Shu Tai Shen: Several ongoing research projects are innovative biological products, but their expected outcomes cannot be guaranteed.

On March 31, Shutai Shen (300204.SZ) released a notice regarding abnormal stock price fluctuations in trading.

The company’s stock price closing gains deviated by a cumulative value of more than 30% over three consecutive trading days. According to relevant regulations such as the Rules Governing Trading on the Shenzhen Stock Exchange, this situation falls under abnormal stock trading fluctuations.

The company’s board of directors has verified the abnormal stock price fluctuations of the company’s stock in the recent period with respect to the company, its controlling shareholder, and the actual controller. Specifically, there is no information previously disclosed by the company that needs to be corrected or supplemented; the company has not found any material undisclosed information in recent public media reports that may have a significant impact on this company’s stock trading price; the company’s current operating situation and internal business environment have not undergone any significant changes; after verification, the company, the controlling shareholder, and the actual controller have no major matters concerning this company that should be disclosed but have not been disclosed, and there are no major matters in the planning stage; after verification, during the period of abnormal stock price fluctuations, the company, the controlling shareholder, and the actual controller have not engaged in buying or selling the company’s stock.

The company has highlighted multiple risks. First, since 2020, the company has maintained a relatively high level of R&D investment. At the same time, due to the decline in operating revenue, the net profit attributable to shareholders of listed companies in each reporting period, as well as the net profit attributable to shareholders of listed companies after deducting non-recurring gains and losses, are both negative, indicating a situation of ongoing losses. The company disclosed its 2025 Annual Performance Forecast on January 28, 2026. As of the date of this announcement, the above performance forecast does not require revision. According to the 2025 Annual Performance Forecast, during the reporting period, affected by external environment and industry policies and other factors, revenue from the company’s product Shutaiqing declined, the company’s overall operating revenue decreased, and the net profit for the reporting period is expected to be negative. The company plans to disclose its 2025 Annual Report on April 28, 2026. Please refer to the company’s periodic reports for specific operating conditions and financial data.

Second, multiple projects under development of the company are innovative biological products. Innovative biopharmaceuticals have the characteristics of high technology, high risk, and high added value. From research and development, clinical trials, application and submission, to production, the cycle is long and involves many stages, making them susceptible to a wide range of factors such as technology, approvals, and policies. The specific related risks include: the uncertainty of global special environments, which means it cannot be guaranteed that the product research and development strategy formulated and executed will achieve the expected objectives; drug clinical trials generally need to be applied for after completing Phase I, Phase II, and Phase III clinical trials. Clinical trial progress may not be as expected, which could cause competitors to launch similar products targeting the same indications to the market before the company, thereby greatly weakening the commercialization capability of the company’s corresponding projects under development and increasing the risk that sales revenue will not meet expectations; the results of clinical trials may not meet expectations, which could result in the company being unable to launch products as expected, or after launching products with efficacy that does not meet expectations, being unable to achieve the expected market sales share in market competition; regarding drug approval for listing, the company may be unable to complete the review and approval process for the corresponding projects under development, or the review and approval timeline and results may not be as expected, leading to the possibility that new drug listing applications may not obtain regulatory approvals within the expected time or timeline, or there is a risk that regulatory authorities will not grant approval.

Finally, although the company’s stock price has risen significantly in the short term, the company’s current production and operation conditions have remained stable and have not undergone any obvious changes. The short-term fluctuations in the stock price may lack support from the underlying performance fundamentals. The company’s relevant projects under development are currently being advanced. Investors are kindly requested to pay attention to subsequent periodic reports and project progress announcements for updates on project progress. Please note investment risks.