, adjusted the applicative rate of VAT. The deduction rates of 17% and 11% applicable to the taxpayers who have VAT taxable sales activities or imported goods are adjusted to 16% and 10%, respectively. For the export goods to which a tax rate of 17% was originally applicable and the export rebate rate was 17%, the export rebate rate is adjusted to 16%. For the export goods and cross-border taxable activities to which a tax rate of 11% was originally applicable and the export rebate rate was 11%, the export rebate rate is adjusted to 10%. Pursuant to such circular, the Value Added Tax Pilot Program has been applicable nationwide since May 1, 2016.

Subsequently, the Notice on Policies for Deepening Reform of Value-added Tax was issued by the SAT, the MOF and the General Administration of Customs on March 30, 2019 and took effective on April 1, 2019, which further adjusted the applicable tax rate for taxpayers making VAT taxable sales or importing goods. The applicable tax rates shall be adjusted from 16% to 13% and from 10% to 9%, respectively.

According to the VAT Regulations and the related rules, as of the date of this annual report, as taxpayers selling goods, Jiangxi Universe and its consolidated affiliated entities are generally subject to 13% VAT rate.

*Dividend Withholding Tax*

Pursuant to the Arrangement between Mainland China and Hong Kong for the Avoidance of Double Taxation and Prevention of Fiscal Evasion with respect to Taxes on Income (《内地和香港特别行政区关于所得税避免双重征税和防止偷税漏税的安排》) effective on August 21, 2006, no more than 5% withholding tax rate applies to dividends paid by a PRC company to a Hong Kong resident, provided that the recipient is a company that holds at least 25% of the capital of the PRC company. The 10% withholding tax rate applies to dividends paid by a PRC company to a Hong Kong resident if the recipient is a company that holds less than 25% of the capital of the PRC company.

Furthermore, pursuant to the Notice of the SAT on Issues Relating to the Implementation of Dividend Clauses in Tax Treaties (Guo Shui Han [2009] No.81) (《国家税务总局关于执行税收协定股息条款有关问题的通知》（国税函[2009] 81号）), which was promulgated and effective on February 20, 2009, all of the following requirements should be satisfied where a fiscal resident of the other party to the tax agreement needs to be entitled to such tax agreement treatment as being taxed at a tax rate specified in the tax agreement for the dividends paid to it by a PRC resident company: (1) such a fiscal resident who obtains dividends should be a company as provided in the tax agreement; (2) owner's equity interests and voting shares of the PRC resident company directly owned by such a fiscal resident reaches a specified percentage; and (3) the equity interests of the PRC resident company directly owned by such a fiscal resident, at any time during the 12 months prior to the acquisition of the dividends, reaches a percentage specified in the tax agreement.

In addition, according to the Administrative Measures on Non-resident Taxpayers Enjoying Treaty Benefits (《非居民纳税人享受协定待遇管理办法》) promulgated by the SAT on October 14, 2019 and became effective on January 1, 2020, non-resident taxpayers claiming treaty benefits shall adhere to the principle of "self-assessment, claiming benefits, retention of the relevant materials for future inspection." Where a non-resident taxpayer self-assesses and concludes that it satisfies the criteria for claiming treaty benefits, it may enjoy treaty benefits at the time of tax declaration or withholding. However such non-resident taxpayers shall retain relevant tax-reporting materials pursuant to the provisions of these Measures for potential future inspection, and accept follow-up administration by relevant tax authorities.

As of the date of this annual report, when considered as a non-PRC resident investor, which is much more likely to happen than not, Universe HK shall be subject to the dividend withholding tax at the rate of 10%. Upon identified as the Hong Kong resident enterprise stipulated by the Double Tax Avoidance Arrangement and other applicable laws, the withholding tax may be reduced to 5%.

**Hong Kong Taxation**

The following summary of certain relevant taxation provisions under the laws of Hong Kong is based on current law and practice and is subject to changes therein. This summary does not purport to address all possible tax consequences relating to purchasing, holding or selling the ordinary shares, and does not take into account the specific circumstances of any particular investors, some of whom may be subject to special rules. Accordingly, holders or prospective purchasers (particularly those subject to special tax rules, such as banks, dealers, insurance companies and tax-exempt entities) should consult their own tax advisors regarding the tax consequences of purchasing, holding or selling the Ordinary Shares. Under the current laws of Hong Kong:

● No profit tax is imposed in Hong Kong in respect of capital gains from the sale of the ordinary shares.

● Revenue gains from the sale of ordinary shares by persons carrying on a trade, profession or business in Hong Kong where the gains are derived from or arise in Hong Kong from the trade, profession or business will be chargeable to Hong Kong profits tax, which is currently imposed at the rate of 16.5% on corporations and at a maximum rate of 15% on individuals and unincorporated businesses.

● Gains arising from the sale of ordinary Shares, where the purchases and sales of ordinary shares are effected outside of Hong Kong such as, for example, on the Nasdaq, should not be subject to Hong Kong profits tax.

According to the current tax practice of the Hong Kong Inland Revenue Department, dividends paid on the ordinary shares would not be subject to any Hong Kong tax.

No Hong Kong stamp duty is payable on the purchase and sale of the ordinary shares.

**United States Federal Income Taxation**

The following brief summary does not address the tax consequences to any particular investor or to persons in special tax situations such as:

● banks;

● financial institutions;

● insurance companies;

● regulated investment companies;

● real estate investment trusts;

● broker-dealers;

● persons that elect to mark their securities to market;

● U.S. expatriates or former long-term residents of the U.S.;

● governments or agencies or instrumentalities thereof;

● tax-exempt entities;

● persons liable for alternative minimum tax;

● persons holding our ordinary shares as part of a straddle, hedging, conversion or integrated transaction;

● persons that actually or constructively own 10% or more of our voting power or value (including by reason of owning our ordinary shares);

● persons who acquired our ordinary shares pursuant to the exercise of any employee share option or otherwise as compensation;

● persons holding our ordinary shares through partnerships or other pass-through entities;

● beneficiaries of a trust holding our ordinary shares; or

● persons holding our ordinary shares through a trust.

The brief discussion set forth below is addressed only to U.S. Holders (defined below) that purchased our ordinary shares. Purchasers are urged to consult their own tax advisors about the application of the U.S. federal income tax rules to their particular circumstances as well as the state, local, foreign, and other tax consequences to them of the purchase, ownership, and disposition of our ordinary shares.

***Material U.S. Federal Tax Consequences Applicable to U.S. Holders of Our Ordinary Shares***

The following brief summary sets forth the material U.S. federal income tax consequences related to the ownership and disposition of our ordinary shares. It is directed to U.S. Holders (as defined below) of our ordinary shares and is based upon laws and relevant interpretations thereof in effect as of the date of this annual report, all of which are subject to change. This brief summary description does not deal with all possible tax consequences relating to ownership and disposition of our ordinary shares or U.S. tax laws, other than the U.S. federal income tax laws, such as the tax consequences under non-U.S. tax laws, state, local, and other tax laws.

The following brief description applies only to U.S. Holders (defined below) that hold ordinary shares as capital assets and that have the U.S. dollar as their functional currency. This brief description is based on the federal income tax laws of the United States in effect as of the date of this annual report and on U.S. Treasury regulations in effect or, in some cases, proposed, as of the date of this annual report, as well as judicial and administrative interpretations thereof available on or before such date. All of the foregoing authorities are subject to change, which change could apply retroactively and could affect the tax consequences described below.

The brief description below of the U.S. federal income tax consequences to "U.S. Holders" will apply to you if you are a beneficial owner of ordinary shares and you are, for U.S. federal income tax purposes,

● an individual who is a citizen or resident of the United States;

● a corporation (or other entity taxable as a corporation for U.S. federal income tax purposes) organized under the laws of the United States, any state thereof or the District of Columbia;

● an estate whose income is subject to U.S. federal income taxation regardless of its source; or

● a trust that (1) is subject to the primary supervision of a court within the United States and the control of one or more U.S. persons for all substantial decisions or (2) has a valid election in effect under applicable U.S. Treasury regulations to be treated as a U.S. person. If a partnership (or other entity treated as a partnership for United States federal income tax purposes) is a beneficial owner of our ordinary shares, the tax treatment of a partner in the partnership will depend upon the status of the partner and the activities of the partnership. Partnerships and partners of a partnership holding our ordinary shares are urged to consult their tax advisors regarding an investment in our ordinary shares.

***Taxation of Dividends and Other Distributions on Our Ordinary Shares***

Subject to the PFIC rules discussed below, the gross amount of distributions made by us to you with respect to the ordinary shares (including the amount of any taxes withheld therefrom) will generally be includable in your gross income as dividend income on the date of receipt by you, but only to the extent that the distribution is paid out of our current or accumulated earnings and profits (as determined under U.S. federal income tax principles). With respect to corporate U.S. Holders, the dividends will not be eligible for the dividends-received deduction allowed to corporations in respect of dividends received from other U.S. corporations. There were no cash dividends paid during the years ended September 30, 2024, 2023 and 2022.

With respect to non-corporate U.S. Holders, including individual U.S. Holders, dividends will be taxed at the lower capital gains rate applicable to qualified dividend income, provided that (1) the ordinary shares are readily tradable on an established securities market in the United States, or we are eligible for the benefits of an approved qualifying income tax treaty with the United States that includes an exchange of information program, (2) we are not a PFIC for either our taxable year in which the dividend is paid or the preceding taxable year, and (3) certain holding period requirements are met. Because there is no income tax treaty between the United States and the Cayman Islands, clause (1) above can be satisfied only if the ordinary shares are readily tradable on an established securities market in the United States. Under U.S. Internal Revenue Service authority, ordinary shares are considered for purpose of clause (1) above to be readily tradable on an established securities market in the United States if they are listed on certain exchanges, which presently includes the NYSE and the Nasdaq Stock Market. Our ordinary shares have been listed on the Nasdaq Stock Market since March 23, 2021 under the symbol "UPC." You are urged to consult your tax advisors regarding the availability of the lower rate for dividends paid with respect to our ordinary shares, including the effects of any change in law after the date of this annual report.

Dividends will constitute foreign source income for foreign tax credit limitation purposes. If the dividends are taxed as qualified dividend income (as discussed above), the amount of the dividend taken into account for purposes of calculating the foreign tax credit limitation will be limited to the gross amount of the dividend, multiplied by the reduced rate divided by the highest rate of tax normally applicable to dividends. The limitation on foreign taxes eligible for credit is calculated separately with respect to specific classes of income. For this purpose, dividends distributed by us with respect to our ordinary shares will constitute "passive category income" but could, in the case of certain U.S. Holders, constitute "general category income."

To the extent that the amount of the distribution exceeds our current and accumulated earnings and profits (as determined under U.S. federal income tax principles), it will be treated first as a tax-free return of your tax basis in your ordinary shares, and to the extent the amount of the distribution exceeds your tax basis, the excess will be taxed as capital gain. We do not intend to calculate our earnings and profits under U.S. federal income tax principles. Therefore, a U.S. Holder should expect that a distribution will be treated as a dividend even if that distribution would otherwise be treated as a non-taxable return of capital or as capital gain under the rules described above.

***Taxation of Dispositions of Ordinary Shares***

Subject to the PFIC rules discussed below, you will recognize taxable gain or loss on any sale, exchange, or other taxable disposition of a share equal to the difference between the amount realized (in U.S. dollars) for the share and your tax basis (in U.S. dollars) in the ordinary shares. The gain or loss will be capital gain or loss. If you are a non-corporate U.S. Holder, including an individual U.S. Holder, who has held the ordinary shares for more than one year, you will generally be eligible for reduced tax rates. The deductibility of capital losses is subject to limitations. Any such gain or loss that you recognize will generally be treated as United States source income or loss for foreign tax credit limitation purposes which will generally limit the availability of foreign tax credits.

***Passive Foreign Investment Company (PFIC) Consequences***

A non-U.S. corporation is considered a PFIC, as defined in Section 1297(a) of the U.S. Internal Revenue Code, for any taxable year if either:

● at least 75% of its gross income for such taxable year is passive income; or

● at least 50% of the value of its assets (based on an average of the quarterly values of the assets during a taxable year) is attributable to assets that produce or are held for the production of passive income (the "asset test").

Passive income generally includes dividends, interest, rents and royalties (other than rents or royalties derived from the active conduct of a trade or business), and gains from the disposition of passive assets. We will be treated as owning our proportionate share of the assets and earning our proportionate share of the income of any other corporation in which we own, directly or indirectly, at least 25% (by value) of the stock. In determining the value and composition of our assets for purposes of the PFIC asset test, the value of our assets must be determined based on the market value of our ordinary shares from time to time, which could cause the value of our non-passive assets to be less than 50% of the value of all of our assets on any particular quarterly testing date for purposes of the asset test.

Based on our operations and the composition of our assets, we are not a PFIC this fiscal year ended, under the current PFIC rules. We must make a separate determination each year as to whether we are a PFIC, however, and there can be no assurance with respect to our status as a PFIC for any future taxable years. Depending on the amount of assets held for the production of passive income, it is possible that, for any subsequent taxable year, more than 50% of our assets may be assets held for the production of passive income. We will make this determination following the end of any particular tax year. In addition, because the value of our assets for purposes of the asset test will generally be determined based on the market price of our ordinary shares, our PFIC status will depend in large part on the market price of our ordinary shares. Accordingly, fluctuations in the market price of the ordinary shares may cause us to become a PFIC. In addition, the application of the PFIC rules is subject to uncertainty in several respects and the composition of our income and assets will be affected by how, and how quickly, we spend our liquid assets. We are under no obligation to take steps to reduce the risk of our being classified as a PFIC, and as stated above, the determination of the value of our assets will depend upon material facts (including the market price of our ordinary shares from time to time) that may not be within our control. If we are a PFIC for any year during which you hold ordinary shares, we will continue to be treated as a PFIC for all succeeding years during which you hold ordinary shares. If we cease to be a PFIC and you did not previously make a timely "mark-to-market" election as described below, you may avoid some of the adverse effects of the PFIC regime by making a "purging election" (as described below) with respect to the ordinary shares.

If we are a PFIC for your taxable year(s) during which you hold ordinary shares, you will be subject to special tax rules with respect to any "excess distribution" that you receive and any gain you realize from a sale or other disposition (including a pledge) of the ordinary shares, unless you make a "mark-to-market" election as discussed below. Distributions you receive in a taxable year that are greater than 125% of the average annual distributions you received during the shorter of the three preceding taxable years or your holding period for the ordinary shares will be treated as an excess distribution. Under these special tax rules:

● the excess distribution or gain will be allocated ratably over your holding period for the ordinary shares;

● the amount allocated to your current taxable year, and any amount allocated to any of your taxable year(s) prior to the first taxable year in which we were a PFIC, will be treated as ordinary income, and

● the amount allocated to each of your other taxable year(s) will be subject to the highest tax rate in effect for that year and the interest charge generally applicable to underpayments of tax will be imposed on the resulting tax attributable to each such year.

The tax liability for amounts allocated to years prior to the year of disposition or "excess distribution" cannot be offset by any net operating losses for such years, and gains (but not losses) realized on the sale of the ordinary shares cannot be treated as capital, even if you hold the ordinary shares as capital assets.

A U.S. Holder of "marketable stock" (as defined below) in a PFIC may make a mark-to-market election under Section 1296 of the US Internal Revenue Code for such stock to elect out of the tax treatment discussed above. If you make a mark-to-market election for first taxable year which you hold (or are deemed to hold) ordinary shares and for which we are determined to be a PFIC, you will include in your income each year an amount equal to the excess, if any, of the fair market value of the ordinary shares as of the close of such taxable year over your adjusted basis in such ordinary shares, which excess will be treated as ordinary income and not capital gain. You are allowed an ordinary loss for the excess, if any, of the adjusted basis of the ordinary shares over their fair market value as of the close of the taxable year. Such ordinary loss, however, is allowable only to the extent of any net mark-to-market gains on the ordinary shares included in your income for prior taxable years. Amounts included in your income under a mark-to-market election, as well as gain on the actual sale or other disposition of the ordinary shares, are treated as ordinary income. Ordinary loss treatment also applies to any loss realized on the actual sale or disposition of the ordinary shares, to the extent that the amount of such loss does not exceed the net mark-to-market gains previously included for such ordinary shares. Your basis in the ordinary shares will be adjusted to reflect any such income or loss amounts. If you make a valid mark-to-market election, the tax rules that apply to distributions by corporations which are not PFICs would apply to distributions by us, except that the lower applicable capital gains rate for qualified dividend income discussed above under "—Taxation of Dividends and Other Distributions on our Ordinary Shares" generally would not apply.

The mark-to-market election is available only for "marketable stock," which is stock that is traded in other than de minimis quantities on at least 15 days during each calendar quarter ("regularly traded") on a qualified exchange or other market (as defined in applicable U.S. Treasury regulations), including the Nasdaq Capital Market. If the ordinary shares continue to be regularly traded on the Nasdaq Capital Market and if you are a holder of ordinary shares, the mark-to-market election would be available to you were we to be or become a PFIC. Our ordinary shares have been listed on the Nasdaq Global Market from March 23, 2021 to January 31, 2024 and since February 1, 2024 under the symbol "UPC."

Alternatively, a U.S. Holder of stock in a PFIC may make a "qualified electing fund" election under Section 1295(b) of the US Internal Revenue Code with respect to such PFIC to elect out of the tax treatment discussed above. A U.S. Holder who makes a valid qualified electing fund election with respect to a PFIC will generally include in gross income for a taxable year such holder's pro rata share of the corporation's earnings and profits for the taxable year. The qualified electing fund election, however, is available only if such PFIC provides such U.S. Holder with certain information regarding its earnings and profits as required under applicable U.S. Treasury regulations. We do not currently intend to prepare or provide the information that would enable you to make a qualified electing fund election. If you hold ordinary shares in any taxable year in which we are a PFIC, you will be required to file U.S. Internal Revenue Service Form 8621 in each such year and provide certain annual information regarding such ordinary shares, including regarding distributions received on the ordinary shares and any gain realized on the disposition of the ordinary shares.

If you do not make a timely "mark-to-market" election (as described above), and if we were a PFIC at any time during the period you hold our ordinary shares, then such ordinary shares will continue to be treated as stock of a PFIC with respect to you even if we cease to be a PFIC in a future year, unless you make a "purging election" for the year we cease to be a PFIC. A "purging election" creates a deemed sale of such ordinary shares at their fair market value on the last day of the last year in which we are treated as a PFIC. The gain recognized by the purging election will be subject to the special tax and interest charge rules treating the gain as an excess distribution, as described above. As a result of the purging election, you will have a new basis (equal to the fair market value of the ordinary shares on the last day of the last year in which we are treated as a PFIC) and holding period (which new holding period will begin the day after such last day) in your ordinary shares for tax purposes.

IRC Section 1014(a) provides for a step-up in basis to the fair market value for our ordinary shares when inherited from a decedent that was previously a holder of our ordinary shares. However, if we are determined to be a PFIC and a decedent that was a U.S. Holder did not make either a timely qualified electing fund election for our first taxable year as a PFIC in which the U.S. Holder held (or was deemed to hold) our ordinary shares, or a mark-to-market election and ownership of those ordinary shares are inherited, a special provision in IRC Section 1291(e) provides that the new U.S. Holder's basis should be reduced by an amount equal to the Section 1014 basis minus the decedent's adjusted basis just before death. As such if we are determined to be a PFIC at any time prior to a decedent's passing, the PFIC rules will cause any new U.S. Holder that inherits our ordinary shares from a U.S. Holder to not get a step-up in basis under Section 1014 and instead will receive a carryover basis in those ordinary shares.

You are urged to consult your tax advisors regarding the application of the PFIC rules to your investment in our ordinary shares and the elections discussed above.

***Information Reporting and Backup Withholding***

Dividend payments with respect to our ordinary shares and proceeds from the sale, exchange, or redemption of our ordinary shares may be subject to information reporting to the U.S. Internal Revenue Service and possible U.S. backup withholding under Section 3406 of the U.S. Internal Revenue Code with at a current flat rate of 24%. Backup withholding will not apply, however, to a U.S. Holder who furnishes a correct taxpayer identification number and makes any other required certification on U.S. Internal Revenue Service Form W-9 or who is otherwise exempt from backup withholding. U.S. Holders who are required to establish their exempt status generally must provide such certification on U.S. Internal Revenue Service Form W-9. U.S. Holders are urged to consult their tax advisors regarding the application of the U.S. information reporting and backup withholding rules.

Backup withholding is not an additional tax. Amounts withheld as backup withholding may be credited against your U.S. federal income tax liability, and you may obtain a refund of any excess amounts withheld under the backup withholding rules by filing the appropriate claim for refund with the U.S. Internal Revenue Service and furnishing any required information. We do not intend to withhold taxes for individual shareholders. Transactions effected through certain brokers or other intermediaries, however, may be subject to withholding taxes (including backup withholding), and such brokers or intermediaries may be required by law to withhold such taxes.

Under the Hiring Incentives to Restore Employment Act of 2010, certain U.S. Holders are required to report information relating to our ordinary shares, subject to certain exceptions (including an exception for ordinary shares held in accounts maintained by certain financial institutions), by attaching a complete Internal Revenue Service Form 8938, Statement of Specified Foreign Financial Assets, with their tax return for each year in which they hold ordinary shares.

**F. <u>Dividends and Paying Agents</u>**

Not applicable.

**G. <u>Statement by Experts</u>**

Not applicable.

**H. <u>Documents on Display</u>**

We are subject to the periodic reporting and other informational requirements of the Exchange Act. Under the Exchange Act, we are required to file reports and other information with the SEC. Specifically, we are required to file annually a Form 20-F within four months after the end of each fiscal year. The SEC maintains a website at http://www.sec.gov that contains reports, proxy and information statements, and other information regarding registrants that make electronic filings with the SEC using its EDGAR system. As a foreign private issuer, we are exempt from the rules of the Exchange Act prescribing, among other things, the furnishing and content of proxy statements to shareholders, and our executive officers, directors and principal shareholders are exempt from the short-swing profit recovery provisions contained in Section 16(b) of the Exchange Act.

**I. <u>Subsidiary Information</u>**

Not applicable.

**J. <u>Annual Report to Security Holders</u>**

Not applicable.

**Item 11. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK**

***Foreign Exchange Risk***

Substantially all of our revenues are denominated in Renminbi. The Renminbi is not freely convertible into foreign currencies for capital account transactions. The value of the Renminbi against the U.S. dollar and other currencies is affected by, among other things, changes in China's political and economic conditions and China's foreign exchange policies. On July 21, 2005, the PRC government changed its decade-old policy of pegging the value of the Renminbi to the U.S. dollar, and the Renminbi appreciated more than 20% against the U.S. dollar over the following three years. Between July 2008 and June 2010, this appreciation halted and the exchange rate between the Renminbi and the U.S. dollar remained within a narrow band. Since June 2010, the Renminbi has fluctuated against the U.S. dollar, at times significantly and unpredictably. It is difficult to predict how market forces or PRC or U.S. government policy may impact the exchange rate between the Renminbi and the U.S. dollar in the future.

To date, we have not entered into any hedging transactions in an effort to reduce our exposure to foreign currency exchange risk. To the extent that we need to convert U.S. dollars we received from our offerings into Renminbi for our operations or capital expenditures, appreciation of the Renminbi against the U.S. dollar would have an adverse effect on the Renminbi amount we would receive from the conversion. Conversely, if we decide to convert our Renminbi into U.S. dollars for the purpose of making payments for dividends on our ordinary shares or for other business purposes, appreciation of the U.S. dollar against the Renminbi would have a negative effect on the U.S. dollar amount available to us.

As of September 30, 2025 and 2024, we had U.S. dollar-denominated cash and cash equivalents of US$33.6 million and US$29.5 million, respectively. A 10% depreciation of U.S. dollar against the Renminbi based on the foreign exchange rate on September 30, 2025 would result in a decrease of RMB23.9 million in cash and cash equivalents. A 10% appreciation of U.S. dollar against the Renminbi based on the foreign exchange rate on September 30, 2025 would result in an increase of RMB23.9 million in cash and cash equivalents.

 ****

***Credit Risk***

Accounts receivable are typically unsecured and derived from revenue earned from customers, thereby exposed to credit risk. The risk is mitigated by our assessment of its customers' creditworthiness and its ongoing monitoring of outstanding balances.

***Interest Rate Risk***

We have not used derivative financial instruments to hedge interest rate risk. Interest-earning instruments carry a degree of interest rate risk. We have not been exposed, nor do we anticipate being exposed to material risks due to changes in market interest rates. However, our future interest income may fall short of expectations due to changes in market interest rates.

***Inflation Risk***

In recent years, inflation has not had a material impact on our results of operations. According to the National Bureau of Statistics of China, the consumer price index in China increased by 0.2%, 0.2% and 0.0% in 2023, 2024 and 2025, respectively. Although we have not in the past been materially affected by inflation since our inception, we can provide no assurance that we will not be affected in the future by higher rates of inflation in China. If inflation rises, it may materially and adversely affect our business.

**Item 12. DESCRIPTION OF SECURITIES OTHER THAN EQUITY SECURITIES**

**A. <u>Debt Securities</u>**

Not applicable.

**B. <u>Warrants and Rights</u>**

Not applicable.

**C. <u>Other Securities</u>**

Not applicable.

**D. <u>American Depositary Shares</u>**

Not applicable.

**Part II**

**Item 13. DEFAULTS, DIVIDEND ARREARAGES AND DELINQUENCIES**

None.

**Item 14. MATERIAL MODIFICATIONS TO THE RIGHTS OF SECURITY HOLDERS AND USE OF PROCEEDS**

See "Item 10. Additional Information" for a description of the rights of securities holders, which remain unchanged.

**Use of Proceeds**

In connection with our initial public offering on March 25, 2021, we issued and sold an aggregate of 5,750,000 ordinary shares, at a price of $5.00 per share with gross proceeds of $28.75 million. Univest Securities, LLC was the underwriter of our initial public offering. We incurred approximately $2,953,114 in expenses in connection with our initial public offering and $178,758 in expenses in connection with the issuance of overallotment shares. None of the transaction expenses included payments to directors or officers of our company or their associates, persons owning more than 10% or more of our equity securities or our affiliates. None of the net proceeds we received from the initial public offering were paid, directly or indirectly, to any of our directors or officers or their associates, persons owning 10% or more of our equity securities or our affiliates.

The net proceeds raised from the initial public offering were $25,618,128 after deducting underwriting discounts and the offering expenses payable by us. For the period from the effectiveness of the registration statement on Form F-1 to September 30, 2025, we used approximately US$7.0 million for research and development purposes, approximately US$6.75 million for upgrading and expanding our manufacturing facilities, and approximately US$6.28 million for brand marketing. We still intend to use the remaining proceeds from our initial public offering in the manner disclosed in our registration statement on Form F-1, as amended (Registration Number 333-248067). For the period from October 1, 2025 to the date of this annual report, US$70,500 were used for brand marketing.

On July 15, 2024, we closed our self-underwritten public offering of 20,000,000 ordinary shares. The ordinary shares were priced at $1.25 per share. The Company raised net proceeds of $24.625 million through that offering. For the period from the closing of that offering to September 30, 2025, we used approximately US$4.2 million for advertising purposes, approximately US$3.2 million for upgrading and expanding our manufacturing facilities, approximately US$2.0 million for research and development purposes, and approximately US$2.7 million for working capital expenses. We still intend to use the remaining proceeds from our self-underwritten public offering in the manner disclosed in our registration statement on Form F-1, as amended (Registration Number 333-278914). For the period from October 1, 2025 to the date of this annual report, US$0.1 million were used for working capital expenses.

On December 6, 2024, we entered into a securities purchase agreement (the "Securities Purchase Agreement") with certain purchasers named thereto, pursuant to which the Company agreed to issue and sell (i) 388,000 ordinary shares, par value US$0.28125 per share (the "Offered Shares"), (ii) 18,362,000 pre-funded warrants to purchase 18,362,000 ordinary shares, par value US$0.28125 per share (the "Pre-funded Warrants"), and (iii) 18,750,000 common warrants to purchase 18,750,000 ordinary shares, par value US$0.28125 per share (the "Common Warrants"), at a combined purchase price of US0.80 per Offered Share and one accompanying Common Warrant, or at a combined purchase price of US$0.79 per Pre-funded Warrant (in lieu of one Offered Share) and one accompanying Common Warrant, in a registered direct offering (the "Offering"). The Company received approximately $15.0 million in gross proceeds from the Offering, before deducting placement agent fees and estimated offering expenses. The Offered Shares and the ordinary shares underlying the Pre-funded Warrants and the Common Warrants offered under the Securities Purchase Agreement were offered and sold pursuant to the Company's effective registration statement on Form F-3 (Registration No. 333-268028), initially filed by the Company with the SEC on October 27, 2022 and declared effective by the SEC on November 15, 2022, and the base prospectus included therein, as supplemented by the prospectus supplement dated December 6, 2024.

The Offering closed on December 10, 2024. For the period from closing of the Offering to September 30, 2025, we used approximately US$1.5 million for research and development purposes, approximately US$1.3 million for upgrading and expanding our manufacturing facilities, and approximately US$2.2 million for brand marketing. We still intend to use the remaining proceeds from the Offering in the manner disclosed in the final prospectus filed with the SEC on December 9, 2024. For the period from October 1, 2025 to the date of this annual report, US$0.1 million were used for working capital expenses.

**Item 15. CONTROLS AND PROCEDURES**

**Disclosure Controls and Procedures**

Our management, with the participation of our chief executive officer and chief financial officer, has performed an evaluation of the effectiveness of our disclosure controls and procedures (as defined in Rule 13a-15(e) under the Exchange Act) as of the end of the period covered by this report, as required by Rule 13a-15(b) under the Exchange Act.

Based upon this evaluation, our management has concluded that, as of September 30, 2025, our existing disclosure controls and procedures were ineffective because of a lack of accounting staff and resources with appropriate knowledge of U.S. GAAP and SEC reporting and compliance requirements.

**Management's Annual Report on Internal Control over Financial Reporting**

Our management is responsible for establishing and maintaining adequate internal control over financial reporting as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act. Internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of consolidated financial statements in accordance with U.S. GAAP and includes those policies and procedures that (i) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of a company's assets, (ii) provide reasonable assurance that transactions are recorded as necessary to permit preparation of consolidated financial statements in accordance with generally accepted accounting principles, and that a company's receipts and expenditures are being made only in accordance with authorizations of a company's management and directors, and (iii) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of a company's assets that could have a material effect on the consolidated financial statements.

Our management, with the participation of our chief executive officer and chief financial officer, conducted an evaluation of the effectiveness of our Company's internal control over financial reporting as of September 30, 2025 based on criteria established in Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO 2013 Framework). Based on this evaluation, we identified one deficiency, which related to a lack of accounting staff and resources with appropriate knowledge of U.S. GAAP and SEC reporting and compliance requirements, and which we believe to be a material weakness as of September 30, 2025.

As a result of the above material weakness, management has concluded that our internal control over financial reporting was not effective as of September 30, 2025. To remedy our identified material weakness as of September 30, 2025, we have undertaken the remedial steps and also plan to adopt certain measures to improve our internal control over financial reporting as set forth below.

***Remediation plan of the Material Weakness in Internal Control over Financial Reporting Reported as of September 30, 2025***

As of the date of this annual report, we have not fully addressed the above-referenced weakness. However, we have made progress in implementing remedial measures, including:

&nbsp;&nbsp;&nbsp;&nbsp;(i) recruiting qualified accounting
personnel with relevant U.S. GAAP and SEC reporting experience and qualifications to strengthen the financial reporting function and
to set up a financial and system control framework. Since very few companies in Ji'an, Jiangxi Province, the area in which our
main PRC operating subsidiaries are located, have sought public listing on a U.S. exchange, we have difficulty identifying qualified
accounting candidates with U.S. GAAP experience and expertise. We plan to search for qualified personnel in other regions of China; and

&nbsp;&nbsp;&nbsp;&nbsp;(ii) implementing regular and continuous
U.S. GAAP accounting and financial reporting training programs for our accounting and financial reporting personnel.

**Attestation Report of the Registered Public Accounting Firm**

This annual report on Form 20-F does not include an attestation report of our registered public accounting firm regarding internal control over financial reporting. Management's report was not subject to attestation by our registered public accounting firm pursuant to rules of the SEC where domestic and foreign registrants that are non-accelerated filers, which we are, and "emerging growth companies," which we also are, are not required to provide the auditor attestation report.

**Changes in Internal Control over Financial Reporting**

There were no changes in our internal controls over financial reporting that occurred during the period covered by this annual report on Form 20-F that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

**Item 16. [RESERVED]**

**Item 16A. AUDIT COMMITTEE FINANCIAL EXPERT**

Mr. Ding Zheng qualifies as an "audit committee financial expert" as defined in Item 16A of Form 20-F. Mr. Ding Zheng satisfies the "independence" requirements of Section 5605(a)(2) of the Nasdaq Listing Rules as well as the independence requirements of Rule 10A-3 under the Exchange Act.

**Item 16B. CODE OF ETHICS**

Our board of directors has adopted a code of business conduct and ethics, which is applicable to all of our directors, officers, and employees. Our code of business conduct and ethics is publicly available on our website.

**Item 16C. PRINCIPAL ACCOUNTANT FEES AND SERVICES**

The following table sets forth the aggregate fees by categories specified below in connection with certain professional services rendered and billed by Enrome LLP, our independent registered public accounting firm for the periods indicated.

**Enrome LLP**

---

| | | |
|:---|:---|:---|
|  | **For the Fiscal Years Ended<br> September 30,** | **For the Fiscal Years Ended<br> September 30,** |
|  | **2024** | **2025** |
| Audit fees <sup>(1)</sup> | $160000 | $160000 |
| Audit-related fees <sup>(2)</sup> |  |  |
| Tax fees <sup>(3)</sup> |  |  |
| All other fees | - | - |
| Total | $160000 | $160000 |

---

&nbsp;&nbsp;&nbsp;&nbsp;(1) Audit fees include the aggregate fees billed for each of the fiscal years for professional services rendered by our independent registered public accounting firm for the audit of our annual financial statements or for the audits of our financial statements and review of the interim financial statements.

(2) Audit related fees include the aggregate fees billed for related services by our principal accountant that are reasonably related to the performance of the audit or review of our financial statements and are not reported under audit fees.

(3) Tax fees represent the aggregated fees billed for professional services rendered by our independent registered public accounting firm for tax compliance, tax advice, and tax planning.

**Item 16D. EXEMPTIONS FROM THE LISTING STANDARDS FOR AUDIT COMMITTEES**

Not applicable.

**Item 16E. PURCHASES OF EQUITY SECURITIES BY THE ISSUER AND AFFILIATED PURCHASERS**

None.

**Item 16F. CHANGE IN REGISTRANT'S CERTIFYING ACCOUNTANT**

On October 8, 2024, the Company dismissed YCM CPA INC, the former independent registered public accounting firm. The termination of auditor relationship was disclosed in a Form 6-K dated October 10, 2024. The Company believes that the termination was not the result of any disagreement between the Company and YCM CPA INC.

On October 8, 2024, the Company, following approval by the audit committee, appointed Enrome LLP as its independent public accounting firm. The appointment of auditor was disclosed in a Form 6-K dated October 10, 2024.

During each of the years ended September 30, 2024 and 2023 and the subsequent interim period through October 10, 2024, neither the Company nor anyone on behalf of the Company consulted Enrome LLP regarding (i) the application of accounting principles to a specific transaction, either completed or proposed, or the type of audit opinion that might be rendered on our consolidated financial statements, and neither a written report nor oral advice was provided to us that Enrome LLP concluded was an important factor considered by us in reaching a decision as to any accounting, auditing, or financial reporting issue, (ii) any matter that was the subject of a disagreement pursuant to Item 16F(a)(1)(iv) of Form 20-F, or (iii) any reportable event pursuant to Item 16F(a)(1)(v) of Form 20-F.

**Item 16G. CORPORATE GOVERNANCE**

As a Cayman Islands company listed on the Nasdaq Capital Market, we are subject to the Nasdaq corporate governance listing standards. Nasdaq rules, however, permit a foreign private issuer like us to follow the corporate governance practices of its home country. Certain corporate governance practices in the Cayman Islands, which is our home country, may differ significantly from the Nasdaq corporate governance listing standards.

Nasdaq Listing Rule 5635 generally provides that shareholder approval is required of U.S. domestic companies listed on Nasdaq prior to issuance (or potential issuance) of securities (i) equaling 20% or more of the company's common stock or voting power for less than the greater of market or book value (ii) resulting in a change of control of the company; and (iii) which is being issued pursuant to a stock option or purchase plan to be established or materially amended or other equity compensation arrangement made or materially amended. Notwithstanding this general requirement, Nasdaq Listing Rule 5615(a)(3)(A) permits foreign private issuers to follow their home country practice rather than these shareholder approval requirements. The Companies Act does not require shareholder approval prior to any of the foregoing types of issuances. We, therefore, are not required to obtain such shareholder approval prior to entering into a transaction with the potential to issue securities as described above. Specifically, our board of directors has elected to follow our home country rules and be exempt from the requirements to obtain shareholder approval for the issuance of 20% or more of our outstanding ordinary shares under Nasdaq Listing Rule 5635(d).

Nasdaq Listing Rule 5605(b)(1) requires listed companies to have, among other things, a majority of its board members be independent. As a foreign private issuer, however, we are permitted to follow home country practice in lieu of the above requirements. The corporate governance practice in our home country, the Cayman Islands, does not require a majority of our board to consist of independent directors. Currently, a majority of our board members are independent. However, if we change our board composition such that independent directors do not constitute a majority of our board of directors, our shareholders may be afforded less protection than they would otherwise enjoy under Nasdaq's corporate governance requirements applicable to U.S. domestic issuers. See "Item 3. Key Information—D. Risk Factors—Risks Related to Our Ordinary Shares— As a foreign private issuer, we are permitted to adopt certain home country practices in relation to corporate governance matters that differ significantly from the Nasdaq listing standards. These practices may afford less protection to shareholders than they would enjoy if we complied fully with corporate governance listing standards."

Other than those described above, there are no significant differences between our corporate governance practices and those followed by U.S. domestic companies under Nasdaq corporate governance listing standards.

**Item 16H. MINE SAFETY DISCLOSURE**

Not applicable.

**Item 16I. DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS.**

Not applicable.

**Item 16J. INSIDER TRADING POLICIES.**

We have adopted insider trading policies governing the purchase, sale, and other dispositions of our securities by directors, senior management, and employees. A copy of the insider trading policies is filed as an exhibit to this annual report.

**Item 16K. CYBERSECURITY.**

We have established cybersecurity risk management to identify, assess, and mitigate cybersecurity risks alongside other business risks. The process is in alignment with our strategic objectives and risk appetite. We may engage assessors, consultants, auditors, or other third parties to enhance our cyber security risk management processes. Any cybersecurity incidents are closely monitored for their potential impact on our business strategy, operations, and financial condition. As of the date of this annual report, we have not experienced any cybersecurity incidents that have materially affected or are reasonably likely to materially affect us, including our business strategy, results of operations, or financial condition. We continuously adapt our business strategy to enhance resilience, strengthen defenses and ensure the sustainability of our operations.

**Part III**

**Item 17. FINANCIAL STATEMENTS**

We have elected to provide financial statements pursuant to Item 18.

**Item 18. FINANCIAL STATEMENTS**

The consolidated financial statements of Universe Pharmaceuticals INC and its subsidiaries are included at the end of this annual report.

**Item 19. EXHIBITS**

**EXHIBIT INDEX**

---

| | |
|:---|:---|
| **Exhibit No.** | **Description** |
| 1.1 | [Amended and Restated Memorandum of Association and Amended and Restated Articles of Association(incorporated by reference to Exhibit 1.1 of our annual report on Form 20-F (file No. 001-40231), filed with the Securities and Exchange Commission on April 29, 2025)](https://www.sec.gov/Archives/edgar/data/1809616/000121390025036798/ea022807501ex1-1_universe.htm) |
| 2.1 | [Specimen Certificate for Ordinary Shares(incorporated by reference to Exhibit 2.1 of our annual report on Form 20-F (file No. 001-40231), filed with the Securities and Exchange Commission on April 29, 2025)](https://www.sec.gov/Archives/edgar/data/1809616/000121390025036798/ea022807501ex2-1_universe.htm) |
| 2.2 | [Form of Underwriter Warrants (incorporated by reference to Exhibit 4.2 of our Registration Statement on Form F-1 (file No. 333-248067), as amended, initially filed with the Securities and Exchange Commission on August 17, 2020)](https://www.sec.gov/Archives/edgar/data/1809616/000121390020037560/ea129847ex4-2_universe.htm) |
| 2.3 | [Description of Securities (incorporated by reference to Exhibit 2.3 of our annual report on Form 20-F (file No. 001-40231), filed with the Securities and Exchange Commission on April 29, 2025)](http://www.sec.gov/Archives/edgar/data/1809616/000121390025036798/ea022807501ex2-3_universe.htm) |
| 4.1 | [Form of Employment Agreement by and between executive officers and the Registrant (incorporated by reference to Exhibit 10.1 of our Registration Statement on Form F-1 (file No. 333-248067), as amended, initially filed with the Securities and Exchange Commission on August 17, 2020)](https://www.sec.gov/Archives/edgar/data/1809616/000121390020022480/ea125531ex10-1_universepharm.htm) |
| 4.2 | [Form of Indemnification Agreement with the Registrant's directors and officers (incorporated by reference to Exhibit 10.2 of our Registration Statement on Form F-1 (file No. 333-248067), as amended, initially filed with the Securities and Exchange Commission on August 17, 2020)](https://www.sec.gov/Archives/edgar/data/1809616/000121390020022480/ea125531ex10-2_universepharm.htm) |
| 4.3 | [Form of Sales and Distribution Agreement by and between Universe Trade and customers (incorporated by reference to Exhibit 10.7 of our Registration Statement on Form F-1 (file No. 333-248067), as amended, initially filed with the Securities and Exchange Commission on August 17, 2020)](https://www.sec.gov/Archives/edgar/data/1809616/000121390020022480/ea125531ex10-7_universepharm.htm) |
| 4.4 | [English translation of the real estate property purchase agreement entered into by and between Jiangxi Universe and Jiangxi Yueshang Investment Co., Ltd., dated May 16, 2021 (incorporated by reference to Exhibit 4.13 of our annual report on Form 20-F (file No. 001-40231), filed with the Securities and Exchange Commission on January 31, 2022)](https://www.sec.gov/Archives/edgar/data/1809616/000121390022004359/f20f2021ex4-13_universephar.htm) |
| 4.5 | [English translation of the construction agreement entered into by and between Jiangxi Universe and Jiangxi Chenyuan Construction Project Co., Ltd., dated June 25, 2021 (incorporated by reference to Exhibit 4.15 of our annual report on Form 20-F (file No. 001-40231), filed with the Securities and Exchange Commission on January 31, 2022)](https://www.sec.gov/Archives/edgar/data/1809616/000121390022004359/f20f2021ex4-15_universephar.htm) |
| 4.6\* | [English translation of the Technology Cooperation Agreement entered into by and between Jinggangshan University and Guangzhou Universe Hanhe Medical Research Co., Ltd., dated May 16, 2025](ea027396901ex4-6_universe.htm) |
| 4.7\* | [English translation of the Form of Purchase Order by and between Jiangxi Universe Pharmaceuticals Co., Ltd. and Bozhou Cijitang Chinese Herbal Decoction Pieces Co., Ltd.](ea027396901ex4-7_universe.htm) |
| 4.8\* | [English translation of the working capital loan contract by and between Jiangxi Universe Pharmaceuticals Commercial Trade Co., Ltd. and Ji'an Luling Rural Commercial Bank Co., Ltd., dated May 16, 2025](ea027396901ex4-8_universe.htm) |

---

---

| | |
|:---|:---|
| 4.9\* | [English translation of the working capital loan contract between Jiangxi Universe Pharmaceuticals Co., Ltd. and Bank of Communications, dated September 28, 2025](ea027396901ex4-9_universe.htm) |
| 4.10\* | [English translation of the loan contract between Jiangxi Universe Pharmaceuticals Co., Ltd. and Bank of Beijing, dated September 9, 2025](ea027396901ex4-10_universe.htm) |
| 4.11\* | [English translation of the working capital loan contract between Jiangxi Universe Pharmaceuticals Co., Ltd. and Jiangxi Luling Rural Commercial Bank, dated November 4, 2025](ea027396901ex4-11_universe.htm) |
| 4.12\* | [English translation of the working capital loan contract between Jiangxi Universe Pharmaceuticals Co., Ltd. and Huaxia Bank, dated June 27, 2025](ea027396901ex4-12_universe.htm) |
| 4.13\* | [English translation of the working capital loan contract between Jiangxi Universe Pharmaceuticals Co., Ltd. and Ji'an Luling Rural Commercial Bank Co., Ltd., dated March 3, 2025](ea027396901ex4-13_universe.htm) |
| 4.14\* | [English translation of the working capital loan contract between Jiangxi Universe Pharmaceuticals Co., Ltd. and Jiangxi Rural Commercial Bank, dated April 22, 2025](ea027396901ex4-14_universe.htm) |
| 8.1 | [List of subsidiaries of the Registrant (incorporated by reference to Exhibit 8.1 of our annual report on Form 20-F (file No. 001-40231), filed with the Securities and Exchange Commission on January 31, 2022)](https://www.sec.gov/Archives/edgar/data/1809616/000121390022004359/f20f2021ex8-1_universephar.htm) |
| 11.1 | [Code of Business Conduct and Ethics of the Registrant (incorporated by reference to Exhibit 99.1 of our Registration Statement on Form F-1 (file No. 333-248067), as amended, initially filed with the Securities and Exchange Commission on August 17, 2020)](https://www.sec.gov/Archives/edgar/data/1809616/000121390020022480/ea125531ex99-1_universepharm.htm) |
| 11.2 | [Insider Trading Policy (incorporated by reference to Exhibit 11.2 of our annual report on Form 20-F (file No. 001-40231), filed with the Securities and Exchange Commission on January 30, 2024)](https://www.sec.gov/Archives/edgar/data/1809616/000121390024007745/f20f2023ex11-2_universe.htm) |
| 12.1\* | [Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002](ea027396901ex12-1_universe.htm) |
| 12.2\* | [Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002](ea027396901ex12-2_universe.htm) |
| 13.1\*\* | [Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002](ea027396901ex13-1_universe.htm) |
| 13.2\*\* | [Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002](ea027396901ex13-2_universe.htm) |
| 15.1\* | [Consent of AllBright Law Offices (Fuzhou)](ea027396901ex15-1_universe.htm) |
| 97.1 | [Compensation Recovery Policy (incorporated by reference to Exhibit 97.1 of our annual report on Form 20-F (file No. 001-40231), filed with the Securities and Exchange Commission on January 30, 2024)](https://www.sec.gov/Archives/edgar/data/1809616/000121390024007745/f20f2023ex97-1_universe.htm) |
| 101.INS\* | Inline XBRL Instance Document |
| 101.SCH\* | Inline XBRL Taxonomy Extension Schema Document |
| 101.CAL\* | Inline XBRL Taxonomy Extension Calculation Linkbase Document |
| 101.DEF\* | Inline XBRL Taxonomy Extension Definition Linkbase Document |
| 101.LAB\* | Inline XBRL Taxonomy Extension Label Linkbase Document |
| 101.PRE\* | Inline XBRL Taxonomy Extension Presentation Linkbase Document |
| 104\* | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) |

---

\* Filed with this annual report on Form 20-F <br> \*\* Furnished with this annual report on Form 20-F

**SIGNATURES**

The registrant hereby certifies that it meets all of the requirements for filing on Form 20-F and that it has duly caused and authorized the undersigned to sign this annual report on its behalf.

---

| | | |
|:---|:---|:---|
|  | **Universe Pharmaceuticals INC** | **Universe Pharmaceuticals INC** |
|  | By: | /s/ Gang Lai |
|  |  | Gang Lai |
|  |  | Chief Executive Officer, Director, and |
|  |  | Chairman of the Board of Directors |
| Date: January 28, 2026 |  |  |

---

**UNIVERSE PHARMACEUTICALS INC. AND SUBSIDIARIES**

**INDEX TO CONSOLIDATED FINANCIAL STATEMENTS**

---

| | |
|:---|:---|
| **CONTENTS** | **PAGE(S)** |
| [REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM (PCAOB ID: 6907)](#fin_001) | F-2 |
| [CONSOLIDATED BALANCE SHEETS AS OF SEPTEMBER 30, 2025 AND 2024](#fin_002) | F-3 |
| [CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS FOR THE YEARS ENDED SEPTEMBER 30, 2025, 2024 AND 2023](#fin_003) | F-4 |
| [CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY FOR THE YEARS ENDED SEPTEMBER 30, 2025, 2024 AND 2023](#fin_004) | F-5 |
| [CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED SEPTEMBER 30, 2025, 2024 AND 2023](#fin_005) | F-6 |
| [NOTES TO CONSOLIDATED FINANCIAL STATEMENTS](#fin_006) | F-7 |

---

**REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM**

To the Board of Directors and Shareholders of

Universe Pharmaceuticals INC

**Opinion on the Financial Statements**

We have audited the accompanying consolidated balance sheets of Universe Pharmaceuticals INC and its subsidiaries. (the "Company") as of September 30, 2025 and 2024, the related consolidated statements of operations and comprehensive loss, changes in shareholders' equity and cash flows for each of the years ended September 30, 2025, 2024, and 2023 and the related notes (collectively referred to as the "consolidated financial statements"). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company as of September 30, 2025 and 2024, and the results of its operations and its cash flows for each of the years ended September 30, 2025, 2024 and 2023, in conformity with accounting principles generally accepted in the United States of America ("U.S. GAAP").

**Basis for Opinion**

These consolidated financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's consolidated financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) ("PCAOB") and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that our audit provides a reasonable basis for our opinion.

/s/ Enrome LLP

We have served as the Company's auditor since 2024

Singapore

January 28, 2026

**UNIVERSE PHARMACEUTICALS INC AND SUBSIDIARIES**

**CONSOLIDATED BALANCE SHEETS**

(In U.S. Dollar thousands, except for share and per share data, or otherwise noted)

---

| | | |
|:---|:---|:---|
|  | **As of September 30,** | **As of September 30,** |
|  | **2025** | **2024** |
| **ASSETS** |  |  |
| **CURRENT ASSETS** |  |  |
| &nbsp;&nbsp;&nbsp;Cash | $33592025 | $29497693 |
| &nbsp;&nbsp;&nbsp;Accounts receivable, net | 13008117 | 12905821 |
| &nbsp;&nbsp;&nbsp;Inventories, net | 2193179 | 1737054 |
| &nbsp;&nbsp;&nbsp;Advance to suppliers | 2489737 | 978203 |
| &nbsp;&nbsp;&nbsp;Other receivable | 2280680 | 5666596 |
| &nbsp;&nbsp;&nbsp;Prepaid expenses and other current assets | 39937 | 852417 |
| **TOTAL CURRENT ASSETS** | **53603675** | **51637784** |
| &nbsp;&nbsp;&nbsp;Property, plant and equipment, net | 3583553 | 3568050 |
| &nbsp;&nbsp;&nbsp;Prepayments made to a related party for purchase of property | 2247507 | 2279982 |
| &nbsp;&nbsp;&nbsp;Prepayments for construction in progress | 8869574 | 9492205 |
| &nbsp;&nbsp;&nbsp;Intangible assets, net | 296785 | 262878 |
| &nbsp;&nbsp;&nbsp;Investment in equity securities | 702346 | 712494 |
| **TOTAL NON-CURRENT ASSETS** | **15699765** | **16315609** |
| **TOTAL ASSETS** | $**69303440** | $**67953393** |
| **LIABILITIES AND SHAREHOLDERS' EQUITY** |  |  |
| **CURRENT LIABILITIES** |  |  |
| &nbsp;&nbsp;&nbsp;Short-term bank loans | $7149881 | $5856703 |
| &nbsp;&nbsp;&nbsp;Current portion of long-term bank loans | 2107038 | - |
| &nbsp;&nbsp;&nbsp;Accounts payable | 1669785 | 4914762 |
| &nbsp;&nbsp;&nbsp;Contract liabilities | 40708 | - |
| &nbsp;&nbsp;&nbsp;Taxes payable | 640780 | 1021181 |
| &nbsp;&nbsp;&nbsp;Due to related parties | 446545 | 6900584 |
| &nbsp;&nbsp;&nbsp;Other payable | 856572 | 1266885 |
| &nbsp;&nbsp;&nbsp;Accrued expenses and other current liabilities | 262621 | 352854 |
| **TOTAL CURRENT LIABILITIES** | **13173930** | **20312969** |
| &nbsp;&nbsp;&nbsp;Long-term bank loans | - | 2137483 |
| **TOTAL NON-CURRENT LIABILITY** | - | 2137483 |
| **TOTAL LIABILITIES** | **13173930** | **22450452** |
| **COMMITMENTS AND CONTINGENCIES** |  |  |
| **SHAREHOLDERS' EQUITY** |  |  |
| &nbsp;&nbsp;&nbsp;Ordinary shares, $11.25 par value, 2,000,000,000 shares authorized, 563,338 and 42,880 shares issued and outstanding as of September 30, 2025 and 2024, respectively | 6337553 | 482400 |
| &nbsp;&nbsp;&nbsp;Additional paid in capital | 63009567 | 53864720 |
| &nbsp;&nbsp;&nbsp;Statutory reserve | 2439535 | 2439535 |
| &nbsp;&nbsp;&nbsp;Accumulated deficit | (13843623) | (10171568) |
| &nbsp;&nbsp;&nbsp;Accumulated other comprehensive loss | (1813522) | (1112146) |
| **TOTAL SHAREHOLDERS' EQUITY** | **56129510** | **45502941** |
| **TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY** | $**69303440** | $**67953393** |

---

The accompanying notes are an integral part of these consolidated financial statements.

**UNIVERSE PHARMACEUTICALS INC AND SUBSIDIARIES**

**CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS**

(In U.S. Dollar thousands, except for share and per share data, or otherwise noted)

---

| | | | |
|:---|:---|:---|:---|
|  | **For the Years Ended September 30,** | **For the Years Ended September 30,** | **For the Years Ended September 30,** |
|  | **2025** | **2024** | **2023** |
| **Revenue** | $**17858732** | $**23024458** | $**32308735** |
| Cost of revenue | (11557563) | (16952556) | (21993601) |
| **Gross profit** | **6301169** | **6071902** | **10315134** |
| **Operating expenses** |  |  |  |
| Selling expenses | (4797622) | (8170975) | (6783703) |
| General and administrative expenses | (3747705) | (2889652) | (2638984) |
| Research and development expenses | (671761) | (3031115) | (4858548) |
| **Total operating expenses** | **(9217088)** | **(14091742)** | **(14281235)** |
| **Loss from operations** | **(2915919)** | **(8019840)** | **(3966101)** |
| **Other income (expenses)** |  |  |  |
| Interest expense, net | (232041) | (278172) | (156788) |
| Other (expense) income, net | (108044) | 145476 | (235614) |
| Impairment of prepayments for construction in progress | (481109) | - | - |
| Equity investment income | 65058 | 31942 | 31072 |
| Total other expense, net | (756136) | (100754) | (361330) |
| **Loss before income tax expense** | **(3672055)** | **(8120594)** | **(4327431)** |
| Income tax expense | - | (606704) | (2253593) |
| **Net loss** | **(3672055)** | **(8727298)** | **(6581024)** |
| **Other comprehensive (loss) income** |  |  |  |
| Foreign currency translation adjustment | (701376) | 1260094 | (779351) |
| **Total Comprehensive loss** | $**(4373431)** | $**(7467204)** | $**(7360375)** |
| Net loss per share - Basic and diluted | $(8.06) | $(626.96) | $(1089.21) |
| Weighted average number of shares outstanding used in calculating basic and diluted loss per share | 455871 | 13920 | 6042 |

---

The accompanying notes are an integral part of these consolidated financial statements.

**UNIVERSE PHARMACEUTICALS INC AND SUBSIDIARIES**

**CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY**

**FOR THE YEARS ENDED SEPTEMBER 30, 2025, 2024 AND 2023**

(In U.S. Dollar thousands, except for share and per share data, or otherwise noted)

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Ordinary Shares** | **Ordinary Shares** | | | | | |
|  | **Shares** | **Amount** | **Additional<br> Paid-in**<br>**Capital** | **Statutory**<br>**Reserve** | **Retained Earnings<br> (Accumulated**<br>**Deficit)** | **Accumulated<br> Other<br> Comprehensive**<br>**Income (Loss)** | **Total<br> Shareholders'**<br>**Equity** |
| **Balance as of September 30, 2022** | **6042** | $**67973** | $**29279155** | $**2439535** | $**5136754** | $**(1592889)** | $**35330528** |
| Net loss | **-** | **-**  | **-**  | - | (6581024) | - | &nbsp;&nbsp;&nbsp;&nbsp; (6581024) |
| Foreign currency translation adjustment | **-** | **-**  | **-**  | - | - | (779351) | (779351) |
| **Balance as of September 30, 2023** | **6042** | $**67973** | $**29279155** | $**2439535** | $**(1444270)** | $**(2372240)** | $**27970153** |
| Issuance of ordinary shares | 33333 | 374996 | 24624996 | - | - | - | 24999992 |
| Reverse share-split adjustment | 3505 | 39431 | (39431) | - | - | - | - |
| Net loss for the year |  | - | - | - | (8727298) | - | (8727298) |
| Foreign currency translation adjustment | - | - | - | - | - | 1260094 | 1260094 |
| **Balance as of September 30, 2024** | **42880** | $**482400** | $**53864720** | $**2439535** | $**(10171568)** | $**(1112146)** | $**45502941** |
| Issuance of ordinary shares | 468750 | 5273438 | 9726562 | - | - | - | 15000000 |
| Reverse share-split adjustment | 51708 | 581715 | (581715) | - | - | - | - |
| Net loss for the year |  | - | - | - | (3672055) | - | (3672055) |
| Foreign currency translation adjustment | - | - | - | - | - | (701376) | (701376) |
| **Balance as of September 30, 2025** | **563338** | $**6337553** | $**63009567** | $**2439535** | $**(13843623)** | $**(1813522)** | $**56129510** |

---

The accompanying notes are an integral part of these consolidated financial statements.

**UNIVERSE PHARMACEUTICALS INC AND SUBSIDIARIES**

**CONSOLIDATED STATEMENTS OF CASH FLOWS**

(In U.S. Dollar thousands, except for share and per share data, or otherwise noted)

---

| | | | |
|:---|:---|:---|:---|
|  | **For the Years Ended September 30,** | **For the Years Ended September 30,** | **For the Years Ended September 30,** |
|  | **2025** | **2024** | **2023** |
| **Cash flows from operating activities** |  |  |  |
| &nbsp;&nbsp;&nbsp;Net loss | $(3672055) | $(8727298) | $(6581024) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Adjustments to reconcile net income to net cash provided by (used in) operating activities: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization | 517431 | 485734 | 508785 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loss from disposal of property, plant and equipment | 2948 | 3958 | 114 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Reversal) allowance for credit loss | (113454) | 131581 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Allowance (reversal) of inventory reserve | - | 50651 | (49166) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred income tax expense | - | 606704 | 1567656 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Impairment of prepayments for construction in progress | 481109 | - | - |
| &nbsp;&nbsp;&nbsp;Changes in operating assets and liabilities: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable | (168958) | (1547834) | 4718118 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Inventory, net | (474633) | 1643131 | (1183823) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Advance to suppliers, net | (1505691) | (769911) | (170016) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other receivable | 3299589 | (158011) | 391568 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses and other current assets | 789964 | (792675) | 696147 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred tax assets | - | - | (947964) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses-related party, non-current | - | 36321 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable | (3132705) | 143747 | 1641426 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Contract liabilities | 40180 | - | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Taxes payable | (324530) | 554425 | 280939 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other payable | (706074) | (1135739) | 73966 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued expenses and other current liabilities | (85440) | (31467) | 170049 |
| Net cash (used in) provided by operating activities | (5052319) | (9506683) | 1116775 |
| **Cash flows from investing activities** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Purchases of property, plant and equipment | (266771) | (208320) | (44169) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prepayments for construction in progress | - | (37478) | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Purchase of intangible asset | (80416) | (117291) | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proceeds from disposal of property, plant and equipment | 5380 | 1804 | - |
| Net cash used in investing activities | (341807) | (361285) | (44169) |
| **Cash flows from financing activities** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net proceeds from issuance of ordinary shares | 15000000 | 24999992 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proceeds from bank loans | 7057192 | 7787016 | 5671104 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Repayment of bank loans | (5698440) | (5552240) | (3969773) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proceeds from related parties borrowings | 3213428 | 9530378 | 3536126 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Repayments of related parties borrowings | (9846050) | (2810821) | (6628103) |
| Net cash provided by (used in) financing activities | 9726130 | 33954325 | (1390646) |
| Effect of exchange rate changes on cash | (237672) | 126089 | (108171) |
| **Net increase (decrease) in cash** | 4094332 | 24212446 | (426211) |
| **Cash, beginning of year** | 29497693 | 5285247 | 5711458 |
| **Cash, end of year** | $33592025 | $29497693 | $5285247 |
| **Supplemental disclosure information** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash paid for interest | $289385 | $304516 | $190184 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash paid for income tax | $- | $- | $863800 |
| **Non-cash investing and financing activity** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Obtaining property, plant and equipment | $282204 | $342478 | $- |

---

The accompanying notes are an integral part of these consolidated financial statements.

**UNIVERSE PHARMACEUTICALS INC AND SUBSIDIARIES**

 **NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**NOTE 1 — ORGANIZATION AND BUSINESS DESCRIPTION**

Universe Pharmaceuticals INC ("Universe INC" or the "Company") was incorporated under the laws of the Cayman Islands on December 11, 2019 as an exempted company with limited liability.

Universe INC owns 100% equity interest of Universe Pharmaceuticals (International) Group ("Universe HK"), an entity incorporated on May 21, 2014 in accordance with the laws and regulations in Hong Kong.

Jiangxi Universe Pharmaceuticals Technology Co., Ltd. ("Universe Technology") was formed on April 8, 2019, as a wholly foreign-owned enterprise ("WFOE") in the People's Republic of China (the "PRC" or "China").

Universe INC, Universe HK and Universe Technology are currently not engaging in any active business operations and are merely acting as holding companies.

Jiangxi Universe Pharmaceuticals Co., Ltd. ("Jiangxi Universe") was incorporated on March 2, 1998 in accordance with PRC laws and is engaged in the research and development and manufacturing of modernized traditional Chinese medicines. Jiangxi Universe owns 100% of the equity interests of Jiangxi Universe Pharmaceuticals Commercial Trade Co., Ltd. ("Universe Trade"), which was incorporated on March 10, 2010 for the purposes of handling the sales and distribution of the pharmaceutical products manufactured by Jiangxi Universe.

***Reorganization***

A reorganization of the Company's legal structure (the "Reorganization") was completed on December 11, 2019. The Reorganization involved the incorporation of Universe INC and Universe Technology, and the transfer of 100% of the equity interests of Jiangxi Universe to Universe Technology. Consequently, Universe INC, through its subsidiary Universe HK, directly controls Universe Technology and Jiangxi Universe, and became the ultimate holding company of all other entities mentioned above.

The Reorganization has been accounted for as a recapitalization among entities under common control, since the same controlling shareholders controlled all these entities before and after the Reorganization. Results of operations for the periods presented eliminate the effects of intra-entity transactions.

On March 25, 2021, the Company closed its initial public offering (the "IPO") of 5,000,000 ordinary shares, par value $0.003125 per share at a public offering price of $5.00 per share. On March 29, 2021, the underwriter exercised in full its over-allotment option to purchase an additional 750,000 ordinary shares. The closing for the sale of the over-allotment shares took place on September 30, 2021. Gross proceeds from the IPO totaled $28.75 million. Net proceeds of the IPO, including over-allotment shares, were approximately $25.6 million. In connection with the IPO, the Company's ordinary shares began trading on the Nasdaq Global Market under the symbol "UPC" on March 23, 2021.

On May 12, 2021, through the Company's PRC subsidiary, Jiangxi Universe, the Company established an indirect wholly controlled subsidiary, Guangzhou Universe Hanhe Medical Research Co., Ltd. ("Universe Hanhe") in Guangzhou City, China, for the business purpose of conducting research and development of new pharmaceutical products in order to diversify the Company's product offerings. As of September 30, 2025 and as of the date of this report, Universe Hanhe has no active business operations.

On July 3, 2023, the Company held an annual general meeting of shareholders at which shareholders, among other things, resolved:

&nbsp;&nbsp;&nbsp;&nbsp;(a) with immediate effect, to increase the Company's authorized share capital from US$312,500 divided into 90,000,000 ordinary shares of par value US$0.003125 each and 10,000,000 preferred shares of par value US$0.003125 each, to US$3,125,000 divided into 900,000,000 ordinary shares of par value US$0.003125 each and 100,000,000 preferred shares of par value US$0.003125 each;

&nbsp;&nbsp;&nbsp;&nbsp;(b) that, conditional upon the approval of the board of directors of the Company in its sole discretion, with effect as of the date the board of directors of the Company may determine, the authorized, issued and outstanding shares of the Company be consolidated by consolidating each 10 shares of the Company, or such lesser whole share amount as the board of directors may determine in its sole discretion, such amount not to be less than 2, into 1 share of the Company, with such consolidated shares having the same rights and being subject to the same restrictions (save as to nominal value) as the then existing shares of par value US$0.003125 each in the capital of the Company (the "2023 Share Consolidation"); and

&nbsp;&nbsp;&nbsp;&nbsp;(c) that, upon the effectiveness of the 2023 Share Consolidation, the Company
 adopt amended and restated articles of association, in substantially the form set out in Annex B in the proxy statement dated May
 24, 2023, in substitution for and to the exclusion of, the memorandum of association of the Company in effect immediately prior to
 effectiveness of the Share Consolidation.

The board of directors of the Company resolved to effect the 2023 Share Consolidation on July 27, 2023 with the authorized, issued and outstanding shares to be consolidated on a six (6) for one (1) ratio, which had the effect of reducing the number of: (a) authorized ordinary shares from 900,000,000 ordinary shares with a par value of US$0.003125 per share to 150,000,000 ordinary shares with a par value of US$0.01875 per share; (b) issued and outstanding ordinary shares from 21,750,000 ordinary shares with a par value of US$0.003125 per share to 3,625,000 ordinary shares with a par value of US$0.01875 per share; and (c) authorized preferred shares from 100,000,000 preferred shares with a par value of US$0.003125 per share to 16,666,666.6666 preferred shares with a par value of US$0.01875 per share.

On July 15, 2024, the Company closed its self-underwritten public offering of 20,000,000 ordinary shares, par value $0.01875 per share. The ordinary shares were priced at $1.25 per share. The Company raised a total of $25 million through that offering, before deducting offering-related expenses, and net proceeds of $24.625 million.

On September 27, 2024, the Company held an annual general meeting of shareholders at which shareholders, among other things, resolved:

&nbsp;&nbsp;&nbsp;&nbsp;(a) with immediate effect, to increase the Company's authorized share capital from US$3,125,000 divided into 150,000,000 ordinary shares of par value US$0.01875 each and 16,666,666.6666 preferred shares of par value US$0.01875 each, to US$140,625,000 divided into 6,750,000,000 ordinary shares of par value US$0.01875 each and 750,000,000 preferred shares of par value US$0.01875 each (the "Authorized Share Capital Increase");

&nbsp;&nbsp;&nbsp;&nbsp;(b) that, subject to and immediately following the Authorized Share Capital
 Increase being effected, the Company adopt an amended and restated memorandum of association in substitution for, and to the exclusion
 of, the Company's existing memorandum of association, to reflect the Authorized Share Capital Increase; and

&nbsp;&nbsp;&nbsp;&nbsp;(c) that, conditional upon the approval of the board of directors of the
 Company in its sole discretion, with effect as of the date the board of directors of the Company may determine, the authorized, issued,
 and outstanding shares of the Company (collectively, the "Shares") be consolidated by consolidating each 15 Shares of
 the Company, or such lesser whole share amount as the Company's board of directors may determine in its sole discretion, such
 amount not to be less than 2, into 1 Share of the Company, with such consolidated Shares having the same rights and being subject
 to the same restrictions (save as to nominal value) as the existing Shares of such class as set out in the Company's memorandum
 and articles of association (the "2024 Share Consolidation").

On November 12, 2024, the Company effected a share consolidation of 15 ordinary shares with par value of US$0.01875 per share each in the Company's issued and unissued share capital into one (1) ordinary share with par value of US$0.28125. All fractional shares were rounded up to the whole number of shares (the "2024 Share Consolidation"). Immediately following the 2024 Share Consolidation, the authorized share capital of the Company was US$140,625,000 divided into 450,000,000 ordinary shares, par value US$0.28125 per share and 50,000,000 preferred shares, par value US$0.28125 per share.

On March 24, 2025, the Company effected a share consolidation of 40 ordinary shares with par value of US$0.28125 per share each in the Company's issued and unissued share capital into one ordinary share with par value of US$11.25. All fractional shares were rounded up to the whole number of shares (the "2025 Share Consolidation"). Immediately following the 2025 Share Consolidation, the authorized share capital of the Company was US$140,625,000 divided into 11,250,000 ordinary shares, par value US$11.25 per share and 1,250,000 preferred shares, par value US$11.25 per share.

On September 3, 2025, the Company held an annual general meeting of shareholders at which shareholders, resolved as a special resolution that, subject to and conditional upon, amongst other things: (i) approval from the Grand Court of the Cayman Islands (the "Court") of the Capital Reduction (as defined below); (ii) registration by the Registrar of Companies of the Cayman Islands of the order of the Court confirming the Capital Reduction and the minute approved by the Court containing the particulars required under the Companies Act (Revised) (the "Act") in respect of the Capital Reduction and compliance with any conditions the Court may impose; (iii) compliance with the relevant procedures and requirements under the applicable laws of the Cayman Islands to effect the Capital Reduction; and (iv) obtaining of all necessary approvals from the regulatory authorities or otherwise as may be required in respect of the Capital Reduction, with effect from the date on which these conditions are fulfilled:

&nbsp;&nbsp;&nbsp;&nbsp;a) the par value of each issued
Ordinary Share of par value US$11.25 each in the share capital of the Company be reduced to par value US$0.00001 each (the "Capital
Reduction") by cancelling the paid-up capital to the extent of US$11.24999 on each of the then issued Ordinary Shares of par value
US$11.25 each;

&nbsp;&nbsp;&nbsp;&nbsp;b) the credit arising from the
Capital Reduction be transferred to a distributable reserve account of the Company which may be utilized by the Company as the board
of directors of the Company may deem fit and as permitted under the Act, the amended and restated memorandum of association adopted by
special resolution passed on 1 March 2025 and unanimous written director resolutions passed on 20 February 2025 and made effective on
17 March 2025 (the "Existing Memorandum"), the second amended and restated articles of association of the Company adopted
by special resolution passed on 23 September 2022 (the "Existing Articles"), and all relevant applicable laws, including,
without limitation, eliminating or setting off any accumulated losses of the Company (if any) from time to time;

&nbsp;&nbsp;&nbsp;&nbsp;c) immediately following the Capital
Reduction, pursuant to section 13 of the Act and article 8.1(d) of the Existing Articles, each of the authorized but unissued Ordinary
Shares of par value US$11.25 each be sub-divided into 1,125,000 ordinary shares of par value US$0.00001 each (the "Sub-division");

&nbsp;&nbsp;&nbsp;&nbsp;d) immediately following the Capital
Reduction and the Sub-division, the authorized share capital of the Company be altered by the cancellation of: (i) the 1,250,000 unissued
Preferred Shares of par value US$11.25 each; and (ii) 12,020,495,313,338 of the unissued ordinary shares of par value US$0.00001 each,
such that the authorized share capital is altered:

 ****

***from*** US$134,287,453.13338 divided into: (i) 12,022,495,313,338 ordinary shares of par value US$0.00001 each; and (ii) 1,250,000 Preferred Shares of par value US$11.25 each;

 ****

***to*** US$20,000 divided into 2,000,000,000 ordinary shares of par value US$0.00001 each

(the "Capital Alteration");

&nbsp;&nbsp;&nbsp;&nbsp;e) immediately following the Capital
Alteration:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. the authorized and issued share
capital of the Company be divided into two separate classes as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. US$18,000 divided into 1,800,000,000
class A ordinary shares of par value US$0.00001 each (the "Class A Ordinary Shares"); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii. US$2,000 divided into 200,000,000
class B ordinary shares of par value US$0.00001 each (the "Class B Ordinary Shares" and, together with the Class A Ordinary
Shares, the "New Share Classes"),

it being noted that the terms of, and rights attaching to the New Share Classes will be materially identical to the existing ordinary shares of par value US$0.00001 each in the capital of the Company save that the Class B Ordinary Shares: (i) shall have 100 times the voting rights per share of Class A Ordinary Shares; and (ii) shall be convertible into Class A Ordinary Shares;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. the issued shares in the Company
outstanding following the Capital Alteration be re-designated, as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. the 559,868 ordinary shares
of par value US$0.00001 each held by Cede & Co be re-designated as 559,868 Class A Ordinary Shares;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii. the 1 ordinary share of par
value US$0.00001 held by Christopher Lin be re-designated as 1 Class A Ordinary Share;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iii. the 1 ordinary share of par
value US$0.00001 held by Michael Olson be re-designated as 1 Class A Ordinary Share;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iv. the 1 ordinary share of par
value US$0.00001 held by Daniel J Sleiman be re-designated as 1 Class A Ordinary Share; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;v. the 3,467 ordinary shares of
par value US$0.00001 each held by Sununion Holding Group Limited be re-designated as 3,467 Class B Ordinary Shares,

(steps (a) to (e) (inclusive) above shall be collectively referred to as the "Capital Reorganization"),

&nbsp;&nbsp;&nbsp;&nbsp;f) any one or more of the directors
of the Company be and is/are hereby authorized to do all such acts and things and execute all such documents, which are in connection
with and/or ancillary to the Capital Reorganization and any of the foregoing steps and of administrative nature, on behalf of the Company,
including under seal where applicable, as they consider necessary, desirable or expedient to give effect to the foregoing arrangements
for the Capital Reorganization and (where applicable) to aggregate all fractional Class A Ordinary Shares and/or Class B Ordinary Shares
and sell them for the benefit of the Company."

On January 16, 2026, the Company received an order (the "Order") from the Court approving the Capital Reduction. As of the date of this annual report, the Company is still in the process of registering the Order with the Registrar of Companies of the Cayman Islands and completing other necessary procedures in respect of the Capital Reduction. Accordingly, the conditions of the Capital Reorganization have not been fully met and the Capital Reorganization has not taken effect.

Details of the subsidiaries of the Company as of September 30, 2025 are set out below:

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| | | | | |
|:---|:---|:---|:---|:---|
| <br>**Name of Entity** | **Date of**<br>**Incorporation** | **Place of**<br>**Incorporation** | **% of**<br>**Ownership** | <br>**Principal Activities** |
| Universe INC | December 11, 2019 | Cayman Islands | Parent, 100% | Investment holding |
| Universe HK | May 21, 2014 | Hong Kong | 100% | Investment holding |
| Universe Technology | April 18, 2019 | PRC | 100% | WFOE, Investment holding |
| Jiangxi Universe | March 2, 1998 | PRC | 100% | Research and development and manufacturing of modernized traditional Chinese medicines |
| Universe Trade | March 10, 2010 | PRC | 100% | Sales of modernized traditional Chinese medicines |
| Universe Hanhe | May 12, 2021 | PRC | 100% | Research and development of new pharmaceutical products |

---

The Company, through its wholly-owned subsidiaries, is primarily engaged in the development, manufacturing and sale of traditional Chinese medicines derivatives ("TCMD") products targeted to the elderly to address their physical conditions in the aging process and to promote their general well-being. In addition, the Company also sells biochemical drugs, medical instruments, traditional Chinese medicine pieces products and dietary supplements (collectively, "third-party products"). All of these TCMD and third-party products are currently sold to customers including pharmaceutical companies, hospitals, clinics and drugstore chains throughout China.

**NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES**

***Basis of Presentation and Principles of Consolidation***

The accompanying consolidated financial statements include the Company and its subsidiaries, which include Universe HK, Universe Technology, Jiangxi Universe, Universe Trade and Universe Hanhe. All inter-company balances and transactions are eliminated upon consolidation.

A subsidiary is an entity in which (i) the Company directly or indirectly controls more than 50% of the voting power; or (ii) the Company has the power to appoint or remove the majority of the members of the board of directors or to cast a majority of votes at the meetings of the board of directors or to govern the financial and operating policies of the investee pursuant to a statute or under an agreement among the shareholders or equity holders.

***Reclassifications***

 ****

Certain amounts on the prior-years' consolidated balance sheets and cash flows were reclassified to conform to current-year presentation, with no effect on ending shareholders' equity.

***Uses of estimates***

In preparing the consolidated financial statements in conformity with accounting principles generally accepted in the United States of America ("U.S. GAAP"), management makes estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. These estimates are based on information as of the date of the consolidated financial statements. Significant estimates required to be made by management include, but are not limited to, the impairment assessment of receivables, the realizability of advance to suppliers, inventory valuations, useful lives of property, plant and equipment, intangible assets, impairment assessment of long-lived assets, and realization of deferred tax assets. Changes in accounting estimate are accounted for in the period of change and prospective periods. Actual results could differ from those estimates.

***Risks and Uncertainties***

The business operations of the Company are located in the PRC. Accordingly, the Company's business, financial condition, and results of operations may be influenced by political, economic, and legal environments in the PRC, as well as by the general state of the PRC economy. The Company's results may be adversely affected by changes in the political, regulatory and social conditions in the PRC. Although the Company has not experienced losses from these situations and believes that it is in compliance with existing laws and regulations including its organization and structure disclosed in Note 1, this may not be indicative of future results.

The development and commercialization of new pharmaceutical products is highly competitive, and the industry currently is characterized by rapidly changing technologies, significant competition and a strong emphasis on intellectual property. The Company may face competition with respect to its current and future pharmaceutical product candidates from major pharmaceutical companies in China.

The Company's business, financial condition and results of operations may also be negatively impacted by risks related to natural disasters, extreme weather conditions, health epidemics and other catastrophic incidents, which could significantly disrupt the Company's operations.

***Cash***

Cash includes currency on hand and deposits held by banks that can be added or withdrawn without limitation. The Company maintains most of its bank accounts in the PRC. Cash maintained in banks within the People's Republic of China of less than RMB0.5 million (equivalent to $70,235) per bank are covered by "deposit insurance regulation" promulgated by the State Council of the People's Republic of China.

 ****

***Accounts receivable, net***

Accounts receivable are recorded at the gross billing amount less an allowance for any uncollectible accounts due from the customers. Accounts receivable do not bear interest.

Effective October 1, 2022, the Company adopted Accounting Standards Update ("ASU") No.2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments ("ASU 2016-13"), using the modified retrospective transition method. ASU 2016-13 replaces the existing incurred-loss impairment model with an expected-loss methodology, which will result in more timely recognition of credit losses. Upon adoption, the Company replaced the incurred-loss impairment model with a forward-looking current expected credit losses (CECL) model in place of the incurred-loss methodology for financial instruments measured at amortized cost and receivables resulting from the application of ASC 606, including contract assets.

The Company maintains an allowance for credit losses and records the allowance for credit losses as an offset to accounts receivable. Estimated credit losses charged to the allowance are classified as "General and administrative expenses" in the consolidated statements of operations and comprehensive loss. The Company assesses collectability by reviewing accounts receivable on an aging schedule basis, as accounts receivable primarily consist of receivables arising from sales of TCMD products and third-party products. In determining the amount of the allowance for credit losses, the Company considers historical collectability based on past due status, the age of the balances, current economic conditions, reasonable and supportable forecasts of future economic conditions, and other factors that may affect the Company's ability to collect from its customers. Delinquent account balances are written off against the allowance for expected credit losses after management has determined that the likelihood of collection is not probable.

Allowance for uncollectable balances amounted to $18,214 and $135,082 as of September 30, 2025 and 2024, respectively.

***Inventories, net***

Inventories are stated at lower of cost or net realizable value. Cost is determined using weighted average method. Inventories primarily consist of raw materials and finished goods. Inventory costs include the purchase price and other expenditures that are directly attributable to bringing the inventories to their present location and condition. Net realizable value is the estimated selling price in the normal course of business less any costs to complete and sell products. The Company evaluates inventories on a quarterly basis for its net realizable value adjustments, and reduces the carrying value of those inventories that are obsolete or in excess of the forecasted usage to their estimated net realizable value based on various factors including aging, expiration dates, as applicable, taking into consideration historical and expected future product sales. We recorded inventory reserve of $122,739 and $124,512 as of September 30, 2025 and 2024, respectively.

 ****

***Advances to suppliers, net***

Advances to suppliers represent prepayments made to ensure continuous high-quality supplies and favorable purchase prices of raw materials. These advances are directly related to the purchases of raw materials used to fulfill sales orders. The Company is required from time to time to make cash advances when placing its purchase orders. These advances are settled upon suppliers delivering raw materials to the Company when the transfer of ownership occurs. The Company reviews its advances to suppliers on a periodic basis and makes general and specific allowances when there is doubt as to the ability of a supplier to provide supplies to the Company or refund an advance. As of September 30, 2025 and 2024, the Company recorded no allowance for credit loss, as the Company believed that all advances to suppliers were fully realizable.

***Fair value of financial instruments***

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. A three-level fair value hierarchy prioritizes the inputs used to measure fair value. The hierarchy requires entities to maximize the use of observable inputs and minimize the use of unobservable inputs. The three levels of inputs used to measure fair value are as follows:

&nbsp;&nbsp;&nbsp;&nbsp;● Level 1 — inputs to the valuation methodology are quoted prices (unadjusted)
 for identical assets or liabilities in active markets.

&nbsp;&nbsp;&nbsp;&nbsp;● Level 2 — inputs to the valuation methodology include quoted prices for similar
 assets and liabilities in active markets, quoted market prices for identical or similar assets in markets that are not active, inputs
 other than quoted prices that are observable and inputs derived from or corroborated by observable market data.

&nbsp;&nbsp;&nbsp;&nbsp;● Level 3 — inputs to the valuation methodology are unobservable.

ASC 820 describes three main approaches to measuring the fair value of assets and liabilities: (1) market approach; (2) income approach and (3) cost approach. The market approach uses prices and other relevant information generated from market transactions involving identical or comparable assets or liabilities. The income approach uses valuation techniques to convert future cash flow amounts discounted at market interest rates to a single present value amount. The measurement is based on the value indicated by current market expectations about those future amounts. The cost approach is based on the amount that would currently be required to replace an asset.

Unless otherwise disclosed, the fair value of the Company's financial instruments, including cash, accounts receivable, inventories, advances to suppliers, prepaid expenses and other current assets, accounts payable, short-term bank loans, accrued expenses and other current liabilities, taxes payable and due to related parties, approximate the fair value of the respective assets and liabilities as of September 30, 2025 based upon the short-term nature of the assets and liabilities. The Company's investment in equity securities is accounted for using the measurement alternative in accordance with Accounting Standards Codification ("ASC") 321, "Investments—Equity Securities" ("ASC 321"), which also approximates its recorded value.

***Property, plant and equipment***

Property, plant and equipment are stated at cost less accumulated depreciation. Depreciation of property, plant and equipment is provided using the straight-line method over their expected useful lives, as follows:

---

| | |
|:---|:---|
| **Categories** | **Useful life** |
| Buildings | 20 years |
| Machinery and equipment | 5–10 years |
| Automobiles | 3–5 years |
| Office and electric equipment | 3–5 years |

---

Expenditures for maintenance and repairs, which do not materially extend the useful lives of the assets, are charged to expense as incurred. Expenditures for major renewals and betterments which substantially extend the useful life of assets are capitalized. The cost and related accumulated depreciation of assets retired or sold are removed from the respective accounts, and any gain or loss is recognized in the consolidated statements of operations and comprehensive loss in other income or expenses.

The Company reviews the carrying value of property, plant and equipment for impairment whenever events and circumstances indicate that the carrying value of an asset may not be recoverable from the estimated future cash flows expected to result from its use and eventual disposition. In cases where undiscounted expected future cash flows are less than the carrying value, an impairment loss is recognized equal to an amount by which the carrying value exceeds the fair value of assets. The factors considered by management in performing this assessment include current operating results, trends and prospects, the manner in which the property is used, and the effects of obsolescence, demand, competition and other economic factors. Based on this assessment, no impairment expenses for property, plant and equipment were recorded in operating expenses for the years ended September 30, 2025, 2024 and 2023.

***Intangible Assets***

Intangible assets consist primarily of land use rights, trademark and software. Under the PRC law, all land in the PRC is owned by the government and cannot be sold to an individual or company. The government grants individuals and companies the right to use parcels of land for specified periods of time. Land use rights are stated at cost less accumulated amortization. Intangible assets are amortized using the straight-line method with the following estimated useful lives:

---

| | |
|:---|:---|
| **Categories** | **Useful life** |
| Land use rights | 50 years |
| Trademark | 5 years |
| Software | 3 years |

---

The Company reviews the carrying value of intangible assets for impairment whenever events and circumstances indicate that the carrying value of an asset may not be recoverable from the estimated future cash flows expected to result from its use and eventual disposition. In cases where undiscounted expected future cash flows are less than the carrying value, an impairment loss is recognized equal to an amount by which the carrying value exceeds the fair value of assets. The factors considered by management in performing this assessment include current operating results, trends and prospects, the manner in which the property is used, and the effects of obsolescence, demand, competition and other economic factors. Based on this assessment, no impairment of land use rights was deemed necessary for the years ended September 30, 2025, 2024 and 2023.

***Construction-in-Progress ("CIP")***

CIP represents property and buildings under construction and consists of construction expenditures, equipment procurement, and other direct costs attributable to the construction. CIP is not depreciated. Upon completion and ready for intended use, CIP is reclassified to the appropriate category within property, plant and equipment.

 ****

***Impairment of long-lived Assets***

Long-lived assets with finite lives, primarily property, plant and equipment and intangible assets, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If the estimated undiscounted cash flows from the use of the asset and its eventual disposition below are the asset's carrying value, then the asset is deemed to be impaired and written down to its fair value. The Company recognized impairment loss of $487,428 for prepayments for CIP during the year ended September 30, 2025, and recorded no impairments of long-lived assets for the years ended September 30, 2024 and 2023.

***Investments in Equity Securities***

 ****

The Company accounts for its equity investments in accordance with ASC 321. In accordance with ASC 321, equity investment which the Company has no significant influence (generally less than a 20% ownership interest) with readily determinable fair values are accounted for at fair value based on quoted market prices with the changes in fair value recognized as unrealized gains or losses in earnings. Equity investments without readily determinable fair values are accounted for either at fair value or using the measurement alternative. Under the measurement alternative, the equity investments are measured at cost, less any impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment.

From March 2009 to September 2017, the Company invested approximately $0.7 million (RMB5 million) in Jiangxi Jian Rural Commercial Bank ("JX RCB Bank") in exchange for 5% ownership interest in the bank. The purpose of entering into these equity investment agreements with JX RCB Bank was to earn investment income as the bank continues to grow. The Company determined that this investment in equity securities does not have a readily determinable fair value and, accordingly, elected the measurement alternative noted above.

The Company initially recorded the investments at historical cost and subsequently records any dividends received from the net accumulated earnings of the investee as income. As of September 30, 2025 and 2024, the Company's investment in JX RBC Bank amounted to $702,346 (RMB5 million) and $712,494 (RMB5 million), respectively, and was reported as long-term investment in equity investee on the consolidated balance sheets. Investment income amounted to $65,058, $31,942 and $31,072 for the years ended September 30, 2025, 2024 and 2023, respectively.

The investments in equity securities are evaluated for impairment when facts or circumstances indicate that the fair value of the investments is less than their carrying value. An impairment is recognized when a decline in fair value is determined to be other-than-temporary. The Company reviews several factors to determine whether a loss is other-than-temporary. These factors include, but are not limited to, the: (i) nature of the investment; (ii) cause and duration of the impairment; (iii) extent to which fair value is less than cost; (iv) financial condition and near-term prospects of the investments; and (v) ability to hold the investment for a period of time sufficient to allow for any anticipated recovery in fair value. There was no impairment for the Company's investments in equity securities as of September 30, 2025 and 2024.

***Revenue recognition***

To determine revenue recognition for contracts with customers, the Company performs the following five steps : (i) identify the contract(s) with the customer, (ii) identify the performance obligations in the contract, (iii) determine the transaction price, including variable consideration to the extent that it is probable that a significant future reversal will *not* occur, (iv) allocate the transaction price to the respective performance obligations in the contract, and (v) recognize revenue when (or as) the Company satisfies the performance obligation.

Revenue from sales of TCMD products and third-party products is recognized when the products are delivered to customers. Each customer order is distinct and separately identifiable from other customer orders, constituting a single performance obligation to deliver the ordered product in exchange for consideration. The transaction price is fixed at contract inception and is not subject to rebates, returns or other variable consideration. As each customer order includes only one performance obligation and no variable consideration, no allocation of the transaction price is required. The Company recognizes revenue at a point in time when the control of the products sold has been transferred to customers. The transfer of control is considered complete when the products have been accepted and received by customers. The Company offers credit sales to customers with credit period of 90 days.

Revenue is presented on a gross basis, as the Company acts as the principal in each transaction. This conclusion is based on the following considerations: i) the Company is primarily responsible for fulfilling the promise to deliver the product to customer and the primary contact for customer issues; ii) the Company bears the inventory risk; and iii) the Company has pricing discretion and bears market risk.

***Disaggregation of Revenues***

The Company disaggregates its revenue from contracts by sources of products, as the Company believes it best depicts how the nature, amount, timing and uncertainty of the revenue and cash flows are affected by economic factors. The following table identifies the disaggregation of its revenue for the years ended September 30, 2025, 2024 and 2023, respectively:

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| | | | |
|:---|:---|:---|:---|
|  | **For the Years Ended September 30,** | **For the Years Ended September 30,** | **For the Years Ended September 30,** |
|  | **2025** | **2024** | **2023** |
| Revenue from sales of self-manufactured TCMD products | $13260650 | $14026049 | $18572658 |
| Revenue from sales of third-party products | 4598082 | 8998409 | 13736077 |
| Total revenue | $17858732 | $23024458 | $32308735 |

---

***Cost of Revenue***

 ****

Cost of revenue consists primarily of the costs of raw materials, freight charges, direct labor, depreciation of buildings and machinery, warehousing and overhead associated with the manufacturing process.

 

***Research and Development Expenses***

The Company expenses all internal research and development costs as incurred, which primarily comprise of employee costs, internal and external costs related to execution of studies, manufacturing costs, facility costs of the research center, and amortization and depreciation to intangible assets and property, plant and equipment used in the research and development activities. For the years ended September 30, 2025, 2024 and 2023, total research and development expenses were approximately $671,761, $3,031,115 and $4,858,548, respectively.

 **

***Shipping and handling costs***

 **

Shipping and handling costs are expensed as incurred. Inbound shipping and handling cost associated with bringing the purchased raw materials and third-party products from suppliers to the Company's warehouse are included in cost of revenue. Outbound shipping and handling costs associated with shipping and delivery the products to customers are included in selling expenses.

 ****

***Advertising expense***

Advertising expenses primarily relate to promotion of the Company's brand name and products through outdoor billboards, social media such as Weibo and WeChat, and TV advertisement. Advertising costs are expensed as incurred or deferred and then expensed the first time the advertising takes place. Advertising expenses are included in selling expenses in the consolidated statements of operations and comprehensive loss. Advertising expenses amounted to $2,523,773, $5,144,579 and $4,653,633 for the years ended September 30, 2025, 2024 and 2023, respectively.

 ****

***Segment Reporting***

In accordance with ASC 280, Segment Reporting, operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker ("CODM"), or decision-making group, in deciding how to allocate resources and in assessing performance. The Company utilizes the "management approach" to identify its reportable operating segments.

The management approach considers the internal organizational structure and reporting mechanisms employed by the Company's CODM for operational decision-making and performance evaluation. The Company's chief executive officer is designated as the CODM, who reviews and evaluates the consolidated results to determine resource allocation and assess the Company's overall performance. After a thorough analysis, the Company has concluded that it operates within only one reportable operating segment.

The Company's CODM has been identified as the Company's chief executive officer, who reviews the results of operations when making decisions about allocating resources and assessing the performance of the Company. For management purposes, the Company operates in one business unit based on the products sold, and its sole operating segment is pharmaceutical manufacturing and selling. The CODM monitors the revenue, results, assets and liabilities of its business unit as a whole and regularly reviews its operating results to make decisions about resource allocation. Accordingly, no analysis of segment information other than entity-wide information is presented.

The Company's long-lived assets are all located in China and substantially all monitoring and control activities of its operations are conducted in China. Therefore, no geographic information is presented.

The significant segment expenses are consistent with those reported in the consolidated statements of operations and comprehensive loss, including cost of revenue, selling expenses, general and administrative expenses, as well as research and development expenses. For significant segment expenses incurred during the years ended September 30, 2025, 2024 and 2023, refer to Consolidated Statements of Operations and Comprehensive Loss.

***Income taxes***

The Company accounts for current income taxes in accordance with the laws of the relevant tax authorities. Deferred income taxes are recognized when temporary differences exist between the tax bases of assets and liabilities and their reported amounts in the consolidated financial statements. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period including the enactment date. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount expected to be realized.

An uncertain tax position is recognized only if it is "more likely than not" that the tax position would be sustained in a tax examination. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the "more likely than not" test, no tax benefit is recorded. Penalties and interest incurred related to underpayment of income tax are classified as income tax expense in the period incurred. No significant penalties or interest relating to income taxes have been incurred during the years ended September 30, 2025, 2024 and 2023. The Company does not believe there was any uncertain tax provision as of September 30, 2025 and 2024.

The Company's operating subsidiaries in China are subject to the income tax laws of the PRC. No significant income was generated outside the PRC for the years ended September 30, 2025, 2024 and 2023. As of September 30, 2025 and 2024, all of the tax returns of the Company's PRC subsidiaries remained open for statutory examination by PRC tax authorities.

***Value added tax ("VAT")***

Sales revenue represents the invoiced value of goods, net of VAT. The VAT is based on gross sales price and VAT rates range up to 13%, depending on the type of products sold. The VAT may be offset by VAT paid by the Company on raw materials and other materials included in the cost of producing or acquiring its finished products. The Company recorded a VAT payable or receivable net of payments in the accompanying consolidated financial statements.

***Earnings per Share***

The Company computes earnings per share ("EPS") in accordance with ASC 260, "Earnings per Share" ("ASC 260"). ASC 260 requires companies with complex capital structures to present basic and diluted EPS. Basic EPS is measured as net income divided by the weighted average ordinary shares outstanding for the period. Diluted presents the dilutive effect on a per share basis of potential ordinary shares (e.g., convertible securities, options and warrants) as if they had been converted at the beginning of the periods presented, or issuance date, if later. Potential ordinary shares that have an anti-dilutive effect (i.e., those that increase income per share or decrease loss per share) are excluded from the calculation of diluted EPS. For the years ended September 30, 2025, 2024 and 2023, there were no dilutive shares.

 ****

***Foreign currency translation***

The functional currency for Universe INC is the U.S. Dollar ("US$"). Universe HK uses Hong Kong dollar as its functional currency. However, Universe INC and Universe HK currently only serve as holding companies and did not have active operations as of the date of this report. The Company operates only in the PRC and the Company's functional currency is the Chinese Yuan ("RMB"). The Company's consolidated financial statements have been translated into the reporting currency US$.

Assets and liabilities of the Company are translated at the exchange rate at each reporting period end date. Equity is translated at historical rates. Income and expense accounts are translated at the average rate of exchange during the reporting period. The resulting translation adjustments are reported under other comprehensive income. Gains and losses resulting from the translations of foreign currency transactions and balances are reflected in the results of operations.

The RMB is not freely convertible into foreign currency and all foreign exchange transactions must take place through authorized institutions. No representation is made that the RMB amounts could have been, or could be, converted into US$ at the rates used in translation.

The following table outlines the currency exchange rates that were used in creating the consolidated financial statements in this report:

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| | | | |
|:---|:---|:---|:---|
|  | ***September 30, <br> 2025*** | ***September 30, <br> 2024*** | ***September 30, <br> 2023*** |
| Period-end US$: RMB exchange rate | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 7.1190 | 7.0176 | 7.2960 |
| Period-end US$: HK exchange rate | 7.7809 | 7.7693 | 7.8308 |
| Period average US$: RMB exchange rate | 7.2125 | 7.2043 | 7.0533 |
| Period average US$: HK exchange rate | 7.7948 | 7.8127 | 7.8310 |

---

***Comprehensive Income***

Comprehensive income consists of two components, net income and other comprehensive income. The foreign currency translation gain resulting from translation of the financial statements expressed in RMB to US$ is reported in other comprehensive income in the consolidated statements of operations and comprehensive loss.

***Statement of Cash Flows***

In accordance with ASC 230, "Statement of Cash Flows", cash flows from the Company's operations are formulated based upon the local currencies. As a result, amounts related to assets and liabilities reported on the statements of cash flows will not necessarily agree with changes in the corresponding balances on the balance sheets.

***Employee Defined Contribution Plan***

The Company's subsidiaries in the PRC participate in a government-mandated multi-employer defined contribution plan pursuant to which pension, work-related injury benefits, maternity insurance, medical insurance, unemployment benefit and housing fund are provided to eligible full-time employees. The relevant labor regulations require the Company's subsidiaries in the PRC to pay the local labor and social welfare authorities monthly contributions based on the applicable benchmarks and rates stipulated by the local government. The contributions to the plan are expensed as incurred. Employee social security and welfare benefits included as expenses in the accompanying consolidated statements of operations and comprehensive loss amounted to $284,002, $247,249 and $440,962 for the years ended September 30, 2025, 2024 and 2023, respectively.

***Recently Issued Accounting Pronouncements***

The Company considers the applicability and impact of all accounting standards updates ("ASUs"). Management periodically reviews new accounting standards that are issued. Under the Jumpstart Our Business Startups Act of 2012, as amended (the "JOBS Act"), the Company meets the definition of an emerging growth company, or EGC, and has elected the extended transition period for complying with new or revised accounting standards, which delays the adoption of these accounting standards until they would apply to private companies.

In March 2024, the FASB issued ASU 2024-01, Compensation—Stock Compensation (Topic 718): Scope Application of Profits Interest and Similar Awards. The amended guidance added an illustrative example that includes four fact patterns to demonstrate how an entity should apply the scope guidance in paragraph 718-10-15-3 to determine whether a profits interest award should be accounted for in accordance with Topic 718. The amendments guidance is effective for annual periods beginning after December 15, 2024, and interim periods within those annual periods. The guidance can be applied either prospectively or retrospectively. The Company is currently in the process of evaluating the impact this amended guidance may have on its consolidated financial statements.

In November 2024, the FASB issued ASU 2024-03, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses. The amended guidance improves the disclosures about a public business entity's expenses and address requests from investors for more detailed information about the types of expenses (including purchases of inventory, employee compensation, depreciation, amortization, and depletion) in commonly presented expense captions (such as cost of sales, SG&A, and research and development). The amended guidance is effective for annual reporting periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027. The requirements will be applied prospectively with the option for retrospective application. The Company is currently in the process of evaluating the impact this amended guidance may have on the footnotes to its consolidated financial statements.

In November 2024, the FASB issued ASU 2024-04, Debt—Debt with Conversion and Other Options (Subtopic 470-20): Induced Conversions of Convertible Debt Instruments. This guidance clarifies the assessment of whether a transaction should be accounted for as an induced conversion or extinguishment of convertible debt when changes are made to conversion features as part of an offer to settle the instrument. The amended guidance is effective for all entities for annual reporting periods beginning after December 15, 2025, and interim reporting periods within those annual reporting periods. The guidance can be applied either prospectively or retrospectively. The Company is currently in the process of evaluating the impact this amended guidance may have on its consolidated financial statements.

In January 2025, the FASB issued ASU 2025-01, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Clarifying the Effective Date. This guidance amends the effective date of Update 2024-03 to clarify that all public business entities are required to adopt the guidance in annual reporting periods beginning after December 15, 2026, and interim periods within annual reporting periods beginning after December 15, 2027. Early adoption of Update 2024-03 is permitted. The Company is currently in the process of evaluating the impact this amended guidance may have on the footnotes to its consolidated financial statements.

In July 2025, the FASB issued ASU 2025-05, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets. This Update addresses challenges encountered when applying the guidance in Topic 326, Financial Instruments—Credit Losses, to current accounts receivable and current contract assets arising from transactions accounted for under Topic 606, Revenue from Contracts with Customers. The amendments are effective for annual reporting periods beginning after December 15, 2025, and interim reporting periods within those annual reporting periods. The Company is currently in the process of evaluating the impact this amended guidance may have on its consolidated financial statements.

In November 2025, the FASB issued ASU 2025-08, Financial Instruments—Credit Losses (Topic 326): Purchased Loans. This update improves the decision usefulness of the financial reporting for acquired financial assets. The amendments require that purchased seasoned loans be accounted for using the gross-up approach, which will enhance comparability and consistency in the accounting for acquired financial assets. The amendments in this Update are effective for all entities for annual reporting periods beginning after December 15, 2026, and interim reporting periods within those annual reporting periods. The Company is currently in the process of evaluating the impact this amended guidance may have on its consolidated financial statements.

In December 2025, the FASB issued ASU 2025-10, Government Grants (Topic 832): Accounting for Government Grants Received by Business Entities. This update improves U.S. GAAP by establishing authoritative guidance on the accounting for government grants received by business entities. For public business entities, the amendments are effective for annual reporting periods beginning after December 15, 2028, and interim reporting periods within those annual reporting periods. The Company is currently in the process of evaluating the impact this amended guidance may have on its consolidated financial statements.

Other accounting standards that have been issued by FASB that do not require adoption until a future date are not expected to have a material impact on the consolidated financial statements upon adoption. The Company does not discuss recent standards that are not anticipated to have an impact on or are unrelated to its consolidated financial condition, results of operations, cash flows or disclosures.

**NOTE 3 — ACCOUNTS RECEIVABLE, NET**

Accounts receivable consists of the following:

---

| | | |
|:---|:---|:---|
|  | **As of September 30,** | **As of September 30,** |
|  | **2025** | **2024** |
| Accounts receivable | $13026331 | $13040903 |
| Less: allowance for credit loss | (18214) | (135082) |
| Accounts receivable, net | $13008117 | $12905821 |

---

The Company's accounts receivable primarily includes the balance due from customers when the Company's pharmaceutical products are sold and delivered to customers. As of date of this report, approximately 50.7%, or $6.6 million, of the Company's net account receivable balance as of September 30, 2025 has been subsequently collected, and the remaining balance is expected to be substantially collected before June 30, 2026.

Allowance for credit loss movement is as follows:

---

| | | |
|:---|:---|:---|
|  | **As of September 30,** | **As of September 30,** |
|  | **2025** | **2024** |
| Beginning balance | $135082 | $- |
| (Reversal) provision of allowance for credit loss | (113454) | 131581 |
| Foreign currency translation adjustments | (3414) | 3501 |
| Ending balance | $18214 | $135082 |

---

**NOTE 4 — INVENTORIES, NET**

Inventories consist of the following:

---

| | | |
|:---|:---|:---|
|  | **As of September 30,** | **As of September 30,** |
|  | **2025** | **2024** |
| Raw materials | $707430 | $720041 |
| Finished goods | 1608488 | 1141525 |
| Inventories valuation allowance | (122739) | (124512) |
| Total inventories, net | $2193179 | $1737054 |

---

Inventories valuation allowance movement is as follows:

---

| | | |
|:---|:---|:---|
|  | **As of September 30,** | **As of September 30,** |
|  | **2025** | **2024** |
| Beginning balance | $124512 | $69746 |
| Addition | - | 50651 |
| Foreign currency translation adjustments | (1773) | 4115 |
| Ending balance | $122739 | $124512 |

---

**NOTE 5 — ADVANCE TO SUPPLIERS**

Advances to suppliers consist of the following:

---

| | | |
|:---|:---|:---|
|  | **As of September 30,** | **As of September 30,** |
|  | **2025** | **2024** |
| Advances to suppliers for inventories raw material purchase | $2489737 | $978203 |
| Advances to suppliers | $2489737 | $978203 |

---

Advances to suppliers represent prepayments made to suppliers to ensure continuous high-quality supplies and favorable purchase prices of raw materials.

**NOTE 6 — OTHER RECEIVABLE**

Other receivable consists of the following:

---

| | | |
|:---|:---|:---|
|  | **As of September 30,** | **As of September 30,** |
|  | **2025** | **2024** |
| Receivable from Yunan Faxi <sup>(1)</sup> | $- | $3562472 |
| Redemption of short-term investment <sup>(2)</sup> | - | 1377873 |
| Prepaid value added tax | 1023084 | 475331 |
| Prepayment for advertising | 843777 | 219830 |
| Prepayment for property, plant and equipment | 136185 | - |
| Prepayment for research and development | 99733 | - |
| Others | 177901 | 31090 |
| Total other receivable | $2280680 | $5666596 |

---

(1) On September 26, 2022, the
Company entered into a letter of intent for an equity transfer with an individual, Mr. Xibo Liu, pursuant to which, Mr. Xibo Liu transfers
his 51% ownership in Yunnan Faxi to the Company at the price of RMB72 million (approximately $10.0 million). Based on
contract terms, the Company prepaid RMB25 million (approximately $3.4 million) within three (3) business days upon signing
the letter of intent. However, due to unsatisfactory performance of Yunnan Faxi, the equity transfer contract was terminated on December
20, 2024. The amount of $3,562,472 (RMB25 million) was recorded as other receivable as of September 30, 2024, and collected back
in January 2025.

(2) On September 24, 2024, the
Company entered into an agreement with a third party to transfer its short-term investment at the price of $1,377,873. The amount was
recorded as other receivable as of September 30, 2024, and collected back on December 23, 2024.

**NOTE 7 — PROPERTY, PLANT AND EQUIPMENT, NET**

Property, plant and equipment, net, consists of the following:

---

| | | | |
|:---|:---|:---|:---|
|  | | **As of September 30,** | **As of September 30,** |
|  | <br>**Useful life** | **2025** | **2024** |
| Buildings | 20 years | $7583912 | $7594735 |
| Machinery and equipment | 5-10 years | 2262271 | 2007399 |
| Automobiles | 3-5 years | 83113 | 67374 |
| Office and electric equipment | 3-5 years | 522552 | 527336 |
| Construction-in-progress |  | 35458 | 35971 |
| Subtotal |  | 10487306 | 10232815 |
| Less: accumulated depreciation |  | (6903753) | (6664765) |
| Property, plant and equipment, net |  | $3583553 | $3568050 |

---

Construction-in-progress consisted of design fee for the construction project, which amounted to $35,458 and $35,971 as of September 30, 2025 and 2024, respectively. Depreciation expense was $474,178, $474,034 and $503,687 for the years ended September 30, 2025, 2024 and 2023, respectively. Losses from disposal of property, plant and equipment amounted to $2,948, $3,958 and $114 for the years ended September 30, 2025, 2024 and 2023, respectively.

**NOTE 8 — INTANGIBLE ASSETS, NET**

Intangible assets, net consist of the following:

---

| | | | |
|:---|:---|:---|:---|
|  | | **As of September 30,** | **As of September 30,** |
|  | <br>**Useful life** | **2025** | **2024** |
| Land use rights | 50 years | $252561 | $256211 |
| Trademark | 5 years | 200169 | 120412 |
| Software | 3 years | 21201 | 21506 |
| Total |  | 473931 | 398129 |
| Less: accumulated amortization |  | (177146) | (135251) |
| Intangible assets, net |  | $296785 | $262878 |

---

Amortization expense was $43,253, $11,700 and $5,098 for the years ended September 30, 2025, 2024 and 2023, respectively.

Estimated future amortization expense for intangible assets is as follows:

---

| | |
|:---|:---|
| **Years Ending September 30,** | **Amortization<br> expense** |
| 2026 | $45085 |
| 2027 | 45085 |
| 2028 | 45085 |
| 2029 | 45085 |
| 2030 | 45085 |
| Thereafter | 71360 |
|  | $296785 |

---

**NOTE 9 — PREPAYMENT FOR CIP PROJECT**

CIP represents direct costs of construction for the Company's manufacturing facilities. On June 25, 2021, the Company entered into a construction contract with a sub-contractor, Jiangxi Chenyuan Construction Project Co., Ltd. ("Chenyuan"), pursuant to which, Chenyuan was engaged to construct four manufacturing factory buildings and an office building for the Company with a contract sum of RMB165 million (approximately $23.2 million). The construction work started on August 8, 2021, with an originally estimated completion date on August 7, 2023.

At beginning of the year ended December 31, 2024, due to resurgence of the COVID-19 pandemic, which resulted in lingering logistic disruption, material and labor shortage, and domestic travel restriction, the Company re-estimated that the completion date would be postponed to December 2024. However, during the year 2024, new information was discovered about the topographical and surface structures of the land, which required Chenyuan to re-conduct the geological survey. As a result, the construction progress was further delayed that cause the re-estimated completion date of December 2024 was not met.

In April 2025, Ministry of Emergency Management of PRC issued Specification for safety management of fine chemical enterprises, pursuant to which, enterprises should not set up employee dormitories within the factory premises. Because of this new regulation. the Company had to redesign the project, and the expected completion date of this construction project is further delayed to June 30, 2028. As of September 30, 2025, the Company had made a prepayment of approximately RMB69.2 million (approximately $9.7 million) to Chenyuan for land improvement, building foundation and the construction of the manufacturing factories.

During the year ended September 30, 2022, $407,361 (approximately RMB2.9 million) of the prepayment was re-classified to property, plant and equipment in the consolidated balance sheets. During the year ended September 30, 2025, management carried out impairment assessment on the prepayment for CIP project. The prepayment is refundable on-demand if the CIP project is aborted, management has assessed the recoverability of this prepayment to be approximately $8.9 million, and impairment loss of $481,109 was recognized in the profit or loss.

As of September 30, 2025, future additional capital expenditures on the CIP project are estimated to be approximately RMB95.8 million (equivalent to $13.5 million), of which approximately $3.5 million is required within the next 12 months. The Company currently plans to fund its ongoing CIP project construction through cash collected from accounts receivable and, if necessary, borrowings from PRC banks.

As of September 30, 2025, future minimum capital expenditures on the Company's CIP project are estimated as follows:

---

| | |
|:---|:---|
| **Years ending September 30,** | **Capital<br> Expenditure<br> on CIP** |
| 2026 | $3511729 |
| 2027 | 3511729 |
| 2028 | 5274617 |
| 2029 | 1158871 |
| Total | $13456946 |

---

**NOTE 10 — PREPAYMENT FOR PURCHASE OF A PROPERTY**

On May 6, 2021, the Company entered into a real estate property purchase agreement with related party Jiangxi Yueshang Investment Co., Ltd. ("Jiangxi Yueshang"), an entity in which the Company's chief executive officer, Mr. Gang Lai, owned 5% equity interest as of the date of that agreement. Pursuant to the property purchase agreement, Jiangxi Yueshang will sell and the Company will purchase a certain residential apartment and commercial office space totaling 2,749.30 square meters, with a total purchase price of RMB32 million (approximately $4.5 million). Pursuant to this agreement, the Company was required to make a prepayment in the amount of 50% of the total purchase price, with 20% of the total purchase price payable upon the availability of a certificate of occupancy, and 30% of the total purchase price payable upon delivery of the property.

As of September 30, 2025, the Company had made a prepayment of RMB16 million (approximately $2.25 million) to Jiangxi Yueshang. Construction of the property was completed in May 2025. The Real Estate Ownership Certificate for the property is currently being obtained. The remaining balance will be payable upon receipt of the Real Estate Ownership Certificate.

**NOTE 11 — SHORT-TERM BANK LOANS**

Short-term bank loans consist of the following:

---

| | | | |
|:---|:---|:---|:---|
|  | | **As of September 30,** | **As of September 30,** |
|  | <br>**Note** | **2025** | **2024** |
| **Short-term bank loans:** |  |  |  |
| Jiangxi Luling Rural Commercial Bank ("LRC Bank") | (1) | $2809383 | $2849976 |
| Bank of Communications Co., Ltd | (2) | 1404692 | 1154241 |
| Zhujiang Rural Bank | (3) | 407361 | 427497 |
| Beijing Bank | (4) | 1123753 | 1424989 |
| Huaxia Bank | (5) | 702346 | - |
| Postal Savings Bank of China | (6) | 702346 | - |
| **Total short-term loans** |  | $7149881 | $5856703 |

---

(1) On March 4, 2024, a subsidiary of the Company, Universe Trade, signed a loan agreement with LRC Bank to borrow RMB5 million (equivalent to $712,494) as working capital for one year, with the maturity date on March 3, 2025. The fixed interest rate of the loan was 4.75% per annum. Mr. Gang Lai and Jiangxi Universe jointly signed guarantee agreements with LRC Bank to provide credit guarantee for this loan. The loan was fully repaid upon maturity. On April 26, 2024, a subsidiary of the Company, Jiangxi Universe, signed a loan agreement with LRC Bank to borrow RMB10 million (equivalent to $1,424,989) as working capital for one year, with the maturity date on April 25, 2025. The fixed interest rate of the loan was 4.31% per annum. Mr. Gang Lai and Universe Technology jointly signed guarantee agreements with LRC Bank to provide credit guarantee for this loan. The loan was fully repaid upon maturity. On May 17, 2024, a subsidiary of the Company, Universe trade, signed a loan agreement with LRC Bank to borrow RMB5 million (equivalent to $712,494) as working capital for one year, with the maturity date on May 16, 2025. The fixed interest rate of the loan was 3.65% per annum. Mr. Gang Lai and Jiangxi Universe jointly signed guarantee agreements with LRC Bank to provide credit guarantee for this loan. The loan was fully repaid upon maturity. On March 3, 2025, a subsidiary of the Company, Universe Trade, signed a loan agreement with LRC Bank to borrow RMB5 million (equivalent to $702,346) as working capital for one year, with the maturity date on March 2, 2026. The fixed interest rate of the loan was 3.65% per annum. Mr. Gang Lai and Jiangxi Universe jointly signed guarantee agreements with LRC Bank to provide credit guarantee for this loan. On April 22, 2025, a subsidiary of the Company, Jiangxi Universe, signed a loan agreement with LRC Bank to borrow RMB10 million (equivalent to $1,404,692) as working capital for one year, with the maturity date on April 21, 2026. The fixed interest rate of the loan was 3.60% per annum. Mr. Gang Lai and Universe Technology jointly signed guarantee agreements with LRC Bank to provide credit guarantee for this loan. On May 16, 2025, a subsidiary of the Company, Universe Trade, signed a loan agreement with LRC Bank to borrow RMB5 million (equivalent to $702,346) as working capital for one year, with the maturity date on May 15, 2026. The fixed interest rate of the loan was 3.65% per annum. Mr. Gang Lai and Jiangxi Universe jointly signed guarantee agreements with LRC Bank to provide credit guarantee for this loan.

&nbsp;&nbsp;&nbsp;&nbsp;(2) On June 16, 2024, the Company's subsidiary, Jiangxi Universe, signed a loan agreement with Bank of Communications to borrow RMB8.1 million (equivalent to $1,154,241) as working capital for eleven months, with the maturity date on May 13, 2025. The fixed interest rate of the loan was 3.9% per annum. Mr. Gang Lai, Universe Trade, and an unrelated third party, Jiangxi Province Financing Guarantee Group Co., Ltd., jointly signed guarantee agreements with Bank of Communications to provide credit guarantee for this loan. The loan was fully repaid upon maturity. On September 29, 2025, the Company's subsidiary, Jiangxi Universe, signed a loan agreement with Bank of Communications to borrow RMB10 million (equivalent to $1,404,692) as working capital for one year, with the maturity date on September 29, 2026. The fixed interest rate of the loan was 3.0% per annum. Mr. Gang Lai, Universe Trade, and an unrelated third party, Jiangxi Province Financing Guarantee Group Co., Ltd., jointly signed guarantee agreements with Bank of Communications to provide credit guarantee for this loan.

&nbsp;&nbsp;&nbsp;&nbsp;(3) On April 24, 2024, a subsidiary of the Company, Jiangxi Universe, entered into a loan agreement with Zhujiang Rural Bank to borrow RMB3 million (equivalent to $427,497) as working capital for one year, with the maturity date on April 24, 2025. The fixed interest rate of the loan was 3.65% per annum. The Company pledged certain trademarks owned by the Company as collateral to guarantee this loan. The loan was fully repaid upon maturity. On April 18, 2025, a subsidiary of the Company, Jiangxi Universe, signed a loan agreement with Zhujiang Rural Bank to borrow RMB2.9 million (equivalent to $407,361) as working capital for one year, with the maturity date on April 18, 2026. The fixed interest rate of the loan was 5.00% per annum. The Company pledged certain trademarks owned by the Company as collateral to guarantee this loan.

&nbsp;&nbsp;&nbsp;&nbsp;(4) On July 3, 2024, a subsidiary of the Company, Jiangxi Universe, entered into a loan agreement with Beijing Bank to borrow RMB10 million (equivalent to $1,424,989) as working capital for one year, with the maturity date on July 3, 2025. The fixed interest rate of the loan was 4.15% per annum. Mr. Gang Lai provided credit guarantee for this loan. The loan was fully repaid upon maturity. On September 12, 2025, a subsidiary of the Company, Jiangxi Universe, entered into a loan agreement with Beijing Bank to borrow RMB8 million (equivalent to $1,123,753) as working capital for one year, with the maturity date on September 12, 2026. The fixed interest rate of the loan was 3.70% per annum. Mr. Gang Lai and Universe Trade jointly signed guarantee agreements with Beijing Bank to provide credit guarantee for this loan.

&nbsp;&nbsp;&nbsp;&nbsp;(5) On June 27, 2025, a subsidiary of the Company, Jiangxi Universe, entered into a loan agreement with Huaxia Bank to borrow RMB5 million (equivalent to $702,346) as working capital for one year, with the maturity date on June 27, 2026. The fixed interest rate of the loan was 3.70% per annum. Mr. Gang Lai provided credit guarantee for this loan.

&nbsp;&nbsp;&nbsp;&nbsp;(6) On July 17, 2025, a subsidiary of the Company, Jiangxi Universe, entered into a loan agreement with Postal Savings Bank of China to borrow RMB5 million (equivalent to $702,346) as working capital for one year, with the maturity date on July 17, 2026. The fixed interest rate of the loan was 3.11% per annum. Mr. Gang Lai provided credit guarantee for this loan.

**NOTE 12 — LONG-TERM BANK LOANS**

Long-term bank loans consist of the following:

---

| | | | |
|:---|:---|:---|:---|
|  | | **As of September 30,** | **As of September 30,** |
|  | <br>**Note** | **2025** | **2024** |
| **Long-term bank loans:** |  |  |  |
| LRC Bank | (1) | $2107038 | $2137483 |
| Less: current portion of long-term bank loans |  | (2107038) | - |
| Non-current portion of long-term bank loans |  | $- | $2137483 |

---

(1) On November 23, 2023, a subsidiary
of the Company, Jiangxi Universe, signed a loan agreement with LRC Bank to borrow RMB15 million (equivalent to approximately $2.1 million)
as working capital for two years, with the maturity date on November 14, 2025. The fixed interest rate of the loan was 3.95% per annum.
The Company pledged buildings of Jiangxi Universe as collateral to guarantee this loan. The loan was subsequently fully repaid upon maturity.

For the above-mentioned loans, the Company recorded a total interest expense of $289,385, $304,516 and $190,184 for the years ended September 30, 2025, 2024 and 2023, respectively.

**NOTE 13 — RELATED PARTY TRANSACTIONS**

**(a) Nature of relationships with related parties**

---

| | |
|:---|:---|
| **Name** | **Relationship with the Company** |
| Mr. Gang Lai | Chief Executive Officer and chairman of the Company's Board of Directors |
| Ms. Lin Yang | Chief Financial Officer of the Company |

---

**(b) Due to related parties**

---

| | | |
|:---|:---|:---|
| | **As of September 30,** | **As of September 30,** |
| <br>**Name** | **2025** | **2024** |
| Mr. Gang Lai | $446460 | $6900499 |
| Ms. Lin Yang | 85 | 85 |
| **Total due to related parties** | $446545 | $6900584 |

---

As of September 30, 2025, the balance due to related parties mainly consisted of advances from Mr. Gang Lai, the Company's chief executive officer and the chairman of the board of directors for working capital purposes during the Company's normal course of business, as well as payment of expenses made by Ms. Lin Yang on behalf of the Company. These advances are unsecured, non-interest bearing and due on demand.

**(c) Loan guarantee provided by related parties**

In connection with the Company's bank borrowings from commercial banks in China, Mr. Gang Lai signed guarantee agreements with these banks to provide credit guarantee for the Company's certain loans (see Note 11).

**(d) Prepayment to related party for property purchase**

As disclosed in Note 10, on May 6, 2021, the Company entered into a real estate property purchase agreement with a related party, Jiangxi Yueshang, to purchase certain residential apartment and commercial office space totaling 2,749.30 square meters with total purchase price of RMB32 million (approximately $4.5 million). As of September 30, 2025, the Company had made a prepayment of RMB16 million ($2.25 million) to Jiangxi Yueshang. The Real Estate Ownership Certificate for the property is currently being obtained. The remaining balance will be payable upon receipt of the Real Estate Ownership Certificate.

On January 13, 2022, Mr. Gang Lai transferred the 5% equity interest he owned in Jiangxi Yueshang to a third party. As such, after this date, Jiangxi Yueshang is no longer the Company's related party.

**NOTE 14 — TAXES**

**(a) Corporate Income Taxes ("CIT")**

*<u>Cayman Islands</u>*

Under the current tax laws of the Cayman Islands, Universe INC is not subject to tax on its income or capital gains. In addition, no Cayman Islands withholding tax will be imposed upon the payment of dividends by the Company to its shareholders.

<u>Hong Kong</u>

Universe HK is incorporated in Hong Kong and is subject to profit taxes in Hong Kong at a rate of 16.5%. However, Universe HK did not generate any assessable profits derived from Hong Kong sources for the years ended September 30, 2025, 2024 and 2023, and accordingly no provision for Hong Kong profits tax has been made in these periods.

<u>PRC</u>

Under the Enterprise Income Tax ("EIT") Law of PRC, domestic enterprises and Foreign Investment Enterprises ("FIEs") are usually subject to a unified 25% enterprise income tax rate while preferential tax rates, tax holidays and even tax exemption may be granted on a case-by-case basis. EIT grants preferential tax treatment to High and New Technology Enterprises ("HNTEs"). Under this preferential tax treatment, HNTEs are entitled to an income tax rate of 15%, subject to a requirement that they re-apply for their HNTE status every three years. Jiangxi Universe, one of the Company's main operating subsidiaries in the PRC, was approved as a HNTE and is entitled to a reduced income tax rate of 15% beginning November 2016 with a term of three years. In December 2019, November 2022 and November 2025, Jiangxi Universe successfully renewed its HNTE certification with local government and will continue to enjoy the reduced income tax rate of 15% for three years, respectively, through November 2028. Universe Trade, another operating subsidiary of the Company in the PRC, was approved as a HNTE and was entitled to a reduced income tax rate of 15% beginning December 2020 with a term of three years through December 2023. Universe Trade did not successfully renew its HNTE status at the end of December 2023 and, therefore, has been subject to the standard PRC enterprise income tax rate of 25% starting from January 2024. EIT is typically governed by the local tax authority in the PRC. Each local tax authority at times may grant tax holidays to local enterprises as a way to encourage entrepreneurship and stimulate local economy. The corporate income taxes for the years ended September 30, 2025, 2024 and 2023 were reported at a blended reduced rate as a result of certain of the PRC subsidiaries of the Company's being approved as a HNTE and enjoying a 15% reduced income tax rate. Although Jiangxi Universe was approved as a HNTE and enjoying a 15% reduced income tax rate, it incurred operating loss for the year ended September 30, 2024, and its operating income for the year ended September 30, 2025 offset its operating loss from previous years, therefore there is no impact of the tax holidays on PRC corporate income taxes for the years ended September 30, 2025 and 2024. The impact of the tax holidays noted above decreased PRC corporate income taxes by $309,840 for the year ended September 30, 2023. The benefit of the tax holidays on net income per share (basic and diluted) was $0.09 for the year ended September 30, 2023.

The components of the income tax expense (benefit) are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | **For the Years Ended September 30,** | **For the Years Ended September 30,** | **For the Years Ended September 30,** |
|  | **2025** | **2024** | **2023** |
| Current tax expense: |  |  |  |
| Cayman | $&nbsp;&nbsp;&nbsp;&nbsp;- | $- | $- |
| Hong Kong | - | - | - |
| PRC | - | - | 685937 |
| &nbsp;&nbsp;&nbsp;Sub-total | - | - | 685937 |
| Deferred tax expense (benefit): |  |  |  |
| Cayman | - | - | - |
| Hong Kong | - | - | - |
| PRC | - | 606704 | 1567656 |
| &nbsp;&nbsp;&nbsp;Sub-total | - | 606704 | 1567656 |
| Total income tax expense | $- | $606704 | $2253593 |

---

The following table reconciles the China statutory rates to the Company's effective tax rate for the years ended September 30, 2025, 2024 and 2023:

---

| | | | |
|:---|:---|:---|:---|
|  | **For the Years Ended September 30,** | **For the Years Ended September 30,** | **For the Years Ended September 30,** |
|  | **2025** | **2024** | **2023** |
| Statutory PRC income tax rate | 25.0% | 25.0% | 25.0% |
| Effect of income tax holiday | 0.7% | (5.9)% | (8.2)% |
| Permanent difference | 12.7% | -% | (0.1)% |
| Change in allowance for credit loss | (2.8)% | -% | -% |
| Non-PRC entities not subject to PRC income tax | (14.4)% | (2.7)% | (4.4)% |
| Tax effect of unrecognized deferred tax assets | (21.2)% | -% | -% |
| Change in valuation allowance | -% | (23.9)% | (64.4)% |
| Effective tax rate | -% | (7.5)% | (52.1)% |

---

The Company continually evaluates expiring statutes of limitations, audits, proposed settlements, changes in tax law and new authoritative rulings. As of September 30, 2025, all of the Company's tax returns of its PRC subsidiaries remain open for statutory examination by PRC tax authorities.

The significant components of the deferred tax assets are summarized below:

---

| | | |
|:---|:---|:---|
|  | **As of September 30,** | **As of September 30,** |
|  | **2025** | **2024** |
| Deferred tax assets: |  |  |
| Net operating loss carried forward | $2167162 | $2198476 |
| Total deferred tax assets | 2167162 | 2198476 |
| Valuation allowance | (2167162) | (2198476) |
| Deferred tax assets, net of valuation allowance | $- | $- |

---

Changes in valuation allowance are as follows:

---

| | | |
|:---|:---|:---|
|  | **As of September 30,** | **As of September 30,** |
|  | **2025** | **2024** |
| Beginning balance | $2198476 | $1515508 |
| Additions | - | 606704 |
| Foreign currency translation adjustments | (27664) | 76264 |
| Ending balance | $2167162 | $2198476 |

---

As of September 30, 2025, the Company had net operating loss carryforwards of approximately $32,278,473, which arose from the Company's subsidiaries in PRC. The Company periodically evaluates the likelihood of the realization of deferred tax assets, and reduces the carrying amount of the deferred tax assets by a valuation allowance to the extent it believes a portion will not be realized. Management considers new evidence, both positive and negative, that could affect the Company's future realization of deferred tax assets including its recent cumulative earnings experience, expectation of future income, the carry forward periods available for tax reporting purposes and other relevant factors. Jiangxi Universe and Universe Trade incurred net loss during the years ended September 30, 2024 and 2023, the Company determined that its deferred tax assets might not be realized, and recognized valuation allowance for all deferred tax assets as of September 30, 2025 and 2024.

As of September 30, 2025, net operating loss carryforwards will expire, if unused, in the following amounts:

---

| | |
|:---|:---|
| **Years ending September 30,** | **Amount** |
| 2026 | $4769719 |
| 2027 | 14305789 |
| 2028 | 3525700 |
| 2029 | 7287564 |
| 2030 | 2389702 |
| Total | $32278474 |

---

**(b) Taxes payable**

Taxes payable consist of the following:

---

| | | |
|:---|:---|:---|
|  | **As of September 30,** | **As of September 30,** |
|  | **2025** | **2024** |
| Value added tax payable | $586051 | $873750 |
| Other taxes payable | 54729 | 147431 |
| Total taxes payable | $640780 | $1021181 |

---

Other taxes payable includes, among other things, consumption tax payable, city maintenance and construction tax payable, urban land utilization tax payable, building tax payable, stamp tax payable, and withheld individual income tax.

**NOTE 15 — CONCENTRATIONS**

A majority of the Company's revenue and expense transactions are denominated in RMB and a significant portion of the Company's and its subsidiaries' assets and liabilities are denominated in RMB. RMB is not freely convertible into foreign currencies. In the PRC, certain foreign exchange transactions are required by law to be transacted only by authorized financial institutions at exchange rates set by the People's Bank of China ("PBOC"). Remittances in currencies other than RMB by the Company in China must be processed through the PBOC or other China foreign exchange regulatory bodies which require certain supporting documentation in order to affect the remittance. Each bank account is insured by the PRC government authority with the maximum limit of RMB500,000 (equivalent $70,235). To limit exposure to credit risk relating to deposits, the Company primarily places cash and cash equivalents with large financial institutions in China which management believes are of high credit quality and the Company also continually monitors their creditworthiness.

The Company's operations are carried out in China. Accordingly, the Company's business, financial condition and results of operations may be influenced by the political, economic and legal environments in the PRC as well as by the general state of the PRC's economy. In addition, the Company's business may be influenced by changes in governmental policies with respect to laws and regulations, anti-inflationary measures, currency conversion and remittance abroad, and rates and methods of taxation, among other factors.

As of September 30, 2025 and 2024, $9,608,188 and $4,430,607 of the Company's cash, respectively, was on deposit at financial institutions in the PRC. For the years ended September 30, 2025, 2024 and 2023, the Company's substantial assets were located in the PRC and all of the Company's revenues were derived from its subsidiaries located in the PRC.

For the years ended September 30, 2025, 2024 and 2023, no single customer accounted for more than 10% of the Company's total revenue. The Company's top 10 customers aggregately accounted for 21.3%, 22.5% and 27.2% of the Company's total revenue for the years ended September 30, 2025, 2024 and 2023, respectively.

Sales of one of the Company's major products, Guben Yanling Pill, accounted for 43.2%, 37.2% and 36.4% of the Company's total revenue for the years ended September 30, 2025, 2024 and 2023, respectively.

As of September 30, 2025 and 2024, no customer accounted for more than 10% of the total accounts receivable balance.

For the year ended September 30, 2025, one supplier accounted for 35.4% of the total purchases. For the year ended September 30, 2024, two suppliers accounted for 28.0% and 13.4% of the total purchases, respectively. For the year ended September 30, 2023, one supplier accounted for 29.6% of the total purchases.

**NOTE 16 — SHAREHOLDERS' EQUITY**

***Ordinary Shares***

Universe INC was incorporated under the laws of the Cayman Islands on December 11, 2019. The original authorized number of ordinary shares upon incorporation was 50,000 shares with par value of US$1.00 per share and 50,000 shares were issued. On August 7, 2020, the Company amended its Memorandum of Association to increase the authorized number of shares to 100,000,000 shares with par value of $0.003125 per share, and subdivide the original issued shares from 50,000 shares at par value of $1.00 per share to 16,000,000 ordinary shares with par value of $0.003125 per share. As a result of this forward split of the outstanding ordinary shares at a ratio of 320-for-1 share, a total of 16,000,000 shares were issued and outstanding after the split. The issuance of these 16,000,000 shares is considered as a part of the Reorganization of the Company, which was retroactively applied as if the transaction occurred at the beginning of the period presented.

***Increased authorized share capital and share consolidation***

On July 3, 2023, the Company held an annual general meeting of shareholders at which shareholders, among other things, resolved:

&nbsp;&nbsp;&nbsp;&nbsp;(a) with immediate effect, to increase
the Company's authorized share capital from US$312,500 divided into 90,000,000 ordinary shares of par value US$0.003125 each and
10,000,000 preferred shares of par value US$0.003125 each, to US$3,125,000 divided into 900,000,000 ordinary shares of par value US$0.003125
each and 100,000,000 preferred shares of par value US$0.003125 each;

&nbsp;&nbsp;&nbsp;&nbsp;(b) that, conditional upon the
approval of the board of directors of the Company in its sole discretion, with effect as of the date the board of directors of the Company
may determine, the authorized, issued and outstanding shares of the Company be consolidated by consolidating each 10 shares of the Company,
or such lesser whole share amount as the board of directors may determine in its sole discretion, such amount not to be less than 2,
into 1 share of the Company, with such consolidated shares having the same rights and being subject to the same restrictions (save as
to nominal value) as the then existing shares of par value US$0.003125 each in the capital of the Company; and

&nbsp;&nbsp;&nbsp;&nbsp;(c) that, upon the effectiveness
of the 2023 Share Consolidation, the Company adopt amended and restated articles of association, in substantially the form set out in
Annex B in the proxy statement dated May 24, 2023, in substitution for and to the exclusion of, the memorandum of association of the
Company in effect immediately prior to effectiveness of the 2023 Share Consolidation.

The board of directors of the Company resolved to effect the 2023 Share Consolidation on July 27, 2023 with the authorized, issued and outstanding shares to be consolidated on a six (6) for one (1) ratio, which had the effect of reducing the number of: (a) authorized ordinary shares from 900,000,000 ordinary shares with a par value of US$0.003125 per share to 150,000,000 ordinary shares with a par value of US$0.01875 per share; (b) issued and outstanding ordinary shares from 21,750,000 ordinary shares with a par value of US$0.003125 per share to 3,625,000 ordinary shares with a par value of US$0.01875 per share; and (c) authorized preferred shares from 100,000,000 preferred shares with a par value of US$0.003125 per share to 16,666,666.6666 preferred shares with a par value of US$0.01875 per share.

On July 15, 2024, the Company closed its self-underwritten public offering of 20,000,000 ordinary shares, par value $0.01875 per share. The ordinary shares were priced at $1.25 per share. The Company raised a total of $25 million through that offering, before deducting offering-related expenses, and net proceeds of $24.625 million.

On September 27, 2024, the Company held an annual general meeting of shareholders at which shareholders, among other things, resolved:

&nbsp;&nbsp;&nbsp;&nbsp;(a) with immediate effect, to increase
the Company's authorized share capital from US$3,125,000 divided into 150,000,000 ordinary shares of par value US$0.01875 each
and 16,666,666.6666 preferred shares of par value US$0.01875 each, to US$140,625,000 divided into 6,750,000,000 ordinary shares of par
value US$0.01875 each and 750,000,000 preferred shares of par value US$0.01875 each;

&nbsp;&nbsp;&nbsp;&nbsp;(b) that, subject to and immediately
following the Authorized Share Capital Increase being effected, the Company adopt an amended and restated memorandum of association in
substitution for, and to the exclusion of, the Company's existing memorandum of association, to reflect the Authorized Share Capital
Increase; and

&nbsp;&nbsp;&nbsp;&nbsp;(c) that, conditional upon the
approval of the board of directors of the Company in its sole discretion, with effect as of the date the board of directors of the Company
may determine, the authorized, issued, and outstanding shares of the Company be consolidated by consolidating each 15 Shares of the Company,
or such lesser whole share amount as the board of directors of the Company may determine in its sole discretion, such amount not to be
less than 2, into 1 Share of the Company, with such consolidated Shares having the same rights and being subject to the same restrictions
(save as to nominal value) as the existing Shares of such class as set out in the Company's memorandum and articles of association.

On November 12, 2024, the Company effected a share consolidation of 15 ordinary shares with par value of US$0.01875 per share each in the Company's issued and unissued share capital into one (1) ordinary share with par value of US$0.28125. All fractional shares were rounded up to the whole number of shares. Immediately following the Share Consolidation, the authorized share capital of the Company was US$140,625,000 divided into 450,000,000 ordinary shares, par value US$0.28125 per share and 50,000,000 preferred shares, par value US$0.28125 per share.

On March 24, 2025, the Company effected a share consolidation of 40 ordinary shares with par value of US$0.28125 per share each in the Company's issued and unissued share capital into one ordinary share with par value of US$11.25. All fractional shares were rounded up to the whole number of shares. Immediately following the Share Consolidation, the authorized share capital of the Company was US$140,625,000 divided into 11,250,000 ordinary shares, par value US$11.25 per share and 1,250,000 preferred shares, par value US$11.25 per share.

On September 3, 2025, the Company held an annual general meeting of shareholders at which shareholders, resolved as a special resolution that, subject to and conditional upon, amongst other things: (i) approval from the Grand Court of the Cayman Islands (the "Court") of the Capital Reduction (as defined below); (ii) registration by the Registrar of Companies of the Cayman Islands of the order of the Court confirming the Capital Reduction and the minute approved by the Court containing the particulars required under the Companies Act (Revised) (the "Act") in respect of the Capital Reduction and compliance with any conditions the Court may impose; (iii) compliance with the relevant procedures and requirements under the applicable laws of the Cayman Islands to effect the Capital Reduction; and (iv) obtaining of all necessary approvals from the regulatory authorities or otherwise as may be required in respect of the Capital Reduction, with effect from the date on which these conditions are fulfilled:

&nbsp;&nbsp;&nbsp;&nbsp;a) the par value of each issued
Ordinary Share of par value US$11.25 each in the share capital of the Company be reduced to par value US$0.00001 each (the "Capital
Reduction") by cancelling the paid-up capital to the extent of US$11.24999 on each of the then issued Ordinary Shares of par value
US$11.25 each;

&nbsp;&nbsp;&nbsp;&nbsp;b) the credit arising from the
Capital Reduction be transferred to a distributable reserve account of the Company which may be utilized by the Company as the board
of directors of the Company may deem fit and as permitted under the Act, the amended and restated memorandum of association adopted by
special resolution passed on 1 March 2025 and unanimous written director resolutions passed on 20 February 2025 and made effective on
17 March 2025 (the "Existing Memorandum"), the second amended and restated articles of association of the Company adopted
by special resolution passed on 23 September 2022 (the "Existing Articles"), and all relevant applicable laws, including,
without limitation, eliminating or setting off any accumulated losses of the Company (if any) from time to time;

&nbsp;&nbsp;&nbsp;&nbsp;c) immediately following the Capital
Reduction, pursuant to section 13 of the Act and article 8.1(d) of the Existing Articles, each of the authorized but unissued Ordinary
Shares of par value US$11.25 each be sub-divided into 1,125,000 ordinary shares of par value US$0.00001 each (the "Sub-division");

&nbsp;&nbsp;&nbsp;&nbsp;d) immediately following the Capital
Reduction and the Sub-division, the authorized share capital of the Company be altered by the cancellation of: (i) the 1,250,000 unissued
Preferred Shares of par value US$11.25 each; and (ii) 12,020,495,313,338 of the unissued ordinary shares of par value US$0.00001 each,
such that the authorized share capital is altered:

 ****

***from*** US$134,287,453.13338 divided into: (i) 12,022,495,313,338 ordinary shares of par value US$0.00001 each; and (ii) 1,250,000 Preferred Shares of par value US$11.25 each;

 ****

***to*** US$20,000 divided into 2,000,000,000 ordinary shares of par value US$0.00001 each

(the "Capital Alteration");

&nbsp;&nbsp;&nbsp;&nbsp;e) immediately following the Capital
Alteration:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. the authorized and issued share
capital of the Company be divided into two separate classes as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. US$18,000 divided into 1,800,000,000
class A ordinary shares of par value US$0.00001 each (the "Class A Ordinary Shares"); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii. US$2,000 divided into 200,000,000
class B ordinary shares of par value US$0.00001 each (the "Class B Ordinary Shares" and, together with the Class A Ordinary
Shares, the "New Share Classes"),

it being noted that the terms of, and rights attaching to the New Share Classes will be materially identical to the existing ordinary shares of par value US$0.00001 each in the capital of the Company save that the Class B Ordinary Shares: (i) shall have 100 times the voting rights per share of Class A Ordinary Shares; and (ii) shall be convertible into Class A Ordinary Shares;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. the issued shares in the Company outstanding following
 the Capital Alteration be re-designated, as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. the 559,868 ordinary shares of par value US$0.00001 each held by Cede & Co be re-designated as 559,868 Class A Ordinary Shares;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii. the 1 ordinary share of par value US$0.00001 held by Christopher Lin be re-designated as 1 Class A Ordinary Share;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iii. the 1 ordinary share of par value US$0.00001 held by Michael Olson be re-designated as 1 Class A Ordinary Share;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iv. the 1 ordinary share of par value US$0.00001 held by Daniel J Sleiman be re-designated as 1 Class A Ordinary Share; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;v. the 3,467 ordinary shares of par value US$0.00001 each held by Sununion Holding Group Limited be re-designated as 3,467 Class B Ordinary Shares,

(steps (a) to (e) (inclusive) above shall be collectively referred to as the "Capital Reorganization"),

&nbsp;&nbsp;&nbsp;&nbsp;f) any one or more of the directors of the Company be and
 is/are hereby authorized to do all such acts and things and execute all such documents, which are in connection with and/or ancillary
 to the Capital Reorganization and any of the foregoing steps and of administrative nature, on behalf of the Company, including under
 seal where applicable, as they consider necessary, desirable or expedient to give effect to the foregoing arrangements for the Capital
 Reorganization and (where applicable) to aggregate all fractional Class A Ordinary Shares and/or Class B Ordinary Shares and sell
 them for the benefit of the Company."

On January 16, 2026, the Company received an order (the "Order") from the Court approving the Capital Reduction. As of the date of this annual report, the Company is still in the process of registering the Order with the Registrar of Companies of the Cayman Islands and completing other necessary procedures in respect of the Capital Reduction. Accordingly, the conditions of the Capital Reorganization have not been fully met and the Capital Reorganization has not taken effect.

As of September 30, 2025 and 2024, the Company had a total of 563,338 and 42,880 ordinary shares issued and outstanding, respectively.

***Underwriter warrants***

In connection with the Company's IPO, the Company also agreed to issue warrants to the underwriter, for a nominal consideration of $0.001 per warrant, to purchase 300,000 ordinary shares of the Company (equal to 6% of the total number of ordinary shares sold in the IPO, not including any ordinary shares sold in the over-allotment option) (the "Underwriter Warrants"). The Underwriter Warrants have a term of five years, each warrant is exercisable for 1/90 share, with an exercise price of $495 after adjustments due to share consolidations. The Underwriter Warrants may be purchased in cash or via cashless exercise, are exercisable for five (5) years, and will expire in March 2026. On December 6, 2024, the Company entered into a securities purchase agreement with certain purchasers to issue 18,750,000 common warrants to purchase 18,750,000 ordinary shares. The exercise price of each common warrant is $32.00 per ordinary share. Each common warrant will be exercisable from the date of issuance until the fifth anniversary of the date of issuance, and will expire in December 2029. Management determined that the Underwriter Warrants and the common warrants meet the requirements for equity classification under ASC 815-40 because they are indexed to its own stock. As of September 30, 2025, the Underwriter Warrants and the common warrants were issued and outstanding, but none of them had been exercised. For the years ended September 30, 2025, 2024 and 2023, the Underwriter Warrants and the common warrants were antidilutive and accordingly were not included in the diluted EPS calculation based on treasury stock method.

***Statutory reserve and restricted net assets***

The Company's PRC subsidiaries are restricted in their ability to transfer a portion of their net assets to the Company. The payment of dividends by entities organized in China is subject to limitations, procedures and formalities. Regulations in the PRC currently permit payment of dividends only out of accumulated profits as determined in accordance with accounting standards and regulations in China.

The Company is required to make appropriations to certain reserve funds, comprising the statutory surplus reserve and the discretionary surplus reserve, based on after-tax net income determined in accordance with generally accepted accounting principles of the PRC ("PRC GAAP"). Appropriations to the statutory surplus reserve are required to be at least 10% of the after-tax net income determined in accordance with PRC GAAP until the reserve is equal to 50% of the entity's registered capital. Appropriations to the discretionary surplus reserve are made at the discretion of the board of directors. The statutory reserve may be applied against prior year losses, if any, and may be used for general business expansion and production or increase in registered capital, but are not distributable as cash dividends.

Relevant PRC laws and regulations restrict the Company's PRC subsidiaries from transferring a portion of their net assets, equivalent to their statutory reserves and their share capital, to the Company in the form of loans, advances or cash dividends. Only PRC entities' accumulated profits may be distributed as dividends to the Company without the consent of a third party. As of September 30, 2025 and 2024, the restricted amounts as determined pursuant to PRC statutory laws totaled $2,439,535, and total restricted net assets amounted to $32,495,275 and $6,067,827, respectively.

**NOTE 17 — COMMITMENTS AND CONTINGENCIES**

From time to time, the Company may become a party to various legal actions arising in the ordinary course of business. The Company accrues costs associated with these matters when they become probable and the amount can be reasonably estimated. Legal costs incurred in connection with loss contingencies are expensed as incurred. For the years ended September 30, 2025, 2024 and 2023, the Company did not have any material legal claims or litigation that, individually or in aggregate, could have a material adverse impact on the Company's consolidated financial position, results of operations and cash flows.

The Company has an ongoing CIP project associated with the construction of a new manufacturing facility. As of September 30, 2025, future minimum capital expenditures on the Company's CIP project amounted to approximately $13.5 million, among which, approximately $3.5 million is required for the next 12 months from the date of this report (see Note 9).

On May 6, 2021, the Company entered into a real estate property purchase agreement with Jiangxi Yueshang, an entity in which the Company's chief executive officer, Mr. Gang Lai, owned 5% of its equity interests as of the date of such agreement. Pursuant to the purchase agreement, Jiangxi Yueshang agreed to sell, and the Company agreed to purchase, certain residential apartments and commercial office space totaling 2,749.30 square meters for a total purchase price of RMB32 million (approximately $4.5 million). As of September 30, 2025, the Company had made a prepayment of RMB16 million (approximately $2.25 million) to Jiangxi Yueshang. The Real Estate Ownership Certificate for the property is currently being processed, and the remaining balance will be payable upon receipt of the Real Estate Ownership Certificate. (see Note 10).

**NOTE 18 — SUBSEQUENT EVENTS**

The Company has assessed all subsequent events through the date that these consolidated financial statements are issued and there are no material subsequent events that require disclosure in these consolidated financial statements.

**NOTE 19 — FINANCIAL INFORMATION OF THE PARENT COMPANY**

Pursuant to the requirements of Rule 12-04(a), 5-04(c) and 4-08(e)(3) of Regulation S-X, the financial information of the parent company shall be filed when the restricted net assets of consolidated subsidiaries exceed 25 percent of consolidated net assets as of the end of the most recently completed fiscal year. The Company performed a test on the restricted net assets of consolidated subsidiaries in accordance with such requirement and concluded that it was applicable to the Company as the restricted net assets of the Company's subsidiaries exceeded 25% of the consolidated net assets of the Company. Therefore, the financial statements for the parent company are included herein.

For purposes of the above test, restricted net assets of consolidated subsidiaries shall mean that amount of the Company's proportionate share of net assets of consolidated subsidiaries (after intercompany eliminations) which as of the end of the most recent fiscal year may not be transferred to the parent company by subsidiaries in the form of loans, advances or cash dividends without the consent of a third party.

The financial information of the parent company has been prepared using the same accounting policies as set out in the Company's consolidated financial statements except that the parent company used the equity method to account for investment in its subsidiaries. Such investment is presented on the balance sheets as "Investment in subsidiaries" and the respective profit or loss as "Equity in earnings of subsidiaries" on the consolidated statements of operations and comprehensive loss.

The footnote disclosures contain supplemental information relating to the operations of the Company and, as such, these statements should be read in conjunction with the notes to the consolidated financial statements of the Company. Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S GAAP have been or omitted.

As of September 30, 2025 and 2024, there were no material contingencies, significant provisions for long-term obligations, or guarantees of the Company, except for those which have been separately disclosed in the consolidated financial statements, if any.

**UNIVERSE PHARMACEUTICALS INC AND SUBSIDIARIES**

**PARENT COMPANY BALANCE SHEETS**

---

| | | |
|:---|:---|:---|
|  | **As of September 30,** | **As of September 30,** |
|  | **2025** | **2024** |
| ASSETS |  |  |
| &nbsp;&nbsp;&nbsp;Cash | $23938610 | $25058414 |
| &nbsp;&nbsp;&nbsp;Other receivable | - | 1377873 |
| &nbsp;&nbsp;&nbsp;Due from related parties | 5638387 | - |
| &nbsp;&nbsp;&nbsp;Due from subsidiaries | 11155749 | 10863833 |
| **Total current assets** | 40732746 | 37300120 |
| **Non-current asset** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investment in subsidiaries | $15396764 | $8749310 |
| &nbsp;&nbsp;&nbsp;Total assets | $56129510 | $46049430 |
| LIABILITIES AND SHAREHOLDERS' EQUITY |  |  |
| CURRENT LIABILITIES |  |  |
| &nbsp;&nbsp;&nbsp;Due to related parties | - | 497014 |
| &nbsp;&nbsp;&nbsp;Accrued expense | - | 49475 |
| TOTAL CURRENT LIABILITIES | $- | $546489 |
| COMMITMENTS AND CONTINGENCIES |  |  |
| SHAREHOLDERS' EQUITY |  |  |
| &nbsp;&nbsp;&nbsp;Ordinary shares, $11.25 par value, 2,000,000,000 shares authorized, 563,338 and 42,880 shares issued and outstanding as of September 30, 2025 and 2024, respectively | 6337553 | 482400 |
| &nbsp;&nbsp;&nbsp;Additional paid-in capital | 63009567 | 53864720 |
| &nbsp;&nbsp;&nbsp;Accumulated deficit | (11404088) | (7732033) |
| &nbsp;&nbsp;&nbsp;Accumulated other comprehensive loss | (1813522) | (1112146) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total shareholders' equity | 56129510 | 45502941 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities and shareholders' equity | $56129510 | $46049430 |

---

**UNIVERSE PHARMACEUTICALS INC AND SUBSIDIARIES**

**PARENT COMPANY STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS**

---

| | | | |
|:---|:---|:---|:---|
|  | **For the Years Ended September 30,** | **For the Years Ended September 30,** | **For the Years Ended September 30,** |
|  | **2025** | **2024** | **2023** |
| Operating costs and expenses: |  |  |  |
| General and administrative expenses | $(2469983) | $(592021) | $(134141) |
| Other income (expenses): |  |  |  |
| Other expenses | (37050) | (87292) | (730) |
| Equity in earnings of subsidiaries | (1165022) | (8047985) | (6446153) |
| Net loss | (3672055) | (8727298) | (6581024) |
| Foreign currency translation adjustments | (701376) | 1260094 | (779351) |
| Comprehensive loss attributable to the Company | $(4373431) | $(7467204) | $(7360375) |

---

**UNIVERSE PHARMACEUTICALS INC AND SUBSIDIARIES**

**PARENT COMPANY STATEMENTS OF CASH FLOWS**

---

| | | | |
|:---|:---|:---|:---|
|  | **For the Years Ended September 30,** | **For the Years Ended September 30,** | **For the Years Ended September 30,** |
|  | **2025** | **2024** | **2023** |
| CASH FLOWS FROM OPERATING ACTIVITIES: |  |  |  |
| Net loss | $(3672055) | $(8727298) | $(6581024) |
| &nbsp;&nbsp;&nbsp;Adjustments to reconcile net cash flows from operating activities: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Equity in earnings of subsidiary | 1165022 | 8047985 | 6446153 |
| Changes in operating assets and liabilities: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other receivable | 1377873 | - | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Due from related parties | (5638387) | - | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Due to related parties | (497014) | 497014 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued expense | (49475) | 49475 |  |
| Net cash used in operating activities | (7314036) | (132824) | (134871) |
| CASH FLOWS FROM INVESTING ACTIVITY: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investment in subsidiaries | (8450000) | - | - |
| Net cash used in investing activity | (8450000) | - | - |
| CASH FLOWS FROM FINANCING ACTIVITIES: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net proceeds from issuance of ordinary shares | 15000000 | 24999992 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash (payment to) repayment from subsidiaries | (291916) | 14511 | 115133 |
| Net cash provided by financing activities | 14708084 | 25014503 | 115133 |
| EFFECT OF CHANGES OF FOREIGN EXCHANGE RATES ON CASH | (63852) | 167487 | 69 |
| CHANGES IN CASH | (1119804) | 25049166 | (19669) |
| CASH, beginning of year | 25058414 | 9248 | 28917 |
| CASH, end of year | $23938610 | $25058414 | $9248 |

---

## Exhibit 4.6

**Exhibit 4.6**

Technology Cooperation Contract

Project Name: Research Results on the Effects of Tennis Exercise Combined with Guben Yanling Pills on Serum Antioxidant Enzymes and Immune Function in Middle-Aged and Elderly People

Entrusting Party (Party A): Jinggangshan University

Entrusted Party (Party B): Guangzhou Nature Hanhe Pharmaceutical Research Co., Ltd.

Signing Date: May 16, 2025

Signing Location: Ji'an, Jiangxi

Instructions for Completion

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. This contract is a model text of a technology development (entrustment) contract printed by the Ministry of Science and Technology of the People's Republic of China. Technology contract registration and recognition institutions may recommend parties to technical contracts to refer to and use it.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. This contract applies to technology development contracts entered into by one party entrusting another party to conduct research and development of new technologies, new products, new processes, new materials, or their systems.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. If one party to the contract consists of multiple parties, they may be listed as co-entrusting parties or co-entrusted parties separately under the "Entrusting Party" or "Entrusted Party" items (by adding pages) according to their respective roles in the contractual relationship.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. Matters not covered in this contract may be separately agreed upon by the parties in an attached page, which shall be an integral part of this contract.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. For clauses that the parties agree not to fill in when using this contract, they shall indicate "None" or similar words in the relevant clause.

Party A, as the overall project unit, entrusts Party B to research and develop the "Research Results on the Effects of Tennis Exercise Combined with Guben Yanling Pills on Serum Antioxidant Enzymes and Immune Function in Middle-Aged and Elderly People", and shall pay the research and development funds and remuneration. Party B accepts the entrustment and conducts the research and development work. Through equal negotiation and on the basis of truthfully and fully expressing their respective intentions, the two parties have reached the following agreement in accordance with the provisions of the "Civil Code of the People's Republic of China", which both parties shall abide by jointly.

Article 1 Requirements for the Research and Development Project of This Contract:

Upon negotiation between the two parties, Party B shall carry out the development work of the "Research Results on the Effects of Tennis Exercise Combined with Guben Yanling Pills on Serum Antioxidant Enzymes and Immune Function in Middle-Aged and Elderly People" in accordance with the task requirements.

In accordance with the above agreement, Party A shall pay the research and development funds in the following manner: The research and development funds and remuneration for this project: Party A shall provide Party B with a total of RMB 210,000.00 (¥210,000.00) for Party B's technology development work.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1. Payment method and time limit for funds and remuneration (Adopt the following Method 1):

○ Method 1: Lump-sum payment: ¥210,000.00

○ Method 2: Installment payment;

○ Party B shall deliver the invoice to Party A no later than three working days before Party A's payment, and Party A shall complete the payment after receiving the invoice.

○ Unless otherwise specified in writing, the account stated in the tax-paid invoice delivered by Party B shall be Party B's receiving account. Party B warrants that the account information is true and accurate; otherwise, all legal consequences such as incorrect payment or failure to pay resulting therefrom shall be borne by Party B alone.

Article 2 Any modification to this contract must be agreed upon by both parties and confirmed in writing. However, under any of the following circumstances, one party may request the other party to modify the rights and obligations under the contract, and the other party shall respond within 7 days; failure to respond within the time limit shall be deemed as consent:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. During the validity period of this contract, if either party is unable to perform the contract due to war, severe flood, fire, typhoon, earthquake, or other force majeure events agreed upon by both parties, the performance period of the contract shall be extended, and the extension period shall be equivalent to the time affected by the event;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. At the proposal of either party, this contract may be extended on terms satisfactory to both parties, and negotiations shall be conducted one month before the expiration of this contract.

Article 3 Party B shall deliver the research and development results to Party A in the following manner:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Form and quantity of delivery of research and development results:

○ (1) One copy of the "Research Results on the Effects of Tennis Exercise Combined with Guben Yanling Pills on Serum Antioxidant Enzymes and Immune Function in Middle-Aged and Elderly People" that meets the requirements attached hereto; if it fails to meet the requirements, it shall be supplemented and completed within 7 days.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Time and location of delivery of research and development results: Party B shall complete the research and development and achieve the expected effects within 300 working days after the signing of the contract.

Article 4 The two parties confirm that the research and development results completed by Party B shall be accepted in accordance with the following standards and methods:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. The acceptance of the system shall be based on the functions and technical indicators listed in Article 1 of this contract, in accordance with software engineering requirements. On-site testing shall be adopted for acceptance, and Party A shall issue a technical project acceptance certificate.

Article 5 The two parties confirm that any research and development results, relevant intellectual property rights, and software copyrights independently generated by either party in this project shall belong to that party alone, and the results and intellectual property rights jointly developed shall be owned by both parties.

Article 6 Researchers of Party B who complete the research and development of this contract project shall have the right to be indicated as the completers of the technical achievements in relevant technical achievement documents and the right to obtain relevant honorary certificates and rewards.

Article 7 Equipment, instruments, materials, and other property purchased by Party B using the research and development funds in connection with the research and development work shall belong to Party B.

Article 8 The two parties confirm that after delivering the research and development results to Party A, Party B shall, at the request of Party A, provide technical guidance and training to personnel designated by Party A, or provide technical services related to the use of the research and development results.

Article 9 The two parties confirm that if any of the following circumstances occurs, making the performance of this contract unnecessary or impossible, one party may notify the other party to terminate this contract:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Due to force majeure or technical risks;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Either party breaches the contract or violates relevant laws and regulations;

Article 10 Disputes arising between the two parties in the performance of this contract shall be resolved through negotiation or mediation. If negotiation or mediation fails, it shall be handled in accordance with the following Method 1:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Submit to Ji'an Arbitration Commission for arbitration;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. File a lawsuit with Ji'an People's Court in accordance with the law.

Article 11 The two parties confirm that the definitions and interpretations of relevant nouns and technical terms involved in this contract and its attached documents are as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. None.

Article 12 The following technical documents related to the performance of this contract, after being confirmed by both parties, the technical document "Research Results on the Effects of Tennis Exercise Combined with Guben Yanling Pills on Serum Antioxidant Enzymes and Immune Function in Middle-Aged and Elderly People" shall be an integral part of this contract.

Article 13 Other matters agreed upon by the two parties regarding this contract: None.

Article 14 This contract is made in 4 copies, with Party A holding 2 copies and Party B holding 2 copies, all having the same legal effect.

Article 15 This contract shall take effect after being sealed by both parties.

Entrusting Party (Seal): Jinggangshan University

Representative of Entrusting Party (Signature):

Tel: 13766280276

Unified Social Credit Code: 12360000492390024X

Address: No. 28 Xueyuan Road, Qingyuan District, Ji'an City, Jiangxi Province

Signing Date: ______年____月____日

(Seal)

Entrusted Party (Seal): Guangzhou Nature Hanhe Pharmaceutical Research Co., Ltd.

Representative of Entrusted Party (Signature):

Tel:

Unified Social Credit Code: 91440101MA9XT3974X

Address: No. 180, Self-compiled Building 2, No. 191 Yaotianhe Street, Huangpu District, Guangzhou City

Signing Date: ______年____月____日

(Seal)

## Exhibit 4.7

**Exhibit 4.7**

**Purchase Order**

Party A: Bozhou Cijitang Chinese Herbal Decoction Pieces Co., Ltd.

Party B: Jiangxi Nature Pharmaceutical Co., Ltd.

To clarify the rights and obligations of both parties, upon friendly negotiation based on the principle of mutual benefit, this contract is formulated in accordance with the "Civil Code of the People's Republic of China" and relevant laws and regulations, with the following terms:

I. Commodity Name, Specification, Quantity and Amount:

Commodity Name & Specification

Place of Origin

Batch Number

Quantity

Unit

Price

Tax-Inclusive Amount

Delivery Date

Total (in words)

Total (in figures)

II. Quality Standards:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. The Chinese medicinal materials and Chinese herbal decoction pieces provided by Party A to Party B must comply with legal quality standards and relevant quality requirements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. The Chinese herbal decoction pieces shall be genuine, clean and dry. Party A must provide qualified products and inspection reports, and shall not supply defective products such as deteriorated, discolored, oil-seeped or insect-infested ones.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. If the decoction pieces need to be processed, Party A shall provide qualified processed Chinese herbal decoction pieces.

III. Delivery/Pickup Method and Location:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Pickup by the buyer; 2. Delivery by the seller; 3. The seller shall arrange transportation on behalf of the buyer. Transportation method: road transportation. Transportation costs shall be borne by Party A.

IV. Type of Invoice:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Ordinary invoice; 2. Value-Added Tax invoice.

V. Payment Method:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Bank transfer; 2. Bill of exchange; 3. Cash.

VI. Payment Collection Time:

Payment shall be made within three months after the goods and invoices are delivered, along with the detailed supply contract for the invoices of this batch.

VII. Liability for Breach of Contract and Other Matters:

● (Details to be supplemented by both parties through negotiation)

VIII. Unsettled Matters:

Shall be handled in accordance with the "Civil Code of the People's Republic of China" and relevant provisions. Any dispute shall be resolved through negotiation between both parties; if negotiation fails, it shall be submitted to the court where the seller is located for settlement.

IX. Other Provisions:

This contract is made in duplicate, with each party holding one copy, both having the same legal effect. It shall take effect upon being sealed by both parties.

Party A: Bozhou Cijitang Chinese Herbal Decoction Pieces Co., Ltd.

Bank:

Account Number:

Tax Identification Number:

Agent: -

Date:

Party B: Jiangxi Nature Pharmaceutical Co., Ltd.

Address: No. 265 Jingjiu Avenue, Jinggangshan Economic and Technological Development Zone, Ji'an County, Ji'an City, Jiangxi Province

Tel: 0796-840330

Fax: -

Postal Code: -

Bank:

Account Number:

Tax Identification Number:

## Exhibit 4.8

**Exhibit 4.8**

Working Capital Loan Contract

**Borrower:** Jiangxi Universe Pharmaceuticals Trade Co., Ltd.

**Lender:** Jingkai Sub-branch, Ji'an Luling Rural Commercial Bank Co., Ltd.

**Special Reminder:** To protect the legitimate rights and interests of the borrower, the lender specially reminds the borrower to pay full attention to all clauses concerning the rights and obligations of both parties, especially the bolded parts. If the borrower has any objections, it shall raise them to the lender. If there are no objections, after being signed by both parties, all clauses of this Contract are the true expressions of the intentions of both parties, have legal binding force, and are protected by law.

The borrower and the lender, in accordance with the relevant laws, regulations of the People's Republic of China and other relevant provisions, and regarding the lender's issuance of a working capital loan to the borrower, have reached an agreement through negotiation, formulated this Contract, and shall jointly abide by it.

Chapter 1 Concluded Clauses

Article 1 Loan Amount and Currency

● RMB loan amount: (In words) Five Million Yuan Only; (In figures) 5,000,000.

● This is a non-revolving loan limit.

Article 2 Loan Term

● The valid use period of the loan under this Contract is 12 months, from May 16, 2025 to May 15, 2026.

● If the loan amount under this Contract is a non-revolving limit, the loan term is consistent with the valid use period of the loan agreed in this Contract. The specific loan term shall be subject to the term recorded in the loan voucher.

● If the borrower commits any of the default acts listed in Article 19 of this Contract, the borrower agrees that the lender may recover the loan in advance, and the date on which the lender declares the early recovery of the loan shall be the maturity date of the loan.

Article 3 Purpose of the Loan

● Purpose of the loan: Purchase of medical equipment.

● Without the written consent of the lender, the borrower shall not change the purpose of the loan or misappropriate the loan for other purposes. The lender has the right to supervise the use of the loan.

Article 4 Loan Interest Rate and Interest Calculation and Settlement

1. Loan Interest Rate

The loan interest rate is calculated using the simple interest method and determined in accordance with the following Method (1):

● (1) Fixed interest rate: The annual interest rate is 3.65%.

Based on the 1-year Loan Prime Rate (LPR) released most recently on the working day before the signing date of this Contract ☐ the withdrawal date, add 55 basis points (1bp = 0.01%), with an annual interest rate of 3.65%. The interest rate remains unchanged during the loan term.

● (2) Floating interest rate:

The annual interest rate is determined by adding/subtracting [ ] basis points to/from the 1-year Loan Prime Rate (LPR) released most recently on the working day before the withdrawal date. The number of basis points to be added or subtracted remains unchanged during the valid period of this Contract. If the Loan Prime Rate (LPR) is adjusted, the method for determining the loan interest rate shall be handled in accordance with the following Method [ ], and the lender shall not notify the borrower separately:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;① Annual adjustment: Starting from January 1 of the following
year, the interest rate shall be implemented by adding/subtracting the agreed basis points to/from the newly released LPR;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;② Anniversary adjustment: On the corresponding date of the same
year and month, the interest rate shall be implemented by adding/subtracting the agreed basis points to/from the newly released LPR;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;③ Quarterly adjustment (1): On the corresponding date of the
first month of each quarter, the interest rate shall be implemented by adding/subtracting the agreed basis points to/from the newly released
LPR;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;④ Quarterly adjustment (2): On the 1st day of the first month
of each quarter, the interest rate shall be implemented by adding/subtracting the agreed basis points to/from the newly released LPR;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;⑤ Monthly adjustment (1): On the corresponding date of each
month, the interest rate shall be implemented by adding/subtracting the agreed basis points to/from the newly released LPR (if there
is no corresponding date in the adjustment month, the last day of the month shall be the corresponding date);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;⑥ Monthly adjustment (2): On the 1st day of each month, the
interest rate shall be implemented by adding/subtracting the agreed basis points to/from the newly released LPR;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;⑦ Immediate adjustment: Starting from the day after the new
LPR is released, the interest rate shall be implemented by adding/subtracting the agreed basis points to/from the new LPR.

● (3) Other methods: [No content specified]

● If the borrower chooses the "(2) Floating interest rate" method, in case the Loan Prime Rate (LPR) increases, the monthly repayment amount of the borrower will increase. If the borrower still repays according to the repayment amount before the adjustment, the monthly repayment amount will be insufficient, resulting in penalty interest and compound interest, and affecting the borrower's credit record.

2. Interest Settlement Method

The borrower settles interest in accordance with the following Method (2):

● (1) Quarterly interest settlement: The 20th day of the last month of each quarter is the interest settlement date, and the 21st day is the interest payment date.

● (2) Monthly interest settlement: The 20th day of each month is the interest settlement date, and the 21st day is the interest payment date.

● (3) Other methods: [No content specified]

● If the final repayment date of the loan principal is not an interest payment date, the final repayment date of the loan principal shall be the interest payment date, and the borrower shall pay off all accrued interest.

3. Penalty Interest Rate

● (1) If the borrower fails to repay the loan within the agreed term, interest on the overdue part shall be calculated at the overdue loan penalty interest rate from the date of overdue until the principal and interest are repaid in full;

● (2) If the borrower fails to use the loan for the agreed purpose, interest on the misappropriated part shall be calculated at the misappropriated loan penalty interest rate from the date of misappropriation until the principal and interest are repaid in full;

● (3) For loans that are both overdue and misappropriated, interest shall be calculated at the misappropriated loan penalty interest rate;

● (4) For the interest and penalty interest that the borrower fails to pay on time, compound interest shall be calculated at the penalty interest rate agreed in this paragraph in accordance with the interest settlement method agreed in Paragraph 2 of this Article;

● (5) When calculating penalty interest and compound interest, if the loan interest rate agreed in the Contract is adjusted, the penalty interest and compound interest shall be calculated at the adjusted interest rate from the adjustment date;

● (6) Penalty interest rate:

The overdue loan penalty interest rate is 30% higher than the loan interest rate agreed in Paragraph 1 of this Article; the misappropriated loan penalty interest rate is 50% higher than the loan interest rate agreed in Paragraph 1 of this Article.

Article 5 Loan Issuance and Repayment Account

The borrower opens the following account with the lender as the loan issuance and repayment account. The issuance, payment, and repayment of the loan shall be handled through this account:

● Issuing Bank: Ji'an Rural Commercial Bank Co., Ltd. Jingkai Sub-branch

● Account Name: Jiangxi Daziran Pharmaceutical Trade Co., Ltd.

● Account Number:

Article 6 Repayment

Unless otherwise agreed by both parties, the borrower shall repay the loan under this Contract in accordance with the following Repayment Plan [ ]:

1. Repay all the loans under this Contract on the maturity date of the loan term.

2. Repay the loans under this Contract in accordance with the following repayment plan:

---

| | |
|:---|:---|
| **Repayment Time** | **Repayment Amount** |
| 1. | [No content specified] |
| 2. | [No content specified] |
| 3. | [No content specified] |
| 4. | [No content specified] |
| 5. | [No content specified] |
| 6. | [No content specified] |
| 7. | [No content specified] |
| 8. | [No content specified] |

---

3. Other repayment plans: [No content specified]

4. If the borrower intends to repay the loan in advance, it shall obtain the consent of the lender 7 banking
working days in advance.

Article 7 Guarantee

The loan under this Contract is a (credit/guaranteed) loan. The guarantee method is (guarantee/mortgage/pledge), and a separate guarantee contract shall be signed.

Article 8 Contractual Agreements on the Borrower's Financial Indicators

1. [No content specified]

2. [No content specified]

3. [No content specified]

Article 9 Resolution of Disputes

1. After the effective date of this Contract, all disputes arising from the conclusion and performance of this
Contract or related to this Contract may be resolved through negotiation by both parties. If the negotiation fails, either party may file
a lawsuit with the people's court with jurisdiction at the place where the lender is located in accordance with the law.

2. During the dispute resolution period, if the dispute does not affect the performance of other clauses of
this Contract, such other clauses shall continue to be performed.

3. Through negotiation, all parties may apply for compulsory execution notarization of this Contract. The borrower
agrees that this Contract shall have the effect of compulsory execution after being notarized. If the borrower fails to perform the obligations
under this Contract, the lender may apply to the people's court with jurisdiction for execution in accordance with the law.

Article 10 Contract Effectiveness

This Contract shall take effect on the date of signature and seal by both parties.

This Contract is made in two copies, with one copy held by each of the borrower and the lender, both of which have the same legal effect.

Article 11 Other Agreed Matters

[No content specified]

Chapter 2 Standard Clauses

Article 12 Interest Calculation

Interest shall be calculated from the actual withdrawal date of the borrower based on the actual withdrawal amount and the number of days of use.

Interest calculation formula: Interest = Principal × Actual number of days × Daily interest rate.

The daily interest rate is calculated based on 360 days a year. Conversion formula: Daily interest rate = Annual interest rate / 360.

Article 13 Loan Issuance Conditions

1. The borrower must meet all the following loan issuance conditions; otherwise, the lender has no obligation
to issue any funds to the borrower, unless the lender agrees to make an advance disbursement:

&nbsp;&nbsp;&nbsp;&nbsp;(1) This Contract and its attachments have taken effect;

&nbsp;&nbsp;&nbsp;&nbsp;(2) The borrower has reserved with the lender the borrower's
documents, documents, seals, list of personnel, signature samples related to the conclusion and performance of this Contract, and filled
in the relevant vouchers;

&nbsp;&nbsp;&nbsp;&nbsp;(3) The borrower has opened the necessary accounts for the performance
of this Contract in accordance with the lender's requirements;

&nbsp;&nbsp;&nbsp;&nbsp;(4) Submit a written withdrawal notice and relevant documents
proving the purpose of the loan to the lender 3 banking working days before the withdrawal, and the provided documents proving the purpose
of the loan are consistent with the agreed purpose, and go through the relevant withdrawal procedures;

&nbsp;&nbsp;&nbsp;&nbsp;(5) The borrower has submitted to the lender the resolution and
power of attorney of the board of directors or other authorized departments agreeing to sign and perform this Contract;

&nbsp;&nbsp;&nbsp;&nbsp;(6) In accordance with the relevant regulatory provisions and
the lender's management requirements, for loans exceeding a certain amount or meeting other conditions, the lender's entrusted payment
method shall be adopted. The lender shall pay the loan to the payment object that complies with the agreed purpose of this Contract in
accordance with the borrower's withdrawal application and payment entrustment;

&nbsp;&nbsp;&nbsp;&nbsp;(7) Except for credit loans, the borrower has provided corresponding
guarantees in accordance with the lender's requirements and completed all relevant guarantee procedures, and the guarantees are legal
and effective;

&nbsp;&nbsp;&nbsp;&nbsp;(8) No default has occurred under this Contract or other contracts
signed between the borrower and the lender;

2. From the date of signing this Contract, if the borrower does not make any withdrawal for 3 consecutive months,
the lender has the right to cancel the loan limit.

Article 14 Special Agreements on Revolving Loans (Maximum Amount Loans)

1. During the valid use period of the revolving loan limit, the sum of the outstanding loan principal balances
of the borrower at any time shall not exceed the revolving loan limit; the repayment date of any withdrawal shall not exceed the valid
use period of the revolving loan limit.

2. Both parties agree that the lender may reasonably set the limit and loan term for each revolving loan according
to the scale and cycle characteristics of the borrower's production and operation.

Article 15 Payment of Loan Funds

1. Lender's Entrusted Payment

Lender's entrusted payment refers to the lender paying the loan funds to the borrower's counterparty that complies with the agreed purpose of this Contract through the borrower's account in accordance with the borrower's withdrawal notice and payment entrustment.

For the payment of loan funds with a single payment amount exceeding the specified limit under this Contract, the lender's entrusted payment method shall be adopted.

If the lender's entrusted payment method is adopted, the borrower shall include clear payment entrustment (including the name of the receiving counterparty, the counterparty's account, and the payment amount) and other necessary payment information in the withdrawal notice, and submit the business contracts and other purpose certification materials required for review to the lender. After the lender's review and approval, the loan funds will be paid to the borrower's counterparty through the borrower's account. If the lender fails to complete the entrusted payment obligation in a timely manner due to untrue, inaccurate, or incomplete payment entrustment information and relevant transaction materials provided by the borrower, the lender shall not bear any liability, and the borrower's existing repayment obligations under this Contract shall not be affected. The lender shall pay the funds to the counterparty's account in accordance with the borrower's withdrawal notice and the payment vouchers required by the lender.

If the lender finds through review that the business contracts and other purpose certification materials provided by the borrower do not comply with the agreement of this Contract or have other defects, it has the right to require the borrower to supplement, replace, explain, or resubmit the relevant materials. Before the borrower submits the business contracts and other certification materials deemed qualified by the lender, the lender has the right to refuse the issuance and payment of the relevant funds.

If a refund is made by the counterparty's account opening bank, resulting in the lender's failure to pay the loan funds to the counterparty in a timely manner in accordance with the borrower's payment entrustment, the lender shall not bear any liability, and the borrower's existing repayment obligations under this Contract shall not be affected. For the funds returned by the counterparty's account opening bank, the borrower shall resubmit the payment entrustment and the business contracts and other purpose certification materials required for review. After the lender's review and approval, the loan funds will be paid to the borrower's counterparty through the borrower's account.

All handling fees required for the implementation of loan payment to the borrower's designated counterparty by way of entrusted payment under this Contract shall be borne by the borrower. The borrower shall pay the above fees to the lender when handling the entrusted payment for each loan.

The borrower shall not violate the above agreements and avoid the lender's entrusted payment by splitting the amount into smaller parts.

2. Borrower's Autonomous Payment

Except for the circumstances where the lender's entrusted payment method must be adopted as agreed in the preceding paragraph, unless otherwise agreed by both parties, the payment method for other loan funds shall be the borrower's autonomous payment, that is, after the lender issues the loan funds to the borrower's account in accordance with the provisions of this Contract, the borrower shall independently pay the funds to the borrower's counterparty that complies with the agreed purpose of the Contract.

If the borrower needs to change the above repayment plan, it shall submit a written application to the lender 10 banking working days before the maturity of the corresponding loan. The change of the repayment plan must be jointly confirmed in writing by both parties.

3. Loan Extension

If the loan under this Contract needs to be extended, the borrower shall submit a written extension application to the lender 30 banking working days before the maturity of the loan. The decision to approve the extension shall be made by the lender. For applying for the extension of guaranteed loans, mortgage loans, or pledge loans, the guarantor, mortgagor, or pledgor shall also issue a written certificate of consent. If approved by the lender, both parties shall sign an extension agreement; if the borrower's extension application is not approved by the lender, the borrower shall still repay the loan in full in accordance with the repayment term agreed in this Contract.

4. Repayment Order

Except otherwise agreed by both parties, if the borrower defaults on both the loan principal and interest, the lender has the right to determine the order of repaying the principal or interest; in the case of installment repayment, if there are multiple matured loans or overdue loans under this Contract, the lender has the right to determine the repayment order; if there are multiple loan contracts between the borrower and the lender, the lender has the right to determine the order of the contracts to be performed by each repayment of the borrower.

5. Repayment Obligations

The borrower shall repay the loan principal, interest, and other payable funds in full and on time in accordance with the agreement of this Contract. Before the end of the over-the-counter business hours on the repayment date and each interest settlement date, the borrower shall deposit the current accrued interest, principal, and other payable funds in full in the repayment account opened with the lender. The borrower authorizes the lender to actively deduct the funds on the repayment date or interest settlement date, or require the borrower to cooperate in handling the relevant fund transfer procedures. If the funds in the repayment account are insufficient to pay all the borrower's matured payable funds, the borrower agrees that the lender shall determine the repayment order.

6. Early Recovery of Loans

The lender has the right to recover the loan in advance according to the borrower's fund recovery situation.

7. Loan Voucher

The loan voucher is an integral part of this Contract. If the loan amount, withdrawal amount, repayment amount, loan issuance date and maturity date, loan term, loan interest rate, and loan purpose not recorded in this Contract or recorded inconsistently with those in the loan voucher, the loan voucher shall prevail.

Article 16 Guarantee

If the borrower or the guarantor experiences an event that the lender deems may affect its performance capacity, or the guarantee contract becomes invalid, revoked, or terminated, or the borrower or the guarantor's financial situation deteriorates or is involved in major litigation or arbitration cases, or may affect its performance capacity for other reasons, or the guarantor defaults under the guarantee contract or other contracts with the lender, or the collateral depreciates, is damaged, lost, or seized, resulting in the weakening or loss of the guarantee value, the lender has the right to require, and the borrower is obligated to supplement and provide new guarantees, supplement or replace the guarantor, etc., to guarantee the debts under this Contract.

Article 17 Representations and Warranties

1. The borrower is legally registered and validly existing with the administrative department for industry and
commerce or the competent authority, has full civil rights capacity and capacity for conduct necessary for signing and performing this
Contract, and has the ability to repay the loan.

2. The borrower fully agrees to the content and clauses of this Contract. The signing and performance of this
Contract are based on the borrower's true intention, have obtained legal and effective authorization in accordance with the requirements
of its articles of association or other internal management documents, and will not violate any agreements, contracts, and other legal
documents binding on the borrower; the borrower has obtained or will obtain all relevant approvals, permits, filings, or registrations
necessary for signing and performing this Contract.

3. The borrower abides by the principle of good faith. All documents, financial statements, vouchers, and other
materials provided by the borrower to the lender under this Contract are true, complete, accurate, and effective, without any false records,
material omissions, or misleading statements. The financial statements provided to the lender are prepared in accordance with Chinese
accounting standards, truthfully, fairly, and completely reflecting the borrower's operating conditions and liabilities.

4. The transaction background for which the borrower applies for business with the lender is true and legal,
and is not used for illegal purposes such as money laundering; the purpose of the loan and the source of repayment are clear and legal.

5. The borrower has a good credit status and no major adverse records, and the borrower has not concealed from
the lender any events that may affect its and the guarantor's financial situation and performance capacity, nor has it concealed any litigation,
arbitration, or claim events in which it is involved.

6. Other debts payable have been repaid on time, and there is no malicious default on bank loan principal and
interest.

7. Withdraw and use the loan in accordance with the term and purpose agreed in this Contract. The borrowed funds
shall not be used for the investment in fixed assets and equity, and shall not flow into the securities market, futures market, and other
purposes prohibited or restricted by relevant laws and regulations in any form.

8. Submit its financial statements (including but not limited to annual reports, quarterly reports, and monthly
reports) and other relevant materials to the lender regularly or in a timely manner in accordance with the lender's requirements; the
borrower ensures that the financial indicators always comply with the contractual agreements. If the production and operation qualifications/licenses
require annual inspection, they shall pass the annual inspection on time.

9. Withdraw, pay, and use the loan in accordance with the agreement of this Contract.

10. If the borrower has signed or will sign a counter-guarantee agreement or similar agreement with the guarantor
of this Contract regarding its guarantee obligations, such agreement will not prejudice any rights of the lender under this Contract.

11. Accept the credit inspection and supervision of the lender and provide sufficient assistance and cooperation;
from the effective date of this Contract until the full repayment of the loan principal, interest, and relevant fees under this Contract,
the borrower agrees and authorizes the lender to monitor the accounts opened by the borrower with the lender, inspect and analyze its
production and operation (including but not limited to the construction and operation of the borrower's projects), and dynamically monitor
its income cash flow and overall capital flow; the borrower shall accept and actively cooperate with the lender's inspection and supervision
of the use of the loan funds, including the purpose, through account analysis, voucher inspection, on-site investigation, and other methods,
and summarize and report regularly in accordance with the lender's requirements.

12. If the borrower undergoes merger, division, capital reduction, equity transfer, external investment, substantial
increase in debt financing, transfer of major assets and claims, and other events that may have an adverse impact on the borrower's solvency,
it must obtain the prior written consent of the lender.

If any of the following circumstances occurs, the borrower shall notify the lender in writing within 7 days from the date of knowing or should knowing:

&nbsp;&nbsp;&nbsp;&nbsp;(1) Changes in the articles of association, business scope, registered
capital, or legal representative of the borrower or the guarantor;

&nbsp;&nbsp;&nbsp;&nbsp;(2) Changes in the operation method such as any form of joint
operation, Sino-foreign joint venture, cooperation, contracted operation, restructuring, reorganization, or planned listing;

&nbsp;&nbsp;&nbsp;&nbsp;(3) Involvement in major litigation or arbitration cases, or
the property or collateral is seized, detained, or supervised, or new major liabilities are set on the collateral;

&nbsp;&nbsp;&nbsp;&nbsp;(4) Suspension of business, dissolution, liquidation, suspension
of business for rectification, revocation, revocation of business license, (application for) bankruptcy, etc.;

&nbsp;&nbsp;&nbsp;&nbsp;(5) The shareholders, directors, and current senior management
personnel are involved in major cases or economic disputes, or the legal representative/person-in-charge or current senior management
personnel have important matters such as deteriorating health or inconsistent qualifications that make them unable to be competent for
their own work;

&nbsp;&nbsp;&nbsp;&nbsp;(6) The borrower has a default event under other contracts;

&nbsp;&nbsp;&nbsp;&nbsp;(7) Occurrence of operational difficulties and deterioration
of financial situation;

&nbsp;&nbsp;&nbsp;&nbsp;(8) When the borrower undergoes changes, restructuring, contracting,
or is approved by the competent authority to close down, suspend operations, merge, or transfer, the borrower guarantees to notify the
lender in writing at least one month before the occurrence of the above events and immediately repay all debts to the lender. With the
written consent of the lender, the borrower may transfer the debts to the receiving unit or the newly established unit (in the process
of debt transfer, the borrower shall show and submit the documents or relevant documents issued by its competent authority or the employer
to the lender), but the unit receiving the debts must re-sign the loan contract with the lender and submit the corresponding written
certificate of consent from the guarantor or implement new guarantee measures. Before the contract is signed, the lender has the right
to recover the debts from the borrower, the guarantor, or the borrower's receiver at any time.

13. The repayment order of the borrower's debts to the lender shall take priority over the loans from the borrower's shareholders to the borrower, and shall not be inferior to the similar debts owed by the borrower to other creditors. From the effective date of this Contract until the full repayment of the loan principal, interest, and relevant fees under this Contract, the borrower shall not repay the amounts owed to its shareholders.

14. For the loan under this Contract, the guarantee conditions, loan interest rate pricing, repayment order, and other loan conditions provided by the borrower to the lender shall not be lower than those given to any other financial institutions now or in the future.

15. Bear the expenses incurred in the conclusion and performance of this Contract, as well as the expenses paid and to be paid by the lender to realize the creditor's rights under this Contract, including but not limited to litigation or arbitration fees, property preservation fees, lawyer's fees, execution fees, appraisal fees, auction fees, announcement fees, etc.

16. Account Management

&nbsp;&nbsp;&nbsp;&nbsp;(1) The repayment account designated and opened by the borrower
with the lender (the account agreed in Article 5) is a special fund recovery account, used to collect the corresponding sales income
or planned repayment funds. If the corresponding sales income is settled in a non-cash manner, the borrower shall ensure that the funds
are promptly transferred into the fund recovery account after receipt.

&nbsp;&nbsp;&nbsp;&nbsp;(2) The lender has the right to supervise the fund recovery account,
including but not limited to understanding and supervising the fund inflow and outflow of the account, and the borrower shall cooperate.
If required by the lender, the borrower shall sign a special account supervision agreement with the lender.

17. The borrower shall not dispose of its own assets in a way
that reduces its solvency, and undertakes that the total amount of its external guarantees shall not exceed [ ] times its own net assets,
and the total amount of external guarantees and the amount of individual guarantees shall not exceed the limit stipulated in its articles
of association; without the consent of the lender, it shall not provide guarantees to third parties with the assets formed by the loan
under this Contract or provide guarantees for the loans of the borrower in other financial institutions.

Article 18 Internal Affiliation of the Borrower

☐ 1. The borrower is not a group customer determined by the lender in accordance with the "Guidelines for the Risk Management of Group Customer Credit Business of Commercial Banks" (referred to as the "Guidelines").

&nbsp;&nbsp;&nbsp;&nbsp;√ 2. The borrower is a group customer determined by the lender
in accordance with the "Guidelines". The borrower shall promptly report the relevant affiliated transaction information to
the lender.

☐ 3. The borrower and its affiliates have major merger, acquisition, restructuring, and other matters that obviously or may affect the safety of the lender's loan.

Article 19 Default Acts and Handling

1. Default Acts

The borrower shall be deemed to have committed a default in the performance of this Contract and shall bear liability for breach of contract if it commits any of the following acts:

&nbsp;&nbsp;&nbsp;&nbsp;(1) The borrower fails to perform the payment and repayment obligations
to the lender in accordance with the agreement of this Contract;

&nbsp;&nbsp;&nbsp;&nbsp;(2) The borrower fails to use the loan funds in accordance with
the agreed purpose and method of this Contract or fails to use the obtained funds for the purpose agreed in this Contract; or the borrower
fails to go through the withdrawal procedures on time in accordance with the withdrawal plan, or the change of the withdrawal plan is
not approved by the lender; or the borrower violates the agreement of this Contract and avoids the lender's entrusted payment by splitting
the amount into smaller parts;

&nbsp;&nbsp;&nbsp;&nbsp;(3) The representations made by the borrower in this Contract
are untrue, or the borrower violates the commitments made by it in this Contract;

&nbsp;&nbsp;&nbsp;&nbsp;(4) The circumstances specified in Article 17.12 of this Contract
occur, and the lender deems that it may affect the financial situation and performance capacity of the borrower or the guarantor, but
the borrower fails to provide new guarantees or replace the guarantor in accordance with the agreement of this Contract;

&nbsp;&nbsp;&nbsp;&nbsp;(5) The borrower commits a default under other contracts with
the lender; the borrower commits a default under the credit contracts with other financial institutions;

&nbsp;&nbsp;&nbsp;&nbsp;(6) The guarantor violates the agreement of the guarantee contract
or commits a default under other contracts with the lender;

&nbsp;&nbsp;&nbsp;&nbsp;(7) The borrower terminates its business or occurs an event of
dissolution, revocation, or bankruptcy;

&nbsp;&nbsp;&nbsp;&nbsp;(8) The borrower is involved in or may be involved in major economic
disputes, litigation, or arbitration, or its assets are seized, detained, or enforced, or it is filed for investigation or punished by
judicial organs or administrative organs such as tax and industry and commerce in accordance with the law, which has affected or may
affect the performance of its obligations under this Contract;

&nbsp;&nbsp;&nbsp;&nbsp;(9) The key investor individuals or key management personnel
of the borrower have abnormal changes, are missing, or are investigated or restricted in personal freedom by judicial organs in accordance
with the law, which has affected or may affect the performance of its obligations under this Contract;

&nbsp;&nbsp;&nbsp;&nbsp;(10) The borrower's credit status deteriorates, or its financial
indicators such as profitability, solvency, operational capacity, and cash flow deteriorate, breaking through the indicator constraints
or other financial agreements agreed in this Contract;

&nbsp;&nbsp;&nbsp;&nbsp;(11) The borrower uses false contracts with affiliated parties
to obtain the lender's funds or credit through transactions without actual transaction background, the affiliates have major merger,
acquisition, restructuring, and other matters that obviously or may affect the safety of the lender's loan, or intentionally evades the
lender's creditor's rights through affiliated transactions;

&nbsp;&nbsp;&nbsp;&nbsp;(12) The borrower causes liability accidents due to violations
of relevant laws, regulations, regulatory provisions, or industry standards such as food safety, production safety, and environmental
protection, which has affected or may affect the performance of its obligations under this Contract;

&nbsp;&nbsp;&nbsp;&nbsp;(13) If the loan under this Contract is issued on a credit basis,
the borrower's credit rating, profit level, asset-liability ratio, net cash flow from operating activities, and other indicators do not
meet the lender's credit loan conditions; or the borrower, without the written consent of the lender, sets mortgage/pledge guarantees
on its effective operating assets for others or provides guarantee guarantees to others, which has affected or may affect the performance
of its obligations under this Contract;

&nbsp;&nbsp;&nbsp;&nbsp;(14) Other circumstances that may adversely affect the realization
of the lender's creditor's rights under this Contract.

2. Handling of Defaults

When any of the above-mentioned default acts occurs, the borrower agrees that the lender may take one, multiple, or all of the following measures according to the specific circumstances:

&nbsp;&nbsp;&nbsp;&nbsp;(1) Require the borrower and the guarantor to correct their default
acts within a time limit;

&nbsp;&nbsp;&nbsp;&nbsp;(2) Reduce, suspend, or terminate all or part of the credit limit
to the borrower;

&nbsp;&nbsp;&nbsp;&nbsp;(3) Suspend or terminate all or part of the acceptance of the
borrower's withdrawal and other business applications under this Contract and other contracts between the borrower and the lender;
suspend or terminate the issuance, payment, and handling of all or part of the loans that the borrower has not yet withdrawn;

&nbsp;&nbsp;&nbsp;&nbsp;(4) Declare that all or part of the unpaid loan principal, interest,
and other payable funds under this Contract and other contracts between the borrower and the lender are immediately due, and require
the borrower to immediately repay all the matured loan principal and settle the interest;

&nbsp;&nbsp;&nbsp;&nbsp;(5) Negotiate with the borrower to supplement the loan issuance
and payment conditions within a time limit, or the lender has the right to change the loan issuance and payment conditions according
to the borrower's credit status, such as reducing the starting amount of entrusted payment, or the lender has the right to require
the recovery of the loan funds paid in violation of the agreement;

&nbsp;&nbsp;&nbsp;&nbsp;(6) Terminate or rescind this Contract, and terminate or rescind
all or part of other contracts between the borrower and the lender;

&nbsp;&nbsp;&nbsp;&nbsp;(7) Require the borrower to compensate for the losses caused
to the lender due to its default;

&nbsp;&nbsp;&nbsp;&nbsp;(8) With prior or subsequent notice only, have the right to directly
deduct funds from any account of the borrower in the rural commercial bank system within Jiangxi Province to repay the loan principal
and interest, and the undue funds in the account shall be deemed due in advance;

&nbsp;&nbsp;&nbsp;&nbsp;(9) Exercise the security interest; require the guarantor to
assume the guarantee liability;

&nbsp;&nbsp;&nbsp;&nbsp;(10) If the borrower fails to repay the loan principal, interest
(including penalty interest and compound interest), or other payable funds on time, the lender may disclose the default information of
the borrower and the guarantor and conduct public announcement collection through public media such as television, newspapers, and the
Internet or other forms;

&nbsp;&nbsp;&nbsp;&nbsp;(11) Have the right to deduct the deposits and equity dividends
of the borrower in any account of the rural commercial bank within Jiangxi Province, and have the right to dispose of the borrower's
equity, etc.;

(12) Other measures required and possible by the lender in accordance with the provisions of laws and regulations.

Article 20 Reservation of Rights

If one party fails to exercise part or all of its rights under this Contract, or fails to require the other party to perform or assume part or all of its obligations and liabilities, it shall not constitute a waiver of such rights or an exemption from such obligations and liabilities by that party.

Any tolerance, extension, or delay in exercising the rights under this Contract by one party to the other party shall not affect any rights enjoyed by it in accordance with this Contract and laws and regulations, nor shall it be deemed a waiver of such rights.

Article 21 Confidentiality

Both parties guarantee to keep confidential the trade secrets (technical information, operational information, and other trade secrets) obtained from the other party that cannot be obtained from public channels. Without the consent of the original provider of the trade secret, one party shall not disclose all or part of the trade secret to any third party, except as otherwise stipulated by laws and regulations or agreed by both parties.

If one party violates the above confidentiality obligations, it shall bear corresponding liability for breach of contract and compensate for the losses caused thereby.

Article 22 Force Majeure

Force majeure as referred to in this Contract means an objective event that cannot be foreseen, avoided, or overcome and has a significant impact on one party, including but not limited to natural disasters such as floods, earthquakes, fires, and storms, as well as social events such as wars and riots.

If the performance of the Contract becomes impossible due to the occurrence of a force majeure event, the party encountering the force majeure shall immediately notify the other party in writing of the event, and provide details of the event and written materials indicating that the Contract cannot be performed or needs to be extended within 7 days. After mutual recognition, both parties shall negotiate to terminate the Contract or temporarily delay the performance of the Contract.

Article 23 Modification, Amendment, and Termination

This Contract may be modified or amended in writing upon mutual agreement of both parties. Any modification or amendment agreed by both parties shall constitute an integral part of this Contract.

Except as otherwise stipulated by laws and regulations or agreed by the parties, this Contract shall not be terminated before the full performance of the rights and obligations agreed herein.

Except as otherwise stipulated by laws and regulations or agreed by the parties, if any clause of this Contract is invalid, it shall not affect the legal effect of other clauses.

Article 24 Service Agreement

1. The contact information (including communication address, contact phone number, fax number, etc.) filled
in by the borrower in this Contract is true and effective and serves as the service address for any notices from the lender to the borrower.
If any contact information is changed, the borrower shall immediately send the change information to the communication address filled
in by the lender in this Contract by mail/delivery in writing. Such information change shall take effect after the lender receives the
change notice.

2. Except as otherwise explicitly agreed in this Contract, the lender may send any notice to the borrower through
any of the following methods. The lender has the right to choose the notice method it deems appropriate, and shall not be liable for any
transmission errors, omissions, or delays in the postal service, fax, telephone, WeChat, or any other communication system. If the lender
chooses multiple notice methods at the same time, the one that reaches the borrower first shall prevail.

&nbsp;&nbsp;&nbsp;&nbsp;(1) Public announcement service: The date of publication of the
announcement by the lender on its website, online banking, telephone banking, or business outlets shall be deemed the service date;

&nbsp;&nbsp;&nbsp;&nbsp;(2) Personal delivery: The date of signature by the borrower
shall be deemed the service date; if the borrower refuses to sign, the date on which the deliverer records the situation on the service
receipt on the spot shall be deemed the service date;

&nbsp;&nbsp;&nbsp;&nbsp;(3) Postal delivery (including express mail, ordinary mail, registered
mail) to the latest known communication address of the borrower by the lender: The date of signature by the borrower shall be the service
date; if the borrower fails to sign, the date of return of the postal item shall be deemed the service date;

&nbsp;&nbsp;&nbsp;&nbsp;(4) Delivery by fax, mobile phone short message, WeChat, or other
electronic communication methods to the latest known fax number, designated mobile phone number, WeChat ID, or e-mail address of the
borrower by the lender: The date of sending shall be deemed the service date.

3. The borrower agrees that unless the lender receives a written notice from the borrower about the change of
the communication address, the borrower's domicile stated in this Contract is the communication and contact address. In the future, the
statement of account, collection documents, and relevant legal documents and litigation document service addresses related to the loan
under this Contract shall be based on this. The borrower undertakes to promptly notify the lender when the communication and contact information
changes; otherwise, the documents served by the lender in accordance with the communication and contact information stated in this Contract
shall be deemed effective service, and the relevant economic and legal liabilities arising therefrom shall be borne by the borrower and
the mortgagor. During the dispute resolution process of this Contract, if the court or notary organ serves judicial documents or other
written documents to the borrower at the communication address confirmed by the borrower in this Contract by postal delivery (including
express mail, ordinary mail, registered mail), the date of signature by the borrower on the service receipt shall be the service date;
if the borrower fails to sign on the service receipt, the date of return of the postal item shall be the service date.

The court or notary organ may send any notice to the borrower through any of the communication methods agreed in Paragraph 2 of this Article. The court or notary organ has the right to choose the communication method it deems appropriate, and shall not be liable for any transmission errors, omissions, or delays in the postal service, fax, telephone, telex, or any other communication system. If the court or notary organ chooses multiple communication methods at the same time, the one that reaches the borrower first shall prevail.

Article 25 Attachments

The relevant attachments jointly confirmed by both parties constitute an integral part of this Contract and have the same legal effect as this Contract.

Article 26 Other Agreements

1. Without the written consent of the lender, the borrower shall not transfer any rights or obligations under
this Contract to a third party.

2. The lender has the right to transfer the creditor's rights under this Contract to a third party, but shall
notify the borrower.

3. Without prejudice to other agreements of this Contract, this Contract shall be legally binding on both parties
and their respective legally arising heirs and assignees.

4. The transaction under this Contract is conducted based on the independent interests of each party. If, in
accordance with the relevant laws, regulations, and regulatory requirements, the other parties to the transaction constitute affiliates
or related persons of the lender, none of the parties shall seek to use such affiliate relationship to affect the fairness of the transaction.

5. The headings and business names in this Contract are only used for convenience of reference and shall not
be used to interpret the content of the clauses and the rights and obligations of the parties.

6. The lender has the right to provide the information related to this Contract and other relevant information
of the borrower to the Credit Reference Center of the People's Bank of China and other legally established credit information databases
in accordance with the relevant laws, regulations, and regulatory requirements, for inquiry and use by qualified institutions or individuals
in accordance with the law. The lender also has the right to inquire about the relevant information of the borrower through the Credit
Reference Center of the People's Bank of China and other legally established credit information databases for the purpose of concluding
and performing this Contract.

Both parties confirm that the borrower and the lender have fully negotiated all the clauses of this Contract. The lender has specially reminded the borrower to pay attention to all clauses concerning the rights and obligations of both parties, made a comprehensive and accurate understanding of them, and explained and illustrated the relevant clauses at the request of the borrower. The borrower has carefully read and fully understood all the content and clauses of the Contract, confirmed that there is no misunderstanding or doubt about all the content and clauses, and the borrower and the lender have a complete consistent understanding of the content and clauses of this Contract and have no objections.

(No text below; the following is the signing page of both parties)

**Responsible for the authenticity of the data (signature):**

**Borrower (Seal):**

**Legal Representative or Authorized Agent (Signature/Seal):**

**Date:** May 16, 2025

**Lender (Seal):**

**Legal Representative or Authorized Agent (Signature/Seal):**

**Date:** May 16, 2025

**Signing Location:**

## Exhibit 4.9

**Exhibit 4.9**

Working Capital Loan Contract

Contract No.: 68(2025)454

**Important Notice**

Please the borrower carefully read the entire contract, especially the clauses marked with and bolded fonts.

If you have any doubts, please promptly request the lender to explain.

Whereas the borrower applies to the lender for a working capital loan limit, to clarify the rights and obligations of both parties, the borrower and the lender have reached an agreement through negotiation and hereby enter into this Contract.

Article 1 Definitions

● "Limit" refers to the maximum amount of the outstanding loan balance (under a revolving limit) or the total loan amount (under a one-time limit) that the lender may issue to the borrower in accordance with the provisions of this Contract. The limit may be a revolving limit or a one-time limit (for one-time use or multiple uses) as agreed in the Contract.

● "Revolving Limit" refers to the limit that the borrower may apply to use multiple times to obtain loans in accordance with the provisions of this Contract, provided that the outstanding loan balance does not exceed the agreed limit.

● "One-time Limit" refers to the limit that the borrower may apply to use once or multiple times to obtain loans in accordance with the provisions of this Contract, provided that the cumulative amount of loans withdrawn does not exceed the agreed limit.

● "Outstanding Loan Balance" refers to the sum of the principal amounts of loans obtained by the borrower under this Contract that have not yet been repaid.

● "Remaining Limit" refers to the amount of the limit after deducting the outstanding loan balance (under a revolving limit) or the total loan amount (under a one-time limit).

● "Credit Period" refers to the period during which the lender issues loans to the borrower in accordance with the borrower's application and the provisions of this Contract, which is the period of loan issuance rather than the loan term.

● "Loan Term" refers to the term of each loan determined in the "Bank of Communications Loan Limit Usage Application Form" (hereinafter referred to as the "Limit Usage Application Form").

● "Pricing Benchmark" refers to the reference benchmark agreed upon by the borrower and the lender to determine the corresponding loan interest rate, including but not limited to the following specific pricing benchmarks and other types of pricing benchmarks:

○ "Loan Prime Rate (LPR)" refers to the loan prime rate for RMB loans released by the National Interbank Funding Center on the 20th day of each month (postponed in case of holidays).

○ "Secured Overnight Financing Rate (SOFR)" refers to the secured overnight financing rate for US dollar loans managed by the Federal Reserve Bank of New York (or other entities taking over this pricing benchmark) and displayed on the corresponding pages of the Bloomberg/Refinitiv financial telecommunication terminals (or alternative pages of other information service institutions recognized by the lender that display this pricing benchmark).

○ "Term Secured Overnight Financing Rate (Term SOFR Reference Rate)" refers to the term reference rate of the secured overnight financing rate for US dollar loans managed and released by CME Group Benchmark Administration Limited (or other entities taking over this pricing benchmark) and displayed on the corresponding pages of the Bloomberg/Refinitiv financial telecommunication terminals (or alternative pages of other information service institutions recognized by the lender that display this pricing benchmark).

○ "Euro Interbank Offered Rate (EURIBOR)" refers to the euro interbank offered rate for euro loans managed by the European Money Markets Institute (or other entities taking over this pricing benchmark) and displayed on the corresponding pages of the Bloomberg/Refinitiv financial telecommunication terminals (or alternative pages of other information service institutions recognized by the lender that display this pricing benchmark).

○ "Hong Kong Interbank Offered Rate (HIBOR)" refers to the Hong Kong interbank offered rate for Hong Kong dollar loans managed by the Hong Kong Association of Banks (or other entities taking over this pricing benchmark) and displayed on the corresponding pages of the Bloomberg/Refinitiv financial telecommunication terminals (or alternative pages of other information service institutions recognized by the lender that display this pricing benchmark).

○ "Tokyo Term Risk-Free Rate (TORF)" refers to the Tokyo term risk-free rate for Japanese yen loans managed by QUICK Benchmarks Co., Ltd. (or other entities taking over this pricing benchmark) and displayed on the corresponding pages of the Bloomberg/Refinitiv financial telecommunication terminals (or alternative pages of other information service institutions recognized by the lender that display this pricing benchmark).

○ "Term SONIA Reference Rate (TSRR)" refers to the term reference rate of the sterling overnight average index for pound sterling loans managed and released by Intercontinental Exchange Benchmark Administration Limited (or other entities taking over this pricing benchmark) and displayed on the corresponding pages of the Bloomberg/Refinitiv financial telecommunication terminals (or alternative pages of other information service institutions recognized by the lender that display this pricing benchmark).

○ "London Interbank Offered Rate (LIBOR)" refers to the London interbank offered rate for US dollar loans managed by Intercontinental Exchange, Inc. (or other entities taking over this pricing benchmark) and displayed on the corresponding pages of the Bloomberg/Refinitiv financial telecommunication terminals (or alternative pages of other information service institutions recognized by the lender that display this pricing benchmark).

● "Banking Business Day" or "Business Day" refers to a business day when the lender conducts corporate banking business at its location, excluding legal holidays and rest days (except for those open for business due to holiday adjustments). If the performance date of obligations such as the loan issuance date, repayment date, interest payment date, and maturity date falls on a non-banking business day, it shall be postponed to the next banking business day.

● "Foreign Currency Business Day" refers to: for the Secured Overnight Financing Rate (SOFR) or the Term Secured Overnight Financing Rate (Term SOFR Reference Rate), the trading day of US government bonds recommended by the Securities Industry and Financial Markets Association (or its successor organization) to the fixed income departments of its members (excluding Saturdays and Sundays); for the London Interbank Offered Rate (LIBOR) or the Term SONIA Reference Rate (TSRR), a business day in London (excluding Saturdays and Sundays); for the Euro Interbank Offered Rate (EURIBOR), an operating day of the TARGET2 euro payment and settlement system; for the Hong Kong Interbank Offered Rate (HIBOR), a business day in Hong Kong (excluding Saturdays and Sundays); for the Tokyo Term Risk-Free Rate (TORF), a business day in Tokyo (excluding Saturdays and Sundays).

● "Relevant Person" refers to the authorized handler, agent, legal representative, person-in-charge, controlling shareholder, actual controller, beneficial owner, and other directly or indirectly relevant persons of the borrower.

● "Business Related Party" refers to all parties to the underlying transaction contract and other relevant entities related to the transaction in addition to all parties to the transaction, as well as the authorized handlers, agents, legal representatives, persons-in-charge, controlling shareholders, actual controllers, beneficial owners, and other parties of such transaction parties and relevant entities.

● Terms such as related party, related party transaction, and key investor individual have the same meanings as those in the "Accounting Standards for Business Enterprises No. 36 - Disclosure of Related Parties" (Cai Kuai [2006] No. 3) issued by the Ministry of Finance and subsequent revisions to this standard.

● "ESG Risk": Environmental, Social, and Governance Risk.

● "Corporate Electronic Banking" refers to corporate electronic banking channels such as Bank of Communications Corporate Online Banking and Corporate Mobile Banking.

Article 2 Usage of the Limit

2.1 When the borrower intends to use the limit, it shall submit an application to the lender at least 5 banking business days in advance. When applying, it shall fill in and sign the "Limit Usage Application Form" in accordance with the format and requirements provided by the lender, and may only use the limit after obtaining the lender's approval.

2.2 Each use of the limit is subject to the fulfillment of all the following conditions:

&nbsp;&nbsp;&nbsp;&nbsp;(1) The outstanding loan balance (under a revolving limit) or
the total loan amount (under a one-time limit) does not exceed the limit;

&nbsp;&nbsp;&nbsp;&nbsp;(2) The applied loan amount does not exceed the remaining limit;

&nbsp;&nbsp;&nbsp;&nbsp;(3) The application date and loan issuance date fall within the
credit period;

&nbsp;&nbsp;&nbsp;&nbsp;(4) The loan term and the maturity date of the loan comply with
the provisions of this Contract;

&nbsp;&nbsp;&nbsp;&nbsp;(5) The guarantee contract (if any) under this Contract has taken
effect and remains valid; if the guarantee contract is a mortgage contract and/or pledge contract, the security interest has been established
and remains valid;

&nbsp;&nbsp;&nbsp;&nbsp;(6) The borrower has completed all government licenses, approvals,
registrations, and other procedures that must be completed in accordance with the law and required by the lender when applying for the
loan, and such licenses, approvals, or registrations remain valid;

&nbsp;&nbsp;&nbsp;&nbsp;(7) After the effective date of this Contract, there has been
no material adverse change in the borrower's operating and financial conditions;

&nbsp;&nbsp;&nbsp;&nbsp;(8) The borrower's application complies with the requirements
of the lender's relevant rules and regulations;

&nbsp;&nbsp;&nbsp;&nbsp;(9) The borrower has not violated any provisions of this Contract;

&nbsp;&nbsp;&nbsp;&nbsp;(10) The payment method of the loan complies with the provisions
of this Contract; if the lender's entrusted payment is adopted, the lender agrees to make the payment;

&nbsp;&nbsp;&nbsp;&nbsp;(11) For the withdrawal of foreign currency loans, the borrower
has provided documents proving that the loan complies with relevant foreign exchange management policies, including but not limited to
valid foreign exchange usage certificates or registration documents;

&nbsp;&nbsp;&nbsp;&nbsp;(12) The borrower has designated a special fund recovery account
in accordance with the lender's requirements and signed an account management agreement.

2.3 If the lender agrees to issue the loan, and the "Limit Usage Application Form" is signed in paper form, the final loan issuance information shall be subject to the content in the bank's printing column of the "Limit Usage Application Form". If the "Limit Usage Application Form" is signed through Corporate Electronic Banking, the final loan issuance information shall be subject to the content of the "Bank of Communications Loan Issuance Receipt". The "Limit Usage Application Form" shall serve as the "Loan Voucher".

2.4 If the currency of the "Limit Usage Application Form" is inconsistent with the currency of the limit, for the purpose of determining the remaining limit, the conversion shall be based on the exchange rate announced by Bank of Communications Co., Ltd. at the beginning of each day; if there is no directly applicable exchange rate, the exchange rate determined by Bank of Communications Co., Ltd. in a reasonable manner shall be used for conversion.

2.5 After the borrower becomes a shareholder of the guarantor or the "actual controller" as defined in the "Company Law", the lender has the right to suspend or cancel the unused loan limit of the borrower before the guarantor provides a resolution of its shareholders' general meeting (general meeting of shareholders) agreeing to provide guarantee for the borrower accepted by the lender.

Article 3 Interest Rate and Calculation and Payment of Interest

3.1 Basic Rules for Determining the Interest Rate

3.1.1 The annual interest rate (simple interest) of the loan under this Contract shall be agreed upon by both parties through negotiation in the "Limit Usage Application Form" each time the limit is used. If the annual interest rate is determined based on the pricing benchmark, the annual interest rate shall be calculated by adding (subtracting) basis points (1 basis point is 0.01%, and 1 percentage point is 100 basis points) to the pricing benchmark agreed in the "Limit Usage Application Form".

3.1.2 If a fixed interest rate is agreed in the "Limit Usage Application Form" and a specific value is recorded in the fixed interest rate column, the specific interest rate for each loan shall be subject to the recorded value in the fixed interest rate column of the "Limit Usage Application Form" (for RMB loans, such specific value shall be determined by adding (subtracting) the basis points agreed in the "Limit Usage Application Form" to the specific value of the pricing benchmark applicable on the pricing benchmark application date agreed in the "Limit Usage Application Form" (hereinafter referred to as the "pricing benchmark value")). If no specific value is recorded in the fixed interest rate column, the specific interest rate for each loan shall be determined by adding (subtracting) the basis points agreed in the "Limit Usage Application Form" to the pricing benchmark value applicable on the pricing benchmark application date agreed in the "Limit Usage Application Form".

If a floating interest rate is agreed in the "Limit Usage Application Form", the specific interest rate for each loan shall be determined by adding (subtracting) the basis points, interest rate floating rules, interest rate floating cycle, interest rate floating cycle unit, and specific date floating start date (if applicable) agreed in the "Limit Usage Application Form" to the pricing benchmark value applicable on the pricing benchmark application date agreed in the "Limit Usage Application Form".

3.1.3 For RMB loans: Daily interest rate = Monthly interest rate / 30; Monthly interest rate = Annual interest rate / 12. For Hong Kong dollar, pound sterling, Australian dollar, or Canadian dollar loans: Daily interest rate = Annual interest rate / 365. For US dollar, euro, or Japanese yen loans: Daily interest rate = Annual interest rate / 360.

3.2 Loan Issuance Interest Rate

If a fixed interest rate is agreed in the "Limit Usage Application Form" and a specific value is recorded in the fixed interest rate column, the interest rate at the time of issuance of each loan shall be implemented at such fixed value. If a fixed interest rate is agreed in the "Limit Usage Application Form" but no specific value is recorded in the fixed interest rate column, or a floating interest rate is agreed in the "Limit Usage Application Form", the loan interest rate at the time of issuance of each loan shall be determined by adding (subtracting) the basis points agreed in the corresponding "Limit Usage Application Form" to the pricing benchmark value applicable on the "pricing benchmark application date" agreed in the corresponding "Limit Usage Application Form". Taking the "pricing benchmark application date" as T day, the rules for determining the pricing benchmark value applicable on T day shall be in accordance with Article 3.5.1 of this Contract.

3.3 Adjustment of the Interest Rate

3.3.1 If a fixed interest rate is recorded in the "Limit Usage Application Form", the loan shall implement the recorded interest rate throughout the loan term.

3.3.2 If a floating interest rate is recorded in the "Limit Usage Application Form", the loan interest rate adjustment date for the loan shall be determined in accordance with the interest rate floating rules, interest rate floating cycle, interest rate floating cycle unit, specific date floating start date (if applicable) agreed in the "Limit Usage Application Form" and the relevant provisions of this Contract, and the adjusted interest rate shall be implemented from the loan interest rate adjustment date.

3.3.2.1 During the loan term, if "floating based on the loan entry date" or "floating based on a specific start date" is selected under the "interest rate floating rules", the cycle for adjusting the loan interest rate shall be calculated from the "loan entry date" or "specific date floating start date". The interest rate floating cycle column shall be filled with the number of cycles for interest rate floating, and the interest rate floating cycle unit may be selected as daily or monthly. If the interest rate floating cycle number is filled with "1" and the floating cycle unit is selected as "daily", then each day from the "loan entry date" or "specific date floating start date" shall be the loan interest rate adjustment date; if the interest rate floating cycle number is filled with "3" and the floating cycle unit is selected as "daily", then the date falling on every 3 days from the "loan entry date" or "specific date floating start date" shall be the loan interest rate adjustment date; if the interest rate floating cycle number is filled with "1" and the floating cycle unit is selected as "monthly", then the date falling on every 1 month from the "loan entry date" or "specific date floating start date" shall be the loan interest rate adjustment date; if the interest rate floating cycle number is filled with "3" and the floating cycle unit is selected as "monthly", then the date falling on every 3 months from the "loan entry date" or "specific date floating start date" shall be the loan interest rate adjustment date, and so on.

3.3.2.2 The loan interest rate on the loan interest rate adjustment date shall be determined based on the pricing benchmark value applicable on the loan interest rate adjustment date. Unless otherwise agreed in this Contract or the parties agree to adjust the number of basis points to be added (subtracted) through negotiation, the number of interest rate basis points to be added (subtracted) shall still be implemented in accordance with the number of interest rate basis points to be added (subtracted) agreed in the "Limit Usage Application Form" corresponding to the loan. Taking the "loan interest rate adjustment date" as T day, the rules for determining the pricing benchmark value applicable on T day shall be in accordance with Article 3.5.1 of this Contract.

3.3.3 If the pricing benchmark applicable to the corresponding loan is cancelled, ceases to be published, or the lender no longer uses the corresponding pricing benchmark for some reason, the parties shall separately negotiate and adjust the interest rate of the loan, provided that the adjusted interest rate shall not be lower than the interest rate applicable at that time; if the parties still fail to reach an agreement on the adjusted interest rate within 1 month from the date on which the pricing benchmark is cancelled or ceases to be published, the lender has the right to declare the loan due in advance.

3.3.4 The parties may adjust the number of basis points to be added (subtracted) for the corresponding loan interest rate through negotiation on each loan interest rate adjustment date.

3.4 Penalty Interest Rate

The penalty interest rate for overdue loans shall be 50% higher than the interest rate agreed in this Contract, and the penalty interest rate for misappropriated loans shall be 100% higher than the interest rate agreed in this Contract. For floating rate loans, if the loan pricing benchmark is adjusted, the lender has the right to correspondingly adjust the penalty interest rate applicable to each loan, and the new penalty interest rate shall be implemented from the loan interest rate adjustment date agreed in the corresponding "Limit Usage Application Form".

3.5 Calculation of Interest

3.5.1 Depending on the applicable pricing benchmark, the rules for determining the pricing benchmark value applicable on T day (i.e., the "pricing benchmark application date", "loan interest rate adjustment date", and "repricing date") as agreed in Articles 3.2, 3.3.2.2, and 9.3.3.2 of this Contract are as follows:

● If the pricing benchmark is the Loan Prime Rate (LPR), the pricing benchmark value applicable on T day shall be the Loan Prime Rate (LPR) value published most recently before T day.

● If the pricing benchmark is the Secured Overnight Financing Rate (SOFR), when T day is a foreign currency business day, the pricing benchmark value applicable on T day shall be the Secured Overnight Financing Rate (SOFR) value corresponding to the fifth foreign currency business day before T day displayed on the corresponding financial telecommunication terminal page; when T day is a non-foreign currency business day, the pricing benchmark value applicable on T day shall be the Secured Overnight Financing Rate (SOFR) value that should be applicable on the most recent foreign currency business day before T day (i.e., the Secured Overnight Financing Rate (SOFR) value corresponding to the fifth foreign currency business day before the most recent foreign currency business day displayed on the corresponding financial telecommunication terminal page).

● If the pricing benchmark is the Term Secured Overnight Financing Rate (Term SOFR Reference Rate), London Interbank Offered Rate (LIBOR), Euro Interbank Offered Rate (EURIBOR), Tokyo Term Risk-Free Rate (TORF), or Term SONIA Reference Rate (TSRR), when T day is a foreign currency business day, the pricing benchmark value applicable on T day shall be the value of the pricing benchmark corresponding to the second foreign currency business day before T day displayed on the corresponding financial telecommunication terminal page; when T day is a non-foreign currency business day, the pricing benchmark value applicable on T day shall be the value of the pricing benchmark that should be applicable on the most recent foreign currency business day before T day (i.e., the value of the pricing benchmark corresponding to the second foreign currency business day before the most recent foreign currency business day displayed on the corresponding financial telecommunication terminal page).

● If the pricing benchmark is the Hong Kong Interbank Offered Rate (HIBOR), when T day is a foreign currency business day, the pricing benchmark value applicable on T day shall be the Hong Kong Interbank Offered Rate (HIBOR) value corresponding to T day displayed on the corresponding financial telecommunication terminal page; when T day is a non-foreign currency business day, the pricing benchmark value applicable on T day shall be the Hong Kong Interbank Offered Rate (HIBOR) value corresponding to the most recent foreign currency business day before T day displayed on the corresponding financial telecommunication terminal page.

● When the pricing benchmark value displayed on the corresponding financial telecommunication terminal page is greater than or equal to 0, the pricing benchmark value used to determine the loan interest rate under this Contract shall be determined in accordance with the actual pricing benchmark value displayed on the corresponding financial telecommunication terminal page; when the pricing benchmark value displayed on the corresponding financial telecommunication terminal page is less than 0, the pricing benchmark value used to determine the loan interest rate under this Contract shall be determined as 0.

3.5.2 Normal interest = Interest rate agreed in this Contract × Loan issuance amount × Number of days occupied.

The number of days occupied shall be calculated from the loan issuance date (inclusive) to the maturity date (exclusive). If the maturity date falls on a non-business day, it shall be postponed, and the postponed period shall be included in the number of days occupied, and interest shall still be calculated in accordance with the provisions of this Contract.

3.5.3 Penalty interest for overdue loans and misappropriated loans shall be calculated based on the overdue or misappropriated amount and the actual number of days (from the date of overdue or misappropriation (inclusive) to the date of repayment of principal and interest (exclusive)).

3.5.4 If the calculated interest/penalty interest has more decimal places, the lender shall retain two decimal places by rounding.

3.6 Interest Rate for Early Repayment or Early Recovery of Loans

If the borrower repays the loan in advance or the lender recovers the loan in advance in accordance with the provisions of this Contract, the corresponding interest rate tier shall not be adjusted, and the interest rate shall still be implemented in accordance with the provisions of this Contract.

3.7 Special Provisions for Other Currencies

For loans in currencies other than RMB, US dollar, euro, Hong Kong dollar, Japanese yen, and pound sterling, the type of pricing benchmark applicable to the loan, the daily interest rate calculation rule, and the rules for determining the pricing benchmark value applicable on the pricing benchmark application date, loan interest rate adjustment date, and repricing date shall be subject to the agreement in Article 17 of this Contract.

Article 4 Payment of the Loan

4.1 If the loan issuance account designated by the borrower is a special loan issuance account opened with the lender, the issuance and payment of the loan shall be handled through this account. This account shall only be used for the issuance and external payment of loan funds, and only "Settlement Business Application Form" vouchers may be used; checks, drafts, bank acceptance drafts, and other businesses may not be handled, and the account may not be used for other settlements. When the borrower handles the transfer of loan funds through autonomous payment, it must be handled over the counter at the account opening branch. The deposit interest of this account shall be credited to the borrower's repayment account.

4.2 When the borrower withdraws the loan in accordance with the provisions of this Contract, it shall clearly specify the payment method (lender's entrusted payment or borrower's autonomous payment), and only one payment method may be adopted for each withdrawal.

4.3 Lender's entrusted payment refers to the lender directly paying the loan funds to the borrower's counterparty that complies with the agreed purpose of this Contract through the borrower's account after issuing the loan in accordance with the provisions of this Contract, based on the borrower's entrusted payment power of attorney.

If the single payment amount exceeds the autonomous payment limit or meets one of the conditions agreed in Article 19.3, the lender's entrusted payment method shall be adopted.

For the adoption of the lender's entrusted payment method, the borrower shall submit the Limit Usage Application Form, the corresponding entrusted payment power of attorney, and other materials required by the lender (including but not limited to transaction materials such as business contracts, invoices, and receiving documents) to the lender, specifying the amount of the loan to be withdrawn and the counterparty and amount of the payment. The amount of the loan to be withdrawn shall be equal to the total amount to be paid.

If the payment to be made by the borrower does not comply with the provisions of this Contract or the corresponding business contract or has other defects, the lender has the right to refuse the payment and return the entrusted payment power of attorney submitted by the borrower.

If the lender agrees to make the payment, and the payment cannot be made externally or a payment refund occurs due to incorrect information provided by the borrower, the borrower shall resubmit the relevant documents and materials with correct information within the time limit specified by the lender. The lender shall not be liable for the delay or failure of payment caused thereby.

4.4 Borrower's autonomous payment refers to the lender issuing the loan funds to the borrower's account in accordance with the provisions of this Contract, and the borrower independently paying the funds to the borrower's counterparty that complies with the agreed purpose of this Contract.

For the adoption of the borrower's autonomous payment method, the borrower shall submit the Limit Usage Application Form, a description of the use of funds, and other materials required by the lender to the lender. The borrower shall summarize and report the payment status of the loan funds to the lender on time. The lender has the right to verify whether the loan payment complies with the agreed purpose through account analysis, voucher inspection, on-site investigation, and other methods, and the borrower shall cooperate with the lender's verification.

Article 5 Repayment of the Loan

5.1 The borrower shall repay the loan principal and pay the interest in full and on time in accordance with the repayment date and amount recorded in this Contract and the corresponding "Limit Usage Application Form".

5.2 The borrower may not repay the loan in advance without the written consent of the lender.

5.3 The repayment arrangements for principal and interest agreed by the borrower and the lender in the "Limit Usage Application Form" are the true expressions of intention reached by both parties through negotiation on a voluntary basis. Under the repayment arrangement selected by both parties, whether the principal is repaid before the interest does not affect the borrower's repayment liability for the accrued interest, and the borrower may not raise a defense against the repayment of the accrued interest on this ground. Under any repayment arrangement, the borrower shall be liable for repaying all the accrued principal and interest.

5.4 When the funds repaid by the borrower (including the funds actively repaid by the borrower and the funds deducted by the lender in accordance with the provisions of this Contract) are insufficient to settle all the borrower's debts:

&nbsp;&nbsp;&nbsp;&nbsp;(1) The funds shall first be used to settle the due and unpaid fees. If the principal and/or
interest is overdue for less than 90 days, the balance after offsetting the fees shall first be used to offset the due and unpaid interest,
penalty interest, and compound interest, and then used to offset the due and unpaid principal; if the principal and/or interest is overdue
for more than 90 days, the balance after offsetting the fees shall first be used to offset the due and unpaid principal, and then used
to offset the due and unpaid interest, penalty interest, and compound interest;

&nbsp;&nbsp;&nbsp;&nbsp;(2) If the borrower has multiple debts (including debts owed by the borrower to the lender under
other contracts), the lender has the right to independently determine the order of offsetting the borrower's various debts, provided
that such offsetting order does not violate the mandatory provisions of the laws, regulations, rules, and relevant regulatory requirements
applicable to the lender. The lender shall notify the borrower of the result of the offsetting of debts. Unless otherwise agreed by both
parties on this matter.

Article 6 Representations and Warranties of the Borrower

6.1 The borrower is legally established and validly existing, has all necessary legal capacity, and can perform the obligations under this Contract and assume civil liability in its own name.

6.2 The signing and performance of this Contract is the true expression of intention of the borrower, and has obtained all necessary consents, approvals, and authorizations, without any legal defects.

6.3 The borrower's operation is legal and compliant, has sustainable operating capacity, has a legitimate source of repayment, is not involved in material ESG risks, has no material adverse credit record, and the senior management personnel of the borrower have no adverse records.

6.4 All documents, statements, materials, and information provided by the borrower to the lender in the process of signing and performing this Contract are true, accurate, complete, and effective. The borrower has not concealed any information that may affect its financial status and repayment capacity from the lender. The financial status of the borrower has not undergone any material adverse change since the date of the latest financial statement. The loan matter complies with the requirements of laws and regulations.

6.5 The borrower, its relevant persons, and business related parties are not included in the sanctions lists issued by the United Nations and relevant countries, organizations, and institutions, as well as the anti-terrorism, anti-money laundering, and anti-sanctions related risk lists issued by Chinese government departments or competent authorities; and are not located in countries and regions sanctioned by the United Nations and relevant countries, organizations, and institutions.

6.6 The borrower warrants that it will comply with the requirements of national anti-money laundering laws, regulations, and relevant policies, will not engage in illegal or irregular activities such as assisting others in money laundering, terrorist financing, tax evasion, evading bank debts, cashing out, telecom fraud, and illegal fund-raising, will actively cooperate with the lender in conducting various anti-money laundering work such as customer identification, transaction record keeping, due diligence on customer identity and transaction background, and reporting of large-value and suspicious transactions, and will provide relevant certification materials as required by the lender.

6.7 According to the ESG risks faced by the industry to which the borrower belongs, if the borrower is a Class A or Class B customer, the borrower undertakes:

&nbsp;&nbsp;&nbsp;&nbsp;(1) The internal management documents of the borrower related
to ESG risks comply with the requirements of laws and regulations and are effectively implemented;

&nbsp;&nbsp;&nbsp;&nbsp;(2) The borrower is not involved in any material litigation cases
related to ESG risks;

&nbsp;&nbsp;&nbsp;&nbsp;(3) All behaviors and performances of the borrower related to
ESG risks are compliant.

Article 7 Rights and Obligations of the Lender

7.1 The lender has the right to recover the loan principal, interest (including compound interest, penalty interest for overdue and misappropriated loans, etc.) in accordance with the provisions of this Contract, collect the fees payable by the borrower, independently decide to recover the loan in advance according to the borrower's fund recovery status, and exercise other rights stipulated by law or agreed in this Contract.

7.2 During the performance of this Contract, the lender only conducts a formal review of the materials provided by the borrower. The lender shall not be liable for the failure to complete the entrusted payment in a timely manner due to untrue, inaccurate, or incomplete materials provided by the borrower or the borrower's violation of the provisions of this Contract in handling the payment.

7.3 The lender shall issue the loan and handle the payment in accordance with the provisions of this Contract. The lender shall not be liable for the failure to issue the loan or handle the payment on time due to any of the following reasons, but shall promptly notify the borrower: the loan issuance account designated by the borrower is frozen, the account of the payment counterparty is frozen, force majeure, communication or network failure, lender's system failure, etc., unless otherwise agreed in this Contract.

7.4 In accordance with the regulatory requirements that the lender needs to follow, the lender will conduct dynamic assessments of the borrower's risk levels related to money laundering, terrorist financing, tax evasion, etc., and when it believes that the borrower and its related businesses are suspected of high risks of money laundering, terrorist financing, tax evasion, etc., it has the right to take one or all of the measures agreed in Article 9.2.

7.5 The lender has the right to participate in the borrower's major financing, asset sales, merger, division, shareholding system reform, bankruptcy liquidation, and other activities in accordance with the provisions of laws and regulations and this Contract to protect the lender's creditor's rights.

Article 8 Obligations of the Borrower

8.1 The borrower shall repay the loan principal and pay the interest under this Contract in accordance with the time, amount, currency, and interest rate recorded in this Contract and the corresponding "Limit Usage Application Form".

The fund recovery account designated by the borrower is used to collect the corresponding sales income or planned repayment funds. If the corresponding sales income is settled in a non-cash manner, the borrower shall ensure that the funds are promptly transferred into the fund recovery account after receipt. The borrower shall provide the fund inflow and outflow information of the fund recovery account as required by the lender.

8.2 The borrower shall use the limit in accordance with the purpose agreed in this Contract and use the loan in accordance with the purpose determined in the corresponding "Limit Usage Application Form". The borrower shall not misappropriate the loan for other purposes, shall not refinance the loan, shall not use the loan for the borrower's shareholder dividends, investment in financial assets, fixed assets, equity, etc., shall not use the loan for other items such as the payment of bonuses and dividends by the borrower, shall not use the loan for paying fines, and shall not use the loan for areas and purposes prohibited by the state for production and operation such as inflating fiscal revenue, adding implicit local government debts, and illegally flowing into the real estate market.

The borrower shall use the loan funds in the agreed manner, shall not avoid the lender's entrusted payment by splitting the amount into smaller parts. If the borrower's autonomous payment is adopted, the borrower shall use the loan within a reasonable time in accordance with the requirements of the lender's regulatory authorities, and the payment of the loan funds shall comply with the provisions of this Contract.

8.3 The borrower shall bear the settlement fees (if any) for the payment of loan funds (including the lender's entrusted payment and the borrower's autonomous payment). The specific fees shall be implemented in accordance with the provisions of laws, regulations, rules, regulatory requirements, and the "Bank of Communications Service Fee List" effective at that time announced by the lender.

If the payment of loan funds does not involve cross-border payment and the loan issuance account is a special loan issuance account, when making the payment of loan funds (including the lender's entrusted payment and the borrower's autonomous payment), if the receiving account is not an account opened with Bank of Communications, the fund payment may be handled through the People's Bank of China Payment System or the same-city exchange system. If the loan issuance account is not a special loan issuance account, when making the payment of loan funds (including the lender's entrusted payment and the borrower's autonomous payment), if the receiving account is an account of another bank in a different place, the fund payment shall be handled through the People's Bank of China Payment System.

If the payment of loan funds involves cross-border payment, the payment of loan funds may be handled through the Society for Worldwide Interbank Financial Telecommunication (SWIFT) system or other systems.

8.4 The borrower shall cooperate with the lender in loan payment management, post-loan management, and supervision and inspection of the use of the loan and the borrower's operating conditions, and promptly provide financial statements, loan fund use records and materials, related party and related party transaction information, ESG risk reports, other materials and information required by the lender for post-loan risk management, and ensure that the provided documents, materials, and information are true, complete, and accurate.

8.5 When any of the following events occurs to the borrower, it shall notify the lender in writing at least 30 days in advance, and shall not take action until all the loan principal and interest under this Contract are repaid or a repayment plan and guarantee recognized by the lender are provided:

&nbsp;&nbsp;&nbsp;&nbsp;(1) Selling, donating, leasing, lending, transferring, mortgaging,
pledging, or otherwise disposing of all or most of the assets or important assets;

&nbsp;&nbsp;&nbsp;&nbsp;(2) Significant changes in the operation system or property organization
form, including but not limited to contracting, leasing, joint operation, company system reform, share-holding cooperative system reform,
enterprise sale, merger (acquisition), joint venture (cooperation), division, establishment of subsidiaries, equity transfer, property
right transfer, capital reduction, etc.

&nbsp;&nbsp;&nbsp;&nbsp;(3) External investment, external guarantee, or substantial increase
in debt financing exceeding the agreement of this Contract.

8.6 The borrower shall notify the lender in writing within 7 days from the date of occurrence or potential occurrence of any of the following events and cooperate with the submission of relevant certificates in accordance with the requirements of laws, regulations, regulatory provisions, and the lender:

&nbsp;&nbsp;&nbsp;&nbsp;(1) The borrower or its related parties revise the articles of
association, change industrial and commercial registration items such as the enterprise name, legal representative (person-in-charge),
domicile, communication address, or business scope, or make decisions that have a significant impact on finance and personnel;

&nbsp;&nbsp;&nbsp;&nbsp;(2) The borrower, its related parties, or the guarantor intends
to apply for bankruptcy or may be or has been applied for bankruptcy by creditors;

&nbsp;&nbsp;&nbsp;&nbsp;(3) The borrower or its related parties are involved in major
litigation, arbitration, or administrative measures, or the main assets or the collateral under this Contract are subject to property
preservation or other compulsory measures, or the safe and sound state of the main assets or the collateral under this Contract is or
may be affected, or the value is reduced or may be reduced;

&nbsp;&nbsp;&nbsp;&nbsp;(4) The borrower or its related parties provide guarantees for
third parties, which has a significant adverse impact on their economic status, financial status, or ability to perform the obligations
under this Contract;

&nbsp;&nbsp;&nbsp;&nbsp;(5) The borrower or its related parties sign contracts that have
a significant impact on their operating and financial conditions;

&nbsp;&nbsp;&nbsp;&nbsp;(6) The borrower repays the outstanding debts in advance, or
repays other mature debts first, or adds pledges or other forms of guarantees for other existing debts, or makes any arrangements with
similar effects or signs relevant documents;

&nbsp;&nbsp;&nbsp;&nbsp;(7) The borrower, its related parties, or the guarantor suspends
production, closes down, dissolves, suspends business for rectification, is revoked, or has its business license revoked;

&nbsp;&nbsp;&nbsp;&nbsp;(8) The borrower or its related parties, the key investor individuals
of the borrower or its related parties, the legal representatives (persons-in-charge), directors, or key management personnel of the
borrower or its related parties are missing, involved in illegal or irregular activities, or violate the applicable exchange rules, or
have abnormal changes;

&nbsp;&nbsp;&nbsp;&nbsp;(9) The borrower or its related parties encounter serious operational
difficulties, or their financial conditions deteriorate, or other events occur that have a negative impact on the operation, financial
status, solvency, or economic status of the borrower or its related parties;

&nbsp;&nbsp;&nbsp;&nbsp;(10) Related transactions occur, and the transaction amount reaches
or exceeds 10% of the latest audited net assets;

&nbsp;&nbsp;&nbsp;&nbsp;(11) Before repaying all the debts under this Contract, the borrower
becomes or may become a shareholder of the guarantor or the "actual controller" as defined in the "Company Law";

&nbsp;&nbsp;&nbsp;&nbsp;(12) The borrower or its related parties cause liability accidents
or are exposed by the media due to violations of laws, regulations, regulatory provisions, national policies, or industry standards;

&nbsp;&nbsp;&nbsp;&nbsp;(13) The borrower or its related parties have safety or environmental
accidents;

&nbsp;&nbsp;&nbsp;&nbsp;(14) The controlling or controlled relationship between the borrower's
related parties and the borrower changes;

&nbsp;&nbsp;&nbsp;&nbsp;(15) The borrower or its related parties have major equity changes;

&nbsp;&nbsp;&nbsp;&nbsp;(16) The external auditor of the borrower issues a non-standard
unqualified audit opinion on its financial statements;

&nbsp;&nbsp;&nbsp;&nbsp;(17) The borrower is or may be investigated, punished, or subject
to similar other measures by competent authorities due to violations of laws, regulations, and/or regulatory requirements;

&nbsp;&nbsp;&nbsp;&nbsp;(18) The borrower or its related persons, business related parties
are included in the sanctions lists issued by the United Nations and relevant countries, organizations, and institutions, as well as
the anti-terrorism, anti-money laundering, and anti-sanctions related risk lists issued by Chinese government departments or competent
authorities; or the countries and regions where the borrower or its related persons, business related parties are located are included
in the list of countries and regions sanctioned by the United Nations and relevant countries, organizations, and institutions;

&nbsp;&nbsp;&nbsp;&nbsp;(19) Other material adverse events affecting the solvency of the
borrower or its related parties occur.

&nbsp;&nbsp;&nbsp;&nbsp;(20) According to the ESG risks faced by the industry to which
the borrower belongs, if the borrower is a Class A or Class B customer, any of the following events occurs or may occur to the borrower:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;① The status of various licenses, approvals, and authorizations
related to ESG risks during the construction, operation, and shutdown of the borrower;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;② The assessment and inspection of the borrower's ESG
risks by regulatory authorities or recognized institutions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;③ The supporting construction and operation of environmental
facilities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;④ The discharge and compliance of pollutants;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;⑤ The safety and health of employees;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;⑥ Major complaints and protests against the borrower by neighboring
communities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;⑦ Major environmental and social claims;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;⑧ Other major situations related to ESG risks deemed by the
lender.

8.7 If the guarantee under this Contract undergoes changes that are unfavorable to the lender's creditor's rights, the borrower shall promptly provide other guarantees recognized by the lender in accordance with the lender's requirements.

The "changes" referred to in this paragraph include but are not limited to: the guarantor merges, divides, suspends production, closes down, dissolves, suspends business for rectification, is revoked, has its business license revoked, applies for or is applied for bankruptcy; the guarantor's operating or financial conditions have significant changes; the guarantor is involved in major litigation, arbitration, or administrative measures, or the main assets are subject to property preservation or other compulsory measures; the safe and sound state of the collateral is or may be affected, the value of the collateral is reduced or may be reduced, or the collateral is subject to property preservation or other compulsory measures such as seizure; the guarantor or its legal representative (person-in-charge) or key management personnel are involved in illegal or irregular activities or violate the applicable exchange rules; if the guarantor is an individual, the guarantor is missing, deceased (declared deceased); the guarantor has defaulted under the guarantee contract; there is a dispute between the guarantor and the borrower; the guarantor requests to terminate the guarantee contract; the guarantee contract is not effective, invalid, or revoked; the security interest is not established or invalid; or other events affecting the safety of the lender's creditor's rights.

8.8 The borrower undertakes that from the date of signing this Contract until all the loan principal and interest and related fees under this Contract are repaid, the borrower's financial indicators, external institution ratings, and operating qualifications/licenses shall always comply with the contractual agreements. If the operating qualifications/licenses require annual inspection, they shall pass the annual inspection on time.

8.9 The borrower warrants that the borrower, its employees, and agents shall not provide, give, demand, or accept any form of material interests (including but not limited to cash, physical cards, travel, etc.) or other non-material interests outside the scope agreed in this Contract to the lender or the lender's employees, and shall not directly or indirectly use the funds or services provided by the lender for activities related to corruption or bribery. If the borrower learns of any violation of the provisions of this Article, it shall promptly, truthfully, completely, and accurately provide clues and relevant information to the lender and cooperate with relevant matters in accordance with the lender's requirements.

8.10 According to the ESG risks faced by the industry to which the borrower belongs, if the borrower is a Class A or Class B customer, the borrower shall assume the following obligations:

&nbsp;&nbsp;&nbsp;&nbsp;(1) Establish and improve the internal management system for
ESG risks, and specify in detail the responsibilities, obligations, and penalties of the borrower's relevant responsible personnel;

&nbsp;&nbsp;&nbsp;&nbsp;(2) Establish and improve the emergency mechanism and measures
for ESG risk emergencies;

&nbsp;&nbsp;&nbsp;&nbsp;(3) Establish a special department and/or designate special personnel
to be responsible for ESG risk matters;

&nbsp;&nbsp;&nbsp;&nbsp;(4) Cooperate with the lender or its recognized third party in
the assessment and inspection of the borrower's ESG risks;

&nbsp;&nbsp;&nbsp;&nbsp;(5) Make appropriate responses or take other necessary actions
when the public or other stakeholders strongly question the borrower's performance in controlling ESG risks;

&nbsp;&nbsp;&nbsp;&nbsp;(6) Supervise the key related parties of the borrower to strengthen
management and prevent the transmission of ESG risks of related parties to the borrower;

&nbsp;&nbsp;&nbsp;&nbsp;(7) Perform other obligations deemed by the lender to be related
to the control of ESG risks.

Article 9 Adjustment of the Limit, Early Maturity of the Loan, and Risk Repricing

9.1 The occurrence of any of the following events shall be deemed an "Early Maturity Event" under this Contract:

&nbsp;&nbsp;&nbsp;&nbsp;(1) The borrower fails to repay the loan principal or pay the
interest in accordance with the agreement of any "Limit Usage Application Form" under this Contract;

&nbsp;&nbsp;&nbsp;&nbsp;(2) The representations and warranties made by the borrower under
this Contract are untrue;

&nbsp;&nbsp;&nbsp;&nbsp;(3) Any of the events that should be notified as listed in Article
8.6 actually occurs, which affects or may affect the safety of the lender's creditor's rights or increases the lender's
risk;

&nbsp;&nbsp;&nbsp;&nbsp;(4) Due to changes in laws, regulations, and regulatory policies,
the issuance of loans by the lender in accordance with the provisions of this Contract constitutes or may constitute an illegal or irregular
act;

&nbsp;&nbsp;&nbsp;&nbsp;(5) The borrower has a default in performing other contracts
signed with the lender or contracts signed with third parties, or the debts may be or have been declared due in advance;

&nbsp;&nbsp;&nbsp;&nbsp;(6) The use of the loan funds by the borrower is abnormal or
the borrower evades the entrusted payment;

&nbsp;&nbsp;&nbsp;&nbsp;(7) The borrower misappropriates the loan funds;

&nbsp;&nbsp;&nbsp;&nbsp;(8) The loan issuance account designated by the borrower is frozen
or deducted by competent authorities;

&nbsp;&nbsp;&nbsp;&nbsp;(9) According to the ESG risks faced by the industry to which
the borrower belongs, if the borrower is a Class A or Class B customer, any of the following events occurs to the borrower:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;① The borrower is punished by the relevant government departments
due to poor ESG risk management;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;② The borrower is strongly questioned by the public and/or the
media due to poor ESG risk management, and the relevant situation is verified to be true;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;③ The borrower violates the obligations related to ESG risk
management agreed with the lender in other contracts;

&nbsp;&nbsp;&nbsp;&nbsp;(10) The borrower violates other agreements of this Contract.

9.2 When any "Early Maturity Event" occurs, the lender has the right to take one, more, or all of the following measures:

&nbsp;&nbsp;&nbsp;&nbsp;(1) Reduce, suspend, or cancel the limit under this Contract;

&nbsp;&nbsp;&nbsp;&nbsp;(2) Stop issuing or suspend the issuance of the loan that the
borrower has not yet withdrawn;

&nbsp;&nbsp;&nbsp;&nbsp;(3) Stop or suspend the payment of the loan that the borrower
has withdrawn but not yet used;

&nbsp;&nbsp;&nbsp;&nbsp;(4) Require the borrower to negotiate with the lender to supplement
the conditions for loan issuance and payment within a specified time limit;

&nbsp;&nbsp;&nbsp;&nbsp;(5) Require the borrower to change the payment method in accordance
with the lender's requirements;

&nbsp;&nbsp;&nbsp;&nbsp;(6) Implement the risk repricing of the loan in accordance with
the agreement of Article 9.3;

&nbsp;&nbsp;&nbsp;&nbsp;(7) Unilaterally declare that all the principal of the loan issued
under the Contract is due in advance and require the borrower to immediately repay all the matured loan principal and settle the interest;

&nbsp;&nbsp;&nbsp;&nbsp;(8) Downgrade the loan risk classification of the borrower in
accordance with regulatory requirements;

&nbsp;&nbsp;&nbsp;&nbsp;(9) Pursue the legal liability of the borrower.

9.3 Based on the operating conditions of the borrower at the time of signing this Contract, both parties have agreed on the interest rate under this Contract and its adjustment through negotiation. The borrower agrees that when any "Early Maturity Event" occurs, the lender has the right to implement the risk repricing of the loan in accordance with the agreement of this Article.

9.3.1 Risk repricing includes two methods: negotiated repricing and direct increase of the loan interest rate. The risk repricing method adopted under this Contract shall be agreed by both parties in Article 21.

9.3.2 "Negotiated Repricing" refers to the lender's right to require the borrower to negotiate with the lender to increase the loan interest rate within a specified time limit, and both parties shall determine the "repricing date" and the specific agreement on the relevant interest rate through a supplementary agreement.

9.3.3 "Direct Increase of the Loan Interest Rate" refers to the lender's right to directly increase the loan interest rate in accordance with the agreement of this Article and Article 21.

9.3.3.1 From the "repricing date" notified by the lender to the borrower in writing, the increased loan interest rate shall be implemented for all loans of the borrower that have not yet been repaid as of the "repricing date".

9.3.3.2 For loans in RMB, US dollar, euro, Hong Kong dollar, Japanese yen, and pound sterling, the increased loan interest rate for each loan shall be determined by adding (subtracting) the basis points agreed in Article 21.2.1 to the pricing benchmark value applicable on the "repricing date". Taking the "repricing date" as T day, the rules for determining the pricing benchmark value applicable on T day shall be in accordance with Article 3.5.1 of this Contract.

9.3.3.3 For loans in currencies other than RMB, US dollar, euro, Hong Kong dollar, Japanese yen, and pound sterling, the increased loan interest rate shall be determined in accordance with the agreement of Article 21.2.2.

9.3.4 After the lender implements the risk repricing in accordance with the aforementioned agreement, the new interest rate shall be implemented from the "repricing date". On the basis of this interest rate, the floating adjustment shall still be carried out in accordance with the agreement of Article 3 of this Contract. If both parties agree to change the relevant agreement through negotiation, the changed agreement shall be implemented. If the loan is overdue (including the borrower's failure to repay the loan on time or the lender's declaration of early maturity) or misappropriated, the penalty interest rate for overdue and misappropriation shall be determined on the basis of the new interest rate (including the interest rate after floating adjustment in accordance with the agreement of this Contract), and the interest rate for calculating compound interest shall also be adjusted accordingly.

9.3.5 The implementation of "risk repricing" shall not be deemed or interpreted as the lender's waiver of other rights stipulated by laws and regulations and agreed in this Contract. The lender has the right to take other creditor's right protection measures in accordance with the provisions of laws and regulations and this Contract, including but not limited to the various measures agreed in Article 9.2.

Article 10 Default

10.1 If the borrower fails to repay the loan principal and pay the interest in full and on time, or fails to use the loan in accordance with the purpose agreed in this Contract, the lender shall calculate the interest at the penalty interest rate for overdue loans or misappropriated loans and calculate compound interest on the unpaid interest. If the penalty interest rate is adjusted in accordance with the agreement of the Contract, the interest rate for calculating compound interest shall also be adjusted accordingly.

10.2 If the borrower fails to repay the loan principal and pay the interest in full and on time, it shall bear the collection fees, litigation fees (or arbitration fees), preservation fees, announcement fees, execution fees, lawyer's fees, travel expenses, and other expenses paid by the lender to realize the creditor's rights.

Article 11 Deduction Agreement

11.1 The borrower authorizes that when there is any due loan principal, interest, penalty interest, compound interest, or other fees payable, the lender has the right to deduct the funds from any account opened by the borrower in all branches of Bank of Communications Co., Ltd. for repayment.

11.2 After the deduction, the lender shall notify the borrower of the account number involved in the deduction, contract number, "Limit Usage Application Form" number, deduction amount, and remaining debt amount.

11.3 If the funds obtained from the deduction are insufficient to settle all the borrower's debts, the debts to be settled and offset shall be determined in accordance with the agreement of this Contract.

11.4 If the currency of the funds obtained from the deduction is inconsistent with the currency of the debts to be offset, the conversion shall be made at the exchange rate announced by Bank of Communications Co., Ltd. at the time of deduction. If foreign exchange settlement or conversion procedures are required, the borrower is obligated to assist the lender in completing the procedures in accordance with the lender's requirements, and the exchange rate risk shall be borne by the borrower.

Article 12 Notice

12.1 The contact information (including communication address, contact phone number, fax number, etc.) filled in by the borrower in this Contract is true and effective. If any contact information is changed, the borrower shall immediately send the change information to the communication address filled in by the lender in this Contract by mail/delivery in writing. Such information change shall take effect after the lender receives the change notice.

12.2 Unless otherwise explicitly agreed in this Contract, the lender may send any notice to the borrower through any of the following methods. The lender has the right to choose the notice method it deems appropriate, and shall not be liable for any transmission errors, omissions, or delays in the postal service, fax, telephone, or any other communication system. If the lender chooses multiple notice methods at the same time, the one that reaches the borrower first shall prevail. For the same matter, if the lender sends more than one notice to the borrower with different contents, unless otherwise explicitly stated in the notice, the one sent later shall prevail.

&nbsp;&nbsp;&nbsp;&nbsp;(1) Announcement: The date of publication of the announcement
by the lender on its website, online banking, telephone banking, or business outlets shall be deemed the date of service;

&nbsp;&nbsp;&nbsp;&nbsp;(2) Personal delivery: The date of signature by the borrower
shall be deemed the date of service;

&nbsp;&nbsp;&nbsp;&nbsp;(3) Postal delivery (including express mail, ordinary mail, registered
mail) to the latest valid communication address provided by the borrower: the 3rd day (for the same city)/5th day (for different places)
after the date of mailing shall be deemed the date of service;

&nbsp;&nbsp;&nbsp;&nbsp;(4) Delivery by fax, mobile phone short message, or other electronic
communication methods to the latest valid fax number, mobile phone number, e-mail address, or WeChat ID provided by the borrower: the
date of sending shall be deemed the date of service. The aforementioned service refers to the time when the relevant information enters
the service provider's server terminal, regardless of whether the relevant information is actually displayed on the customer's
terminal.

12.3 The borrower agrees that unless the lender receives a written notice from the borrower about the change of the communication address or the borrower directly submits a service address confirmation form to the court, the communication address filled in by the borrower in this Contract is the address for the court to serve judicial documents and other written documents to the borrower. The scope of application of the above service address includes but is not limited to the first instance of civil litigation, objection to jurisdiction and reconsideration, second instance, retrial, remand for retrial, and execution procedures.

During the resolution of disputes under this Contract, the court has the right to serve judicial documents and other written documents to the borrower through any of the communication methods agreed in Article 12.2. The court has the right to choose the communication method it deems appropriate, and shall not be liable for any transmission errors, omissions, or delays in the postal service, fax, telephone, telex, or any other communication system. If the court chooses multiple communication methods at the same time, the one that reaches the borrower first shall prevail.

12.4 The agreement of this Article is an independent dispute resolution clause in the Contract. The invalidity, revocation, or termination of this Contract shall not affect the validity of this clause.

Article 13 Information Disclosure and Confidentiality

13.1 For the undisclosed information and materials of the borrower obtained and known in the process of signing and performing this Contract, the use of such information and materials by the lender (including but not limited to collection, storage, use, processing, transmission, provision, disclosure, etc.) shall not violate the provisions of laws, regulations, and regulatory requirements, and the lender shall assume the confidentiality obligation in accordance with the law and shall not disclose such information and materials to third parties, except in the following circumstances:

&nbsp;&nbsp;&nbsp;&nbsp;(1) Disclosure is required by applicable laws and regulations;

&nbsp;&nbsp;&nbsp;&nbsp;(2) Disclosure is required by judicial authorities or regulatory
institutions in accordance with the law;

&nbsp;&nbsp;&nbsp;&nbsp;(3) When the borrower fails to repay the loan principal and/or
pay the interest in full and on time, the lender needs to disclose to the lender's external professional consultants and allow
the lender's external professional consultants to use such information and materials on a confidential basis to realize the creditor's
rights under this Contract;

&nbsp;&nbsp;&nbsp;&nbsp;(4) Reasonably implementing other actions to safeguard the public
interest or the legitimate rights and interests of the borrower;

&nbsp;&nbsp;&nbsp;&nbsp;(5) The borrower agrees or authorizes the lender to make the
disclosure.

13.2 The borrower confirms that it has signed the corresponding power of attorney for the lender to process the borrower's credit information in accordance with the lender's requirements. The lender shall inquire, use, and store the borrower's credit information within the scope specified in the power of attorney.

13.3 In addition to the circumstances agreed in Articles 13.1 and 13.2 of this Contract, the borrower further agrees that Bank of Communications Co., Ltd. may use or disclose the borrower's information and materials, including but not limited to the borrower's basic information, credit transaction information, adverse information, and other relevant information and materials, in the following circumstances, and is willing to bear all consequences arising therefrom:

Disclosing to and allowing business outsourcing institutions, third-party service providers, other financial institutions, and other institutions or individuals deemed necessary by the lender, including but not limited to other branches of Bank of Communications Co., Ltd. or subsidiaries fully or partially owned by Bank of Communications Co., Ltd., to use such information and materials on a confidential basis for the following purposes: ① For carrying out bank credit business or related to bank credit business, such as promoting the credit business of Bank of Communications Co., Ltd., collecting the borrower's outstanding debts, implementing post-loan/sustainability management, transferring bank credit business claims, etc.; ② For the lender to provide or potentially provide new products or services to the borrower or further provide services.

Whether Article 13.3 of this Contract applies shall be subject to the agreement of both parties in Article 24.1 of this Contract.

Article 14 Applicable Law and Resolution of Disputes

This Contract shall be governed by the laws of the People's Republic of China (excluding the laws of Hong Kong, Macao, and Taiwan regions for the purpose of this Contract). Any dispute arising under this Contract shall be submitted to the people's court with jurisdiction at the place where the lender is located for litigation, unless otherwise agreed in this Contract. During the dispute resolution period, all parties shall continue to perform the clauses not involved in the dispute.

Article 15 Composition, Signing Arrangement, Effectiveness of the Contract, and Loan Nature

15.1 The "Limit Usage Application Form" and other relevant documents and materials filled in and signed by the borrower under this Contract in accordance with the format and requirements provided by the lender are an integral part of this Contract.

15.2 The "Limit Usage Application Form" is a supplement to this Contract. Unless otherwise agreed in the "Limit Usage Application Form", the rights and obligations and related matters between the borrower and the lender shall still be implemented in accordance with the provisions of this Contract.

15.3 This Contract and/or the relevant documents and materials that constitute an integral part of this Contract as agreed in this Contract, such as the "Limit Usage Application Form", may be signed in paper form or through Corporate Electronic Banking. If the borrower chooses to sign this Contract and/or the "Limit Usage Application Form" and other relevant documents and materials through Corporate Electronic Banking, it shall activate the Corporate Electronic Banking in accordance with the lender's requirements, submit an application for activating the signing function of Corporate Electronic Banking, sign the relevant documents for activating the signing function of Corporate Electronic Banking in accordance with the lender's requirements, and designate the authorized personnel who have the right to represent the borrower in using the signing function of Corporate Electronic Banking.

15.4 This Contract shall take effect after being signed by both parties. If this Contract is signed in paper form, the signing refers to the signature (or stamping of the personal seal) of the legal representative (person-in-charge) or authorized representative of the borrower and the stamping of the official seal, and the signature (or stamping of the personal seal) of the legal representative (person-in-charge) or authorized representative of the lender and the stamping of the special contract seal. If this Contract is signed through Corporate Electronic Banking, the signing refers to the borrower filling in and confirming the relevant information in accordance with the prompts on the Corporate Electronic Banking interface, submitting it after electronic signature with a digital certificate, and the lender completing the review and confirmation of the contract submitted by the borrower and conducting electronic signature with a digital certificate.

15.5 If the special contract seal affixed by the lender is the special contract seal for offshore credit business (or other special contract seals with the word "offshore"), the loan under this Contract is an offshore business loan.

15.6 Due to force majeure and/or changes in national policies, IT system failures, communication system failures, power system failures, and other reasons beyond the control of the lender, resulting in losses suffered by the borrower or obstacles, hindrances, or delays in the services received (including but not limited to the borrower's inability to log in to Corporate Electronic Banking or temporary inability to handle relevant businesses after logging in), the lender shall not be liable for such losses, obstacles, hindrances, or delays, unless otherwise agreed by both parties in a supplementary agreement. The aforementioned agreement does not exempt the lender from the liability that should be borne by the lender in accordance with the law due to its fault.

Article 16 Specific Contents of the Limit

16.1 Currency of the Limit: RMB; Amount in words: Ten Thousand Yuan Only; Applicable Currency: √ Currency of the Limit □ Currency of the Limit and other currencies accepted by the lender. The limit is a revolving limit □ one-time limit (for multiple uses) □ one-time limit (for one-time use).

16.2 Purpose of the Limit: Operational turnover.

16.3 Credit Period: From September 28, 2025 to September 28, 2026.

Article 17 Interest Rate Agreement

For loans in currencies other than RMB, US dollar, euro, Hong Kong dollar, Japanese yen, and pound sterling, the type of pricing benchmark applicable to the corresponding loan, the daily interest rate calculation rule, and the rules for determining the pricing benchmark value applicable on the pricing benchmark application date and loan interest rate adjustment date are agreed as follows:

[No specific content provided in the original document]

Article 18 Account Agreement

18.1 The borrower designates the following account as the loan issuance account. This account □ is □ is not a special loan issuance account opened by the borrower with the lender. If otherwise agreed in the corresponding "Limit Usage Application Form", the agreement in the "Limit Usage Application Form" shall prevail.

Account Name: Jiangxi Universe Pharmaceuticals Co., Ltd.

Account Number:

Issuing Bank: Bank of Communications Ji'an Branch Business Department

18.2 The borrower designates:

&nbsp;&nbsp;&nbsp;&nbsp;(1) Repayment Account:

Account Name: Jiangxi Universe Pharmaceuticals Co., Ltd.

Account Number:

Issuing Bank: Bank of Communications Ji'an Branch Business Department

&nbsp;&nbsp;&nbsp;&nbsp;(2) Fund Recovery Account:

Account Name: Jiangxi Universe Pharmaceuticals Co., Ltd.

Account Number:

Issuing Bank: Bank of Communications Ji'an Branch Business Department

Article 19 Specific Agreements on Loan Issuance, Payment, and Repayment

19.1 The term of each loan withdrawn under this Contract shall not exceed 12 months, and the maturity date of all loans shall not be later than December 28, 2026.

19.2 The autonomous payment limit under this Contract is RMB [ ] ten thousand yuan (or equivalent in other currencies).

19.3 The lender's entrusted payment method shall be adopted if one of the following conditions is met:

[No specific content provided in the original document]

19.4 If the borrower's autonomous payment is adopted, the borrower shall summarize and report the payment status of the loan funds to the lender within [ ] days after the loan issuance.

Article 20 Financial Restrictions, External Institution Ratings, and Operating Qualifications/Licenses

20.1 The limit for external investment of the borrower is RMB [ ] ten thousand yuan; the limit for external guarantee is RMB [ ] ten thousand yuan; the limit for additional debt financing is RMB [ ] ten thousand yuan.

20.2 Contractual agreements on the borrower's financial indicators:

&nbsp;&nbsp;&nbsp;&nbsp;(1) [No specific content provided in the original document]

&nbsp;&nbsp;&nbsp;&nbsp;(2) [No specific content provided in the original document]

&nbsp;&nbsp;&nbsp;&nbsp;(3) [No specific content provided in the original document]

20.3 Specific agreements on external institution ratings:

&nbsp;&nbsp;&nbsp;&nbsp;(1) [No specific content provided in the original document]

&nbsp;&nbsp;&nbsp;&nbsp;(2) [No specific content provided in the original document]

20.4 Specific agreements on the borrower's operating qualifications/licenses:

&nbsp;&nbsp;&nbsp;&nbsp;(1) [No specific content provided in the original document]

&nbsp;&nbsp;&nbsp;&nbsp;(2) [No specific content provided in the original document]

Article 21 Specific Agreements on Risk Repricing

21.1 The following risk repricing method is adopted under this Contract: (1) Negotiated repricing; (2) Directly increasing the loan interest rate.

21.2 If the method of "directly increasing the loan interest rate" is adopted:

21.2.1 For loans in RMB, US dollar, euro, Hong Kong dollar, Japanese yen, and pound sterling, the number of basis points to be added (subtracted) for the increased interest rate is: No basis points added or subtracted □ Adding [ ] percentage points □ Subtracting [ ] percentage points. If otherwise agreed for a certain loan, the number of basis points to be added (subtracted) for the increased interest rate of that loan shall be subject to the record in the applicable Limit Usage Application Form.

21.2.2 For loans in currencies other than RMB, US dollar, euro, Hong Kong dollar, Japanese yen, and pound sterling, the increased loan interest rate is:

[No specific content provided in the original document]

Article 22 Contact Information

The contact information for the borrower to receive the notices agreed in Article 12 includes:

Communication Address: No. 265 Beijing-Jiulong Avenue, Jinggangshan Economic and Technological Development Zone, Ji'an County, Ji'an City, Jiangxi Province, China

Recipient: Yang Lin

Postal Code: 343000

Telephone Number: 13970661293

Mobile Phone Number: [No specific content provided in the original document]

Fax Number: [No specific content provided in the original document]

E-mail Address: 152263284@qq.com

Article 23 Number of Contract Copies

If this Contract is signed in paper form, the original of this Contract is made in three copies, with one copy held by each of the signing parties and the guarantor (if any).

Article 24 Other Agreed Matters

24.1 Both parties agree that Article 13.3 of this Contract applies □ does not apply.

24.2 According to the ESG risks faced by the industry to which the borrower belongs, the borrower is □ is not a Class A or Class B customer.

**Borrower:** Jiangxi Universe Pharmaceuticals Co., Ltd.

Legal Representative (Person-in-Charge): Lai Gang

Legal Address: No. 265 Beijing-Jiulong Avenue, Jinggangshan Economic and Technological Development Zone, Ji'an County, Ji'an City, Jiangxi Province, China

**Lender:** Bank of Communications Co., Ltd. Ji'an Branch (Sub-branch)

Person-in-Charge: Xu Zhigang

Communication Address: No. 165 Jinggangshan Avenue, Ji'an City, Jiangxi Province

The borrower has read all the clauses of the Contract, the lender has made detailed explanations at the borrower's request, and the borrower has no doubts or objections to all the contents when signing this Contract, and understands the meanings and legal consequences of the contract clauses, especially the marked and bolded clauses.

(This page is the signing page of the "Working Capital Loan Contract"; there is no text below)

**Borrower (Official Seal):**

Legal Representative (Person-in-Charge) or

Authorized Representative (Signature or Seal):

Date of Signing: September 28, 2025

**Lender (Special Contract Seal):**

Legal Representative (Person-in-Charge) or

Authorized Representative (Signature or Seal):

Date of Signing: September 28, 2025

## Exhibit 4.10

**Exhibit 4.10**

Loan Contract

(Applicable to Working Capital Loans for Corporate Customers)

**Contract No.: [6157186]**

**Borrower**: Jiangxi Universe Pharmaceuticals Co., Ltd.

**Lender**: Bank of Beijing Co., Ltd. Nanchang Branch

**Date of Execution**: September 9, 2025

Pursuant to the Civil Code of the People's Republic of China and other relevant laws and regulations, the parties hereto, through equal consultation and voluntary agreement, execute this Contract on the date stated on the cover page at the domicile of Bank of Beijing Co., Ltd. Nanchang Branch (hereinafter referred to as the "Lender" or "Bank of Beijing") and agree to be bound hereby.

Borrower Information

● Full Name: Jiangxi Daziran Pharmaceutical Co., Ltd.

● Unified Social Credit Code: 913608217670218430

● Business License No.: XXX

● Legal Representative/Principal: Lai Gang

● Mailing Address: No. 265 Jingjiu Avenue, Jinggangshan Economic and Technological Development Zone, Ji'an County, Ji'an City, Jiangxi Province

● Tel: 0796-8403309

● Postcode: 343100

● Fax: 0796-8403309

● Contact Person: Lai Gang

● Position: General Manager

● Mobile Phone: 13632301188

● Email: 13632301188139.com

Lender Information

● Full Name: Bank of Beijing Co., Ltd. Nanchang Branch

● Legal Representative/Principal: Yang Yunguang

● Mailing Address: No. 1115 Fenghuang Middle Avenue, Honggutan New District, Nanchang City, Jiangxi Province

● Tel: 0791-86712703

● Postcode: 330038

● Fax: 0791-86712766

Part One: Contract Terms Schedule

&nbsp;&nbsp;&nbsp;&nbsp;A. Associated Contract (if applicable)

This Contract is a specific business contract under the Comprehensive Credit Facility Contract (Contract No.: [6157083]) executed between the Creditor (Bank of Beijing Co., Ltd. Nanchang Branch) and the Debtor (Jiangxi Daziran Pharmaceutical Co., Ltd.).

&nbsp;&nbsp;&nbsp;&nbsp;B. Loan Amount and Term

1. **Currency and Amount**: RMB (in case of discrepancy between upper and lower cases, the upper case shall
prevail):

○ Upper Case: RMB Eight Million Yuan Only

○ Lower Case: 8,000,000

2. **Loan Term**: 1 year from the first drawdown date.

3. **Maturity Date**: The date on which the loan term specified in Clause B.2 expires.

&nbsp;&nbsp;&nbsp;&nbsp;C. Contract Interest Rate (Annual Rate, Calculated on Simple
Interest Basis)

(Mark "√" for applicable items, "×" for inapplicable items)

1. **For RMB Loans**:

○ (1) Fixed Rate: [70.0] basis points added to the 1-year/5-year+/(other) [XXX] (PBC LPR / Bank's LPR) as of the business day preceding the drawdown date. This rate shall remain unchanged regardless of fluctuations in PBC LPR or Bank's LPR.

○ (2) Floating Rate: [XXX] basis points added/subtracted from the 1-year/5-year+/(other) [XXX] (PBC LPR / Bank's LPR) as of the business day preceding the drawdown date, subject to adjustment in accordance with Clause 2.4 hereof. Adjustment frequency:

Monthly on the first day / Monthly on the corresponding date / Quarterly on the first day / Quarterly on the corresponding date / Annually on the first day / Annually on the corresponding date / Fixed monthly date (specified date: [XXX] year [XXX] month [XXX] day) / Fixed quarterly date (specified date: [XXX] year [XXX] month [XXX] day) / Fixed semi-annual date (specified date: [XXX] year [XXX] month [XXX] day) / Fixed annual date (specified date: [XXX] year [XXX] month [XXX] day) / Immediate adjustment.

2. **For Foreign Currency Loans**: The interest rate shall be determined by adding no less than [XXX] basis
points to the "HIBOR (for Hong Kong Dollars) or LIBOR (for other foreign currencies)" for the corresponding term (based on the
rate as of the second business day preceding the drawdown date), subject to adjustment in accordance with Clause 2.4 hereof. The specific
rate shall be as stated in the Loan Note approved by Bank of Beijing.

&nbsp;&nbsp;&nbsp;&nbsp;D. Drawdown Period, Disbursement of Loan Funds and Account Supervision

1. **Drawdown Period**: [XXX] days from the date of execution of this Contract.

2. **Disbursement Method**: As stated in the Loan Note approved by Bank of Beijing. For single disbursements
exceeding RMB 10 million, the Lender's entrusted payment method shall apply.

3. **Loan Disbursement Account**: The loan funds shall be credited to the Borrower's account with Bank of
Beijing, Account No.: (subject to change with Bank of Beijing's consent, and the new account number shall be specified
in the Loan Note). The Borrower shall use this account for all outward payments of loan funds and accept supervision by Bank of Beijing.

4. **Funds Recovery Account**: The Borrower's account opened with Bank of Beijing Co., Ltd.
 Nanchang Xihu Sub-branch (Account No.:
 ;
 Account Name: Jiangxi Daziran Pharmaceutical Co., Ltd.) shall serve as the funds recovery account (subject to change with Bank of
 Beijing's consent). The Borrower shall provide Bank of Beijing with funds recovery status and account transaction records of
 this account on a regular basis (i.e., at the end of each quarter) and cooperate with Bank of Beijing's supervision and
 inspection.

5. **Account Supervision**: Bank of Beijing shall inspect, supervise and manage the above accounts in accordance
with the provisions of this Contract, the separate Account Supervision Agreement (if any) and other relevant agreements.

&nbsp;&nbsp;&nbsp;&nbsp;E. Loan Purpose

For the Borrower's business operations, including but not limited to procurement of goods.

&nbsp;&nbsp;&nbsp;&nbsp;F. Principal Repayment Plan

The Borrower shall repay all principal on the maturity date. During the loan term, principal shall be repaid in installments as follows (specific repayment plan shall be as stated in the Loan Note approved by Bank of Beijing):

● Repayment of the entire principal in one lump sum on the maturity date.

● Equal monthly principal repayment, with principal due on the 21st day of each month.

● Equal quarterly principal repayment, with principal due on the 21st day of the last month of each quarter.

● Other installment plans: XXX.

&nbsp;&nbsp;&nbsp;&nbsp;G. Interest Repayment Plan

The Borrower shall pay all interest on the maturity date. During the loan term, interest shall be paid in installments as follows:

● Monthly fixed date (21st day of each month).

● Quarterly fixed date (21st day of the last month of each quarter).

● Other: XXX.

(Applicable only to foreign currency loans) Interest shall be paid once per month corresponding to the interest rate term specified in Clause C.2. The interest payment date shall be the day after the corresponding date of each month end starting from the drawdown date (or the last day of the month if there is no corresponding date).

M. Guarantee (see "Special Provisions" for other guarantees; subject to the guarantee documents)

● Guaranty: Guarantors - Jiangxi Daziran Pharmaceutical Trading Co., Ltd. and Lai Gang.

● Pledge: Pledger - XXX.

● Mortgage: Mortgagor - XXX.

U. Attachments (Loan Note and the following attachments shall form an integral part of this Contract)

XXX. W. Notarization for Enforcement

● Complete the notarization for enforcement within [XXX] days from the date of execution of this Contract.

● No notarization for enforcement is required for this Contract.

X. Special Provisions

XXX. 6

Part Two: General Terms and Conditions

1. Definitions and Interpretation

1.1 Unless otherwise specified herein, the following terms shall have the meanings set forth below:

● **This Contract**: Collectively refers to the Contract Terms Schedule, General Terms and Conditions, Loan Note signed by the Borrower and approved by Bank of Beijing, attachments hereto, and other documents legally defining the rights and obligations of the parties (including but not limited to supplementary agreements and letters of commitment); unless otherwise stated, it refers only to the provisions of the Contract Terms Schedule and General Terms and Conditions.

● **PBC Loan Prime Rate (PBC LPR)**: A benchmark lending reference rate calculated and published by the National Interbank Funding Center authorized by the People's Bank of China, quoted by representative banks based on their lending rates to prime customers plus open market operation rates. If PBC LPR for the corresponding term is not published by the National Interbank Funding Center on the business day preceding the drawdown date/adjustment date, the rate published on the previous business day shall apply, and so on. If PBC LPR is abolished, the rate determined and published by Bank of Beijing in accordance with law shall prevail.

● **Bank's Loan Prime Rate (Bank's LPR)**: The loan prime rate independently quoted and published by Bank of Beijing Co., Ltd. If Bank's LPR for the corresponding term is not published by Bank of Beijing Co., Ltd. on the business day preceding the drawdown date/adjustment date, the rate published on the previous business day shall apply, and so on.

● **LIBOR (HIBOR)**: The London (Hong Kong) Interbank Offered Rate published on the relevant pages of authoritative financial telecommunications systems such as REUTERS or BLOOMBERG around 11:00 a.m. London (Hong Kong) time on the relevant day. If no such rate is available on the day, the most recent available rate shall apply.

● **Entrusted Payment**: The Lender pays the loan funds to the Borrower's counterparty for the purpose specified herein through the Borrower's account in accordance with the Borrower's drawdown application and payment authorization.

● **Independent Payment**: After the Lender disburses the loan funds to the Borrower's account in accordance with the Borrower's drawdown application, the Borrower independently pays the funds to its counterparty for the purpose specified herein.

● **Guarantee Documents**: Any guarantee contracts, guarantee clauses, letters of guarantee and other documents and commitments signed or consented to by the guarantor to establish the guarantee.

● **Actual Controller**: A natural person who is the controlling shareholder of the Borrower/Guarantor, or who can actually control the actions of the Borrower/Guarantor through investment relations, agreements or other arrangements.

● **Loss of Contact**: Bank of Beijing is unable to contact the relevant party after making reasonable efforts through the contact information specified at the beginning of this Contract.

● **Laws and Regulations**: Laws, administrative regulations and judicial interpretations of the Supreme People's Court applicable in the mainland of the People's Republic of China (excluding Hong Kong, Macao and Taiwan regions).

● **Financial Rules**: Rules, regulations and orders issued by banking regulatory authorities, the People's Bank of China and foreign exchange control departments.

● **Business Day**: Any day on which Bank of Beijing conducts general corporate banking business, excluding legal holidays, Saturdays and Sundays, but including Saturdays and Sundays on which the government temporarily requires the public to work.

● **Corresponding Date**: For monthly corresponding date - the corresponding date of the drawdown date in each month (or the last day of the month if there is no corresponding date); for quarterly corresponding date - the corresponding date of the drawdown date in the last month of each quarter (or the last day of the month if there is no corresponding date); for annual corresponding date - the corresponding date of the drawdown date in each year (or the last day of the month if there is no corresponding date).

● **Fixed Date**: For fixed monthly date - the corresponding date of the specified date in each month (or the last day of the month if there is no corresponding date); for fixed quarterly date - the corresponding date of the specified date every three months (or the last day of the month if there is no corresponding date); for fixed semi-annual date - the corresponding date of the specified date every six months (or the last day of the month if there is no corresponding date); for fixed annual date - the corresponding date of the specified date every twelve months (or the last day of the month if there is no corresponding date).

1.2 The above definitions shall apply to all documents executed under or in connection with this Contract unless otherwise specified in such documents.

1.3 The clauses in the Contract Terms Schedule are arranged in the order of the given serial numbers, not in the natural order of English letters.

2. Loan Provisions

2.1 The currency, amount and term of the loan under this Contract are specified in Clause B hereof. The amount and date of each drawdown shall be as stated in the Loan Note approved by Bank of Beijing.

2.2 The Borrower may apply for drawdown within the drawdown period specified in Clause D hereof. Unused loan funds after the expiration of the drawdown period shall be automatically cancelled and shall not be available for drawdown. The Borrower must meet all the following conditions when applying for each drawdown:

&nbsp;&nbsp;&nbsp;&nbsp;(1) The guarantee documents for the guarantee specified herein
have been executed and become effective, and all necessary formalities such as delivery, registration (i.e., registration with the corresponding
legal registration authority for real estate mortgage (if any), chattel mortgage (if any), pledge of rights (if any), etc.) have been
completed. If the guarantor is a legal person or unincorporated organization, the Borrower has provided Bank of Beijing with the internal
effective resolution or approval of the guarantor 同意 ing to provide the guarantee (excluding entities not required to provide
internal resolutions in accordance with laws and regulations, such as financial institutions issuing letters of guarantee or guarantee
companies providing guarantees). If the guarantor is a listed company/a publicly disclosed controlling subsidiary of a listed company/a
company whose shares are traded on other national securities exchanges approved by the State Council, the resolution shall also be publicly
disclosed in accordance with laws and regulations.

&nbsp;&nbsp;&nbsp;&nbsp;(2) The Borrower has completed relevant formalities reasonably
required by Bank of Beijing, such as account opening, and has provided Bank of Beijing with documents and relevant certificates reasonably
explaining the specific use of funds and fund flow arrangements, which have been approved by Bank of Beijing. If this Contract is a credit
facility under the Comprehensive Credit Facility Contract specified in Clause A hereof, there shall be sufficient available credit limit
for the Borrower under such Comprehensive Credit Facility Contract.

&nbsp;&nbsp;&nbsp;&nbsp;(3) The Borrower has not committed any breach of contract under
this Contract, and the guarantor has not committed any breach of contract under the guarantee documents.

&nbsp;&nbsp;&nbsp;&nbsp;(4) The applicable laws and regulations, financial rules, national
credit policies and credit quota management requirements as of the drawdown date do not have a material adverse impact on the performance
of this Contract by either party, nor do they prohibit or restrict the disbursement or drawdown of the loan under this Contract.

&nbsp;&nbsp;&nbsp;&nbsp;(5) Other conditions specified herein and required by laws, regulations
and financial rules.

2.3 The Borrower agrees that Bank of Beijing shall have the right to adjust (increase or decrease) the entire or part of the unused loan limit or shorten the drawdown period if any of the following events occurs: (1) The Borrower or its guarantor commits a breach of contract under this Contract, the Comprehensive Credit Facility Contract or the guarantee documents; (2) The financial or operating conditions of the Borrower undergo a material adverse change; (3) The state or financial regulatory authorities adjust credit policies or other relevant policies, a material financial risk occurs or is imminent in the region where the Borrower is located, or a material adverse change occurs in the market related to the Borrower's business, which Bank of Beijing reasonably believes has a material impact on the performance of this Contract; or (4) Other events specified in this Contract, the Comprehensive Credit Facility Contract or the guarantee documents.

Unless otherwise agreed by both parties, the Borrower shall go through the following procedures and meet the following requirements for each use of the loan: (1) The Borrower shall submit an application to Bank of Beijing in advance, specifying the amount, purpose and term of the loan to be applied for under this Contract, filling in other necessary contents, and submitting documents and materials required by Bank of Beijing's business system; (2) Bank of Beijing shall review the application in accordance with the applicable business management systems, credit review requirements and this Contract; (3) If Bank of Beijing approves the application, it shall process the relevant business formalities in accordance with the agreement and deduct the used loan limit from the available limit under this Contract; if Bank of Beijing disapproves the application, it shall notify the Borrower.

2.4 Upon the Borrower meeting the drawdown conditions and Bank of Beijing's approval, Bank of Beijing shall disburse the full amount of the loan within 3 business days. Once the loan funds are credited to the Borrower's account, they shall be deemed to have been drawn down and used by the Borrower, and the date of credit shall be the drawdown date, from which interest shall accrue at the contract interest rate on a simple interest basis (calculated on a daily basis). For RMB loans drawn down in installments, the contract interest rate for each drawdown shall be determined based on the PBC LPR or Bank's LPR as of the business day preceding the drawdown date and the basis points added or subtracted as specified in Clause C.1 hereof.

For loan funds subject to Bank of Beijing's entrusted payment: (i) The Borrower shall submit complete relevant transaction documents (including but not limited to transaction documents or vouchers with clear transaction parties, complete signatures and seals, and standardized filling) such as commercial contracts at least 3 business days in advance (or within other periods reasonably required by Bank of Beijing). Bank of Beijing shall review whether the above documents comply with the provisions of this Contract before disbursing the loan funds. Upon approval, Bank of Beijing shall pay the loan funds to the Borrower's counterparty through the Borrower's account (without requiring the Borrower to provide additional settlement vouchers for the transfer) and keep records. The time when the loan funds arrive at the counterparty's account shall be determined with reference to the arrival time of remittance settlement methods and shall be subject to the opening hours of relevant systems. Handling fees shall be deducted by Bank of Beijing from the Borrower's account on a per-transaction or aggregate basis at the then applicable fee standards when making the payment (the Borrower may also pay the fees in advance voluntarily); (ii) The Borrower shall be liable for any delay in loan disbursement or entrusted payment caused by incomplete, unqualified, untimely submission of documents by the Borrower or reasonable doubts about the documents; (iii) If the funds fail to be paid out in a timely manner after being credited to the Borrower's account or fail to reach the counterparty's account in a timely manner due to reasons such as abnormal status of the Borrower's account, incomplete or inaccurate account information of the counterparty provided by the Borrower, abnormal status of the counterparty's account, interbank payment system or clearing system failures, or other reasons not attributable to Bank of Beijing, the resulting handling fees, loan interest, and other losses and delays shall be borne by the Borrower. However, Bank of Beijing shall make reasonable efforts to continue processing the payment to the counterparty's account or retain the funds in the Borrower's account/suspense account and notify the Borrower to complete the relevant formalities.

For loan funds subject to the Borrower's independent payment: The Borrower shall provide Bank of Beijing with a plan for the use of loan funds in a timely manner as required by Bank of Beijing, and submit a summary report on fund payments to Bank of Beijing by the 10th day of each month after the loan disbursement. Bank of Beijing shall have the right to verify whether the payment of loan funds complies with the provisions of this Contract by means of account analysis, inspection of fund transfer vouchers or on-site investigations, and the Borrower shall cooperate.

For loan funds subject to Bank of Beijing's entrusted payment or supervision: Before the full repayment of the debts under this Contract, Bank of Beijing shall have the right to monitor the use of the relevant accounts and funds therein by means of refusing to issue checks, not handling interbank deposits and withdrawals, or not opening online banking or telephone banking services.

During the loan payment process, if Bank of Beijing determines that the Borrower's credit status has deteriorated, the profitability of its main business is weak, or the use of loan funds is abnormal, Bank of Beijing shall have the right to require a change in the loan fund payment method, and the Borrower shall accept and cooperate.

2.5 If the contract interest rate for the loan under this Contract is a floating rate or the loan is a foreign currency loan, the specific adjustment method shall be: (i) For RMB loans with a floating rate, the interest rate shall be automatically adjusted on the corresponding date in accordance with the adjustment frequency specified in Clause C.1 hereof, based on the PBC LPR or Bank's LPR as of the business day preceding the corresponding date and the basis points added or subtracted as specified in Clause C.1 hereof (1 basis point = 0.01%), and interest shall be calculated separately for each period; (ii) For foreign currency loans, the contract interest rate applicable during each interest period (calculated on an actual/360 basis for RMB and other foreign currencies, actual/365 basis for Hong Kong Dollars) shall be the LIBOR (HIBOR) rate for the corresponding currency and term as of the second business day preceding the start date of the interest period (annual rate in percentage) plus the number of basis points specified in Clause C.2 hereof (1 basis point = 0.01%); the above automatic adjustments shall not be deemed as modifications to this Contract. When converting the annual interest rate to a daily interest rate, the Hong Kong Dollar rate shall be calculated based on 365 days a year, and the RMB and other foreign currency rates shall be calculated based on 360 days a year.

2.6 The Borrower warrants that the loan shall be used for the purposes specified in Clause E hereof and that such purposes comply with the provisions of laws, regulations and financial rules. The Borrower covenants that it will not use the loan for fixed asset investment, equity investment, real estate investment, or other prohibited fields or purposes, nor for other projects or businesses for which commercial bank loans are prohibited by laws, regulations or financial rules. Any change in the loan purpose shall require the prior written consent of Bank of Beijing. The Borrower warrants that all transaction documents and counterparty information provided to Bank of Beijing are true, accurate, complete, legal and valid, and comply with the agreed purposes herein.

2.7 The Borrower shall repay the loan principal in accordance with the provisions of Clause F hereof and pay the loan interest in a timely manner in accordance with the provisions of Clause G hereof. Each interest payment period shall be from one interest payment date (inclusive) to the next interest payment date (exclusive) (the first interest payment period shall start from the drawdown date, and the last interest payment period shall end on the maturity date of the loan principal). All accrued interest on the repaid principal shall be settled when each installment of principal is repaid, and all principal, interest and other payables shall be settled on the maturity date. If the interest payment date falls on a non-business day, the Borrower shall deposit sufficient funds in the designated account in advance for Bank of Beijing to deduct on that day or the first subsequent business day, and interest shall continue to accrue at the contract interest rate on a simple interest basis during the extension period.

2.8 To ensure the timely repayment of relevant payables, the Borrower shall open and maintain the relevant accounts specified herein with Bank of Beijing (which shall continue to apply after any account number change) and deposit sufficient funds in the designated account in a timely manner for Bank of Beijing to deduct. The Borrower may also repay the loan by directly transferring funds to Bank of Beijing's account and shall promptly notify Bank of Beijing of the loan disbursement business number corresponding to the repayment. Bank of Beijing may directly deduct any matured payables of the Borrower from any account opened by the Borrower within the Bank of Beijing Co., Ltd. system and notify the Borrower by means of account statements or other forms after the deduction.

2.9 Bank of Beijing's internal accounting vouchers shall be valid evidence of the loan disbursement and the repayment of principal and interest under this Contract, unless there is conclusive and sufficient contrary evidence.

3. Early Repayment and Extension

3.1 The Borrower shall not voluntarily repay the loan in advance during the drawdown period. After the drawdown period, if the Borrower wishes to repay the loan in advance, it shall obtain the mutual consent of both parties. The Borrower shall submit an irrevocable written application to Bank of Beijing 30 days in advance, specifying the amount of principal to be repaid in advance and the repayment plan for the remaining principal. Upon Bank of Beijing's written approval, the Borrower shall execute the early repayment on the scheduled early repayment date, settle all accrued interest on the principal to be repaid in advance and other matured payables in accordance with Bank of Beijing's requirements, and repay the remaining principal (if any) in accordance with the new repayment plan approved by Bank of Beijing (the last repayment date shall not be later than the latest maturity date). If the Borrower fails to submit a new repayment plan or the parties fail to reach an agreement thereon, the repayment shall be made in reverse order (i.e., the funds repaid in advance shall first be used to repay the latest matured obligations). The contract interest rate shall not be adjusted due to early repayment or the new repayment plan.

3.2 If the Borrower needs to extend the loan term, it shall submit a written extension application to Bank of Beijing at least 30 days before the maturity date, explaining the reason for the extension and making arrangements for the repayment funds after the extension. Upon Bank of Beijing's approval and the Borrower meeting the relevant conditions required by Bank of Beijing, the parties shall sign an extension agreement and complete the extension formalities in accordance with the agreement. If Bank of Beijing disapproves the extension or the parties fail to sign the extension agreement, the Borrower shall still repay the loan in accordance with the original term specified herein.

3.3 During the loan term, Bank of Beijing shall have the right to require the Borrower to repay the loan in advance based on the Borrower's funds recovery status (including but not limited to the early recovery of funds intended for repayment, sufficient available working capital of the Borrower after early repayment to meet normal capital needs, etc.). Upon the service of Bank of Beijing's early repayment notice on the Borrower, the relevant loan principal and interest shall become due on the early repayment date specified by Bank of Beijing, and the Borrower shall repay the same in a timely manner as required.

4. Representations and Warranties

4.1 Each party represents and warrants to the other party that: (1) It has the qualification and capacity to enter into and perform this Contract, and the person signing this Contract on its behalf has obtained sufficient authorization to do so; (2) The entry into and performance of this Contract do not violate its articles of association or other organizational documents, laws, regulations, financial rules or other legal documents binding on it, and it has obtained all necessary internal and external authorizations, approvals and filings to ensure that this Contract is legally binding on it and enforceable in accordance with law.

4.2 The Borrower represents and warrants that it will perform the following obligations before the full performance of this Contract:

&nbsp;&nbsp;&nbsp;&nbsp;(1) It will maintain its legal existence, maintain a good credit
status with no material adverse records, and truthfully and completely provide Bank of Beijing with its financial and operating conditions
and other important information related to this Contract before signing this Contract and each application for drawdown.

&nbsp;&nbsp;&nbsp;&nbsp;(2) It has sufficient and legal repayment sources matching the
repayment plan and sufficient solvency.

&nbsp;&nbsp;&nbsp;&nbsp;(3) Its production and operation are in compliance with laws
and regulations, and it will comply with and meet the environmental, social and governance (ESG) requirements specified by laws, regulations
and other normative documents, as well as environmental protection standards, tax payment regulations and other requirements. It will
obtain necessary approvals and licenses in a timely and legal manner. If the Borrower or its investment projects involve material ESG
risks, the Borrower shall submit an ESG risk report, strengthen ESG risk management and avoid material risk hazards.

&nbsp;&nbsp;&nbsp;&nbsp;(4) It will promptly provide Bank of Beijing with complete, true
and effective materials, accept and actively cooperate with Bank of Beijing's inspections and supervision of its financial conditions,
operating conditions and the payment and use of loan funds under this Contract, including but not limited to: (i) Reasonably explaining
the fund flow of each loan under this Contract, providing relevant payment vouchers and supporting documents to prove compliance with
the agreed purposes herein; (ii) Providing Bank of Beijing with its audited complete financial statements (including notes) and audit
report for the previous year by the end of April each year, and providing Bank of Beijing with copies of the balance sheet, income statement,
cash flow statement and other financial statements as of the end of the previous quarter in the first month of each quarter (providing
audited complete financial statements and audit reports if available); and (iii) Providing other information and materials reasonably
required by Bank of Beijing.

&nbsp;&nbsp;&nbsp;&nbsp;(5) It will abide by the principle of good faith, and all application
materials, financial statements and other information provided to Bank of Beijing are true, accurate, complete, legal and valid, without
any fraud, material omission or material misrepresentation.

&nbsp;&nbsp;&nbsp;&nbsp;(6) If it intends to conduct mergers, divisions, reduction of
registered capital, apply for suspension of business for rectification/receivership/dissolution/bankruptcy or other events affecting
its existence or continuous operation, or conduct major events such as equity transfer, external investment, or substantial increase
in debt financing, it shall notify Bank of Beijing in writing at least 30 days in advance and obtain Bank of Beijing's written
consent. If a third party applies for or an administrative/judicial authority orders the Borrower to suspend business for rectification/receivership/dissolution/bankruptcy,
or suspend or revoke the business license for its main business or major businesses, the Borrower shall notify Bank of Beijing in writing
as soon as possible (no later than 3 business days after learning of such event) and take timely remedial measures.

&nbsp;&nbsp;&nbsp;&nbsp;(7) It will notify Bank of Beijing in writing as soon as possible
(no later than 5 business days) of any changes to its industrial and commercial registration/filing information, actual controller, top
ten shareholders, directors, financial responsible persons or contact address.

&nbsp;&nbsp;&nbsp;&nbsp;(8) If it provides guarantees to third parties (or enters into
arrangements with guarantee effects such as debt assumption), or enters into major transactions with third parties that may reduce its
solvency, such as partnership/contractual operation, waiver of major claims, acquisition and restructuring, transfer of main business,
or if any major adverse event affecting its solvency occurs, it shall promptly notify Bank of Beijing in writing and obtain Bank of Beijing's
prior written consent, unless such events do not have a material adverse impact on its ability to perform this Contract and the total
amount of such major transactions or guarantees does not exceed 30% of its total assets or 50% of its net assets.

&nbsp;&nbsp;&nbsp;&nbsp;(9) It will promptly notify Bank of Beijing in writing of related
party transactions whose total amount accounts for 10% or more of its net assets (related parties and related party transactions shall
be identified in accordance with the Chinese Accounting Standards or International Accounting Standards applicable to the Borrower),
including: the relationship between the transaction parties, the subject matter and nature of the transaction, the amount or proportion
of the transaction, pricing policies (including transactions with no amount or nominal amount), etc. The Borrower shall not engage in
related party transactions or other improper transactions such as withdrawal of registered capital, fabrication of transactions to obtain
bank funds or credit facilities, evasion of debts by transferring assets, which seriously damage its solvency, or money laundering.

&nbsp;&nbsp;&nbsp;&nbsp;(10) It will maintain relevant financial indicators (calculated
in accordance with the Chinese Accounting Standards or International Accounting Standards applicable to the Borrower) within the scope
required by relevant laws, regulations, financial rules and Bank of Beijing.

&nbsp;&nbsp;&nbsp;&nbsp;(11) If the after-tax net profit for the accounting year is zero
or negative, or insufficient to cover the accumulated losses of previous accounting years, or if the pre-tax profit is insufficient to
repay the principal and interest of the next installment of the loan, it will not distribute dividends or bonuses to shareholders in
any form.

&nbsp;&nbsp;&nbsp;&nbsp;(12) It will provide the guarantee specified herein to Bank of
Beijing no later than the first drawdown date, as detailed in the guarantee documents. The Borrower warrants that the pledge rate and
mortgage rate under the guarantee documents will be maintained within the scope specified therein (if any). The Borrower covenants that
it fully understands and accepts the terms and contents of the relevant guarantee documents, and warrants that all guarantees provided
to Bank of Beijing based on the relevant guarantee documents are legally valid and enforceable in accordance with law.

5. Taxes and Fees

All amounts under this Contract are inclusive of tax, and the applicable tax rate shall be in accordance with the provisions of laws and regulations. Each party shall bear the stamp duty, taxes and administrative fees levied by the government or authorities exercising administrative functions that it is obligated to pay under this Contract. For other fees such as notarization fees, guarantee fees, insurance fees, and evaluation fees (if any), they shall be borne in accordance with the provisions of laws and regulations; in the absence of such provisions, they shall be borne by both parties through negotiation.

6. Default Events and Remedies

6.1 The occurrence of any of the following events shall constitute a default event by the Borrower:

&nbsp;&nbsp;&nbsp;&nbsp;(1) The Borrower fails to use the loan for the agreed purposes,
or fails to use or pay the loan funds in the agreed manner (or evades the express provisions herein regarding Bank of Beijing's
entrusted payment by splitting the amount), or fails to pay interest, principal or other payables in full and on time.

&nbsp;&nbsp;&nbsp;&nbsp;(2) The Borrower breaches any of the representations and warranties
set forth in Clause 4 hereof.

&nbsp;&nbsp;&nbsp;&nbsp;(3) Any document, information or material statement provided
by the Borrower in connection with the loan application or drawdown is proven to be untrue, fraudulent, materially incomplete or materially
misleading, or the Borrower fails to, or explicitly states or indicates by its conduct that it will not fully and properly perform its
representations, warranties, obligations or liabilities under this Contract.

&nbsp;&nbsp;&nbsp;&nbsp;(4) Any guarantor fails to fully and properly perform its representations,
warranties, obligations or liabilities under the guarantee documents, or any other default event occurs under the guarantee documents,
or the mortgaged property/pledge (if any) is damaged, destroyed, transferred in ownership, detained by any other third party, seized/frozen/attached
or enforced, or a right of residence is established on the mortgaged property (if any) without Bank of Beijing's prior written
consent, or the guarantee documents or Bank of Beijing's security interest is deemed invalid, revoked or terminated without Bank
of Beijing's written consent.

&nbsp;&nbsp;&nbsp;&nbsp;(5) The Borrower fails to perform any material credit financing,
guarantee, compensation or other debt obligations when due, or its business license for main business or major businesses is suspended
or revoked, or it enters into procedures such as suspension of business for rectification/receivership/dissolution/declaration of bankruptcy.

&nbsp;&nbsp;&nbsp;&nbsp;(6) The Borrower's financial or operating conditions undergo
a material adverse change, or it incurs adverse credit records, or its credit status deteriorates, or it is involved in disputes or administrative
penalties that have a material adverse impact on its solvency or the performance of this Contract, or any other event that has a serious
adverse impact on Bank of Beijing's claims or security interests occurs.

&nbsp;&nbsp;&nbsp;&nbsp;(7) The legal representative/principal/actual controller of the
Borrower/guarantor, etc. is lost contact.

6.2 If the Borrower fails to repay any matured principal (including principal declared due in advance by Bank of Beijing) and other payables in full and on time, it shall pay default interest on the outstanding principal and other payables at a rate 50% higher than the applicable contract interest rate (default interest rate) on a daily basis. For any unpaid interest, compound interest shall be calculated at the default interest rate specified herein until the principal and interest are fully repaid. If the Borrower uses the loan for purposes other than those agreed herein or in violation of the provisions of laws, regulations or financial rules, it shall immediately repay the principal and interest of the loan used in breach of contract and pay default interest on such principal at a rate 100% higher than the applicable contract interest rate (misappropriation interest rate) on a daily basis. For any unpaid interest during the period of such breach, compound interest shall be calculated at the misappropriation interest rate specified herein until the principal and interest are fully repaid. If the loan is both misused and overdue, the misappropriation interest rate shall apply to the calculation of default interest and compound interest. The collection of default interest and compound interest in accordance with the above provisions shall not prejudice any other remedy rights of Bank of Beijing.

6.3 Upon the occurrence of a default event by the Borrower, Bank of Beijing shall have the right to exercise remedy rights in accordance with the provisions herein and/or laws, regulations and financial rules, including but not limited to requiring the Borrower to remedy the default, changing the method of using or paying the loan funds, suspending the disbursement of the loan, collecting default interest and compound interest, exercising security interests and liens in accordance with law, declaring all or part of the debts under this Contract immediately due, conducting public collection, claiming compensation for losses, and requiring the Borrower to reimburse all expenses incurred by Bank of Beijing in realizing its claims and security interests (including but not limited to litigation/arbitration fees, disposal fees such as evaluation/appraisal/auction fees, attorney fees, investigation and evidence collection fees, travel expenses and other reasonable expenses).

6.4 If the currency of the funds recovered by Bank of Beijing through the exercise of its rights is different from the currency of the Borrower's outstanding obligations, the funds shall be converted in accordance with the exchange rate published by Bank of Beijing for selling the outstanding currency and buying the recovered currency to repay Bank of Beijing's claims. Any exchange rate loss and currency conversion fees arising therefrom shall be borne by the Borrower, and the Borrower shall cooperate with the currency conversion procedures.

6.5 The funds recovered by Bank of Beijing through the exercise of its rights shall be used to repay its claims in the following order: (1) Expenses for realizing the claims and security interests and other fees to be borne by the Borrower; (2) Damages, compensation and liquidated damages; (3) Default interest and compound interest; (4) Loan interest; (5) Loan principal; (6) Other payables. However, Bank of Beijing may change the above repayment order. If the Borrower has multiple matured payables, the repayment order shall be determined by Bank of Beijing.

6.6 If a party suffers from force majeure and provides the other party with a certificate issued by a competent authority within 5 business days after the occurrence of the force majeure event, it may be exempted from corresponding liability for breach of contract in accordance with law. For the avoidance of doubt, the parties confirm that the Borrower may be exempted from corresponding liability for breach of contract in accordance with law after the occurrence of force majeure, but shall still be obligated to repay the drawn-down principal, loan interest calculated at the contract interest rate on a simple interest basis, and expenses for realizing the claims and security interests.

7. Notarization for Enforcement

7.1 If Clause W hereof requires notarization for enforcement, the Borrower shall complete the notarization formalities with a notary public recognized by Bank of Beijing within the period specified herein. The parties agree to have this Contract notarized as an enforceable creditor's right document, and fully understand the meaning, content, procedure and effect of such notarization. The parties agree that this Contract shall be enforceable upon notarization. If Bank of Beijing fails to fully realize its rights and interests under this Contract and/or the guarantee documents in a timely manner, or if the Borrower/guarantor commits a default event under this Contract and/or the guarantee documents, Bank of Beijing shall have the right to directly apply for an enforcement certificate with this Contract and/or the guarantee documents, records of the Borrower's performance issued by Bank of Beijing, and the notarial certificate, and apply to a competent people's court for enforcement to realize its rights and interests under this Contract and/or the guarantee documents. The Borrower hereby specially covenants to voluntarily waive the right to defend and accept enforcement unconditionally.

7.2 The parties agree that the notary public shall have the right to verify whether the Borrower has repaid the debts to Bank of Beijing in full and on time by any of the following methods: mail, telephone, fax, email, etc. The notary public shall have the right to verify the information with the Borrower by using the contact person's name, reserved telephone number, reserved fax number, reserved mailing address and reserved email address specified herein. The Borrower agrees that the notary public may issue an enforcement certificate based solely on the supporting materials provided by Bank of Beijing in any of the following circumstances: (1) The notary public is unable to contact the reserved contact person of the Borrower through the contact information specified herein; (2) The Borrower objects to the supporting materials provided by Bank of Beijing but fails to provide sufficient contrary evidence within 3 days after receiving the notice from the notary public; (3) The Borrower has no objection to the supporting materials provided by Bank of Beijing.

8. Governing Law and Dispute Resolution

8.1 This Contract shall be governed by the laws of the People's Republic of China. All disputes arising out of or in connection with this Contract shall first be resolved through friendly negotiation. If negotiation fails, the dispute shall be submitted to the people's court with jurisdiction at the place where this Contract is executed for litigation.

8.2 If the guarantee documents have explicit written provisions on the governing law and dispute resolution for the matters thereunder and Bank of Beijing initiates litigation only against the guarantor, such provisions shall apply. In the absence of explicit written provisions, ambiguous provisions, provisions deemed invalid/revoked in accordance with law, or if Bank of Beijing initiates litigation against both the Borrower and the guarantor, the provisions of this Contract shall apply.

9. Assignment

The Borrower shall not assign any of its rights, obligations or liabilities under this Contract to any other party, or create any security interest or trust over its rights, without the prior written consent of Bank of Beijing. Bank of Beijing shall have the right to unilaterally assign its rights and interests under this Contract and the relevant guarantee documents to any other party (including but not limited to conducting non-performing asset transfer), use them as investment assets for trusts, create security interests and/or establish trusts, or carry out asset securitization, without the need to obtain the Borrower's prior consent. Bank of Beijing may notify the Borrower by means of public announcement (not deemed a breach of confidentiality obligation) or written notice. The Borrower shall continue to perform its obligations under this Contract to Bank of Beijing, its assignees and beneficiaries in accordance with the provisions herein.

10. General Provisions

10.1 This Contract is a specific business contract under the associated contract specified in Clause A hereof (if any). Matters not covered herein shall be governed by the provisions of the associated contract. In case of any inconsistency between this Contract and the associated contract, this Contract shall prevail. In case of any inconsistency between the special provisions in Clause X hereof and other clauses in the main text of this Contract, the special provisions shall prevail. Unless otherwise explicitly agreed in writing, in case of any inconsistency between the attachments hereto and the main text, the main text of this Contract shall prevail.

10.2 Any notice or document sent by either party under this Contract shall be deemed delivered as follows: (i) If delivered in person or by authorized agent, the date of receipt by the notified party or its legal representative, principal, actual controller, major shareholders or authorized recipient; (ii) If sent by express mail or registered mail (including urban and suburban areas), the 3rd day after the date of posting; (iii) If sent by other postal methods, the 7th day after the date of posting; (iv) If sent by electronic means such as fax, short message or email, the date on which the information enters the electronic system specified at the beginning of this Contract (such as fax number, mobile phone number, telephone number, email address), or the date on which the sender receives confirmation that the information failed to enter the above electronic system. If there is any inconsistency between the delivery date determined in accordance with the above provisions and the actual receipt date or formal signature date of the notified party, the earlier date shall prevail. For the avoidance of doubt, the parties confirm that documents required by Bank of Beijing to be delivered in person by the Borrower shall be submitted directly to the authorized agent of Bank of Beijing by a special person appointed by the Borrower. Bank of Beijing shall have the right to deliver notices or documents to the Borrower by means of official announcement (including but not limited to official website, online banking, mobile banking, official WeChat public account, etc.), and the date of publication shall be the date of delivery. Either party shall promptly notify the other party in writing of any change to its contact information; otherwise, the other party shall have the right to regard the contact information before the change as valid.

10.3 The Borrower hereby irrevocably covenants that the contact person, mailing address, postcode, telephone number, fax number, email address and other contact information specified at the beginning of this Contract are all valid (including but not limited to receiving various notices, agreements and other documents, as well as relevant documents and legal instruments in case of disputes under this Contract, including first-instance, second-instance, retrial and execution procedures in arbitration or civil litigation). The Borrower agrees that people's courts, arbitration institutions, notary publics, etc. may directly use the above contact information as the confirmed valid delivery address for legal instruments and notarial documents. Relevant notices, documents, legal instruments, notarial documents, etc. may be delivered in accordance with the methods specified in Clause 10.2 hereof. The Borrower shall notify Bank of Beijing in writing at least 3 business days in advance of any change to its delivery address. During arbitration or civil litigation, the Borrower shall notify the notary public, arbitration institution and people's court of any change to its delivery address. Failure to perform the notification obligation in accordance with the above provisions shall not affect the validity of the delivery address specified and confirmed by the Borrower at the beginning of this Contract. If the delivery address provided or confirmed by the Borrower is inaccurate, the Borrower fails to notify Bank of Beijing, the notary public, the people's court or the arbitration institution of the change of delivery address at least 3 business days in advance, or the Borrower or its designated recipient refuses to sign for the delivery, resulting in the failure to deliver or the Borrower's failure to actually receive the notices or relevant legal instruments sent by Bank of Beijing, the people's court, the arbitration institution or the notary public by mail, the date of return of the documents or the date recorded in the delivery receipt shall be deemed the date of delivery. If there is any inconsistency between the delivery date determined in accordance with the above provisions and the actual receipt date or formal signature date of the parties, the earlier date shall prevail. For personal delivery, the date on which the deliverer records the situation on the delivery receipt on the spot shall be deemed the date of delivery. If the notification obligation for the change of delivery address is performed, the changed delivery address shall be the valid delivery address. For the delivery address confirmed by the Borrower at the beginning of this Contract, the people's court or arbitration institution may directly deliver documents by mail. Even if the party fails to directly receive the documents sent by mail by the people's court or arbitration institution, such delivery shall be deemed effective in accordance with the above covenant. The Borrower shall bear all possible legal consequences from the date of delivery or deemed delivery when receiving letters sent by Bank of Beijing, legal instruments sent by the people's court or arbitration institution, or notarial documents sent by the notary public through any delivery method or in any document format, regardless of whether the Borrower actually receives them directly. At the time of signing this Contract, the Borrower has fully understood the provisions regarding the delivery address and is willing to bear the legal consequences arising from the delivery by the people's court, arbitration institution or notary public to the above delivery address, recipient or authorized recipient. The Borrower shall not raise any objection to any clause related to delivery on the grounds of material misunderstanding, unconscionability, etc.

10.4 The Borrower agrees and authorizes Bank of Beijing Co., Ltd. and its branches to collect, inquire about, understand, analyze, print, store and use the Borrower's credit information, loan information, loan-related transaction information, guarantee information, guarantee property (including but not limited to mortgaged property, pledged property, etc.) and other assets, provident fund payment, social security payment, tax payment, consumption and liability information from the People's Bank of China Credit Reference Center, other legally established information databases approved by the government, legally established credit bureaus, and qualified institutions or units (including but not limited to public security organs, people's courts, industrial and commercial administrations, property registration authorities, regulatory authorities, and relevant institutions that can provide real estate/provident fund/social security/tax/credit data) in the process of providing financial products and services to the Borrower. Bank of Beijing Co., Ltd. and its branches shall have the right to input, provide and report the above information and other information provided by the Borrower to the above databases, credit bureaus, and qualified institutions or units (including but not limited to credit bureaus, public security organs, people's courts, industrial and commercial administrations, property registration authorities, regulatory authorities, and relevant institutions that can provide real estate/provident fund/social security/tax/credit data) for inquiry and use by qualified institutions or units/individuals.

At the same time, Bank of Beijing Co., Ltd. and its branches shall have the right to provide the above information about the Borrower and other information provided by the Borrower to third parties in the event of assigning the rights and interests under the business conducted with the Borrower to other parties (including but not limited to conducting non-performing asset transfer), using them as investment assets for trusts, creating security interests or establishing trusts, carrying out asset securitization, outsourcing financial services, or collecting overdue debts. Bank of Beijing Co., Ltd. and its branches shall also have the right to provide relevant information to relevant regulatory, judicial and administrative departments in accordance with the requirements of laws, regulations and regulatory authorities.

10.5 Unless otherwise agreed herein, each party shall be obligated to keep confidential all trade secrets of the other party and other undisclosed information explicitly required to be kept confidential obtained in the process of negotiating and performing this Contract, and shall not disclose such information to any third party without the other party's written consent until such information loses its confidentiality. However, disclosure in accordance with the requirements of laws and regulations, competent authorities, regulatory authorities or the stock exchange on which it is listed, or reasonable disclosure to its auditors, financial advisors, legal counsel or other intermediary institutions for the purpose of performing this Contract (provided that such party shall require the above institutions and individuals to assume confidentiality obligations) shall not be deemed a breach of the confidentiality obligation.

10.6 The validity of this Contract shall be independent of the guarantee documents, the associated contract (if any) and any other contracts/agreements/commitments, and shall not be affected by the validity or enforceability of the above documents. If any clause or content of this Contract is revoked or deemed invalid in accordance with law, the validity of other clauses and contents shall not be affected and shall remain valid. The failure of one party to exercise the corresponding remedy rights when the other party breaches the contract shall not be deemed a waiver of such rights or an approval of the breach.

10.7 This Contract shall take effect upon being signed by the legal representative/principal/authorized representative of both parties and sealed with the company seal (or the contract seal recognized by a document sealed with the company seal). This Contract is made in three original copies (additional original copies shall be made if notarization or guarantee registration formalities are required). Bank of Beijing shall hold two copies and the Borrower shall hold one copy, each original copy having the same legal effect. If there is a guarantor, the Borrower shall be responsible for providing the guarantor with a copy of this Contract, but the Borrower's failure to do so shall not have an adverse impact on Bank of Beijing's claims and security interests.

The Borrower hereby confirms that it has fully reviewed this Contract, Bank of Beijing has drawn its attention to the clauses restricting its liability or rights and provided a full explanation and illustration of this Contract. After negotiation and discussion with Bank of Beijing, the Borrower fully understands and agrees to all contents of this Contract, including the Contract Terms Schedule, General Terms and Conditions and attachments hereto, has a clear, accurate and comprehensive understanding of the rights and obligations of both parties, and has no doubts or objections.

(No text below)

**Signature and Seal of the Borrower**:

Legal Representative/Principal

or Authorized Representative (Signature):

Date:

**Signature and Seal of Bank of Beijing**:

Legal Representative/Principal

or Authorized Representative (Signature):

Date:

## Exhibit 4.11

**Exhibit 4.11**

Working Capital Loan Contract

Borrower: Jiangxi Universe Pharmaceuticals Co., Ltd.

Lender: Jiangxi Luling Rural Commercial Bank Co., Ltd.

Special Reminder: To protect the legitimate rights and interests of the Borrower, the Lender specially requests the Borrower to pay full attention to all clauses concerning the rights and obligations of both parties, especially the content in bold. If the Borrower has any objections, it shall raise them to the Lender. If there are no objections, after being signed by both parties, all clauses of this Contract are the true expressions of the intentions of both parties, have legal binding force, and are protected by law.

Term of the Loan

From November 4, 2025 to November 3, 2028.

● If the loan amount under this Contract is a revolving line of credit, the validity period of the line of credit shall be consistent with the agreed effective use period of the loan under the Contract, and the term of each loan shall be subject to the period recorded in the loan voucher.

● If the loan amount under this Contract is a non-revolving line of credit, the loan term shall be consistent with the agreed effective use period of the loan under the Contract, and the specific loan term shall be subject to the period recorded in the loan voucher.

● If the Borrower commits any of the default events listed in Article 19 of this Contract, the Borrower agrees that the Lender may recall the loan in advance, and the date on which the Lender declares the advance recall of the loan shall be the maturity date of the loan.

Purpose of the Loan

Purpose of the loan: Working capital turnover.

Without the prior written consent of the Lender, the Borrower shall not change the purpose of the loan or divert the loan for other uses, and the Lender has the right to supervise the use of the loan.

Loan Interest Rate and Interest Calculation and Settlement

1. Loan Interest Rate

The loan interest rate shall be calculated on a simple interest basis and determined in accordance with the following method:

&nbsp;&nbsp;&nbsp;&nbsp;(1) Fixed interest rate: Annual interest rate of 35%; or based
on the latest one-year Loan Prime Rate (LPR) published on the working day before the signing date of this Contract or the withdrawal
date, plus/minus ybp (1bp = 0.01%), with an annual interest rate of 34.5%, and the interest rate shall remain unchanged during the loan
term.

&nbsp;&nbsp;&nbsp;&nbsp;(2) Floating interest rate:

The annual interest rate shall be determined by adding/minus bp to/from the latest one-year Loan Prime Rate (LPR) published on the working day before the withdrawal date. The value of the spread (addition/minus points) shall remain unchanged during the validity period of this Contract. If the Loan Prime Rate (LPR) is adjusted, the method for determining the loan interest rate shall be handled in accordance with the following method, and the Lender shall not notify the Borrower separately:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;① Annual adjustment: From January 1 of the following year, the
interest rate shall be implemented by adding/minus the agreed points to/from the newly published LPR;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;② Anniversary adjustment: On the corresponding date of the
same month and day each year, the interest rate shall be implemented by adding/minus the agreed points to/from the newly published LPR;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;③ Quarterly adjustment (1): On the corresponding date of the
first month of each quarter, the interest rate shall be implemented by adding/minus the agreed points to/from the newly published LPR;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;④ Quarterly adjustment (2): On the 1st day of the first month
of each quarter, the interest rate shall be implemented by adding/minus the agreed points to/from the newly published LPR;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;⑤ Monthly adjustment (1): On the corresponding date of each
month, the interest rate shall be implemented by adding/minus the agreed points to/from the newly published LPR (if there is no corresponding
date in the adjustment month, the last day of the month shall be the corresponding date);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;⑥ Monthly adjustment (2): On the 1st day of each month, the
interest rate shall be implemented by adding/minus the agreed points to/from the newly published LPR;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;⑦ Immediate adjustment: From the next day of the new LPR publication,
the new LPR shall be used to implement the interest rate by adding/minus the agreed points as specified in this Contract.

&nbsp;&nbsp;&nbsp;&nbsp;(3) Other methods:

If the Borrower chooses the "(2) Floating interest rate" method, in case the Loan Prime Rate (LPR) increases, the monthly repayment amount of the Borrower will increase. If the Borrower still repays according to the repayment amount before the adjustment, the monthly repayment amount will be insufficient, resulting in penalty interest and compound interest, and affecting the Borrower's credit record.

2. Interest Settlement Method

The Borrower shall settle interest in accordance with the following Method 2:

&nbsp;&nbsp;&nbsp;&nbsp;(1) Quarterly interest settlement: The 20th day of the last month
of each quarter shall be the interest settlement date, and the 21st day shall be the interest payment date.

&nbsp;&nbsp;&nbsp;&nbsp;(2) Monthly interest settlement: The 20th day of each month shall
be the interest settlement date, and the 21st day shall be the interest payment date.

&nbsp;&nbsp;&nbsp;&nbsp;(3) Other methods:

If the final repayment date of the loan principal is not an interest payment date, the final repayment date of the loan principal shall be the interest payment date, and the Borrower shall pay off all accrued interest.

3. Penalty Interest Rate

&nbsp;&nbsp;&nbsp;&nbsp;(1) If the Borrower fails to repay the loan within the agreed
term, interest on the overdue part shall be calculated at the overdue loan penalty interest rate from the date of overdue until the principal
and interest are fully repaid;

&nbsp;&nbsp;&nbsp;&nbsp;(2) If the Borrower fails to use the loan for the agreed purpose,
interest on the misappropriated part shall be calculated at the misappropriated loan penalty interest rate from the date of misappropriation
until the principal and interest are fully repaid;

&nbsp;&nbsp;&nbsp;&nbsp;(3) For loans that are both overdue and misappropriated, interest
shall be calculated at the misappropriated loan penalty interest rate;

&nbsp;&nbsp;&nbsp;&nbsp;(4) For interest and penalty interest that the Borrower fails
to pay on time, compound interest shall be calculated at the penalty interest rate specified in this paragraph in accordance with the
interest settlement method agreed in Paragraph 2 of this Article;

&nbsp;&nbsp;&nbsp;&nbsp;(5) When calculating penalty interest and compound interest,
if the loan interest rate agreed in this Contract is adjusted, the penalty interest and compound interest shall be calculated at the
adjusted rate from the adjustment date;

&nbsp;&nbsp;&nbsp;&nbsp;(6) Penalty interest rate:

The overdue loan penalty interest rate shall be 50% higher than the loan interest rate agreed in Paragraph 1 of this Article; the misappropriated loan penalty interest rate shall be 100% higher than the loan interest rate agreed in Paragraph 1 of this Article.

Loan Disbursement and Repayment Account

The Borrower shall open the following account with the Lender as the loan disbursement and repayment account, and the disbursement, payment and repayment of the loan shall be handled through this account:

Bank of deposit: Xilingfa Commercial Bank

Account name: Jiangxi Dasheng Pharmaceutical Co., Ltd.

Account number:

Repayment

Unless otherwise agreed by both parties, the Borrower shall repay the loan under this Contract in accordance with the following Repayment Plan 1:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Repay all loans under this Contract on the maturity date of
the loan term.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Repay the loan under this Contract in accordance with the
following repayment plan:

\| Installment \| Repayment Amount \| Repayment Date \|

\| ---- \| ---- \| ---- \|

\| 1 \| \| \|

\|... \| \| \|

\| Total \| \| \|

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Other repayment plans:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. If the Borrower intends to repay the loan in advance, it shall
obtain the consent of the Lender 3 banking working days in advance.

Guarantee

The loan under this Contract is a guaranteed (credit/guaranteed) loan, and the guarantee method is guarantee (guarantee/mortgage/pledge). A separate guarantee contract shall be signed.

Contractually Agreed Financial Indicators of the Borrower

1. 2. 3. Dispute Resolution

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. After the effectiveness of this Contract, all disputes arising
from the conclusion, performance of this Contract or in connection with this Contract may be resolved through negotiation between both
parties. If negotiation fails, either party may file a lawsuit with the people's court having jurisdiction over the place where the Lender
is located in accordance with the law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. During the dispute resolution period, if the dispute does
not affect the performance of other clauses of this Contract, those other clauses shall continue to be performed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Upon negotiation between all parties, this Contract may be
notarized for compulsory execution. The Borrower agrees that this Contract shall have the effect of compulsory execution after notarization.
If the Borrower fails to perform its obligations under this Contract, the Lender may apply to the people's court having jurisdiction
for execution in accordance with the law.

Contract Effectiveness

This Contract shall take effect on the date of signature and seal by both parties.

This Contract is made in triplicate, with the Borrower, the Lender and the registration authority each holding one copy, all of which have the same legal effect.

Other Agreed Matters

Chapter II Standard Clauses

Article 12 Interest Calculation

Interest shall accrue from the actual withdrawal date of the Borrower, calculated based on the actual withdrawal amount and the number of days of use.

Interest calculation formula: Interest = Principal × Actual days × Daily interest rate.

The daily interest rate is calculated based on 360 days in a year, with the conversion formula: Daily interest rate = Annual interest rate / 360.

Article 13 Conditions for Loan Disbursement

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. The Borrower must meet all the following conditions for loan
disbursement; otherwise, the Lender has no obligation to disburse any funds to the Borrower, unless the Lender agrees to make an advance
disbursement:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) This Contract and its attachments have taken effect;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) The Borrower has reserved with the Lender documents, bills,
seals, lists of personnel and signature samples related to the conclusion and performance of this Contract, and completed relevant vouchers;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) The Borrower has opened the necessary accounts for the performance
of this Contract as required by the Lender;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) Submit a written withdrawal notice and relevant documents
proving the purpose of the loan to the Lender 3 banking working days before the withdrawal, and the provided documents proving the purpose
of the loan are consistent with the agreed purpose, and complete the relevant withdrawal procedures;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) The Borrower has submitted to the Lender the resolution and
power of attorney of the board of directors or other authorized departments agreeing to the signing and performance of this Contract;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6) In accordance with relevant regulatory requirements and the
Lender's management requirements, loans exceeding a certain amount or meeting other conditions shall adopt the Lender's entrusted payment
method. The Lender shall pay the loan to the payment object in line with the agreed purpose of this Contract according to the Borrower's
withdrawal application and payment entrustment;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(7) Except for credit loans, the Borrower has provided corresponding
guarantees as required by the Lender and completed all relevant guarantee procedures, and the guarantees are legal and valid;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(8) No default has occurred under this Contract or other contracts
signed between the Borrower and the Lender;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. From the date of signing this Contract, if the Borrower does
not make any withdrawal for 3 consecutive months, the Lender has the right to cancel the loan line.

Article 14 Special Agreements on Revolving Loans (Maximum Amount Loans)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. During the use period of the revolving loan line, the sum
of the outstanding loan principal balances of the Borrower at any time shall not exceed the revolving loan line; the repayment date of
any withdrawal shall not exceed the use period of the revolving loan line.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Both parties agree that the Lender may reasonably set the
amount and term of each revolving loan according to the scale and cycle characteristics of the Borrower's production and operation.

Unless otherwise agreed by both parties, the payment method for other loan funds shall be the Borrower's independent payment, that is, after the Lender disburses the loan funds to the Borrower's account according to the Borrower's withdrawal application, the Borrower shall independently pay the funds to the Borrower's counterparty in line with the agreed purpose of the Contract.

If the Borrower needs to change the above repayment plan, it shall submit a written application to the Lender 10 banking working days before the maturity of the corresponding loan. The change of the repayment plan must be jointly confirmed in writing by both parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. If the loan under this Contract needs to be extended, the
Borrower shall submit a written extension application to the Lender 30 banking working days before the maturity of the loan. The decision
on whether to agree to the extension shall be made by the Lender. For the application for the extension of guaranteed loans, mortgage
loans or pledge loans, the guarantor, mortgagor or pledgor shall also issue a written certificate of consent. If the Lender agrees to
the extension, both parties shall sign an extension agreement; if the Borrower's extension application is not approved by the Lender,
the Borrower shall still repay the loan in full in accordance with the repayment term agreed in this Contract.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. Unless otherwise agreed by both parties, if the Borrower is
in arrears with both the loan principal and interest, the Lender has the right to decide the order of repaying the principal or interest;
in the case of installment repayment, if there are multiple matured or overdue loans under this Contract, the Lender has the right to
decide the order of repayment; if there are multiple loan contracts between the Borrower and the Lender, the Lender has the right to
decide the order of the contracts to be performed by each repayment of the Borrower.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. The Borrower shall repay the loan principal, interest and
other payable amounts in full and on time in accordance with the agreement of this Contract. Before the close of business at the counter
on the repayment date and each interest settlement date, the Borrower shall deposit sufficient funds in the repayment account opened
with the Lender to cover the current interest, principal and other payable amounts. The Borrower authorizes the Lender to automatically
deduct the funds on the repayment date or interest settlement date, or requires the Borrower to cooperate in handling the relevant fund
transfer procedures. If the funds in the repayment account are insufficient to cover all the Borrower's matured payable amounts, the
Borrower agrees that the Lender shall decide the order of repayment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. The Lender has the right to recall the loan in advance according
to the Borrower's fund recovery situation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. Loan voucher: The loan voucher is an integral part of this
Contract. If there is any inconsistency between the content recorded in this Contract (such as loan amount, withdrawal amount, repayment
amount, loan issuance date and maturity date, loan term, loan interest rate, loan purpose) and that recorded in the loan voucher, the
loan voucher shall prevail.

Article 16 Guarantee

If the Lender deems that any event has occurred to the Borrower or the guarantor that may affect their performance ability, or the guarantee contract becomes invalid, revoked or terminated, or the Borrower or the guarantor undergoes changes such as restructuring, merger, division, suspension of business, closure, or transfer upon approval by the competent authority, the Borrower shall ensure to notify the Lender in writing at least one month before the occurrence of the above events and immediately repay all debts to the Lender. With the prior written consent of the Lender, the Borrower may transfer the debts to the receiving unit or the newly established unit (during the debt transfer process, the Borrower shall present and submit to the Lender the official documents or relevant documents issued by its competent authority or the employer). However, the unit accepting the debts must sign a new loan contract with the Lender and submit a written certificate of consent from the corresponding guarantor or implement new guarantee measures. Before the signing of the new contract, the Lender has the right to recover the debts from the Borrower, the guarantor or the receiver of the Borrower at any time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13. The order of repayment of the Borrower's debts to the Lender
shall take priority over the Borrower's shareholders' claims against the Borrower and shall not be inferior to the Borrower's similar
debts to other creditors. From the effective date of this Contract until the full repayment of the loan principal, interest and related
expenses under this Contract, the Borrower shall not repay the amounts owed to its shareholders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14. With regard to the loan under this Contract, the loan conditions
provided by the Borrower to the Lender, such as guarantee conditions, loan interest rate pricing, and debt repayment order, shall not
be less favorable than those provided to any other financial institution now or in the future.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15. Bear the expenses incurred in the conclusion and performance
of this Contract, as well as the expenses paid and to be paid by the Lender for the realization of the creditor's rights under this Contract,
including but not limited to litigation or arbitration fees, property preservation fees, attorney fees, execution fees, appraisal fees,
auction fees, announcement fees, etc.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16. Account Management

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) The repayment account designated and opened by the Borrower
with the Lender (the account agreed in Article 5) shall be a special fund recovery account, used to collect corresponding sales income
or planned repayment funds. If the corresponding sales income is settled in a non-cash manner, the Borrower shall ensure to promptly
transfer the funds into the fund recovery account upon receipt.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) The Lender has the right to supervise the fund recovery account,
including but not limited to understanding and supervising the inflow and outflow of funds in the account, and the Borrower shall cooperate.
If required by the Lender, the Borrower shall sign a special account supervision agreement with the Lender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17. The Borrower shall not dispose of its own assets in a way
that reduces its debt repayment ability, and undertakes that the total amount of its external guarantees shall not exceed [X] times its
own net assets, and the total amount of external guarantees and the amount of individual guarantees shall not exceed the limit specified
in its articles of association; without the prior consent of the Lender, it shall not provide guarantees to third parties with the assets
formed by the loan under this Contract or provide guarantees for the loans of the Borrower in other financial institutions.

Article 18 Internal Affiliation of the Borrower

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. The Borrower is not a group customer identified by the Lender
in accordance with the Guidelines for Risk Management of Credit Business to Group Customers of Commercial Banks (referred to as the Guidelines).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. The Borrower is a group customer identified by the Lender
in accordance with the Guidelines. The Borrower shall promptly report the relevant affiliated transaction situation to the Lender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. If the Borrower and its affiliates experience major mergers,
acquisitions, restructurings and other events that obviously or may affect the safety of the Lender's loan.

Article 19 Default Events and Handling

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. The occurrence of any of the following events by the Borrower
shall constitute or be deemed as a default by the Borrower in the performance of this Contract, and the Borrower shall bear liability
for breach of contract:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) The Borrower fails to perform its payment and repayment obligations
to the Lender in accordance with the agreement of this Contract;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) The Borrower fails to use the loan funds in accordance with
the agreed purpose and method of this Contract or fails to use the obtained funds for the purpose agreed in this Contract; or the Borrower
fails to go through the withdrawal procedures on time in accordance with the withdrawal plan, or the change of the withdrawal plan is
not approved by the Lender; or the Borrower evades the Lender's entrusted payment by splitting the amount in violation of the agreement
of this Contract;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) The representations made by the Borrower in this Contract
are untrue, or the Borrower violates the commitments made by it in this Contract;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) The occurrence of the circumstances specified in Article
17, Item 12 of this Contract, etc., and the Lender deems that it may affect the financial status and performance ability of the Borrower
or the guarantor, but the Borrower fails to provide new guarantees or replace the guarantor in accordance with the agreement of this
Contract;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) The Borrower commits a default under other contracts with
the Lender; the Borrower commits a default under the credit contracts with other financial institutions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6) The guarantor violates the agreement of the guarantee contract
or commits a default under other contracts with the Lender;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(7) The Borrower terminates its business or undergoes dissolution,
revocation or bankruptcy;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(8) The Borrower is involved in or may be involved in major economic
disputes, lawsuits, arbitrations, or its assets are seized, detained or enforced, or it is filed for investigation or imposed with punitive
measures in accordance with the law by judicial authorities or administrative authorities such as taxation and industry and commerce,
which has or may affect the performance of its obligations under this Contract;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(9) The key investors or key management personnel of the Borrower
have abnormal changes, disappear or are investigated or restricted in personal freedom by judicial authorities in accordance with the
law, which has or may affect the performance of its obligations under this Contract;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(10) The credit status of the Borrower deteriorates, or the Borrower's
financial indicators such as profitability, debt repayment ability, operational capacity and cash flow deteriorate, breaking through
the indicator constraints or other financial agreements agreed in this Contract;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(11) The Borrower uses false contracts with affiliated parties
to obtain funds or credit from the Lender through transactions without actual transaction background; the affiliated parties experience
major mergers, acquisitions, restructurings and other events that obviously or may affect the safety of the Lender's loan; or the Borrower
intentionally evades the Lender's creditor's rights through affiliated transactions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(12) The Borrower causes liability accidents due to violations
of relevant laws, regulations, regulatory requirements or industry standards such as food safety, production safety and environmental
protection, which has or may affect the performance of its obligations under this Contract;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(13) If the loan under this Contract is granted on a credit basis,
the Borrower's credit rating, profit level, asset-liability ratio, net cash flow from operating activities and other indicators do not
meet the Lender's credit loan conditions; or with the prior written consent of the Lender, the Borrower sets up mortgages/pledges on
its effective operating assets for others or provides guarantee guarantees to others, which has or may affect the performance of its
obligations under this Contract;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(14) Other circumstances that may adversely affect the realization
of the Lender's creditor's rights under this Contract.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. When any of the default events specified in the preceding
paragraph occurs, the Borrower agrees that the Lender may take the following measures separately or simultaneously according to the specific
circumstances:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Require the Borrower and the guarantor to correct their default
behaviors within a time limit.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Reduce, suspend or terminate all or part of the credit line
granted to the Borrower.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Suspend or terminate all or part of the acceptance of the
Borrower's applications for withdrawal and other businesses under this Contract and other contracts between the Borrower and the Lender;
for loans not yet disbursed, suspend or terminate all or part of the disbursement, payment and processing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) Declare all or part of the unpaid loan principal, interest
and other payable amounts under this Contract and other contracts between the Borrower and the Lender immediately due.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) Negotiate with the Borrower to supplement the conditions
for loan disbursement and payment, or the Lender has the right to change the conditions for loan disbursement and payment according to
the Borrower's credit status, such as reducing the minimum amount for entrusted payment, or the Lender has the right to require the recovery
of the loan funds paid in violation of the agreement, etc.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6) Terminate or rescind this Contract, and terminate or rescind
all or part of other contracts between the Borrower and the Lender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(7) Require the Borrower to compensate for the losses caused
to the Lender due to its default.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(8) With prior or subsequent notice, have the right to directly
deduct funds from any account of the Borrower within the Jiangxi Rural Commercial Bank system to repay the loan principal and interest,
and the immature funds in the account shall be deemed as mature in advance;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(9) Exercise the security interest; require the guarantor to
assume the guarantee liability.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(10) If the Borrower fails to repay the loan principal, interest
(including penalty interest and compound interest) or other payable amounts on time, the Lender may disclose the default information
of the Borrower and the guarantor and conduct public notice for collection through public media such as television, newspapers, the Internet
or other forms.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(11) Have the right to deduct the deposits and equity dividends
of the Borrower in any account of Jiangxi Rural Commercial Bank, and have the right to dispose of the equity of the Borrower, etc.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(12) Other measures required by laws and regulations and deemed
necessary and possible by the Lender.

Article 20 Reservation of Rights

The failure of one party to exercise all or part of its rights under this Contract, or to require the other party to perform or assume all or part of its obligations and liabilities, shall not constitute a waiver of such rights or an exemption from such obligations and liabilities by that party.

Any tolerance, extension or delay by one party in exercising its rights under this Contract shall not affect any rights it enjoys under this Contract and laws and regulations, nor shall it be deemed as a waiver of such rights.

Article 21 Confidentiality

Both parties guarantee to keep confidential the trade secrets (technical information, business information and other trade secrets) obtained from the other party that cannot be obtained from public channels. Without the consent of the original provider of the trade secret, neither party shall disclose all or part of the trade secret to any third party, except as otherwise provided by laws and regulations or agreed by both parties.

If one party violates the above confidentiality obligation, it shall bear corresponding liability for breach of contract and compensate for the losses caused thereby.

Article 22 Force Majeure

Force majeure as referred to in this Contract means unforeseeable, unavoidable and insurmountable objective events that have a significant impact on one party, including but not limited to natural disasters such as floods, earthquakes, fires and storms, and social events such as wars and riots.

If the performance of the Contract becomes impossible due to the occurrence of a force majeure event, the party affected by the force majeure shall immediately notify the other party in writing of the event and provide a written document detailing the event and the impossibility or need for extension of the performance of the Contract within 7 days. After confirmation by both parties, they shall negotiate to terminate the Contract or temporarily delay the performance of the Contract.

Article 23 Modification, Amendment and Termination

This Contract may be modified or amended in writing upon mutual agreement of both parties. Any modification or amendment agreed by both parties shall constitute an integral part of this Contract.

Unless otherwise provided by laws and regulations or agreed by the parties, this Contract shall not be terminated before the full performance of all the rights and obligations agreed herein.

Unless otherwise provided by laws and regulations or agreed by the parties, if any clause of this Contract is invalid, it shall not affect the legal effect of other clauses.

Article 24 Agreement on Service of Documents

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. The contact information (including communication address,
contact phone number, fax number, etc.) filled in by the Borrower in this Contract is true and valid and shall be the service address
for any notices from the Lender to the Borrower. If any contact information is changed, the Borrower shall immediately send the change
information to the communication address filled in by the Lender in this Contract in writing. Such information change shall take effect
after the Lender receives the change notice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Unless otherwise explicitly agreed in this Contract, the Lender
has the right to serve any notice to the Borrower through any of the following methods. The Lender has the right to choose the notice
method it deems appropriate and shall not be liable for any transmission errors, omissions or delays occurring in the postal, fax, telephone,
WeChat or any other communication system. If the Lender chooses multiple notice methods simultaneously, the one that reaches the Borrower
first shall prevail.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Public announcement service: The date on which the Lender
publishes the announcement on its website, online banking, telephone banking or business outlets shall be deemed as the service date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Personal service: The date on which the Borrower signs for
receipt shall be deemed as the service date; if the Borrower refuses to sign for receipt, the date on which the server records the situation
on the service receipt on the spot shall be deemed as the service date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Postal service (including express mail, ordinary mail, registered
mail) to the latest known communication address of the Borrower by the Lender: The date on which the Borrower signs for receipt shall
be deemed as the service date; if the Borrower does not sign for receipt, the date on which the postal item is returned shall be deemed
as the service date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) Service by fax, mobile phone short message, WeChat or other
electronic communication methods to the latest known fax number, designated mobile phone number, WeChat number or email address of the
Borrower by the Lender: The date of sending shall be deemed as the service date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. The Borrower agrees that unless the Lender receives a written
notice from the Borrower about the change of communication address, the Borrower's domicile stated in this Contract shall be the communication
and contact address. In the future, all account statements, collection documents, relevant legal documents and litigation document service
addresses related to the loan under this Contract shall be based on this. The Borrower undertakes to promptly notify the Lender if there
is any change in the communication and contact methods; otherwise, all documents served by the Lender in accordance with the communication
and contact methods stated in this Contract shall be deemed as valid service, and the relevant economic and legal liabilities arising
therefrom shall be borne by the Borrower and the mortgagor. During the dispute resolution process of this Contract, if the court or notary
organ serves judicial documents or other written documents to the communication address confirmed by the Borrower in this Contract by
postal service (including express mail, ordinary mail, registered mail), the date on which the Borrower signs on the service receipt
shall be the service date; if the Borrower does not sign on the service receipt, the date on which the postal item is returned shall
be the service date.

The court or notary organ has the right to serve any notice to the Borrower through any of the communication methods agreed in Paragraph 2 of this Article. The court or notary organ has the right to choose the communication method it deems appropriate and shall not be liable for any transmission errors, omissions or delays occurring in the postal, fax, telephone, telex or any other communication system. If the court or notary organ chooses multiple communication methods simultaneously, the one that reaches the Borrower first shall prevail.

Article 25 Attachments

Relevant attachments jointly confirmed by both parties shall constitute an integral part of this Contract and have the same legal effect as this Contract.

Article 26 Other Agreements

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Without the prior written consent of the Lender, the Borrower
shall not transfer any rights or obligations under this Contract to a third party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. The Lender has the right to transfer the creditor's rights
under this Contract to a third party, but shall notify the Borrower.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Without prejudice to other agreements of this Contract, this
Contract shall be legally binding on both parties and their legally generated successors and assignees.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. The transaction under this Contract is conducted based on
the independent interests of each party. If, in accordance with relevant laws, regulations and regulatory requirements, other parties
to the transaction constitute affiliated parties or related persons of the Lender, each party shall not seek to use such affiliated relationship
to affect the fairness of the transaction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. The headings and business names in this Contract are only
used for convenience of reference and shall not be used to interpret the content of the clauses or the rights and obligations of the
parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. The Lender has the right to provide the information related
to this Contract and other relevant information of the Borrower to the Credit Reference Center of the People's Bank of China and other
legally established credit information databases in accordance with relevant laws, regulations and regulatory requirements, for inquiry
and use by qualified institutions or individuals in accordance with the law. The Lender also has the right to inquire about the relevant
information of the Borrower through the Credit Reference Center of the People's Bank of China and other legally established credit information
databases for the purpose of concluding and performing this Contract.

Both parties confirm that the lender and the borrower have fully negotiated all the clauses of this Contract. The Lender has specially reminded the Borrower to pay attention to all clauses concerning the rights and obligations of both parties, made a comprehensive and accurate understanding of them, and has explained and illustrated the relevant clauses at the request of the Borrower. The Borrower has carefully read and fully understood all the contents and clauses of the Contract, confirms that there is no misunderstanding or doubt about all the contents and clauses, and the lender and the borrower have a complete consistent understanding of the contents and clauses of this Contract and have no objection to the contents and clauses of the Contract.

(The Borrower shall fill in the above accordingly)

(No text below, for the signing page of both parties)

## Exhibit 4.12

**Exhibit 4.12**

Working Capital Loan Contract

(Applicable to RMB Business of Small and Micro Enterprises)

**Huaxia Bank Co., Ltd.**

**Contract No.:** NC2x1610120250036

**Party A (Borrower):** Jiangxi Universe Pharmaceuticals Co., Ltd.

● Residence: No. 265 Jingjiu Avenue, Jinggangshan Economic and Technological Development Zone, Ji'an City, Jiangxi Province

● Postal Code: 343100

● Legal Representative: Lai Gang

● Tel:

● Fax: /

● Primary Account Opening Bank:

● Account No.:

**Party B (Lender):** Huaxia Bank Co., Ltd. Ji'an Branch

● Residence: Plot A-4-2, Northwest Corner of the Intersection of Jinggangshan Avenue and Chongwen Road, Jizhou District, Ji'an City, Jiangxi Province

● Postal Code: 343000

● Legal Representative/Principal Responsible Person: Bai Jing

● Tel: 0796-8959035

● Fax: /

In accordance with the relevant laws and regulations of the People's Republic of China, on the basis of adhering to the principle of fairness, this Contract is concluded through negotiation and agreement between both parties.

Article 1 Type of Loan

1.1 The loan under this Contract is a working capital loan.

Article 2 Amount and Currency of Loan

2.1 The currency of the loan under this Contract is RMB.

2.2 The amount of the loan under this Contract is (in words) RMB Five Million Yuan Only.

Article 3 Purpose of Loan

3.1 The loan under this Contract shall be used solely for the purpose stated in the "Working Capital Loan Drawdown Application" (hereinafter referred to as the "Drawdown Application", Annex 1) approved by Party B. Without the written consent of Party B, Party A shall not change the purpose of the loan. Party A shall sign the "Letter of Commitment on Fund Use" (Annex 2) to ensure that the borrowed funds are used for the operational purposes agreed upon by both parties. The use of funds shall comply with the provisions of national laws, regulations, departmental rules, normative documents and other relevant policies, and shall not be used in the real estate sector, investment in stocks, securities, futures, wealth management products and other financial products, distribution of dividends to shareholders of Party A, as well as investment in financial assets, fixed assets, equity, etc., and shall not be used in fields and purposes prohibited by the state for production and operation. If Party A is a local financial organization, the provisions of laws, regulations, regulatory requirements and other relevant provisions shall prevail.

Article 4 Term of Loan

4.1 The maximum term of the loan under this Contract is [days/months/years], starting from the actual drawdown date of the first loan. The term of each loan shall start from the actual drawdown date of that loan, and the maturity date shall not exceed the deadline determined in accordance with the above rules.

4.2 Party A shall draw down the loan under this Contract in the following manner:

● Draw down in one lump sum on June 27, 2025. Party A shall submit a Drawdown Application to Party B at least [X] working days before the agreed drawdown date, and may draw down the loan only after Party B's review and approval.

● Draw down within the following drawdown period: The drawdown period shall be from the date of signing this Contract to [date], and all drawdowns shall be made within the drawdown period. Party A shall submit a Drawdown Application to Party B at least three working days before the planned drawdown date, and may draw down the loan only after Party B's review and approval.

● Before each planned drawdown by Party A, all the drawdown conditions specified in Article 6 of this Contract shall have been met; otherwise, Party B shall have no obligation to provide any loan to Party A.

4.3 Party A shall repay the principal of the loan under this Contract in the following manner:

● Repay the principal in one lump sum on the maturity date of the loan.

● Repay the principal in installments in the following order, time and full amount: Repay in accordance with the maturity date stated in the loan voucher corresponding to each loan under this Contract.

● Other repayment methods: To be separately agreed in writing by both parties.

4.4 If the loan drawdown date and maturity date recorded in the loan voucher under this Contract are inconsistent with those agreed in Clauses 4.2/4.3 or the Drawdown Application, the time recorded in the loan voucher under this Contract shall prevail. The Drawdown Application, loan voucher and other documents confirmed by both parties as annexes to this Contract shall form an integral part of this Contract and have the same legal effect as this Contract.

Article 5 Loan Interest Rate

5.1 The interest rate of the loan under this Contract is an annual interest rate, calculated on a simple interest basis, and shall be implemented in accordance with the following agreements:

5.1.1 The loan interest rate shall be a (fixed/floating) interest rate.

5.1.2 Fixed interest rate: The interest rate shall remain unchanged during the loan term. The fixed interest rate shall be determined by adding/subtracting 70 basis points (1 basis point = 0.01%) to/from the one-year term Loan Prime Rate (LPR) announced by the National Interbank Funding Center on the working day prior to the (first drawdown date/each drawdown date). The specific interest rate shall be subject to the loan voucher issued by Party B. The annual interest rate is 3.7%.

5.1.3 Floating interest rate: The floating interest rate shall be determined by adding/subtracting [X] basis points (1 basis point = 0.01%) to/from the [X]-term Loan Prime Rate (LPR) announced by the National Interbank Funding Center on the working day prior to each drawdown date. The specific interest rate shall be subject to the loan voucher issued by Party B.

5.1.4 If the loan interest rate is a floating interest rate, after the issuance of each loan, if the Loan Prime Rate (LPR) is adjusted, the loan interest rate shall be adjusted in the following manner:

● For monthly interest settlement, the interest rate shall be adjusted monthly, and the adjusted contract loan interest rate shall take effect from the day after the first interest settlement date following the adjustment of the Loan Prime Rate (LPR);

● For quarterly interest settlement, the interest rate shall be adjusted quarterly, and the adjusted contract loan interest rate shall take effect from the day after the first interest settlement date following the adjustment of the Loan Prime Rate (LPR);

● For annual interest rate adjustment, the adjusted contract loan interest rate shall take effect from the day after the first interest settlement date of the following year / the day after the first interest settlement date when one year has elapsed since the loan issuance;

● Others: [Specify if applicable]

5.1.5 When making adjustments in accordance with the provisions of Clause 5.1.4 above, the adjusted loan interest rate shall be determined based on the [X]-term Loan Prime Rate (LPR) and the added/subtracted basis points specified in Clause 5.1.3 on the working day prior to the corresponding interest settlement date.

5.2 Interest on the loan under this Contract shall accrue from the actual drawdown date, and the formula for calculating interest is: Interest = Actual loan balance × Actual number of days in the interest calculation period × Annual interest rate / 360 (days).

5.3 The interest settlement method for the loan under this Contract shall be one of the following:

● Monthly interest settlement: The interest settlement date shall be the 20th day of each month, and the interest payment date shall be the 21st day of each month. The last interest payment date shall be the maturity date of the loan (if the interest payment date falls on a legal holiday or public holiday, it shall be postponed);

● Quarterly interest settlement: The interest settlement date shall be the 20th day of the last month of each quarter, and the interest payment date shall be the 21st day of the last month of each quarter. The last interest payment date shall be the maturity date of the loan (if the interest payment date falls on a legal holiday or public holiday, it shall be postponed);

● Interest paid with principal: Interest shall be paid in one lump sum on the maturity date of the loan (if it falls on a legal holiday or public holiday, it shall be postponed);

● Others: [Specify if applicable]

5.4 If the contract loan interest rate is changed, the penalty interest rate under this Contract shall be automatically changed accordingly and shall take effect simultaneously with the contract loan interest rate, calculated on a pro-rata basis.

5.5 For adjustments made in accordance with the provisions of Clauses 5.1, 5.3 and 5.4, Party B shall not be required to obtain Party A's consent separately.

5.6 If the Loan Prime Rate (LPR) is abolished for the loan issued under this Contract, Party B shall have the right to directly change the pricing benchmark of the loan interest rate in accordance with the national interest rate policy for the same period and re-determine the loan interest rate in accordance with the principles of fairness and good faith. Before making the above adjustment, Party B shall notify Party A in advance within a reasonable time, and the notification shall be made through one of the methods deemed reasonable by Party B, such as mobile phone short message, branch announcement or other methods. If Party A does not accept the change of the loan interest rate pricing benchmark, it may repay the loan in advance within 30 days; failure to do so within the time limit shall be deemed as Party A's acceptance of the change and adjustment of the loan interest rate pricing benchmark.

Article 6 Drawdown Conditions

6.1 When Party A draws down the loan, the following prerequisites must be met:

6.1.1 Party A has completed all administrative licenses, approvals, registrations and other legal procedures related to the loan under this Contract in accordance with the relevant laws, regulations and rules;

6.1.2 Party A has submitted the relevant documents required by Party B;

6.1.3 The guarantee under this Contract has been completed in accordance with the legal provisions and all agreements between both parties and has taken effect / the mortgage right has been established / the pledge right has been established;

6.1.4 Neither Party A nor the guarantor has committed any breach of contract as stipulated in this Contract or the guarantee contract;

6.1.5 Up to the drawdown date, the representations and warranties made by Party A in this Contract are still true, accurate and effective;

6.1.6 Up to the drawdown date, the operating and financial conditions of Party A and the guarantor are basically the same as those at the time of signing this Contract, and no major adverse changes have occurred;

6.1.7 Other conditions required by Party B.

6.2 After meeting the above conditions, Party A shall go through the drawdown procedures in accordance with the provisions of this Contract and sign the loan voucher. The loan voucher is an integral part of this Contract and has the same effect as this Contract.

6.3 Party B's disbursement of the loan when Party A fails to meet the drawdown conditions shall not constitute a breach of performance by Party B, nor shall it indicate that Party B waives the requirement for Party A to meet the above drawdown conditions. Party A shall immediately submit the relevant materials to Party B when the drawdown conditions are met.

6.4 If Party A's credit status deteriorates, Party B shall have the right to automatically cancel, terminate or suspend the disbursement of all or part of the loan. In such case, it shall not constitute a breach of contract by Party B.

Article 7 Disbursement and Payment of Loan Funds

7.1 The loan under this Contract shall be disbursed and paid in the following manner:

● Party A's independent payment method;

● Party B's entrusted payment method.

● If the payment target is clear and the single payment amount to a certain counterparty of Party A exceeds [X] yuan RMB (or equivalent foreign currency), Party B's entrusted payment method shall be adopted; otherwise, Party A's independent payment method may be adopted.

7.2 For Party A's independent payment, Party B shall review the "Working Capital Loan Drawdown Application (Applicable to Independent Payment)" sealed with Party A's official seal. After approval, the loan funds shall be disbursed to Party A's account, and then Party A shall independently pay the funds to the counterparty in line with the agreed purpose in accordance with the agreed method.

7.3 For Party B's entrusted payment, Party B shall, in accordance with the agreed loan purpose, review whether the information such as the payment target and payment amount listed in the payment application provided by Party A is consistent with the corresponding business contracts and other supporting documents. After approval, in accordance with the "Working Capital Loan Drawdown Application (Applicable to Entrusted Payment)" sealed with Party A's official seal and the entrusted payment intention stated therein, Party B shall disburse the loan funds to Party A's account and pay them to Party A's counterparty in line with the agreed purpose.

● If Party A has a good record of using loan funds and has a reasonable urgent fund demand within the scope of the agreed loan purpose under the Contract, Party B may appropriately simplify the pre-payment supporting documents and procedures required for entrusted payment if it assesses that the risk is controllable. However, Party A shall cooperate with Party B to complete the post-payment review in a timely manner after the disbursement of the loan. Party A shall provide the relevant supporting documents as required by Party B in a timely manner. Failure to provide them in a timely manner or providing documents that do not meet Party B's requirements shall constitute a breach of contract by Party A. Party B shall have the right to take measures such as recovering the loan in advance, stopping or suspending the disbursement and payment of the loan, and pursuing Party A's corresponding liability for breach of contract.

7.4 For Party A's independent payment, Party A shall submit a summary report on the payment of loan funds to Party B every month. In addition, Party B shall have the right to verify whether the loan payment is in line with the agreed purpose through account analysis, voucher inspection, on-site investigation and other methods, as well as whether there is any attempt to evade entrusted payment by splitting the amount into smaller sums.

7.5 If the independent payment of loan funds is changed to entrusted payment, or under the independent payment method, the single payment amount from Party A to a certain counterparty reaches the standard for Party B's entrusted payment as specified in Clause 7.1, Party A shall submit an application to Party B for changing the fund payment method, and provide the drawdown application, business contract and other relevant materials. The payment to external parties may be made only after Party B's review and approval.

7.6 For Party B's entrusted payment, Party A shall provide relevant materials such as counterparty information and loan purpose documents as required by Party B. If the entrusted payment cannot be carried out due to the untrue, inaccurate, incomplete or invalid materials provided by Party A, Party B shall not be liable.

7.7 Loan funds shall not be paid to Party A's brokerage company in the capital market or to related parties of Party A that do not conform to the loan purpose.

Article 8 Post-Loan Fund Monitoring

8.1 Party A shall open a special fund recovery account with Party B (Account No.:) or a special fund recovery account opened with another bank as designated by Party B (Account No.: [ ]). If the fund recovery account is an account with another bank, the bank statement shall be provided every month.

8.2 Party B shall have the right to monitor the above-mentioned fund recovery account, and Party A shall provide Party B with the fund inflow and outflow information of the account in a timely manner.

8.3 Party B shall have the right to negotiate with Party A to sign a separate account management agreement according to Party A's credit status, financing situation, etc., clearly specifying the management of the inflow and outflow of recovered funds in the designated account.

Article 9 Repayment of Loan

9.1 The sources of repayment of Party A include but are not limited to comprehensive income. Party A undertakes that under no circumstances shall it refuse to perform the repayment obligation under this Contract by invoking the above agreement. In addition, regardless of any agreement on the source of repayment funds of Party A in any other contract to which Party A is a party, such agreement shall not affect the performance of Party A's repayment obligation under this Contract.

9.2 Party A shall deposit the full amount of the repayment (interest and principal) into the account opened with Party B before the end of Party B's business hours on the repayment date (interest payment date and principal repayment date), and Party B shall have the right to directly deduct the amount from the account.

9.3 If the principal repayment date of the loan under this Contract falls on a legal holiday or public holiday, Party A may submit an application to agree with Party B to repay the loan principal and interest on the last working day before the legal holiday or public holiday; if Party A fails to submit an application, the principal repayment date shall be postponed to the first working day after the end of the legal holiday or public holiday. In the above cases, interest shall be calculated at the loan interest rate agreed in this Contract and based on the actual number of days the funds are used.

9.4 Party B shall have the right to directly deduct the unpaid amount of Party A from all accounts opened by Party A in all business institutions of Huaxia Bank Co., Ltd. If the currency of the deducted amount is different from that under this Contract, it shall be converted at the foreign exchange rate announced by Party B on the date of deduction.

9.5 If Party A has multiple matured debts with Party B and the payment made by Party A is insufficient to settle all the matured debts, the order of the debts to be settled by Party A's payment shall be determined by Party B.

● If the payment made by Party A is insufficient to settle the amount of the due debt, Party B shall have the right to choose the order of settlement of the expenses for realizing the creditor's rights, compensation for damages, liquidated damages, compound interest, overdue interest and penalty interest, interest, and principal.

9.6 If Party A repays the loan in advance, it shall submit a written application to Party B ten working days in advance. After obtaining Party B's written consent, interest shall be calculated at the loan interest rate agreed in this Contract and based on the actual number of days the funds are used.

9.7 If a third party performs the relevant obligations and responsibilities on behalf of Party A, it shall require Party B's consent. Without Party B's consent, the performance by a third party shall not exempt Party A from its liability.

Article 10 Loan Guarantee

10.1 If the loan under this Contract is a guaranteed loan, the guarantee method shall be: guarantee, mortgage, pledge. A separate guarantee contract shall be signed between the guarantor and Party B.

10.2 If the loan guarantee under this Contract is a maximum amount guarantee, the corresponding maximum amount guarantee contract shall be:

● "Personal Maximum Amount Guarantee Contract" (Contract No.: NCZX16 (Individual Max Guarantee) 20250007) signed between the guarantor Lai Gang and Party B;

● "Maximum Amount Mortgage Contract" (Contract No.: [ ]) signed between the mortgagor [ ] and Party B;

● "Maximum Amount Pledge Contract" (Contract No.: [ ]) signed between the pledgor [ ] and Party B.

Article 11 Financial Agreements

During the validity period of this Contract, Party A shall comply with the following agreed financial indicators: [Specify the financial indicators if applicable]

Article 12 Representations and Warranties of Party A

Party A hereby represents and warrants to Party B as follows:

12.1 Party A is a legitimate entity legally registered and validly existing, with the right to dispose of the property under its operation and management, the right to operate the business related to the loan purpose under this Contract, and the right to sign and perform this Contract. Party A has a good credit status, and its controlling shareholders and actual controllers also have a good credit status without any major adverse records.

12.2 The signing of this Contract by Party A has been legally approved by the superior competent department, the company's board of directors or other authorized institutions, and all necessary authorizations have been obtained.

12.3 The signing and performance of this Contract by Party A do not violate any provisions or agreements binding on Party A and its assets, nor do they violate any guarantee agreements, other agreements signed by Party A with others, or any other documents, agreements and commitments binding on Party A.

12.4 Party A guarantees to abide by the principle of honesty and trustworthiness, provide complete documents and materials to Party B in a timely manner as required, and promises and guarantees that all provided documents and materials are true, accurate, complete, legal and effective.

12.5 All behaviors and performances of Party A related to environmental, social and governance (ESG) risks comply with the requirements of laws and regulations, and there are no major litigation cases involving environmental, social and governance risks.

12.6 Party A irrevocably undertakes that if it breaches the obligations agreed in this Contract, Party B may report Party A's default and dishonest information to credit reference institutions and banking associations. Party A also authorizes the relevant banking associations to share Party A's dishonest information among banking financial institutions or even disclose it to the public through appropriate methods.

● Party A voluntarily accepts the joint dishonest punishment and rights protection measures jointly adopted by Party B and other banking financial institutions, such as reducing or stopping the credit line, stopping the opening of new settlement accounts, and stopping the issuance of new credit cards to the legal representative.

12.7 Party A promises and guarantees that the loan under this Contract will not be used to increase implicit local government debts in any form.

Article 13 Rights and Obligations of Party A

13.1 Party A shall open relevant accounts with Party B or its designated institutions as required by Party B and accept Party B's monitoring of such accounts.

13.2 Party A shall use the loan for the purpose agreed in this Contract, and shall not use it for the distribution of dividends to shareholders of Party A, as well as investment in financial assets, fixed assets, equity, etc., and shall not use it in fields and purposes prohibited by the state for production and operation. If Party A is a local financial organization, the provisions of laws, regulations, regulatory requirements and other relevant provisions shall prevail.

13.3 Party A shall not divert the working capital loan for other purposes, and shall cooperate with Party B in pre-loan investigation, in-loan review, loan payment management, post-loan management and other relevant inspections by Party B as required, and timely provide including but not limited to:

13.3.1 Enterprise business license with unified social credit code, identification certificate of the legal representative and necessary personal information, list of board members, principal responsible persons and financial responsible persons, business license, copies of tax payment certificates issued by the tax authorities for the years required by Party B, etc.;

13.3.2 All account opening banks, account numbers and deposit and loan status;

13.3.3 Audited balance sheets, income statements, statements of changes in shareholders' equity, as well as sales volume, cash flow statements, financial statements and notes, explanations for the years required by Party B;

13.3.4 Production and operation plans and statistical statements;

13.3.5 All guarantee situations to external parties (including any institution of Party B);

13.3.6 Information on all affiliated enterprises and affiliated relationships, as well as information on affiliated transactions that have occurred or are about to occur accounting for more than ten percent of its net assets, and mutual guarantee situations within the group customer;

13.3.7 Situations of litigation, arbitration, administrative penalties, debt disputes with others, and situations where management personnel are subject to criminal filing, prosecution, or punishment;

13.3.8 Records and materials on the use of the loan under this Contract.

13.4 Party A shall repay the loan principal and interest in accordance with the provisions of this Contract.

13.5 Party A shall, within thirty days before conducting any activities that may affect its solvency, such as external investment, providing external guarantees, substantially increasing debt financing, contracting, leasing, entrusting management, asset restructuring, debt restructuring, equity restructuring, equity transfer, joint operation, merger (acquisition), division, joint venture (cooperation), reduction of registered capital, or applying for suspension of business for rectification, application for dissolution (or cancellation), application for reorganization, conciliation and bankruptcy, which may change its operation method, internal system, solvency or legal status, notify Party B in writing and obtain Party B's written consent, implement the repayment liability for the debts under this Contract as approved in writing by Party B, or provide new guarantees recognized in writing by Party B. Otherwise, it shall not conduct the above activities before repaying all the debts under this Contract.

13.6 Party A shall, within three days after any change in its internal system and legal status, such as being announced to suspend business for rectification, closed down, dissolved (cancelled), applied for reorganization or bankruptcy, notify Party B in writing and take sufficient and effective measures to preserve Party B's creditor's rights.

13.7 Party A shall, within three days after the occurrence of any other major adverse events that may affect its solvency, which are sufficient to endanger its normal operation or the safety of Party B's creditor's rights, notify Party B in writing and take sufficient and effective measures to preserve Party B's creditor's rights.

13.8 If Party A changes its residence, name, legal representative or other senior management personnel, it shall notify Party B in writing within seven days after the change.

13.9 Before repaying all the loan principal and interest to Party B, Party A shall not sell specific assets, repay other long-term debts in advance, or provide additional debt guarantees to third parties without Party B's consent.

13.10 Party A shall not sign any contract with any third party that is detrimental to Party B's rights and interests under this Contract.

13.11 In the case of guarantee, if the guarantor breaches any obligation, representation, warranty or commitment agreed in the guarantee contract, or loses the guarantee capacity, Party A shall immediately provide new guarantees recognized by Party B or repay the loan under this Contract in advance.

13.12 Party A shall promptly sign for and receive various notices sent by Party B by mail or other means.

13.13 Party A shall strengthen the management of environmental, social and governance risks, and accept and cooperate with the supervision and inspection by Party B or a third party recognized by Party B in this regard. If required by Party B, it shall timely submit an environmental, social and governance risk report to Party B.

13.14 Party A shall cooperate with Party B in the dynamic monitoring of major early warning signals such as its operation, management, finance and capital flow, and cooperate with Party B in timely taking measures such as repaying the loan in advance and adding guarantees.

13.15 Party A shall not be involved in illegal and criminal activities such as money laundering and terrorist financing.

Article 14 Rights and Obligations of Party B

14.1 Party B shall have the right to require Party A to provide materials related to the loan under this Contract.

14.2 Party B shall have the right to supervise and inspect the use of the loan under this Contract, and understand Party A's business activities, financial status, provision of guarantees, debt disputes and other situations.

14.3 Party B shall have the right to require Party A to open relevant accounts with institutions designated by Party B and implement monitoring on them.

14.4 Party B shall have the right to participate in Party A's large-sum financing, asset sales, as well as merger, division, shareholding system reform, bankruptcy liquidation and other activities in accordance with the provisions of laws, regulations and regulatory requirements to safeguard Party B's creditor's rights.

14.5 During the loan disbursement or payment process, if Party A encounters any of the following circumstances, Party B shall have the right to negotiate with Party A to supplement the loan disbursement and payment conditions, or change the loan payment method, stop or suspend the disbursement and payment of loan funds in accordance with the contract agreement:

14.5.1 Deterioration of credit status;

14.5.2 Obvious deterioration of operating and financial conditions;

14.5.3 Abnormal use of loan funds or evasion of entrusted payment;

14.5.4 Other major breaches of contract agreements.

14.6 Before the maturity of the loan, Party B shall have the right to recover the loan in advance according to Party A's fund recovery situation.

14.7 Party B shall keep confidential the information provided by Party A and the information obtained through inquiry. For the purpose of performing this Agreement, Party B shall have the right to retain and use the information provided by Party A and the information obtained through inquiry internally within the time limit specified by laws, regulations, regulatory requirements and competent authorities (after the expiration of the above time limit, Party B shall have the right to destroy it); have the right to provide information in accordance with the mandatory orders of laws, regulations, regulatory requirements and judicial authorities; have the right to disclose information to Party B's agents and cooperative institutions for the purpose of performing this Agreement, and obtain the confidentiality commitment of the agents and cooperative institutions.

14.8 During the validity period of this Contract, if Party B changes its residence, it shall promptly issue an announcement on the change of address.

14.9 Party B shall have the right to carry out post-loan fund inspection, management and other work to prevent the misappropriation of financing funds to increase implicit local government debts. Party A shall cooperate with Party B in carrying out post-loan management work. Once Party B discovers that Party A illegally increases implicit local government debts, Party B shall have the right to suspend or terminate the disbursement of the undrawn loan at any time; for the already disbursed loan, Party B shall have the right to declare the loan due immediately and recover the loan principal and interest in advance.

14.10 Party B shall have the right to monitor the use of loan funds. If it is found that Party A misappropriates the loan funds, it shall have the right to take corresponding control measures such as requiring Party A to rectify, repaying the loan in advance or downgrading the loan risk classification.

14.11 Party B shall have the right to dynamically monitor major early warning signals such as Party A's operation, management, finance and capital flow, and timely take measures such as recovering the loan in advance and requiring Party A to add guarantees in accordance with the contract agreement.

Article 15 Liability for Breach of Contract

15.1 After the effectiveness of this Contract, both Party A and Party B shall perform their obligations under this Contract. Any party's failure to perform or incomplete performance of the obligations agreed in this Contract, or violation of the representations, warranties and commitments made under this Contract shall constitute a breach of this Contract and shall bear the liability for breach of contract.

15.2 If, due to the reasons of Party A or the guarantor under this Contract, the corresponding guarantee procedures under this Contract are not completed as agreed, or Party A fails to go through the drawdown procedures with Party B within the time limit agreed in this Contract, and exceeds the loan disbursement time agreed in this Contract by 30 days (including legal holidays and public holidays), Party B shall have the right to terminate this Contract and recover the already disbursed loan in advance.

15.3 If any of the following circumstances occurs, Party A shall bear the corresponding liability for breach of contract, and Party B may take measures such as recovering the loan in advance, adjusting the loan payment method, adjusting the loan interest rate, collecting penalty interest, reducing the credit line, stopping or suspending the loan disbursement, and pursuing Party A's corresponding legal liability:

15.3.1 Party A fails to use the loan for the agreed purpose;

15.3.2 Party A fails to make the loan fund payment in the agreed manner;

15.3.3 Party A fails to comply with the representations, warranties and commitments made under this Contract;

15.3.4 Party A exceeds the agreed financial indicators;

15.3.5 Party A has a major cross-default event, violates any contract or agreement signed with others (including Party B under this Contract) or its unilateral commitments or guarantees, and constitutes a serious breach of contract for other debts;

15.3.6 Other circumstances where Party A breaches the agreement of this Contract.

15.4 If Party A fails to repay the due (including early due) principal of the loan in accordance with the repayment term agreed in this Contract, from the date of overdue, the penalty interest rate shall be 50% higher than the interest rate agreed in this Contract, and overdue interest shall be calculated and collected; if Party A fails to pay the interest on time during the loan term, compound interest shall be calculated and collected at the loan interest rate agreed in this Contract; if the interest is still not paid after the loan is overdue, compound interest shall be calculated and collected at the penalty interest rate agreed in this Clause.

15.5 If Party A fails to use the loan for the purpose agreed in this Contract, the principal and interest shall be subject to a penalty interest rate 100% higher than the interest rate agreed in this Contract from the date of breach of contract, and penalty interest and compound interest shall be calculated and collected.

15.6 If the loan under this Contract is overdue or not used for the purpose agreed in the contract, overdue interest, penalty interest and compound interest shall be calculated and collected on a monthly basis.

15.7 If Party B takes legal action or arbitration to realize the creditor's rights due to Party A's breach of contract, Party A shall bear the reasonable expenses incurred by Party B for this purpose, including but not limited to appraisal fees, evaluation fees, auction fees, litigation fees, arbitration fees, notarization fees, attorney fees and other reasonable expenses for realizing the creditor's rights.

Article 16 Early Recovery of Loan

If Party A commits any of the following acts, Party B shall have the right to declare all the already disbursed loans due immediately, recover the already disbursed loan principal and interest in advance, stop continuing to disburse the loan, and take corresponding measures in accordance with the law:

16.1 Party A fails to pay the principal, interest and other payable amounts in full and on time;

16.2 Party A provides false financial statements and other loan materials to Party B or conceals important operating and financial facts;

16.3 Refuses to accept Party B's supervision and inspection of its use of the loan and relevant production, operation and financial activities;

16.4 Uses the loan for shareholder dividends, or investment in financial assets, fixed assets, equity, etc.; uses it in fields and purposes prohibited by the state for production and operation;

16.5 Party A obtains the loan by fraud for the purpose of lending to others to obtain illegal income;

16.6 Party A obtains the loan by fraudulent means;

16.7 Uses false contracts with affiliated parties to pledge claims such as accounts receivable with no actual trade background to Party B to obtain bank funds;

16.8 Intentionally evades bank debts through affiliated transactions;

16.9 Changes in Party A's operation method, internal system, solvency or legal status, including but not limited to conducting external investment that may affect its solvency, providing external guarantees, substantially increasing debt financing, contracting, leasing, entrusting management, asset restructuring, debt restructuring, equity transfer, shareholding system reform, joint operation, merger (acquisition), division, paid transfer of property rights, joint venture (cooperation), reduction of registered capital, or applying for suspension of business for rectification, application for (or cancellation), application for reorganization, conciliation and bankruptcy, etc., without obtaining Party B's written consent and implementing the repayment liability for the debts under this Contract or providing new guarantees recognized by Party B;

16.10 The guarantee under this Contract undergoes changes that are unfavorable to Party B's creditor's rights, including but not limited to damage, loss, or reduction in value of the mortgaged property or pledged property, or the guarantor breaches any obligation established for it in the guarantee contract, and Party A fails to provide the required new guarantees as required by Party B;

16.11 The guarantee contract or other guarantee methods are not effective, invalid, or revoked, or the guarantor partially or completely loses the guarantee capacity or clearly expresses its refusal to perform the guarantee obligation, or the guarantor breaches any obligation or commitment agreed in the guarantee contract or violates the contract signed with a third party, and Party A fails to provide the required new guarantees as required by Party B;

16.12 The representations and warranties made by Party A are untrue, inaccurate or concealing major facts;

16.13 Party A clearly expresses or indicates through its actions that it will not perform the obligations under this Contract;

16.14 Party A breaches any other obligations and commitments agreed in this Contract, which Party B deems sufficient to affect the realization of its creditor's rights;

16.15 The descriptions in the Drawdown Application submitted by Party A and/or the attached drawdown application materials are untrue, or Party A breaches the commitments in the Drawdown Application;

16.16 Party A causes liability accidents or major environmental, social and governance risk events due to violating laws, regulations, regulatory requirements or industry standards related to food safety, production safety, environmental protection and other environmental, social and governance risk management, which have affected or may affect the performance of its obligations under this Contract;

16.17 Party A's operating and financial conditions deteriorate, making it unable to repay the due debts, or it is involved in major economic litigation, arbitration and other legal disputes, which seriously affects and threatens the realization of Party B's creditor's rights;

16.18 The overall credit status, operating conditions and financial conditions of the group customer to which Party A belongs are in serious crisis, posing a major threat to the safety of Party B's loan;

16.19 Party A suspends business, dissolves, ceases operations, has its business license revoked, cancels its registration, etc.;

16.20 Party A illegally increases implicit local government debts;

16.21 Party A is suspected of money laundering or terrorist financing activities;

16.22 Other circumstances that may cause the realization of Party B's creditor's rights under this Contract to be threatened or suffer serious losses.

Article 17 Effectiveness of the Contract

This Contract shall take effect from the date of signing by both parties.

Article 18 Assignment and Modification of the Contract

18.1 Party A agrees that after the effectiveness of this Contract, Party B may assign all or part of the creditor's rights under this Contract to a third party.

18.2 After the effectiveness of this Contract, if Party A intends to assign all or part of the debts under this Contract to a third party, it must first submit a written document from the guarantor agreeing to continue to assume the guarantee obligation after the assignment (unless the guarantor's consent is not required) or provide new guarantees to Party B, and obtain Party B's written consent.

18.3 After the effectiveness of this Contract, neither Party A nor Party B may modify it without authorization. If modification is required, both parties must reach a written modification agreement.

18.4 If Party A requests an extension of the loan under this Contract, a loan extension agreement shall be signed after Party B's review and approval. If Party B refuses to approve the extension, Party A shall still perform the repayment obligation in accordance with the agreement of this Contract.

Article 19 Confidentiality

Each party shall have the obligation to keep confidential the business secrets of the other party, contract clauses and other information related to interests obtained during the signing and performance of the contract; unless otherwise stipulated by laws, regulations, regulatory policies, etc., neither party shall disclose or disclose the above information to any third party without the other party's consent.

Article 20 Governing Law and Dispute Resolution

20.1 This Contract shall be governed by the laws of the People's Republic of China.

20.2 All disputes arising between Party A and Party B in connection with this Contract shall be resolved through negotiation; if negotiation fails, both parties agree to resolve it in the following manner:

● File a lawsuit with the people's court with jurisdiction at the place where Party B is located;

● Apply for arbitration with the [Arbitration Commission].

Article 21 Notice and Service

During the validity period of the Contract, if there is any change in Party A's information such as the legal person name, legal representative, residence, telephone number, etc., as stated on the first page of this Contract, and Party A fails to notify Party B in writing, all documents sent by Party B to Party A in accordance with the Party A's information stated in this Contract shall be deemed as delivered.

Article 22 Supplementary Provisions

22.1 If both Party A and Party B have signed the "Maximum Amount Financing Contract" (Contract No.: NCZX16 (Max Financing) 20250014), this Contract shall be:

● A specific business contract under the "Maximum Amount Financing Contract";

● Managed independently of the "Maximum Amount Financing Contract".

● If both parties have not clearly agreed or the agreement is unclear on the above matters, this Contract shall automatically become a specific business contract under the "Maximum Amount Financing Contract" signed by both parties.

22.2 Party A authorizes Party B to provide information about this Contract and other relevant information to the Credit Information Database of the People's Bank of China or other legally established credit databases in accordance with the provisions of relevant laws, regulations or other normative documents or the requirements of financial regulatory authorities. At the same time, Party A authorizes Party B to inquire about Party A's relevant information through the Credit Information Database of the People's Bank of China and other legally established credit databases for the purpose of concluding and performing this Contract.

22.3 Party A agrees and authorizes Party B to report information related to implicit local government debts to regulatory authorities such as the National Administration of Financial Regulation and its local offices.

22.4 If one party proposes to modify this Contract to comply with the changed laws, regulations, judicial interpretations and regulatory requirements, the other party shall cooperate. Otherwise, the undrawn loan shall be stopped from being disbursed.

22.5 Other matters agreed by both parties:

&nbsp;&nbsp;&nbsp;&nbsp;1. If the guarantee method for this loan includes real estate mortgage, during the loan term, if the real estate
mortgage rate is higher than the mortgage rate approved in the credit extension, Party A shall provide supplementary guarantees or negotiate
with Party A to modify the provisions of the loan contract regarding the loan amount, term, interest rate, monthly repayment amount, etc.
Otherwise, Party B shall have the right to take measures such as stopping the loan disbursement, requiring Party A to repay the already
disbursed loan in advance, until disposing of the mortgaged property to repay the loan principal and interest.

&nbsp;&nbsp;&nbsp;&nbsp;2. If the guarantee method for this loan includes real estate mortgage and a phased guarantee recognized by
Party B is adopted before the real estate mortgage is completed, during the period from the loan disbursement to the completion of the
mortgage right certificate with Party B as the mortgagee, Party A shall not change the leasing situation of the mortgaged property without
Party B's consent. Party B shall reasonably determine the time limit for completing the real estate mortgage registration procedures according
to the phased guarantee situation. If Party B does not receive the mortgage right certificate of the mortgaged property with Party B as
the mortgagee or other certification documents for the establishment of the mortgage right within the specified time limit, Party B shall
have the right to declare the already disbursed loan due in advance. Party A must repay all the loan, as well as the accrued interest,
penalty interest and compound interest within a certain period after being notified by the lender through telephone, short message or
other means. During the period from the loan disbursement to the completion of the final real estate mortgage right registration procedures,
Party A shall not change the leasing object, term, rent and payment method of the real estate.

&nbsp;&nbsp;&nbsp;&nbsp;3. If this loan is repaid in installments, Party A shall repay the loan principal and interest in installments
in the order, time and amount specified in the "Repayment Schedule" issued by Party B; if the applicable interest rate of this
Contract changes, Party B shall re-formulate the "Repayment Schedule".

&nbsp;&nbsp;&nbsp;&nbsp;4. If the guarantee method for this loan includes real estate mortgage, the rental income of the mortgaged property
shall be one of the sources of repayment.

22.6 For options under this Contract, mark "√" in the [ ] to indicate that the clause applies, and mark "×" to indicate that the clause does not apply.

22.7 This Contract shall be in [X] copies, including [X] copy for Party A, 2 copies for Party B and [X] copy for [the other party], all of which have the same legal effect.

22.8 The relevant annexes under this Contract are integral parts of this Contract and have the same legal effect as this Contract.

22.9 Party B undertakes not to force Party A to purchase insurance, wealth management products, funds or other asset management products as an additional condition for signing this Contract. If Party B introduces external data, information or ratings for the purpose of credit assessment, it shall not require Party A to pay relevant fees.

22.10 Party B shall not collect additional fees beyond the contract agreement. If it is necessary to handle personal accident insurance for the borrower (with Party B as the first beneficiary), mortgage registration, evaluation, comprehensive property insurance (with Party B as the claimant), mandatory execution notarization and other businesses due to the signing of this Contract, the fees shall be borne by Party B.

22.11 If Party A needs business consultation or complaint, it may call Party B's customer service hotline: 95577.

22.12 Party B has taken reasonable measures to draw Party A's attention to the abnormal clauses under this Contract that exempt or reduce Party B's liability, exclude or limit Party A's rights and are of significant interest to Party A, and has fully explained the relevant clauses as required by Party A; both Party A and Party B have no objection to the understanding of all clause contents of this Contract.

Annexes:

&nbsp;&nbsp;&nbsp;&nbsp;1. Working Capital Loan Drawdown Application

&nbsp;&nbsp;&nbsp;&nbsp;2. Letter of Commitment on Fund Use

(No text below this page)

This page is the signature page of the "Working Capital Loan Contract" (No text on this page)

**Party A:** (Seal)

Legal Representative: (or Authorized Agent) (Signature or Seal)

Date: June 27, 2025

**Party B:** (Seal)

Legal Representative/Principal Responsible Person: (or Authorized Agent) (Signature or Seal)

Date: June 27, 2025

## Exhibit 4.13

**Exhibit 4.13**

Working Capital Loan Contract

**Borrower:** Jiangxi Universe Pharmaceuticals Trade Co., Ltd.

**Lender:** Jingkai Sub-branch, Ji'an Luling Rural Commercial Bank Co., Ltd.

**Special Reminder:** To protect the legitimate rights and interests of the borrower, the lender specially reminds the borrower to pay full attention to all clauses concerning the rights and obligations of both parties, especially the bolded parts. If the borrower has any objections, it shall raise them to the lender. If there are no objections, after being signed by both parties, all clauses of this Contract are the true expressions of the intentions of both parties, have legal binding force, and are protected by law.

The borrower and the lender, in accordance with the relevant laws, regulations of the People's Republic of China and other relevant provisions, and regarding the lender's issuance of a working capital loan to the borrower, have reached an agreement through negotiation, formulated this Contract, and shall jointly abide by it.

Chapter 1 Concluded Clauses

Article 1 Loan Amount and Currency

● RMB loan amount: (In words) Five Million Yuan Only; (In figures) 5,000,000.

● This is a non-revolving loan limit.

Article 2 Loan Term

● The valid use period of the loan under this Contract is 12 months, from March 3, 2025 to March 2, 2026.

● If the loan amount under this Contract is a non-revolving limit, the loan term is consistent with the valid use period of the loan agreed in this Contract. The specific loan term shall be subject to the term recorded in the loan voucher.

● If the borrower commits any of the default acts listed in Article 19 of this Contract, the borrower agrees that the lender may recover the loan in advance, and the date on which the lender declares the early recovery of the loan shall be the maturity date of the loan.

Article 3 Purpose of the Loan

● Purpose of the loan: Purchase of medical equipment.

● Without the written consent of the lender, the borrower shall not change the purpose of the loan or misappropriate the loan for other purposes. The lender has the right to supervise the use of the loan.

Article 4 Loan Interest Rate and Interest Calculation and Settlement

1. Loan Interest Rate

The loan interest rate is calculated using the simple interest method and determined in accordance with the following Method (1):

● (1) Fixed interest rate: The annual interest rate is 3.65%.

Based on the 1-year Loan Prime Rate (LPR) released most recently on the working day before the signing date of this Contract ☐ the withdrawal date, add 55 basis points (1bp = 0.01%), with an annual interest rate of 3.65%. The interest rate remains unchanged during the loan term.

● (2) Floating interest rate:

The annual interest rate is determined by adding/subtracting [ ] basis points to/from the 1-year Loan Prime Rate (LPR) released most recently on the working day before the withdrawal date. The number of basis points to be added or subtracted remains unchanged during the valid period of this Contract. If the Loan Prime Rate (LPR) is adjusted, the method for determining the loan interest rate shall be handled in accordance with the following Method [ ], and the lender shall not notify the borrower separately:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;① Annual adjustment: Starting from January 1 of the following
year, the interest rate shall be implemented by adding/subtracting the agreed basis points to/from the newly released LPR;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;② Anniversary adjustment: On the corresponding date of the same
year and month, the interest rate shall be implemented by adding/subtracting the agreed basis points to/from the newly released LPR;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;③ Quarterly adjustment (1): On the corresponding date of the
first month of each quarter, the interest rate shall be implemented by adding/subtracting the agreed basis points to/from the newly released
LPR;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;④ Quarterly adjustment (2): On the 1st day of the first month
of each quarter, the interest rate shall be implemented by adding/subtracting the agreed basis points to/from the newly released LPR;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;⑤ Monthly adjustment (1): On the corresponding date of each
month, the interest rate shall be implemented by adding/subtracting the agreed basis points to/from the newly released LPR (if there
is no corresponding date in the adjustment month, the last day of the month shall be the corresponding date);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;⑥ Monthly adjustment (2): On the 1st day of each month, the
interest rate shall be implemented by adding/subtracting the agreed basis points to/from the newly released LPR;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;⑦ Immediate adjustment: Starting from the day after the new
LPR is released, the interest rate shall be implemented by adding/subtracting the agreed basis points to/from the new LPR.

● (3) Other methods: [No content specified]

● If the borrower chooses the "(2) Floating interest rate" method, in case the Loan Prime Rate (LPR) increases, the monthly repayment amount of the borrower will increase. If the borrower still repays according to the repayment amount before the adjustment, the monthly repayment amount will be insufficient, resulting in penalty interest and compound interest, and affecting the borrower's credit record.

2. Interest Settlement Method

The borrower settles interest in accordance with the following Method (2):

● (1) Quarterly interest settlement: The 20th day of the last month of each quarter is the interest settlement date, and the 21st day is the interest payment date.

● (2) Monthly interest settlement: The 20th day of each month is the interest settlement date, and the 21st day is the interest payment date.

● (3) Other methods: [No content specified]

● If the final repayment date of the loan principal is not an interest payment date, the final repayment date of the loan principal shall be the interest payment date, and the borrower shall pay off all accrued interest.

3. Penalty Interest Rate

● (1) If the borrower fails to repay the loan within the agreed term, interest on the overdue part shall be calculated at the overdue loan penalty interest rate from the date of overdue until the principal and interest are repaid in full;

● (2) If the borrower fails to use the loan for the agreed purpose, interest on the misappropriated part shall be calculated at the misappropriated loan penalty interest rate from the date of misappropriation until the principal and interest are repaid in full;

● (3) For loans that are both overdue and misappropriated, interest shall be calculated at the misappropriated loan penalty interest rate;

● (4) For the interest and penalty interest that the borrower fails to pay on time, compound interest shall be calculated at the penalty interest rate agreed in this paragraph in accordance with the interest settlement method agreed in Paragraph 2 of this Article;

● (5) When calculating penalty interest and compound interest, if the loan interest rate agreed in the Contract is adjusted, the penalty interest and compound interest shall be calculated at the adjusted interest rate from the adjustment date;

● (6) Penalty interest rate:

The overdue loan penalty interest rate is 30% higher than the loan interest rate agreed in Paragraph 1 of this Article; the misappropriated loan penalty interest rate is 50% higher than the loan interest rate agreed in Paragraph 1 of this Article.

Article 5 Loan Issuance and Repayment Account

The borrower opens the following account with the lender as the loan issuance and repayment account. The issuance, payment, and repayment of the loan shall be handled through this account:

● Issuing Bank: Ji'an Rural Commercial Bank Co., Ltd. Jingkai Sub-branch

● Account Name: Jiangxi Daziran Pharmaceutical Trade Co., Ltd.

● Account Number:

Article 6 Repayment

Unless otherwise agreed by both parties, the borrower shall repay the loan under this Contract in accordance with the following Repayment Plan [ ]:

1. Repay all the loans under this Contract on the maturity date of the loan term.

2. Repay the loans under this Contract in accordance with the following repayment plan:

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| | |
|:---|:---|
| **Repayment Time** | **Repayment Amount** |
| 1. | [No content specified] |
| 2. | [No content specified] |
| 3. | [No content specified] |
| 4. | [No content specified] |
| 5. | [No content specified] |
| 6. | [No content specified] |
| 7. | [No content specified] |
| 8. | [No content specified] |

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3. Other repayment plans: [No content specified]

4. If the borrower intends to repay the loan in advance, it shall obtain the consent of the lender 7 banking
working days in advance.

Article 7 Guarantee

The loan under this Contract is a (credit/guaranteed) loan. The guarantee method is (guarantee/mortgage/pledge), and a separate guarantee contract shall be signed.

Article 8 Contractual Agreements on the Borrower's Financial Indicators

&nbsp;&nbsp;&nbsp;&nbsp;1. [No content specified]

&nbsp;&nbsp;&nbsp;&nbsp;2. [No content specified]

&nbsp;&nbsp;&nbsp;&nbsp;3. [No content specified]

Article 9 Resolution of Disputes

1. After the effective date of this Contract, all disputes arising from the conclusion and performance of this
Contract or related to this Contract may be resolved through negotiation by both parties. If the negotiation fails, either party may file
a lawsuit with the people's court with jurisdiction at the place where the lender is located in accordance with the law.

2. During the dispute resolution period, if the dispute does not affect the performance of other clauses of
this Contract, such other clauses shall continue to be performed.

3. Through negotiation, all parties may apply for compulsory execution notarization of this Contract. The borrower
agrees that this Contract shall have the effect of compulsory execution after being notarized. If the borrower fails to perform the obligations
under this Contract, the lender may apply to the people's court with jurisdiction for execution in accordance with the law.

Article 10 Contract Effectiveness

This Contract shall take effect on the date of signature and seal by both parties.

This Contract is made in two copies, with one copy held by each of the borrower and the lender, both of which have the same legal effect.

Article 11 Other Agreed Matters

[No content specified]

Chapter 2 Standard Clauses

Article 12 Interest Calculation

Interest shall be calculated from the actual withdrawal date of the borrower based on the actual withdrawal amount and the number of days of use.

Interest calculation formula: Interest = Principal × Actual number of days × Daily interest rate.

The daily interest rate is calculated based on 360 days a year. Conversion formula: Daily interest rate = Annual interest rate / 360.

Article 13 Loan Issuance Conditions

1. The borrower must meet all the following loan issuance conditions; otherwise, the lender has no obligation
to issue any funds to the borrower, unless the lender agrees to make an advance disbursement:

&nbsp;&nbsp;&nbsp;&nbsp;(1) This Contract and its attachments have taken effect;

&nbsp;&nbsp;&nbsp;&nbsp;(2) The borrower has reserved with the lender the borrower's
documents, documents, seals, list of personnel, signature samples related to the conclusion and performance of this Contract, and filled
in the relevant vouchers;

&nbsp;&nbsp;&nbsp;&nbsp;(3) The borrower has opened the necessary accounts for the performance
of this Contract in accordance with the lender's requirements;

&nbsp;&nbsp;&nbsp;&nbsp;(4) Submit a written withdrawal notice and relevant documents
proving the purpose of the loan to the lender 3 banking working days before the withdrawal, and the provided documents proving the purpose
of the loan are consistent with the agreed purpose, and go through the relevant withdrawal procedures;

&nbsp;&nbsp;&nbsp;&nbsp;(5) The borrower has submitted to the lender the resolution and
power of attorney of the board of directors or other authorized departments agreeing to sign and perform this Contract;

&nbsp;&nbsp;&nbsp;&nbsp;(6) In accordance with the relevant regulatory provisions and
the lender's management requirements, for loans exceeding a certain amount or meeting other conditions, the lender's entrusted payment
method shall be adopted. The lender shall pay the loan to the payment object that complies with the agreed purpose of this Contract in
accordance with the borrower's withdrawal application and payment entrustment;

&nbsp;&nbsp;&nbsp;&nbsp;(7) Except for credit loans, the borrower has provided corresponding
guarantees in accordance with the lender's requirements and completed all relevant guarantee procedures, and the guarantees are legal
and effective;

&nbsp;&nbsp;&nbsp;&nbsp;(8) No default has occurred under this Contract or other contracts
signed between the borrower and the lender;

2. From the date of signing this Contract, if the borrower does not make any withdrawal for 3 consecutive months,
the lender has the right to cancel the loan limit.

Article 14 Special Agreements on Revolving Loans (Maximum Amount Loans)

1. During the valid use period of the revolving loan limit, the sum of the outstanding loan principal balances
of the borrower at any time shall not exceed the revolving loan limit; the repayment date of any withdrawal shall not exceed the valid
use period of the revolving loan limit.

2. Both parties agree that the lender may reasonably set the limit and loan term for each revolving loan according
to the scale and cycle characteristics of the borrower's production and operation.

Article 15 Payment of Loan Funds

1. Lender's Entrusted Payment

Lender's entrusted payment refers to the lender paying the loan funds to the borrower's counterparty that complies with the agreed purpose of this Contract through the borrower's account in accordance with the borrower's withdrawal notice and payment entrustment.

For the payment of loan funds with a single payment amount exceeding the specified limit under this Contract, the lender's entrusted payment method shall be adopted.

If the lender's entrusted payment method is adopted, the borrower shall include clear payment entrustment (including the name of the receiving counterparty, the counterparty's account, and the payment amount) and other necessary payment information in the withdrawal notice, and submit the business contracts and other purpose certification materials required for review to the lender. After the lender's review and approval, the loan funds will be paid to the borrower's counterparty through the borrower's account. If the lender fails to complete the entrusted payment obligation in a timely manner due to untrue, inaccurate, or incomplete payment entrustment information and relevant transaction materials provided by the borrower, the lender shall not bear any liability, and the borrower's existing repayment obligations under this Contract shall not be affected. The lender shall pay the funds to the counterparty's account in accordance with the borrower's withdrawal notice and the payment vouchers required by the lender.

If the lender finds through review that the business contracts and other purpose certification materials provided by the borrower do not comply with the agreement of this Contract or have other defects, it has the right to require the borrower to supplement, replace, explain, or resubmit the relevant materials. Before the borrower submits the business contracts and other certification materials deemed qualified by the lender, the lender has the right to refuse the issuance and payment of the relevant funds.

If a refund is made by the counterparty's account opening bank, resulting in the lender's failure to pay the loan funds to the counterparty in a timely manner in accordance with the borrower's payment entrustment, the lender shall not bear any liability, and the borrower's existing repayment obligations under this Contract shall not be affected. For the funds returned by the counterparty's account opening bank, the borrower shall resubmit the payment entrustment and the business contracts and other purpose certification materials required for review. After the lender's review and approval, the loan funds will be paid to the borrower's counterparty through the borrower's account.

All handling fees required for the implementation of loan payment to the borrower's designated counterparty by way of entrusted payment under this Contract shall be borne by the borrower. The borrower shall pay the above fees to the lender when handling the entrusted payment for each loan.

The borrower shall not violate the above agreements and avoid the lender's entrusted payment by splitting the amount into smaller parts.

2. Borrower's Autonomous Payment

Except for the circumstances where the lender's entrusted payment method must be adopted as agreed in the preceding paragraph, unless otherwise agreed by both parties, the payment method for other loan funds shall be the borrower's autonomous payment, that is, after the lender issues the loan funds to the borrower's account in accordance with the provisions of this Contract, the borrower shall independently pay the funds to the borrower's counterparty that complies with the agreed purpose of the Contract.

If the borrower needs to change the above repayment plan, it shall submit a written application to the lender 10 banking working days before the maturity of the corresponding loan. The change of the repayment plan must be jointly confirmed in writing by both parties.

3. Loan Extension

If the loan under this Contract needs to be extended, the borrower shall submit a written extension application to the lender 30 banking working days before the maturity of the loan. The decision to approve the extension shall be made by the lender. For applying for the extension of guaranteed loans, mortgage loans, or pledge loans, the guarantor, mortgagor, or pledgor shall also issue a written certificate of consent. If approved by the lender, both parties shall sign an extension agreement; if the borrower's extension application is not approved by the lender, the borrower shall still repay the loan in full in accordance with the repayment term agreed in this Contract.

4. Repayment Order

Except otherwise agreed by both parties, if the borrower defaults on both the loan principal and interest, the lender has the right to determine the order of repaying the principal or interest; in the case of installment repayment, if there are multiple matured loans or overdue loans under this Contract, the lender has the right to determine the repayment order; if there are multiple loan contracts between the borrower and the lender, the lender has the right to determine the order of the contracts to be performed by each repayment of the borrower.

5. Repayment Obligations

The borrower shall repay the loan principal, interest, and other payable funds in full and on time in accordance with the agreement of this Contract. Before the end of the over-the-counter business hours on the repayment date and each interest settlement date, the borrower shall deposit the current accrued interest, principal, and other payable funds in full in the repayment account opened with the lender. The borrower authorizes the lender to actively deduct the funds on the repayment date or interest settlement date, or require the borrower to cooperate in handling the relevant fund transfer procedures. If the funds in the repayment account are insufficient to pay all the borrower's matured payable funds, the borrower agrees that the lender shall determine the repayment order.

6. Early Recovery of Loans

The lender has the right to recover the loan in advance according to the borrower's fund recovery situation.

7. Loan Voucher

The loan voucher is an integral part of this Contract. If the loan amount, withdrawal amount, repayment amount, loan issuance date and maturity date, loan term, loan interest rate, and loan purpose not recorded in this Contract or recorded inconsistently with those in the loan voucher, the loan voucher shall prevail.

Article 16 Guarantee

If the borrower or the guarantor experiences an event that the lender deems may affect its performance capacity, or the guarantee contract becomes invalid, revoked, or terminated, or the borrower or the guarantor's financial situation deteriorates or is involved in major litigation or arbitration cases, or may affect its performance capacity for other reasons, or the guarantor defaults under the guarantee contract or other contracts with the lender, or the collateral depreciates, is damaged, lost, or seized, resulting in the weakening or loss of the guarantee value, the lender has the right to require, and the borrower is obligated to supplement and provide new guarantees, supplement or replace the guarantor, etc., to guarantee the debts under this Contract.

Article 17 Representations and Warranties

1. The borrower is legally registered and validly existing with the administrative department for industry and
commerce or the competent authority, has full civil rights capacity and capacity for conduct necessary for signing and performing this
Contract, and has the ability to repay the loan.

2. The borrower fully agrees to the content and clauses of this Contract. The signing and performance of this
Contract are based on the borrower's true intention, have obtained legal and effective authorization in accordance with the requirements
of its articles of association or other internal management documents, and will not violate any agreements, contracts, and other legal
documents binding on the borrower; the borrower has obtained or will obtain all relevant approvals, permits, filings, or registrations
necessary for signing and performing this Contract.

3. The borrower abides by the principle of good faith. All documents, financial statements, vouchers, and other
materials provided by the borrower to the lender under this Contract are true, complete, accurate, and effective, without any false records,
material omissions, or misleading statements. The financial statements provided to the lender are prepared in accordance with Chinese
accounting standards, truthfully, fairly, and completely reflecting the borrower's operating conditions and liabilities.

4. The transaction background for which the borrower applies for business with the lender is true and legal,
and is not used for illegal purposes such as money laundering; the purpose of the loan and the source of repayment are clear and legal.

5. The borrower has a good credit status and no major adverse records, and the borrower has not concealed from
the lender any events that may affect its and the guarantor's financial situation and performance capacity, nor has it concealed any litigation,
arbitration, or claim events in which it is involved.

6. Other debts payable have been repaid on time, and there is no malicious default on bank loan principal and
interest.

7. Withdraw and use the loan in accordance with the term and purpose agreed in this Contract. The borrowed funds
shall not be used for the investment in fixed assets and equity, and shall not flow into the securities market, futures market, and other
purposes prohibited or restricted by relevant laws and regulations in any form.

8. Submit its financial statements (including but not limited to annual reports, quarterly reports, and monthly
reports) and other relevant materials to the lender regularly or in a timely manner in accordance with the lender's requirements; the
borrower ensures that the financial indicators always comply with the contractual agreements. If the production and operation qualifications/licenses
require annual inspection, they shall pass the annual inspection on time.

9. Withdraw, pay, and use the loan in accordance with the agreement of this Contract.

10. If the borrower has signed or will sign a counter-guarantee agreement or similar agreement with the guarantor
of this Contract regarding its guarantee obligations, such agreement will not prejudice any rights of the lender under this Contract.

11. Accept the credit inspection and supervision of the lender and provide sufficient assistance and cooperation;
from the effective date of this Contract until the full repayment of the loan principal, interest, and relevant fees under this Contract,
the borrower agrees and authorizes the lender to monitor the accounts opened by the borrower with the lender, inspect and analyze its
production and operation (including but not limited to the construction and operation of the borrower's projects), and dynamically monitor
its income cash flow and overall capital flow; the borrower shall accept and actively cooperate with the lender's inspection and supervision
of the use of the loan funds, including the purpose, through account analysis, voucher inspection, on-site investigation, and other methods,
and summarize and report regularly in accordance with the lender's requirements.

12. If the borrower undergoes merger, division, capital reduction, equity transfer, external investment, substantial
increase in debt financing, transfer of major assets and claims, and other events that may have an adverse impact on the borrower's solvency,
it must obtain the prior written consent of the lender.

If any of the following circumstances occurs, the borrower shall notify the lender in writing within 7 days from the date of knowing or should knowing:

&nbsp;&nbsp;&nbsp;&nbsp;(1) Changes in the articles of association, business scope, registered
capital, or legal representative of the borrower or the guarantor;

&nbsp;&nbsp;&nbsp;&nbsp;(2) Changes in the operation method such as any form of joint
operation, Sino-foreign joint venture, cooperation, contracted operation, restructuring, reorganization, or planned listing;

&nbsp;&nbsp;&nbsp;&nbsp;(3) Involvement in major litigation or arbitration cases, or
the property or collateral is seized, detained, or supervised, or new major liabilities are set on the collateral;

&nbsp;&nbsp;&nbsp;&nbsp;(4) Suspension of business, dissolution, liquidation, suspension
of business for rectification, revocation, revocation of business license, (application for) bankruptcy, etc.;

&nbsp;&nbsp;&nbsp;&nbsp;(5) The shareholders, directors, and current senior management
personnel are involved in major cases or economic disputes, or the legal representative/person-in-charge or current senior management
personnel have important matters such as deteriorating health or inconsistent qualifications that make them unable to be competent for
their own work;

&nbsp;&nbsp;&nbsp;&nbsp;(6) The borrower has a default event under other contracts;

&nbsp;&nbsp;&nbsp;&nbsp;(7) Occurrence of operational difficulties and deterioration
of financial situation;

&nbsp;&nbsp;&nbsp;&nbsp;(8) When the borrower undergoes changes, restructuring, contracting,
or is approved by the competent authority to close down, suspend operations, merge, or transfer, the borrower guarantees to notify the
lender in writing at least one month before the occurrence of the above events and immediately repay all debts to the lender. With the
written consent of the lender, the borrower may transfer the debts to the receiving unit or the newly established unit (in the process
of debt transfer, the borrower shall show and submit the documents or relevant documents issued by its competent authority or the employer
to the lender), but the unit receiving the debts must re-sign the loan contract with the lender and submit the corresponding written
certificate of consent from the guarantor or implement new guarantee measures. Before the contract is signed, the lender has the right
to recover the debts from the borrower, the guarantor, or the borrower's receiver at any time.

13. The repayment order of the borrower's debts to the lender shall take priority over the loans from the borrower's
shareholders to the borrower, and shall not be inferior to the similar debts owed by the borrower to other creditors. From the effective
date of this Contract until the full repayment of the loan principal, interest, and relevant fees under this Contract, the borrower shall
not repay the amounts owed to its shareholders.

14. For the loan under this Contract, the guarantee conditions, loan interest rate pricing, repayment order,
and other loan conditions provided by the borrower to the lender shall not be lower than those given to any other financial institutions
now or in the future.

15. Bear the expenses incurred in the conclusion and performance of this Contract, as well as the expenses paid
and to be paid by the lender to realize the creditor's rights under this Contract, including but not limited to litigation or arbitration
fees, property preservation fees, lawyer's fees, execution fees, appraisal fees, auction fees, announcement fees, etc.

16. Account Management

&nbsp;&nbsp;&nbsp;&nbsp;(1) The repayment account designated and opened by the borrower
with the lender (the account agreed in Article 5) is a special fund recovery account, used to collect the corresponding sales income
or planned repayment funds. If the corresponding sales income is settled in a non-cash manner, the borrower shall ensure that the funds
are promptly transferred into the fund recovery account after receipt.

&nbsp;&nbsp;&nbsp;&nbsp;(2) The lender has the right to supervise the fund recovery account,
including but not limited to understanding and supervising the fund inflow and outflow of the account, and the borrower shall cooperate.
If required by the lender, the borrower shall sign a special account supervision agreement with the lender.

17. The borrower shall not dispose of its own assets in a way that reduces its solvency, and undertakes that
the total amount of its external guarantees shall not exceed [ ] times its own net assets, and the total amount of external guarantees
and the amount of individual guarantees shall not exceed the limit stipulated in its articles of association; without the consent of the
lender, it shall not provide guarantees to third parties with the assets formed by the loan under this Contract or provide guarantees
for the loans of the borrower in other financial institutions.

Article 18 Internal Affiliation of the Borrower

☐ 1. The borrower is not a group customer determined by the lender in accordance with the "Guidelines for the Risk Management of Group Customer Credit Business of Commercial Banks" (referred to as the "Guidelines").

&nbsp;&nbsp;&nbsp;&nbsp;√ 2. The borrower is a group customer determined by the lender
in accordance with the "Guidelines". The borrower shall promptly report the relevant affiliated transaction information to
the lender.

☐ 3. The borrower and its affiliates have major merger, acquisition, restructuring, and other matters that obviously or may affect the safety of the lender's loan.

Article 19 Default Acts and Handling

1. Default Acts

The borrower shall be deemed to have committed a default in the performance of this Contract and shall bear liability for breach of contract if it commits any of the following acts:

&nbsp;&nbsp;&nbsp;&nbsp;(1) The borrower fails to perform the payment and repayment obligations
to the lender in accordance with the agreement of this Contract;

&nbsp;&nbsp;&nbsp;&nbsp;(2) The borrower fails to use the loan funds in accordance with
the agreed purpose and method of this Contract or fails to use the obtained funds for the purpose agreed in this Contract; or the borrower
fails to go through the withdrawal procedures on time in accordance with the withdrawal plan, or the change of the withdrawal plan is
not approved by the lender; or the borrower violates the agreement of this Contract and avoids the lender's entrusted payment by splitting
the amount into smaller parts;

&nbsp;&nbsp;&nbsp;&nbsp;(3) The representations made by the borrower in this Contract
are untrue, or the borrower violates the commitments made by it in this Contract;

&nbsp;&nbsp;&nbsp;&nbsp;(4) The circumstances specified in Article 17.12 of this Contract
occur, and the lender deems that it may affect the financial situation and performance capacity of the borrower or the guarantor, but
the borrower fails to provide new guarantees or replace the guarantor in accordance with the agreement of this Contract;

&nbsp;&nbsp;&nbsp;&nbsp;(5) The borrower commits a default under other contracts with
the lender; the borrower commits a default under the credit contracts with other financial institutions;

&nbsp;&nbsp;&nbsp;&nbsp;(6) The guarantor violates the agreement of the guarantee contract
or commits a default under other contracts with the lender;

&nbsp;&nbsp;&nbsp;&nbsp;(7) The borrower terminates its business or occurs an event of
dissolution, revocation, or bankruptcy;

&nbsp;&nbsp;&nbsp;&nbsp;(8) The borrower is involved in or may be involved in major economic
disputes, litigation, or arbitration, or its assets are seized, detained, or enforced, or it is filed for investigation or punished by
judicial organs or administrative organs such as tax and industry and commerce in accordance with the law, which has affected or may
affect the performance of its obligations under this Contract;

&nbsp;&nbsp;&nbsp;&nbsp;(9) The key investor individuals or key management personnel
of the borrower have abnormal changes, are missing, or are investigated or restricted in personal freedom by judicial organs in accordance
with the law, which has affected or may affect the performance of its obligations under this Contract;

&nbsp;&nbsp;&nbsp;&nbsp;(10) The borrower's credit status deteriorates, or its financial
indicators such as profitability, solvency, operational capacity, and cash flow deteriorate, breaking through the indicator constraints
or other financial agreements agreed in this Contract;

&nbsp;&nbsp;&nbsp;&nbsp;(11) The borrower uses false contracts with affiliated parties
to obtain the lender's funds or credit through transactions without actual transaction background, the affiliates have major merger,
acquisition, restructuring, and other matters that obviously or may affect the safety of the lender's loan, or intentionally evades the
lender's creditor's rights through affiliated transactions;

&nbsp;&nbsp;&nbsp;&nbsp;(12) The borrower causes liability accidents due to violations
of relevant laws, regulations, regulatory provisions, or industry standards such as food safety, production safety, and environmental
protection, which has affected or may affect the performance of its obligations under this Contract;

&nbsp;&nbsp;&nbsp;&nbsp;(13) If the loan under this Contract is issued on a credit basis,
the borrower's credit rating, profit level, asset-liability ratio, net cash flow from operating activities, and other indicators do not
meet the lender's credit loan conditions; or the borrower, without the written consent of the lender, sets mortgage/pledge guarantees
on its effective operating assets for others or provides guarantee guarantees to others, which has affected or may affect the performance
of its obligations under this Contract;

&nbsp;&nbsp;&nbsp;&nbsp;(14) Other circumstances that may adversely affect the realization
of the lender's creditor's rights under this Contract.

2. Handling of Defaults

When any of the above-mentioned default acts occurs, the borrower agrees that the lender may take one, multiple, or all of the following measures according to the specific circumstances:

&nbsp;&nbsp;&nbsp;&nbsp;(1) Require the borrower and the guarantor to correct their default
acts within a time limit;

&nbsp;&nbsp;&nbsp;&nbsp;(2) Reduce, suspend, or terminate all or part of the credit limit
to the borrower;

&nbsp;&nbsp;&nbsp;&nbsp;(3) Suspend or terminate all or part of the acceptance of the
borrower's withdrawal and other business applications under this Contract and other contracts between the borrower and the lender; suspend
or terminate the issuance, payment, and handling of all or part of the loans that the borrower has not yet withdrawn;

&nbsp;&nbsp;&nbsp;&nbsp;(4) Declare that all or part of the unpaid loan principal, interest,
and other payable funds under this Contract and other contracts between the borrower and the lender are immediately due, and require
the borrower to immediately repay all the matured loan principal and settle the interest;

&nbsp;&nbsp;&nbsp;&nbsp;(5) Negotiate with the borrower to supplement the loan issuance
and payment conditions within a time limit, or the lender has the right to change the loan issuance and payment conditions according
to the borrower's credit status, such as reducing the starting amount of entrusted payment, or the lender has the right to require the
recovery of the loan funds paid in violation of the agreement;

&nbsp;&nbsp;&nbsp;&nbsp;(6) Terminate or rescind this Contract, and terminate or rescind
all or part of other contracts between the borrower and the lender;

&nbsp;&nbsp;&nbsp;&nbsp;(7) Require the borrower to compensate for the losses caused
to the lender due to its default;

&nbsp;&nbsp;&nbsp;&nbsp;(8) With prior or subsequent notice only, have the right to directly
deduct funds from any account of the borrower in the rural commercial bank system within Jiangxi Province to repay the loan principal
and interest, and the undue funds in the account shall be deemed due in advance;

&nbsp;&nbsp;&nbsp;&nbsp;(9) Exercise the security interest; require the guarantor to
assume the guarantee liability;

&nbsp;&nbsp;&nbsp;&nbsp;(10) If the borrower fails to repay the loan principal, interest
(including penalty interest and compound interest), or other payable funds on time, the lender may disclose the default information of
the borrower and the guarantor and conduct public announcement collection through public media such as television, newspapers, and the
Internet or other forms;

&nbsp;&nbsp;&nbsp;&nbsp;(11) Have the right to deduct the deposits and equity dividends
of the borrower in any account of the rural commercial bank within Jiangxi Province, and have the right to dispose of the borrower's
equity, etc.;

&nbsp;&nbsp;&nbsp;&nbsp;(12) Other measures required and possible by the lender in accordance
with the provisions of laws and regulations.

Article 20 Reservation of Rights

If one party fails to exercise part or all of its rights under this Contract, or fails to require the other party to perform or assume part or all of its obligations and liabilities, it shall not constitute a waiver of such rights or an exemption from such obligations and liabilities by that party.

Any tolerance, extension, or delay in exercising the rights under this Contract by one party to the other party shall not affect any rights enjoyed by it in accordance with this Contract and laws and regulations, nor shall it be deemed a waiver of such rights.

Article 21 Confidentiality

Both parties guarantee to keep confidential the trade secrets (technical information, operational information, and other trade secrets) obtained from the other party that cannot be obtained from public channels. Without the consent of the original provider of the trade secret, one party shall not disclose all or part of the trade secret to any third party, except as otherwise stipulated by laws and regulations or agreed by both parties.

If one party violates the above confidentiality obligations, it shall bear corresponding liability for breach of contract and compensate for the losses caused thereby.

Article 22 Force Majeure

Force majeure as referred to in this Contract means an objective event that cannot be foreseen, avoided, or overcome and has a significant impact on one party, including but not limited to natural disasters such as floods, earthquakes, fires, and storms, as well as social events such as wars and riots.

If the performance of the Contract becomes impossible due to the occurrence of a force majeure event, the party encountering the force majeure shall immediately notify the other party in writing of the event, and provide details of the event and written materials indicating that the Contract cannot be performed or needs to be extended within 7 days. After mutual recognition, both parties shall negotiate to terminate the Contract or temporarily delay the performance of the Contract.

Article 23 Modification, Amendment, and Termination

This Contract may be modified or amended in writing upon mutual agreement of both parties. Any modification or amendment agreed by both parties shall constitute an integral part of this Contract.

Except as otherwise stipulated by laws and regulations or agreed by the parties, this Contract shall not be terminated before the full performance of the rights and obligations agreed herein.

Except as otherwise stipulated by laws and regulations or agreed by the parties, if any clause of this Contract is invalid, it shall not affect the legal effect of other clauses.

Article 24 Service Agreement

1. The contact information (including communication address, contact phone number, fax number, etc.) filled
in by the borrower in this Contract is true and effective and serves as the service address for any notices from the lender to the borrower.
If any contact information is changed, the borrower shall immediately send the change information to the communication address filled
in by the lender in this Contract by mail/delivery in writing. Such information change shall take effect after the lender receives the
change notice.

2. Except as otherwise explicitly agreed in this Contract, the lender may send any notice to the borrower through
any of the following methods. The lender has the right to choose the notice method it deems appropriate, and shall not be liable for any
transmission errors, omissions, or delays in the postal service, fax, telephone, WeChat, or any other communication system. If the lender
chooses multiple notice methods at the same time, the one that reaches the borrower first shall prevail.

&nbsp;&nbsp;&nbsp;&nbsp;(1) Public announcement service: The date of publication of the
announcement by the lender on its website, online banking, telephone banking, or business outlets shall be deemed the service date;

&nbsp;&nbsp;&nbsp;&nbsp;(2) Personal delivery: The date of signature by the borrower
shall be deemed the service date; if the borrower refuses to sign, the date on which the deliverer records the situation on the service
receipt on the spot shall be deemed the service date;

&nbsp;&nbsp;&nbsp;&nbsp;(3) Postal delivery (including express mail, ordinary mail, registered
mail) to the latest known communication address of the borrower by the lender: The date of signature by the borrower shall be the service
date; if the borrower fails to sign, the date of return of the postal item shall be deemed the service date;

&nbsp;&nbsp;&nbsp;&nbsp;(4) Delivery by fax, mobile phone short message, WeChat, or other
electronic communication methods to the latest known fax number, designated mobile phone number, WeChat ID, or e-mail address of the
borrower by the lender: The date of sending shall be deemed the service date.

3. The borrower agrees that unless the lender receives a written notice from the borrower about the change of
the communication address, the borrower's domicile stated in this Contract is the communication and contact address. In the future, the
statement of account, collection documents, and relevant legal documents and litigation document service addresses related to the loan
under this Contract shall be based on this. The borrower undertakes to promptly notify the lender when the communication and contact information
changes; otherwise, the documents served by the lender in accordance with the communication and contact information stated in this Contract
shall be deemed effective service, and the relevant economic and legal liabilities arising therefrom shall be borne by the borrower and
the mortgagor. During the dispute resolution process of this Contract, if the court or notary organ serves judicial documents or other
written documents to the borrower at the communication address confirmed by the borrower in this Contract by postal delivery (including
express mail, ordinary mail, registered mail), the date of signature by the borrower on the service receipt shall be the service date;
if the borrower fails to sign on the service receipt, the date of return of the postal item shall be the service date.

The court or notary organ may send any notice to the borrower through any of the communication methods agreed in Paragraph 2 of this Article. The court or notary organ has the right to choose the communication method it deems appropriate, and shall not be liable for any transmission errors, omissions, or delays in the postal service, fax, telephone, telex, or any other communication system. If the court or notary organ chooses multiple communication methods at the same time, the one that reaches the borrower first shall prevail.

Article 25 Attachments

The relevant attachments jointly confirmed by both parties constitute an integral part of this Contract and have the same legal effect as this Contract.

Article 26 Other Agreements

1. Without the written consent of the lender, the borrower shall not transfer any rights or obligations under
this Contract to a third party.

2. The lender has the right to transfer the creditor's rights under this Contract to a third party, but shall
notify the borrower.

3. Without prejudice to other agreements of this Contract, this Contract shall be legally binding on both parties
and their respective legally arising heirs and assignees.

4. The transaction under this Contract is conducted based on the independent interests of each party. If, in
accordance with the relevant laws, regulations, and regulatory requirements, the other parties to the transaction constitute affiliates
or related persons of the lender, none of the parties shall seek to use such affiliate relationship to affect the fairness of the transaction.

5. The headings and business names in this Contract are only used for convenience of reference and shall not
be used to interpret the content of the clauses and the rights and obligations of the parties.

6. The lender has the right to provide the information related to this Contract and other relevant information
of the borrower to the Credit Reference Center of the People's Bank of China and other legally established credit information databases
in accordance with the relevant laws, regulations, and regulatory requirements, for inquiry and use by qualified institutions or individuals
in accordance with the law. The lender also has the right to inquire about the relevant information of the borrower through the Credit
Reference Center of the People's Bank of China and other legally established credit information databases for the purpose of concluding
and performing this Contract.

Both parties confirm that the borrower and the lender have fully negotiated all the clauses of this Contract. The lender has specially reminded the borrower to pay attention to all clauses concerning the rights and obligations of both parties, made a comprehensive and accurate understanding of them, and explained and illustrated the relevant clauses at the request of the borrower. The borrower has carefully read and fully understood all the content and clauses of the Contract, confirmed that there is no misunderstanding or doubt about all the content and clauses, and the borrower and the lender have a complete consistent understanding of the content and clauses of this Contract and have no objections.

(No text below; the following is the signing page of both parties)

**Responsible for the authenticity of the data (signature):**

**Borrower (Seal):**

**Legal Representative or Authorized Agent (Signature/Seal):**

**Date:** March 3, 2025

**Lender (Seal):**

**Legal Representative or Authorized Agent (Signature/Seal):**

**Date:** March 3, 2025

**Signing Location:**

## Exhibit 4.14

**Exhibit 4.14**

Working Capital Loan Contract

Borrower: Jiangxi Universe Pharmaceuticals Co., Ltd.

Lender: Jiangxi Rural Commercial Bank Co., Ltd.

Special Notice

To protect the legitimate rights and interests of the Borrower, the Lender specially reminds the Borrower to pay full attention to all clauses concerning the rights and obligations of both parties, especially the bolded parts. If the Borrower has any objections, it shall raise them to the Lender. If there are no objections, after being signed by both parties, all clauses of this Contract are the true expression of the intentions of both parties, have legal binding force, and are protected by law.

Working Capital Loan Contract

Contract No.

Borrower: Jiangxi Universe Pharmaceuticals Co., Ltd.

Business License No.: 95608217670218430

Legal Representative/Responsible Person: Lai Gang

Mailing Address:

Postal Code:343100

Telephone: 13970661293

Electronic Contact Information (Email, WeChat ID):

Lender: Jiangxi Rural Commercial Bank Co., Ltd.

Legal Representative/Responsible Person: [Name]

Registered Address:

Postal Code:

Telephone: gxisik

Fax:

In accordance with the relevant laws, regulations of the People's Republic of China and other relevant provisions, the Borrower and the Lender, through negotiation, enter into this Contract for the Lender to grant a working capital loan to the Borrower, and both parties shall abide by it jointly.

Chapter 1 Specific Clauses

Article 1 Loan Amount and Currency

Loan amount in RMB: (in words) One Million Yuan Only

(in figures) ￥1,000,000.00

The loan amount under this Contract is: □ Revolving loan limit □ Non-revolving loan limit

Article 2 Loan Term

The valid usage period of the loan under this Contract is [ ] months, from April 22, 2025 to April 21, 2026.

□ If the loan amount under this Contract is a revolving limit, the validity period of the limit is consistent with the agreed valid usage period of the loan in this Contract, and the term of each loan shall be subject to the period recorded in the loan voucher.

If the loan amount under this Contract is a non-revolving limit, the loan term is consistent with the agreed valid usage period of the loan in this Contract, and the specific loan term shall be subject to the period recorded in the loan voucher.

If the Borrower commits any of the breach of contract situations listed in Article 19 of this Contract, the Borrower agrees that the Lender may recall the loan in advance, and the date on which the Lender declares the advance recall of the loan shall be the maturity date of the loan.

Article 3 Purpose of Loan

Purpose of loan: Working capital

Without the prior written consent of the Lender, the Borrower shall not change the purpose of the loan or divert the loan for other uses, and the Lender has the right to supervise the use of the loan.

Article 4 Loan Interest Rate, Interest Calculation and Settlement

1. Loan Interest Rate

The loan interest rate shall be calculated on a simple interest basis and determined in accordance with the following method (1):

&nbsp;&nbsp;&nbsp;&nbsp;(1) Fixed interest rate: Annual interest rate of 3.6%;

Based on the one-year Loan Prime Rate (LPR) announced most recently on the working day prior to the signing date of this Contract/ the withdrawal date, plus/minus 50bp (1bp = 0.01%), the annual interest rate is 3.6%, which shall remain unchanged during the loan term.

&nbsp;&nbsp;&nbsp;&nbsp;(2) Floating interest rate:

The annual interest rate shall be determined by adding/minus [ ] bp to the one-year Loan Prime Rate (LPR) announced most recently on the working day prior to the withdrawal date. The value of the added/minus bp shall remain unchanged during the validity period of this Contract. In case of adjustment of the Loan Prime Rate (LPR), the method for determining the loan interest rate shall be handled in accordance with the following method [ ], and the Lender shall not notify the Borrower separately:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;① Annual adjustment: From January 1 of the following year, the
interest rate shall be implemented by adding/minus the agreed bp to the newly announced LPR in accordance with this Contract;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;② Annual adjustment on the corresponding date: On the corresponding
date of the same month and same day each year, the interest rate shall be implemented by adding/minus the agreed bp to the newly announced
LPR in accordance with this Contract;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;③ Quarterly adjustment on the corresponding date of the first
month of the quarter: On the corresponding date of the first month of each quarter, the interest rate shall be implemented by adding/minus
the agreed bp to the newly announced LPR in accordance with this Contract;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;④ Quarterly adjustment on the first day of the first month of
the quarter: On the first day of the first month of each quarter, the interest rate shall be implemented by adding/minus the agreed bp
to the newly announced LPR in accordance with this Contract;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;⑤ Monthly adjustment on the corresponding date: On the corresponding
date of each month, the interest rate shall be implemented by adding/minus the agreed bp to the newly announced LPR in accordance with
this Contract (if there is no corresponding date in the adjustment month, the last day of that month shall be the corresponding date);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;⑥ Monthly adjustment on the first day of the month: On the first
day of each month, the interest rate shall be implemented by adding/minus the agreed bp to the newly announced LPR in accordance with
this Contract;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;⑦ Immediate adjustment: From the next day of the new LPR announcement,
the new LPR shall be used to implement the interest rate by adding/minus the agreed bp in accordance with this Contract.

&nbsp;&nbsp;&nbsp;&nbsp;(3) Other methods:

If the Borrower chooses the method of "(2) Floating interest rate", in case of an increase in the Loan Prime Rate (LPR), the monthly repayment amount of the Borrower will increase. If the Borrower still repays according to the repayment amount before the adjustment, the monthly repayment amount will be insufficient, resulting in penalty interest and compound interest, and affecting the credit record of the Borrower.

2. Interest Settlement Method

The Borrower shall settle interest in accordance with the following method (2):

&nbsp;&nbsp;&nbsp;&nbsp;(1) Quarterly interest settlement: The 20th day of the last month
of each quarter is the interest settlement date, and the 21st day is the interest payment date.

&nbsp;&nbsp;&nbsp;&nbsp;(2) Monthly interest settlement: The 20th day of each month is
the interest settlement date, and the 21st day is the interest payment date.

&nbsp;&nbsp;&nbsp;&nbsp;(3) Other methods:

If the final repayment date of the loan principal is not an interest payment date, the final repayment date of the loan principal shall be the interest payment date, and the Borrower shall pay off all accrued interest.

3. Penalty Interest Rate

&nbsp;&nbsp;&nbsp;&nbsp;(1) If the Borrower fails to repay the loan within the agreed
term, the Lender shall collect interest on the overdue part at the overdue loan penalty interest rate from the date of overdue until
the principal and interest are fully repaid;

&nbsp;&nbsp;&nbsp;&nbsp;(2) If the Borrower fails to use the loan for the agreed purpose,
the Lender shall collect interest on the misappropriated part at the misappropriated loan penalty interest rate from the date of misappropriation
until the principal and interest are fully repaid;

&nbsp;&nbsp;&nbsp;&nbsp;(3) For loans that are both overdue and misappropriated, interest
shall be collected at the misappropriated loan penalty interest rate;

&nbsp;&nbsp;&nbsp;&nbsp;(4) For the interest and penalty interest that the Borrower fails
to pay on time, compound interest shall be calculated at the penalty interest rate agreed in this paragraph in accordance with the interest
settlement method agreed in Paragraph 2 of this Article;

&nbsp;&nbsp;&nbsp;&nbsp;(5) When calculating and collecting penalty interest and compound
interest, if the loan interest rate agreed in this Contract is adjusted, the penalty interest and compound interest shall be calculated
at the adjusted interest rate from the adjustment date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6) Penalty interest rate:

The overdue loan penalty interest rate shall be the loan interest rate agreed in Paragraph 1 of this Article plus 5%; the misappropriated loan penalty interest rate shall be the loan interest rate agreed in Paragraph 1 of this Article plus [ ]%.

Article 5 Loan Disbursement and Repayment Account

The Borrower shall open the following account with the Lender as the loan disbursement and repayment account, and the disbursement, payment and repayment of the loan shall be handled through this account.

Issuing Bank: Mingxin Business Department

Account Name: Yudu

Account Number:

Article 6 Repayment

Unless otherwise agreed by both parties, the Borrower shall repay the loan under this Contract in accordance with the following repayment plan [ ]:

1. Repay all the loans under this Contract on the maturity date of the loan term.

2. Repay the loans under this Contract in accordance with the following repayment plan:

---

| | |
|:---|:---|
| **Repayment Time** | **Repayment Amount** |
| 1. |  |
| 2. |  |
| 3. |  |
| 4. |  |
| 5. |  |
| 6. |  |
| 7. |  |
| 8. |  |
| 9. |  |
| Total |  |

---

3. Other repayment plans:

4. If the Borrower intends to repay the loan in advance, it shall obtain the consent of the Lender 3 banking
working days in advance.

Article 7 Guarantee

The loan under this Contract is a (credit/guaranteed) loan, and the guarantee method is (guarantee/mortgage/pledge). A separate guarantee contract shall be signed.

Article 8 Contractual Agreements on the Borrower's Financial Indicators

1. 2. 3. Article 9 Dispute Resolution

&nbsp;&nbsp;&nbsp;&nbsp;1. After the effectiveness of this Contract, all disputes arising from the conclusion and performance of this
Contract or in connection with this Contract may be resolved through negotiation between both parties. If the negotiation fails, either
party may file a lawsuit with the people's court having jurisdiction at the place where the Lender is located in accordance with the law.

&nbsp;&nbsp;&nbsp;&nbsp;2. During the dispute resolution period, if the dispute does not affect the performance of other clauses of
this Contract, such other clauses shall continue to be performed.

&nbsp;&nbsp;&nbsp;&nbsp;3. Through negotiation between all parties, this Contract may be notarized for compulsory execution. The Borrower
agrees that this Contract shall have the effect of compulsory execution after being notarized. If the Borrower fails to perform its obligations
under this Contract, the Lender may apply to the people's court having jurisdiction for execution in accordance with the law.

Article 10 Effectiveness of the Contract

This Contract shall take effect on the date of signature and seal by both parties.

This Contract is made in [ ] copies, each having the same legal effect. Each party shall hold [ ] copy(ies), and the guarantor (if any) shall hold [ ] copy(ies).

Article 11 Other Agreed Matters

Chapter 2 Standard Clauses

Article 12 Interest Calculation

Interest shall accrue from the actual withdrawal date of the Borrower, calculated based on the actual withdrawal amount and the number of days of use.

Interest calculation formula: Interest = Principal × Actual number of days × Daily interest rate

The daily interest rate is calculated based on 360 days a year, and the conversion formula is: Daily interest rate = Annual interest rate / 360.

Article 13 Conditions for Loan Disbursement

&nbsp;&nbsp;&nbsp;&nbsp;1. The Borrower must meet all the following conditions for loan
disbursement; otherwise, the Lender has no obligation to disburse any funds to the Borrower, unless the Lender agrees to make an advance
disbursement:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) This Contract and its attachments have taken effect;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) The Borrower has reserved with the Lender the documents, bills,
seals, list of personnel, signature samples of the Borrower related to the conclusion and performance of this Contract, and filled in
the relevant vouchers;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) The Borrower has opened the necessary accounts for the performance
of this Contract as required by the Lender;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) Submit a written withdrawal notice and relevant documents
proving the purpose of the loan to the Lender 3 banking working days before the withdrawal, and the provided documents proving the purpose
of the loan are consistent with the agreed purpose, and go through the relevant withdrawal procedures;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) The Borrower has submitted to the Lender the resolution and
power of attorney of the board of directors or other authorized departments agreeing to sign and perform this Contract;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6) In accordance with the relevant regulatory provisions and
the Lender's management requirements, loans exceeding a certain amount or meeting other conditions shall adopt the Lender's entrusted
payment method. The Lender shall pay the loan to the payment object in line with the agreed purpose of this Contract according to the
Borrower's withdrawal application and payment entrustment;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(7) Except for credit loans, the Borrower has provided corresponding
guarantees as required by the Lender and completed all relevant guarantee procedures, and the guarantees are legal and valid;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(8) No breach of contract has occurred under this Contract or
other contracts signed between the Borrower and the Lender;

&nbsp;&nbsp;&nbsp;&nbsp;2. From the date of signing this Contract, if the Borrower does
not make any withdrawal for 3 consecutive months, the Lender has the right to cancel the loan limit.

Article 14 Special Agreements on Revolving Loans (Maximum Amount Loans)

&nbsp;&nbsp;&nbsp;&nbsp;1. During the usage period of the revolving loan limit, the
sum of the outstanding loan principal balances of the Borrower at any time shall not exceed the revolving loan limit; the repayment date
of any withdrawal shall not exceed the usage period of the revolving loan limit.

&nbsp;&nbsp;&nbsp;&nbsp;2. Both parties agree that the Lender may reasonably set the
limit and term of each revolving loan according to the scale and cycle characteristics of the Borrower's production and operation.

Article 15 Payment of Loan Funds

&nbsp;&nbsp;&nbsp;&nbsp;1. Lender's entrusted payment refers to the Lender paying
the loan funds to the Borrower's counterparty in line with the agreed purpose of this Contract according to the Borrower's
withdrawal notice and payment entrustment.

For the payment of loan funds with a single payment amount exceeding the specified limit under this Contract, the Lender's entrusted payment method shall be adopted.

If the Lender's entrusted payment is adopted, the Borrower shall include a clear payment entrustment (including the name of the receiving counterparty, the counterparty's account, the payment amount, etc.) and other necessary payment information in the withdrawal notice, and submit to the Lender the business contract and other purpose certification materials required for review. After the Lender's review and approval, the loan funds shall be paid to the Borrower's counterparty through the Borrower's account. If the Lender fails to complete its entrusted payment obligation in a timely manner due to the untrue, inaccurate or incomplete payment entrustment information and relevant transaction materials provided by the Borrower, the Lender shall not be liable for any liability, and the Borrower's repayment obligation already incurred under this Contract shall not be affected. The Lender shall pay the funds to the counterparty's account according to the Borrower's withdrawal notice and the payment vouchers required by the Lender.

If the Lender finds through review that the business contract and other purpose certification materials provided by the Borrower are inconsistent with the agreement of this Contract or have other defects, it has the right to require the Borrower to supplement, replace, explain or resubmit the relevant materials. Before the Borrower submits the business contract and other certification materials deemed qualified by the Lender, the Lender has the right to refuse the disbursement and payment of the relevant funds.

If the counterparty's account opening bank refunds the funds, resulting in the Lender's failure to pay the loan funds to the counterparty in a timely manner according to the Borrower's payment entrustment, the Lender shall not be liable for any liability, and the Borrower's repayment obligation already incurred under this Contract shall not be affected. For the funds returned by the counterparty's account opening bank, the Borrower shall resubmit the payment entrustment and the business contract and other purpose certification materials required for review. After the Lender's review and approval, the loan funds shall be paid to the Borrower's counterparty through the Borrower's account.

All handling fees required for the loan payment to the Borrower's designated transaction object by way of entrusted payment under this Contract shall be borne by the Borrower. The Borrower shall pay the above fees to the Lender when handling the entrusted payment for each loan.

The Borrower shall not violate the above agreements and avoid the Lender's entrusted payment by splitting the amount into smaller parts.

&nbsp;&nbsp;&nbsp;&nbsp;2. Except for the circumstances where the Lender's entrusted
payment method must be adopted as agreed in the preceding paragraph, unless otherwise agreed by both parties, the payment method for
other loan funds shall be the Borrower's independent payment, that is, after the Lender disburses the loan funds to the Borrower's
account according to the Borrower's withdrawal application, the Borrower shall independently pay the funds to the Borrower's
counterparty in line with the agreed purpose of the Contract.

If the Borrower needs to change the above repayment plan, it shall submit a written application to the Lender 10 banking working days before the maturity of the corresponding loan. The change of the repayment plan must be confirmed in writing by both parties.

&nbsp;&nbsp;&nbsp;&nbsp;3. If the loan under this Contract needs to be extended, the Borrower shall submit a written extension application
to the Lender 30 banking working days before the maturity of the loan. The decision to approve the extension shall be made by the Lender.
For the application for extension of guaranteed loans, mortgage loans or pledge loans, the guarantor, mortgagor or pledgor shall also
issue a written certificate of consent. If the Lender approves the extension, both parties shall sign an extension agreement; if the Borrower's
extension application is not approved by the Lender, the Borrower shall still repay the loan in full in accordance with the repayment
term agreed in this Contract.

&nbsp;&nbsp;&nbsp;&nbsp;4. Except otherwise agreed by both parties, if the Borrower is in arrears with both the loan principal and interest,
the Lender has the right to determine the order of repaying the principal or interest; in the case of installment repayment, if there
are multiple matured loans or overdue loans under this Contract, the Lender has the right to determine the order of repayment; if there
are multiple loan contracts between the Borrower and the Lender, the Lender has the right to determine the order of the contracts to be
performed by each repayment of the Borrower.

&nbsp;&nbsp;&nbsp;&nbsp;5. The Borrower shall repay the loan principal, interest and other payable amounts in full and on time in accordance
with the agreement of this Contract. Before the end of the counter business hours on the repayment date and each interest settlement date,
the Borrower shall deposit sufficient funds in the repayment account opened with the Lender to cover the current accrued interest, principal
and other payable amounts. The Borrower authorizes the Lender to automatically deduct the funds on the repayment date or interest settlement
date, or require the Borrower to cooperate in handling the relevant deduction procedures. If the funds in the repayment account are insufficient
to cover all the Borrower's matured payable amounts, the Borrower agrees that the Lender shall determine the order of repayment.

&nbsp;&nbsp;&nbsp;&nbsp;6. The Lender has the right to recall the loan in advance according to the Borrower's fund recovery situation.

&nbsp;&nbsp;&nbsp;&nbsp;7. Loan voucher: The loan voucher is an integral part of this Contract. If the amount of loan, withdrawal amount,
repayment amount, date of loan occurrence and maturity date, loan term, loan interest rate, purpose of loan recorded in this Contract
is inconsistent with that recorded in the loan voucher, the loan voucher shall prevail.

Article 16 Guarantee

If the Lender deems that any event may affect the performance ability of the Borrower or the guarantor, or the guarantee contract becomes invalid, revoked or terminated, or the financial condition of the Borrower or the guarantor deteriorates, or they are involved in major lawsuits or arbitrations, or their performance ability may be affected for other reasons, or the guarantor breaches the agreement of the guarantee contract or other contracts with the Lender, or the guaranteed property depreciates, is damaged, lost or seized, resulting in the reduction or loss of the guarantee value, the Lender has the right to require, and the Borrower is obligated to supplement and provide new guarantees, supplement or replace the guarantor, etc., to guarantee the debts under this Contract.

Article 17 Representations and Warranties

&nbsp;&nbsp;&nbsp;&nbsp;1. The Borrower is legally registered with and approved by the administrative department for industry and commerce
or the competent authority and legally exists, has full civil rights capacity and civil capacity to sign and perform this Contract, and
has the ability to repay the loan.

&nbsp;&nbsp;&nbsp;&nbsp;2. The Borrower fully agrees to the content and clauses of this Contract. The signing and performance of this
Contract are based on the true intention of the Borrower, have obtained legal and effective authorization in accordance with the requirements
of its articles of association or other internal management documents, and will not violate any agreements, contracts and other legal
documents binding on the Borrower; the Borrower has obtained or will obtain all relevant approvals, permits, filings or registrations
required for signing and performing this Contract.

&nbsp;&nbsp;&nbsp;&nbsp;3. The Borrower abides by the principle of good faith. All documents, financial statements, vouchers and other
materials provided to the Lender under this Contract are true, complete, accurate and effective, without any false records, material omissions
or misleading statements. The financial accounting reports provided to the Lender are prepared in accordance with Chinese accounting standards,
truly, fairly and completely reflecting the operating conditions and liabilities of the Borrower.

&nbsp;&nbsp;&nbsp;&nbsp;4. The transaction background for the Borrower to apply for business with the Lender is true and legal, and
is not used for illegal purposes such as money laundering; the purpose of the loan and the source of repayment are clear and legal.

&nbsp;&nbsp;&nbsp;&nbsp;5. The Borrower has a good credit status and no major bad records, and the Borrower has not concealed from the
Lender any events that may affect its own and the guarantor's financial conditions and performance ability. The Borrower has not concealed
from the Lender any lawsuits, arbitrations or claims involving it.

&nbsp;&nbsp;&nbsp;&nbsp;6. The Borrower has repaid other debts due on time and has no malicious default on bank loan principal and interest.

&nbsp;&nbsp;&nbsp;&nbsp;7. The Borrower shall withdraw and use the loan in accordance with the term and purpose agreed in this Contract.
The borrowed funds shall not be used for fixed asset investment, equity investment, etc., and shall not flow into the securities market,
futures market or other purposes prohibited or restricted by relevant laws and regulations in any form.

&nbsp;&nbsp;&nbsp;&nbsp;8. The Borrower shall submit its financial statements (including but not limited to annual reports, quarterly
reports and monthly reports) and other relevant materials to the Lender regularly or in a timely manner as required by the Lender; the
Borrower shall ensure that its financial indicators always comply with the contractual agreements. If the production and operation qualifications/permissions
need annual inspection, the Borrower shall pass the annual inspection on time.

&nbsp;&nbsp;&nbsp;&nbsp;9. The Borrower shall withdraw, pay and use the loan in accordance with the agreement of this Contract.

&nbsp;&nbsp;&nbsp;&nbsp;10. If the Borrower has signed or will sign a counter-guarantee agreement or similar agreement with the guarantor
of this Contract regarding its guarantee obligations, such agreement will not prejudice any rights of the Lender under this Contract.

&nbsp;&nbsp;&nbsp;&nbsp;11. The Borrower shall accept the credit inspection and supervision of the Lender and provide sufficient assistance
and cooperation; from the effective date of this Contract until the full repayment of the loan principal, interest and related expenses
under this Contract, the Borrower agrees and authorizes the Lender to monitor the accounts opened by the Borrower with the Lender, inspect
and analyze its production and operation (including but not limited to the construction and operation of the Borrower's projects), and
conduct dynamic monitoring of its income cash flow and overall capital flow; the Borrower shall accept and actively cooperate with the
Lender's inspection and supervision of the use of the loan funds including the purpose by means of account analysis, voucher inspection,
on-site investigation, etc., and regularly summarize and report as required by the Lender.

&nbsp;&nbsp;&nbsp;&nbsp;12. If the Borrower intends to merge, divide, reduce capital, transfer equity, make external investments, substantially
increase debt financing, transfer major assets and claims, or other events that may have an adverse impact on the Borrower's debt repayment
ability, it must obtain the prior written consent of the Lender.

The Borrower shall notify the Lender in writing within 7 days from the date it knows or should know of the occurrence of any of the following circumstances:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Changes in the articles of association, business scope, registered capital, legal representative
of the Borrower or the guarantor;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Changes in the mode of operation such as any form of joint operation, joint venture with
foreign investors, cooperation, contracted operation, restructuring, transformation, or plan to list;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Involvement in major lawsuits or arbitrations, or seizure, detention or supervision of property
or guaranteed property, or setting up new major liabilities on the mortgaged property;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) Suspension of business, dissolution, liquidation, suspension of business for rectification,
revocation, revocation of business license, application for bankruptcy, etc.;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) Major shareholders, directors and current senior management personnel are involved in major
cases or economic disputes, or the legal representative/responsible person and current senior management personnel have important matters
such as deterioration of health or inconsistency with the qualifications for employment that make them unable to perform their duties;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6) The Borrower commits a breach of contract under other contracts;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(7) Occurrence of operational difficulties and deterioration of financial conditions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(8) When the Borrower undergoes changes, restructuring, contracting, or is approved by the competent
authority to close down, suspend operation, merge or transfer, the Borrower guarantees to notify the Lender in writing at least one month
before the occurrence of the above events and immediately repay all debts to the Lender. With the prior written consent of the Lender,
the Borrower may transfer the debts to the receiving unit or the new unit (in the process of debt transfer, the Borrower shall show and
submit the documents or relevant documents issued by its competent authority or the employer to the Lender), but the unit accepting the
debts must re-sign a loan contract with the Lender and submit the corresponding written certificate of the guarantor's consent
or implement new guarantee measures. Before the signing of the contract, the Lender has the right to recover the debts from the Borrower,
the guarantor or the receiver of the Borrower at any time.

13. The order of repayment of the Borrower's debts to the Lender shall be prior to the loans made by the Borrower's shareholders to it, and shall not be less than the similar debts owed by the Borrower to other creditors. From the effective date of this Contract until the full repayment of the loan principal, interest and related expenses under this Contract, the Borrower shall not repay the amounts owed to its shareholders.

&nbsp;&nbsp;&nbsp;&nbsp;14. With respect to the loan under this Contract, the loan conditions such as the guarantee conditions, loan
interest rate pricing, and debt repayment order provided by the Borrower to the Lender shall not be lower than those granted to any other
financial institutions now or in the future.

&nbsp;&nbsp;&nbsp;&nbsp;15. The Borrower shall bear the expenses incurred in the conclusion and performance of this Contract, as well
as the expenses already paid and to be paid by the Lender for realizing the creditor's rights under this Contract, including but not limited
to litigation or arbitration fees, property preservation fees, lawyer fees, execution fees, appraisal fees, auction fees, announcement
fees, etc.

&nbsp;&nbsp;&nbsp;&nbsp;16. Account Management

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) The repayment account designated and opened by the Borrower with the Lender (the account
agreed in Article 5) is a special fund recovery account, which is used to collect the corresponding sales income or planned repayment
funds. If the corresponding sales income is settled in a non-cash manner, the Borrower shall ensure that the funds are promptly transferred
into the fund recovery account upon receipt.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) The Lender has the right to supervise the fund recovery account, including but not limited
to understanding and supervising the inflow and outflow of funds in the account, and the Borrower shall cooperate. If required by the
Lender, the Borrower shall sign a special account supervision agreement with the Lender.

&nbsp;&nbsp;&nbsp;&nbsp;17. The Borrower shall not dispose of its own assets in a way that impairs its debt repayment ability, and warrants
that the total amount of its external guarantees shall not exceed [ ] times its own net assets, and the total amount of external guarantees
and the amount of individual guarantees shall not exceed the limit specified in its articles of association; without the prior consent
of the Lender, it shall not use the assets formed by the loan under this Contract to provide guarantees to third parties or provide guarantees
for the loans of the Borrower in other financial institutions.

Article 18 Internal Affiliation of the Borrower

&nbsp;&nbsp;&nbsp;&nbsp;1. The Borrower is not a group customer determined by the Lender in accordance with the Guidelines for Risk
Management of Credit Business to Group Customers of Commercial Banks (referred to as the Guidelines).

&nbsp;&nbsp;&nbsp;&nbsp;2. The Borrower is a group customer determined by the Lender in accordance with the Guidelines. The Borrower
shall promptly report the relevant affiliated transaction information to the Lender.

□ 3. The Borrower and its affiliates have major mergers, acquisitions,
restructurings and other matters that obviously or may affect the safety of the Lender's loans.

Article 19 Breach of Contract and Handling

&nbsp;&nbsp;&nbsp;&nbsp;1. The occurrence of any of the following events by the Borrower
shall constitute or be deemed as a breach of contract by the Borrower in the performance of this Contract, and the Borrower shall be
liable for breach of contract:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) The Borrower fails to perform its payment and repayment obligations
to the Lender in accordance with the agreement of this Contract;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) The Borrower fails to use the loan funds in accordance with
the agreed purpose and method of this Contract or fails to use the obtained funds for the purpose agreed in this Contract; or the Borrower
fails to go through the withdrawal procedures on time in accordance with the withdrawal plan, or changes the withdrawal plan without
obtaining the consent of the Lender; or the Borrower violates the agreement of this Contract and avoids the Lender's entrusted
payment by splitting the amount into smaller parts;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) The representations made by the Borrower in this Contract
are untrue, or the Borrower breaches the warranties made by it in this Contract;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) The occurrence of the circumstances specified in Article 17,
Paragraph 12 of this Contract, etc., the Lender deems that it may affect the financial conditions and performance ability of the Borrower
or the guarantor, but the Borrower fails to provide new guarantees or replace the guarantor in accordance with the agreement of this
Contract;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) The Borrower commits a breach of contract under other contracts
with the Lender; the Borrower commits a breach of contract under the credit contracts with other financial institutions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6) The guarantor breaches the agreement of the guarantee contract
or commits a breach of contract under other contracts with the Lender;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(7) The Borrower terminates its business or occurs events such
as dissolution, revocation or bankruptcy;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(8) The Borrower is involved or may be involved in major economic
disputes, lawsuits, arbitrations, or its assets are seized, detained or enforced, or it is filed for investigation or imposed penalties
by judicial organs or administrative organs such as taxation and industry and commerce in accordance with the law, which has or may affect
the performance of its obligations under this Contract;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(9) Abnormal changes, disappearance of major investors or key
management personnel of the Borrower, or being investigated or restricted in personal freedom by judicial organs in accordance with the
law, which has or may affect the performance of its obligations under this Contract;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(10) The credit status of the Borrower deteriorates, or the financial
indicators such as the profitability, debt repayment ability, operational capacity and cash flow of the Borrower deteriorate, breaking
through the indicator constraints or other financial agreements agreed in this Contract;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(11) The Borrower uses false contracts with affiliated parties
to obtain loan funds or credit from the Lender through transactions without actual transaction background, the affiliates have major
mergers, acquisitions, restructurings and other matters that obviously or may affect the safety of the Lender's loans, or intentionally
evade the Lender's creditor's rights through affiliated transactions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(12) The Borrower causes liability accidents due to violations
of relevant laws, regulations, regulatory provisions or industry standards such as food safety, production safety, and environmental
protection, which has or may affect the performance of its obligations under this Contract;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(13) If the loan under this Contract is granted on a credit basis,
the indicators such as the credit rating, profitability, asset-liability ratio, and net cash flow from operating activities of the Borrower
do not meet the Lender's credit loan conditions; or the Borrower, without the prior written consent of the Lender, sets up mortgage/pledge
guarantees on its effective operating assets for others or provides guarantee guarantees to others, which has or may affect the performance
of its obligations under this Contract;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(14) Other circumstances that may adversely affect the realization
of the Lender's creditor's rights under this Contract.

&nbsp;&nbsp;&nbsp;&nbsp;2. When the breach of contract specified in the preceding paragraph
occurs, the Borrower agrees that the Lender may take the following measures separately or simultaneously according to the specific circumstances:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Require the Borrower and the guarantor to correct their breach
of contract within a time limit.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Adjust, suspend or terminate all or part of the credit limit
granted to the Borrower.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Suspend or terminate all or part of the acceptance of the
Borrower's applications for withdrawal and other businesses under this Contract and other contracts between the Borrower and the
Lender; for the loans not yet disbursed, suspend or terminate the disbursement, payment and handling of all or part of them.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) Declare all or part of the unpaid loan principal, interest
and other payable amounts under this Contract and other contracts between the Borrower and the Lender to be due immediately.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) Negotiate with the Borrower to supplement the conditions for
loan disbursement and payment, or the Lender has the right to change the conditions for loan disbursement and payment according to the
credit status of the Borrower, such as reducing the threshold amount for entrusted payment, or the Lender has the right to require the
recovery of the loan funds paid in breach of contract, etc.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6) Terminate or rescind this Contract, and terminate or rescind
all or part of other contracts between the Borrower and the Lender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(7) Require the Borrower to compensate for the losses caused to
the Lender due to its breach of contract.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(8) With prior or subsequent notice only, have the right to directly
deduct funds from any account of the Borrower within the Jiangxi Rural Commercial Bank system to repay the loan principal and interest,
and the undue funds in the account shall be deemed as due in advance;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(9) Exercise the security interest; require the guarantor to assume
the guarantee liability.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(10) If the Borrower fails to repay the loan principal, interest
(including penalty interest and compound interest) or other payable amounts on time, the Lender may publicly disclose the default information
of the Borrower and the guarantor and conduct public notice for collection through public media such as television, newspapers, networks
or other forms.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(11) Have the right to deduct the deposits and equity dividends
of the Borrower in any account of Jiangxi Rural Commercial Bank, and have the right to dispose of the equity of the Borrower, etc.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(12) Other measures required by laws and regulations and deemed
necessary and possible by the Lender.

Article 20 Reservation of Rights

The failure of one party to exercise part or all of its rights under this Contract, or to require the other party to perform or assume part or all of its obligations and liabilities, shall not constitute a waiver of such rights by that party or an exemption from such obligations and liabilities.

Any tolerance, extension or delay in exercising the rights under this Contract by one party to the other party shall not affect any rights enjoyed by it in accordance with this Contract and laws and regulations, nor shall it be deemed as a waiver of such rights.

Article 21 Confidentiality

Both parties guarantee to keep confidential the trade secrets (technical information, business information and other trade secrets) obtained from the other party that cannot be obtained from public channels. Without the consent of the original provider of the trade secret, neither party shall disclose all or part of the trade secret to any third party, except as otherwise provided by laws and regulations or agreed by both parties.

If one party violates the above confidentiality obligations, it shall be liable for corresponding breach of contract and compensate for the losses caused thereby.

Article 22 Force Majeure

Force majeure as used in this Contract refers to objective events that are unforeseeable, unavoidable and insurmountable and have a significant impact on one party, including but not limited to natural disasters such as floods, earthquakes, fires and storms, as well as social events such as wars and riots.

If the performance of the Contract becomes impossible due to the occurrence of a force majeure event, the party encountering the force majeure shall immediately inform the other party of the accident in writing, and shall provide details of the accident and written materials indicating that the Contract cannot be performed or needs to be performed delayed within 7 days. After mutual confirmation, both parties shall negotiate to terminate the Contract or temporarily delay the performance of the Contract.

Article 23 Modification, Amendment and Termination

This Contract may be modified or amended in writing upon mutual agreement of both parties. Any modification or amendment agreed by both parties shall constitute an integral part of this Contract.

Unless otherwise provided by laws and regulations or agreed by the parties, this Contract shall not be terminated before the full performance of all the rights and obligations agreed herein.

Unless otherwise provided by laws and regulations or agreed by the parties, if any clause of this Contract is invalid, it shall not affect the legal effect of other clauses.

Article 24 Agreement on Service of Documents

1. The contact information (including mailing address, contact telephone number, fax number, etc.) filled in
by the Borrower in this Contract is true and effective and shall be the service address for any notice from the Lender to the Borrower.
If any contact information is changed, the Borrower shall immediately send the changed information to the mailing address filled in by
the Lender in this Contract in writing. Such information change shall take effect after the Lender receives the change notice.

2. Unless otherwise explicitly agreed in this Contract, the Lender has the right to serve any notice to the
Borrower through any of the following methods. The Lender has the right to choose the notice method it deems appropriate, and shall not
be liable for any transmission errors, omissions or delays occurring in the postal, fax, telephone, WeChat or any other communication
system. If the Lender chooses multiple notice methods at the same time, the one that reaches the Borrower faster shall prevail.

&nbsp;&nbsp;&nbsp;&nbsp;(1) Public notice service: The date on which the Lender publishes
the notice on its website, online banking, telephone banking or business outlets shall be deemed as the service date;

&nbsp;&nbsp;&nbsp;&nbsp;(2) Personal service: The date of signature by the Borrower shall
be deemed as the service date; if the Borrower refuses to sign, the date on which the server records the situation on the service receipt
on the spot shall be deemed as the service date;

&nbsp;&nbsp;&nbsp;&nbsp;(3) Postal service (including express mail, ordinary mail, registered
mail) to the latest known mailing address of the Borrower by the Lender: The date of signature by the Borrower shall be deemed as the
service date; if the Borrower fails to sign, the date on which the postal item is returned shall be deemed as the service date;

&nbsp;&nbsp;&nbsp;&nbsp;(4) Service by fax, mobile phone short message, WeChat or other
electronic communication methods to the latest known fax number, designated mobile phone number, WeChat ID or email address of the Borrower
by the Lender: The date of sending shall be deemed as the service date.

3. The Borrower agrees that unless the Lender receives a written notice from the Borrower regarding the change
of mailing address, the registered address of the Borrower stated in this Contract shall be the mailing and contact address. In the future,
all statements, collection documents and relevant legal documents, litigation documents related to the loan under this Contract shall
be served to this address. The Borrower undertakes to promptly notify the Lender of any changes in the mailing and contact information.
Otherwise, all documents served by the Lender in accordance with the mailing and contact information stated in this Contract shall be
deemed as valid service, and the relevant economic and legal liabilities arising therefrom shall be borne by the Borrower and the mortgagor.
During the dispute resolution process of this Contract, if the court or notary organ serves judicial documents or other written documents
to the mailing address confirmed by the Borrower in this Contract by postal service (including express mail, ordinary mail, registered
mail), the date of signature by the Borrower on the service receipt shall be deemed as the service date; if the Borrower fails to sign
on the service receipt, the date on which the postal item is returned shall be deemed as the service date.

The court or notary organ has the right to serve any notice to the Borrower through any of the communication methods agreed in Paragraph 2 of this Article. The court or notary organ has the right to choose the communication method it deems appropriate, and shall not be liable for any transmission errors, omissions or delays occurring in the postal, fax, telephone, telex or any other communication system. If the court or notary organ chooses multiple communication methods at the same time, the one that reaches the Borrower faster shall prevail.

Article 25 Attachments

The relevant attachments confirmed by both parties constitute an integral part of this Contract and have the same legal effect as this Contract.

Article 26 Other Agreements

1. Without the prior written consent of the Lender, the Borrower shall not transfer any rights or obligations
under this Contract to a third party.

2. The Lender has the right to transfer the creditor's rights under this Contract to a third party, but shall
notify the Borrower.

3. Without prejudice to other agreements in this Contract, this Contract shall be legally binding on both parties
and their respective legal heirs and assignees.

4. The transactions under this Contract are conducted based on the independent interests of each party. If,
in accordance with the relevant laws, regulations and regulatory requirements, other parties to the transaction constitute affiliated
parties or related persons of the Lender, each party shall not seek to use such affiliated relationship to affect the fairness of the
transaction.

5. The headings and business names in this Contract are only used for convenience of reference and shall not
be used to interpret the content of the clauses and the rights and obligations of the parties.

6. The Lender has the right to provide the information related to this Contract and other relevant information
of the Borrower to the Credit Reference Center of the People's Bank of China and other legally established credit information databases
in accordance with the relevant laws, regulations and regulatory requirements, for inquiry and use by qualified institutions or individuals
in accordance with the law. The Lender also has the right to inquire about the relevant information of the Borrower through the Credit
Reference Center of the People's Bank of China and other legally established credit information databases for the purpose of concluding
and performing this Contract.

Both parties confirm that the lender and the borrower have fully negotiated all the clauses of this Contract. The Lender has reminded the Borrower to pay special attention to all clauses concerning the rights and obligations of both parties, made a comprehensive and accurate understanding of them, and explained and illustrated the relevant clauses at the request of the Borrower. The Borrower has carefully read and fully understood all the content and clauses of the Contract, confirms that there is no misunderstanding or doubt about all the content and clauses of the Contract, and the lender and the borrower have a complete consistent understanding of the content and clauses of this Contract and no objection to the content and clauses of the Contract.

(Please fill in by the Borrower)

(No text below, for the signing page of both parties)

Borrower (Seal): Jiangxi Universe Pharmaceuticals Co., Ltd.

Legal Representative or Authorized Agent (Signature):

Date: April [ ], 2025

Lender (Seal):

Jiangxi Rural Commercial Bank Co., Ltd.

Legal Representative or Authorized Agent (Signature):

Date: July [ ], 2005

Signing Place: [Address]

## Exhibit 12.1

**Exhibit 12.1**

**CERTIFICATION OF THE CHIEF EXECUTIVE OFFICER PURSUANT TO SECTION 302 OF THE**

**SARBANES-OXLEY ACT OF 2002**

I, Gang Lai, certify that:

1. I have reviewed this annual report on Form 20-F of Universe Pharmaceuticals INC (the "Company");

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the Company as of, and for, the periods presented in this report;

4. The Company's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the Company and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Company, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the Company's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the Company's internal control over financial reporting that occurred during the period covered by the annual report that has materially affected, or is reasonably likely to materially affect, the Company's internal control over financial reporting; and

5. The Company's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Company's auditors and the audit committee of the Company's board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Company's ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the Company's internal control over financial reporting.

Date: January 28, 2026

---

| | | |
|:---|:---|:---|
| By: | /s/ Gang Lai | /s/ Gang Lai |
|  | Name: | Gang Lai |
|  | Title: | Chief Executive Officer |

---

## Exhibit 12.2

**Exhibit 12.2**

**CERTIFICATION OF THE CHIEF FINANCIAL OFFICER PURSUANT TO SECTION 302 OF THE**

**SARBANES-OXLEY ACT OF 2002**

I, Lin Yang, certify that:

1. I have reviewed this annual report on Form 20-F of Universe Pharmaceuticals INC (the "Company");

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the Company as of, and for, the periods presented in this report;

4. The Company's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the Company and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Company, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the Company's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the Company's internal control over financial reporting that occurred during the period covered by the annual report that has materially affected, or is reasonably likely to materially affect, the Company's internal control over financial reporting; and

5. The Company's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Company's auditors and the audit committee of the Company's board of directors (or persons performing the equivalent function):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Company's ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the Company's internal control over financial reporting.

Date: January 28, 2026

---

| | | |
|:---|:---|:---|
| By: | /s/ Lin Yang | /s/ Lin Yang |
|  | Name: | Lin Yang |
|  | Title: | Chief Financial Officer |

---

## Exhibit 13.1

**Exhibit 13.1**

**CERTIFICATION OF THE CHIEF EXECUTIVE OFFICER PURSUANT TO SECTION 906 OF**

**THE SARBANES-OXLEY ACT OF 2002**

In connection with the Annual Report of Universe Pharmaceuticals INC (the "Company") on Form 20-F for the year ended September 30, 2025, as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I, Gang Lai, Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to my knowledge:

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: January 28, 2026

---

| | | |
|:---|:---|:---|
| By: | /s/ Gang Lai | /s/ Gang Lai |
|  | Name: | Gang Lai |
|  | Title: | Chief Executive Officer |

---

## Exhibit 13.2

**Exhibit 13.2**

**CERTIFICATION OF THE CHIEF FINANCIAL OFFICER PURSUANT TO SECTION 906 OF**

**THE SARBANES-OXLEY ACT OF 2002**

In connection with the Annual Report of Universe Pharmaceuticals INC (the "Company") on Form 20-F for the year ended September 30, 2025, as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I, Lin Yang, Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to my knowledge:

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: January 28, 2026

---

| | | |
|:---|:---|:---|
| By: | /s/ Lin Yang | /s/ Lin Yang |
|  | Name: | Lin Yang |
|  | Title: | Chief Financial Officer |

---

## Exhibit 15.1

**Exhibit 15.1**

---

| | |
|:---|:---|
| ![](ex15-1_001.jpg) | 福州市台江区望龙二路1号国际金融中心（IFC）37层 |
| ![](ex15-1_001.jpg) | 电话﹕（86591）8785-0803 |
|  | 传真﹕（86591）8781-6904 |

---

January 28, 2026

---

| | |
|:---|:---|
| To: | Universe Pharmaceuticals INC |
|  | P.O. Box 31119, |
|  | Grand Pavillion, Hibiscus Way, 802 West Bay Road, |
|  | Grand Cayman, KY1-1205, Cayman Islands |

---

Dear Sir/Madam,

We hereby consent to the references to our firm's name under the headings "Item 3 Key Information," "Item 3 Key Information—D. Risk Factors—Risks Related to Doing Business in China," "Item 4. Information on the Company—B. Business Overview—Regulations," and "Item 10. Additional Information—E. Taxation—People's Republic of China Taxation" in Universe Pharmaceuticals INC's annual report on Form 20-F for the year ended September 30, 2025 (the "Annual Report"), which is filed with the U.S. Securities and Exchange Commission (the "SEC") on the date hereof. We also consent to the filing of this consent letter with the SEC as an exhibit to the Annual Report.

In giving such consent, we do not thereby admit that we come within the category of persons whose consent is required under Section 7 of the Securities Act of 1933, or under the Securities Exchange Act of 1934, in each case, as amended, or the regulations promulgated thereunder.

---

| |
|:---|
| Yours sincerely, |
| /s/ Zhang Biwang |
| Zhang Biwang |
| Lawyer |
| AllBright Law Offices (Fuzhou) |

---