Beijing Biostar Pharmaceuticals Co., Ltd. (BIOSTAR PHARM-B) has signed a conditional agreement to issue 25.00 million new H shares to Baheal Wellness Industry International Trading Ltd., a wholly owned unit of Qingdao Baheal Pharmaceutical Co., Ltd.

The shares will be placed at HK$4.00 each, matching the five-day average closing price and carrying a discount of no more than 20%. Gross and net proceeds are both estimated at HK$100.00 million.

Key terms and effects:

• Dilution: The new shares equate to 6.86% of Biostar’s existing 364.59 million shares and will expand the share base to 389.59 million, cutting existing shareholders’ stake proportionately. • Subscriber stake: Baheal currently owns 4.17 million shares (1.14%). Post-placement, its holding will rise to 29.17 million shares (7.49%). • Mandate: The issue falls under the general mandate allowing up to 72.92 million new shares (20% of share capital) approved at the upcoming AGM on 26 June 2026. • Conditions: Completion requires shareholder approval, Hong Kong Stock Exchange listing consent, CSRC filing, due-diligence clearance, and other regulatory nods by the one-month long-stop date. Closing is scheduled for the fifth business day after all conditions are met. • Ranking: The subscription shares will rank pari passu with existing shares and be free of encumbrances.

Planned use of proceeds (to be deployed by end-2027):

1. Development of antibody-drug conjugate (ADC) products and platforms – 50% 2. Commercialisation cooperation – 20% 3. New project introduction and achievement transformation – 15% 4. Group daily operations – 15%

Strategic rationale: The transaction deepens the oncology partnership that began in 2024 between Biostar and Baheal, combining Biostar’s R&D pipeline with Baheal’s commercial platforms. No equity fundraising was conducted by Biostar in the previous 12 months.

Shareholders and investors are advised that completion remains subject to the stated conditions.