Stock code: 300957 Stock abbreviation: Botanee Announcement number: 2025-007

Yunnan Botanee Biotechnology Group Co., Ltd.

Summary of the 2024 Annual Report

I. Important NoticeThis annual report summary is derived from the full text of the annual report. To fully understand theCompany’s operating results, financial status, and future development plans, investors shouldcarefully read the full annual report on the media designated by the China Securities RegulatoryCommission.

All directors attended the Board meeting for deliberating on this report.

Tianheng Certified Public Accountants (Special General Partnership) issued a standard unqualifiedopinion on the Company’s financial report for the year.

Changes in the accounting firm during the reporting period

□ Applicable ? Not applicable

The Company’s accounting firm for the 2024 fiscal year is Tianheng Certified Public Accountants(Special General Partnership).

Notice of the non-standard audit opinion

□ Applicable ? Not applicable

The Company was not profitable at the time of its listing and has not achieved profitability to date.

□ Applicable ? Not applicable

Profit distribution plan or capital reserve transfer plan to increase capital approved by the board duringthe reporting period? Applicable □ Not applicable

The profit distribution plan approved by the Board during this meeting is: Based on the Company’stotal share capital of 423,600,000 shares, subtracting 2,307,118 shares in the repurchase specialaccount that do not participate in the profit distribution, i.e., using 421,292,882 shares as the base, acash dividend of CNY6.00 (tax included) will be distributed for every 10 shares to all shareholders,with 0 bonus share (tax included) and 0 share for every 10 shares transferred to all shareholders fromcapital reserve.

The profit distribution plan for preferred shares approved by the Board during the reporting period

□ Applicable ? Not applicable

II. Company Overview

1. Company Profile

2. Overview of Main Business or Products During the Reporting Period

2.1 Company’s Main Business and Products

Yunnan Botanee Biotechnology Group Co., Ltd. (hereinafter referred to as the “Company”) focuseson the development of multiple brands, including core brand Winona as well as Winona Baby,AOXMED, Beforteen, Za, and PURE&MILD. We specialize in providing professional and effectiveskincare products using pure natural plant-derived active ingredients, with a particular emphasis onsensitive skin. As a specialized cosmetics manufacturer that integrates deeply with internet- basedsales channels, our mission is to “create China’s skin health ecosystem” by deeply understandingconsumer needs, basing its products on dermatological theories, and combining multidisciplinarytechnologies such as biology and botany to continuously conduct product research and technologicalinnovation. We strive to provide professional skincare and makeup products that cater to differentskin needs.

We have established a foundation through offline pharmaceutical channels and implemented anomnichannel strategy covering online platforms. With a comprehensive retail touchpoint system, wehave successfully realized cross-industry marketing (OMO) leveraging the internet and newtechnologies like artificial intelligence. This has facilitated mutual penetration between offline andonline channels and achieved extensive coverage of consumer groups, which makes Botanee aleading company in the internet+ greater health industry in China. Additionally, we capitalize on theefficiency of the internet, the vast user traffic on mainstream e-commerce platforms, and flexible newmedia marketing methods. With our strengths in online operations and high-quality products, we havesuccessfully seized the opportunities for rapid growth in the cosmetics industry driven by the“Chinese domestic products” trend.

Our main product categories include facial creams, toners, face masks, serums, lotions, as well asmakeup products such as sunscreens, powders, BB creams, and makeup removers. In addition toskincare and makeup, we are also engaged in the research, development, production, and sales ofmedical devices related to skincare. This includes medical devices such as hyaluronic acid repair

biofilm and hyaluronic acid repair dressings used for the protection and care of damaged skin barriersafter minimally invasive procedures.

2.2 Main Brand Matrix

Winona

Winona protects sensitive skin with professional expertise, and studies Yunnan’s unique plantsbased on dermatological research. Empowered by technology and evidence-based support, Winonaoffers professional, precise, and safe efficacy-driven skincare solutions for sensitive skin.Winona Baby

Inheriting the genetic essence of the parent brand Winona, Winona Baby collaborates with pediatricdermatology experts to develop effective skincare products for babies and focuses on the eczema

treatment sector for infants and toddlers. Based on dermatological expertise and clinical experience,Winona Baby offers a professional infant and toddler skincare brand with a simplified ingredient andexclusive patented plant extract formulas.AOXMED

Born for professional beauty, focusing on skin rejuvenation and linking medical aesthetics with homebeauty, AOXMED offers effective and safe in-clinic medical beauty and cosmetic care combined withhome-based medical-grade sequential skincare, while advocating for mindfulness in youthfulness andpromoting the right approach to prevent skin aging, achieving holistic anti-aging for both body andmind.Beforteen

Beforteen collaborates with dermatological experts to conduct case studies on over one million cases,

integrating AI consultations and providing personalized, unique and integrated “food + medicine +cosmetics” solutions for the precise treatment of different types of acne.Za

Za focuses on the characteristics of Asian women’s skin and offers high-performance base makeupsolutions that are multi-functional and easy to use. Za is positioned as an international light makeupbrand that allows users to effortlessly enjoy their beautiful daily life. The core products of Za includebase makeup products such as sunscreen, BB creams, and powders. Its star product, the sunscreen,has been a bestseller internationally for 21 years.PURE&MILD

With a 23-year brand history, PURE&MILD is a skincare brand designed specifically for gentle anti-aging of Chinese women. PURE&MILD carefully selects rare plants from around the world, and

combines advanced skincare technologies and effective ingredients to offer consumers a gentle yetlong-lasting plant-based skincare solution that rejuvenates the skin. The core products ofPURE&MILD include toners, lotions, and facial creams.

2.3 Review of Major Accomplishments in 2024

Only those who explore new paths can go far. In 2024 full of challenges and opportunities (hereinafterreferred to as the “reporting period”), the Company continued to progress steadily, advancing in thefield of scientific research and making bold breakthroughs in its branding journey, carving out a warmand steady development footprint. During the reporting period, the Company’s main brand, Winona,officially launched its 2.0 strategy, with the “Red Book 3.0” making its debut. The Company’sincubated brands Winona Baby, AOXMED, and Beforteen, as well as the strategically acquiredbrands Za and PURE&MILD, all performed well in the market. The Company continued to deepenthe construction of its brand matrix through differentiated market segments.

2.1.1 Continuously deepen brand and academic development to enhance brand influenceDuring the reporting period, the Company built a diverse marketing matrix, continuouslystrengthening brand communication by integrating resources from authoritative media, social media,and vertical media, forming a comprehensive and multi-level communication network. The Companycollaborated with experts, scholars, renowned KOLs, and active KOCs to conduct tiered promotionand word-of-mouth marketing. Through refined content operations, it precisely reached targetconsumer groups, further solidifying the brand’s professional image.

During the reporting period, the Company actively hosted academic events to lead industrydevelopment. In April 2024, the Company co-hosted the Fifth Summit Forum on Sensitive Skin withPeople’s Daily Online and released the China Sensitive Skin Diagnosis and Treatment Guidelines(2024 Edition) and the Winona Functional Skincare Products: Fundamental Research and ClinicalApplication Essentials (“Red Book 3.0”). The forum attracted numerous experts and scholars fromboth domestic and international circles, further enhancing Winona’s influence in the sensitiveskincare field. At the same time, the Company actively participated in various academic exchangeactivities both domestically and internationally, maintaining close cooperation with leadinginstitutions and experts in the industry to continuously promote academic progress in the field of skinhealth.

During the reporting period, the Company adhered to fulfilling its corporate social responsibility,transmitting the warmth of the brand. The Company has always upheld the corporate vision of “tobring health and beauty to everyone” and actively engaged in public welfare initiatives. In 2024, forthe ninth consecutive year, the “Winona Smile Sunshine Project” traveled from Inner Mongolia toQinghai and from Yunnan to Tibet, offering free consultations and public education in regions withstrong ultraviolet radiation. During the reporting period, the Company visited areas like Altay in theXinjiang Uygur Autonomous Region, where the annual sunshine exceeds 3,000 hours, to promotescientific skincare and proper sun protection concepts to residents. In addition, the Company’songoing initiatives such as the “525 Scientific Skincare Week”, “919 Acne Week”, “Bolei First AidStations”, “Botanee Hope Public Baths” and “Baby Program for Children with Atopic Dermatitis(AD)” are also helping more people move towards the goal of health and beauty.

2.1.2 Expand the sensitive skin market and strengthen leadership in the sensitive skincare sectorDuring the reporting period, Winona, the Company’s main brand officially launched its 2.0 strategy,with the brand philosophy fully upgraded to “Expert in Sensitive Skin Care”. Continuously focusing

on a flagship product strategy, the Company delved deep into consumer needs and mindset, meetingthe diverse demands of sensitive skin consumers for all-around care in sun protection, whitening, andanti-aging. During the reporting period, the three core flagship products developed by Winona aroundthe “Sensitive PLUS” concept continued to sell well in the market. Winona successfully met thegrowing and diversified segmentation needs of consumers in sensitive skin whitening, sun protection,and more.

During the reporting period, the Company’s star product “Winona Anti-Sensitive MoisturizingTolerance-Extreme Cream” completed its 2.0 upgrade from ingredient formula (Polysaccharides fromPrinsepia utilis Royle) to technology process (“Microfluidic Technology”). The product series toppedthe sales ranking for sensitive skincare creams during Tmall’s “Double 11” shopping festival. Duringthe reporting period, the “Winona Camellia-Lucent Spot-Correcting Essence” series performedexcellently in the sensitive skin whitening market. The Company attracted a large number ofconsumers with sensitive skin whitening needs through innovative formulas and precise marketpositioning. The “Winona Camellia-Lucent Spot-Correcting Essence” series, based on the concept of“Repairing the Barrier While Whitening”, topped the Douyin Whitening Essence Ranking during the2024 “Double 11” shopping festival. During the reporting period, the “Winona Sun Protection ” seriescontinued to maintain strong market competitiveness and held an important position in the sunscreencategory. Its market shares further expanded, increasing to 6.83% in Tmall’s sunscreen categoryduring the reporting period.

During the reporting period, Winona’s brand image was continuously upgraded, steadily enhancingits brand value. Winona brand underwent a comprehensive image upgrade, optimizing brand identitysystem to improve its display effectiveness in front of consumers. During the reporting period,Winona creatively combined Yunnan’s intangible cultural heritage to create themed limited-editionproduct gift boxes, such as “Jia Ma” and “Yi Embroidery”, deeply binding the value of Yunnan’slocal traditional culture with the brand’s tone. During the 2024 Tmall “Double 11” shopping festival,Winona ranked in the Tmall Beauty TOP 10, marking its eighth consecutive year on the list andmaintaining its position in the top tier of domestic beauty brands. As of the date of this report’sdisclosure, Winona has been awarded the honors of China Premium Consumer Brands by theMinistry of Industry and Information Technology and Yunnan Province’s Premium Consumer Brands.

2.1.3 Form a new brand matrix and make breakthrough in differentiated market segmentsDuring the reporting period, Winona Baby focused on solutions for infant and toddler eczema, withcore flagship products like the “Winona Baby Soothing Hydrating Cream” and Sunblock Milkcontinuing to perform well. New products such as the Mild Multicare Sunproof Spray and SoothingHydrating Skin Oil gained rapid momentum. During the reporting period, Winona Baby activelyconnected with high-quality offline channel customers, achieving coverage of over 18,000 terminalpoints. The synergy between online and offline channels yielded significant results. During thereporting period, Winona Baby achieved sales of CNY200.58 million, a year-on-year growth ofapproximately 34.03%, exceeding the average growth rate of the infant skincare industry. During thereporting period, Winona Baby ranked in the top 7 of the Tmall official flagship store for infantskincare products. During Tmall’s “Double 11” shopping festival, it ranked 4th in the infant skincarecategory. Winona Baby also won the 2024 “Most Popular Brand” award in the mother and babycategory on JD.com’s platform during the “618” promotion. Additionally, the “Winona BabySoothing Hydrating Cream” series won the “Cherry Award - Annual Hot-selling Infant SkincareProduct” award.

During the reporting period, AOXMED achieved sales of CNY59.92 million, a year-on-year increaseof 65.59%, and its omnichannel business matrix has taken initial shape. AOXMED’s market debutyear began with a focus on evidence-based medicine and cutting-edge research. It centered aroundthe core patented ingredient “MLYAAT-1002 Multi-dimensional Anti-aging Essence” and its multi-target effects in the field of anti-aging, as well as its core advantages in comprehensive anti-aging.The brand aimed to create a full-channel product matrix from medical aesthetics to home aesthetics,meeting the demands for skin rejuvenation in various scenarios. During the reporting period,AOXMED published four clinical papers in core domestic and international journals and conductedtwo clinical controlled studies approved by the Medical Ethics Committee. In September 2024, at theannual conference hosted by the Skin Committee of the China Non-Government Medical InstitutionsAssociation, AOXMED, in collaboration with renowned dermatology experts worldwide, establishedthe “AOXMED Authority International Chief Expert Committee” to jointly advocate the concept of“full-process anti-aging”. During the reporting period, AOXMED pioneered the skin medicalmanagement concept of “full-process anti-aging combining medical beauty and cosmetics” inprofessional clinic channels. It partnered with over 600 professional clinic institutions nationwide toprovide better project experiences and results for consumers, effectively pushing the medical valueof functional skincare products back into the minds of professional clinic consumers. In home care,AOXMED delivered an impressive result of tens of millions in monthly sales during the 2024“Double 11” shopping festival. It ranked in the top 6 of new domestic beauty brands on Tmall’s“Double 11” and even reached the second spot on the “Tmall Double 11 First Day Rankings” for newdomestic beauty brands. During the reporting period, AOXMED won two major fashion beautyawards: the “China Good Formula Award for Annual Repair Cream” and the “GOGO AnnualLifestyle Awards - Pioneer Brand in Skin Rejuvenation”.

During the reporting period, Beforteen focused on the 18-30 age group with acne-prone skin. Bypromoting the concept of “graded acne treatment” and using word-of-mouth marketing, itsignificantly increased its presence on social platforms like Xiaohongshu, with over 320 millionexposures. This successfully established the association between “Beforteen = Graded AcneTreatment” in search queries and user mindset. During the reporting period, Beforteen focused on AI-driven diagnostics as a traffic entry point and leveraged the WeChat Mini Program ecosystem tostrengthen its presence through online channels. It concentrated on private domain membershipoperations and achieved a high repurchase rate by providing precise and effective “medicine +cosmetics” solutions and internet medical services. Beforteen also made efforts in offlinepharmaceutical channels. During the reporting period, it entered over 900 consumer-facing terminalsand received high recognition from experts, scholars, and acne patients. In September 2024, Beforteen,as the first professional brand to launch the “AI Diagnosis + Medicine + Cosmetics” combined acnetreatment solution, participated in the first national Acne Academic Conference and the Seventh AcneWeek. It collaborated with authoritative dermatology experts to promote the standardization of acnetreatment, and the term “graded Acne Treatment” was included in the WeChat ecosystem for the firsttime.

During the reporting period, Za, positioned as an “international multi-functional light makeup brand”,launched new products, including four new base makeup products, four cosmetics, and two sets ofnew skincare products, of which the search heat of its core flagship product, sunscreen, continues togrow, with Douyin search index increased by about 56.00%. In particular, the sunscreen category sawan outstanding performance, with the search index on Tmall rising by about 97.00% year-on-year,and the search index on Douyin achieving more than tenfold growth. During the reporting period, Zadrove sales breakthroughs through the official announcement of global brand spokesperson, GongJun, with more than 1 billion exposures across the domain. It cooperated with the phenomenal

national style animation IP, Heaven Official’s Blessing, to launch a series of customized products,with an exposure of more than 50 million. It successfully held 14 themed comic shows and accuratelyreached more than 380,000 people in the Generation Z group offline. During the reporting period, Zaachieved more than 300 million online and offline exposures, covered over 2,400 terminal channels,and accurately delivered approximately 358,500 samples through innovative marketing forms suchas comic exhibition linkage, precise distribution of samples in various types of shops of coffee andmilk tea, and sponsorship of professional tournaments, thus achieving certain results in its diversifiedmarketing strategy.

During the reporting period, positioned as a “gentle anti-ageing brand”, PURE&MILD was dedicatedto combining global rare plants with cutting-edge skincare technology and functional ingredients toprovide consumers with gentle and long-lasting rejuvenating skincare solutions. The core collagenseries was marketed mainly on Douyin. The platform search index for the flagship productPURE&MILD Collagen Bouncy Anti-Wrinkle Cream, increased by 1,181.25% year-on-year, drivingPURE&MILD to achieve steady growth in word-of-mouth and exposure. The brand’s overall Douyinsearch index grew by 106.5% year-on-year. During the reporting period, the offline channel ofPURE&MILD operated steadily, returning to more than 20 department store counters and entered themarket of Taiwan, China for the first time.

2.1.4 Achieve leapfrog development driven by R&D and product innovationThe Company adheres to the R&D philosophy of “Targeted Focus, In-Depth Research, Real Results”and has achieved leapfrog development in research innovation, product upgrades, and internationalexpansion during the reporting period. During the reporting period, the Company registered 9 newcosmetic raw materials, bringing the total to 12. It completed independent R&D of 43 cosmetic rawmaterials and 9 food ingredients, establishing a full chain from natural resource screening and activeingredient optimization to new material registration. It also reserved 7 peptide raw material candidates,2 plant extract materials, and built technical pathways for the registration of 3 new materials. Duringthe reporting period, the Company was granted 88 patents, including 22 invention patents, 39 utilitymodel patents, and 27 design patents. It also participated in the publication of 4 national standardsand 13 industry standards, establishing its technological leadership in the skincare industry. Duringthe reporting period, the Company published 128 academic papers, 107 of which were indexed inSCI and 21 in core journals. During the reporting period, the Company won the “2024 INPDAWARDS - Raw Materials” at the international cosmetics competition “COSMETOPIADS & INPD”and represented China in winning the “2024 COSMETOPIADS - Public Research Excellence”.

The Company independently developed 19 in vitro evaluation technical models, includingendogenous inflammation 3D skin models, vascular channel visualization models, and airwayepithelial organ-like models. It also integrates advanced technologies such as EEG, eye-tracking, andnear-infrared brain imaging to explore neuroscience and consumer behavior research. During thereporting period, the building of Yunnan Specialty Plant Extraction Laboratory was completed andput into use. Additionally, the Japanese Innovation R&D Center, focusing on formulation innovation,officially commenced operations. The formal commissioning of the nearly 2,000 square meters ofsterile clean room for medical devices invested by the company will provide strong support for theCompany’s advanced R&D and high-end manufacturing of Class III medical devices. During thereporting period, the Company collaborated with institutions such as France’s LabSkin Laboratory,East China Normal University, and East China University of Science and Technology to jointlydevelop exclusive technical models, effectively expanding its research network in cutting-edge skinscience both domestically and internationally. During the reporting period, the Company received

awards including the “National Technology Innovation Demonstration Enterprise”, the “First Prizein the Science and Technology Awards by the China General Chamber of Commerce”, and the “SingleChampion Enterprise in Yunnan’s Manufacturing Industry”. Its invention patent “SunscreenStabilization Compound, Sunscreen Spray Preparation, and Preparation Method” was selected for the“First Prize of Yunnan Provincial Patent Award”. The Company was also included in the “YunnanAcademician Expert Workstation” list, becoming a benchmark for national industrial technologyinnovation.

2.1.5 Continuously optimize channel construction, strengthen domestic terminal penetration,and expand overseas marketsDuring the reporting period, the Company vigorously expanded offline channels and strengthenedterminal layouts. During the reporting period, the Company’s OTC distribution channels coveredover 129,000 pharmacy stores nationwide. The Company steadily advanced its physical self-operatedstore model, with 179 new brand-owned stores opened in core business districts of first- and second-tier cities. This improved the brand’s display and service capabilities at the terminals. Meanwhile, thestore counters, with their unique face-to-face consumer reach, actively explored private domain trafficto expand the OMO business model. During the reporting period, approximately 62.82% of large-value orders (over CNY1,000 per order) were placed through the Company’s self-built OMO onlinesales platform, Winona Counter Service Platform, with an average customer order value exceedingCNY1,500. This demonstrated strong market penetration. At the same time, the Company activelyexplored lower-tier markets by collaborating with national distributors and conducting promotionalactivities to increase product awareness and share in these markets.

During the reporting period, the Company continuously optimized its online channels, improvingoperational efficiency. Through digital marketing strategies, the Company enhanced the trafficconversion rate and customer loyalty of its online stores. By utilizing AI technology for precisemarketing, the Company sent personalized product recommendations based on consumers’ browsingand purchasing behavior, effectively increasing sales conversion rates. During the reporting period,the Company enhanced the overall consumer experience through omnichannel collaboration, withonline and offline promotional events and shared membership benefits.

During the reporting period, the Company explored a new business model for fully empoweringprivate dermatology clinics/medical beauty institutions. The “VYM” brand provides integratedsolutions such as a diagnostic SaaS cloud/auxiliary diagnostic system, small auxiliary treatmentdevices, post-operative skincare products, and consumables supply chains, precisely empoweringprivate dermatology clinics and professional medical beauty institutions. During the reporting period,the Company’s “Koningmei” brand explored the incubation of the national chain dermatology clinicbrand “Kelai Yimei” as a benchmark demonstration project. By integrating the Company’s existingR&D resources and IoT research reserves, the “Kelai Yimei” project will focus on individuals withrosacea, sensitive skin, acne, and other skin issues, providing consumers with a full-cycle medicalskincare solution.

During the reporting period, the Company aggressively expanded its international presence. Severalof its brands have fully entered mainstream beauty channels in Thailand, covering over 100 countersand dozens of well-known medical beauty clinics in the country. Meanwhile, the Company hasdeveloped stable commercial partnerships in several countries and regions, including Taiwan, Chinaand those along the Belt and Road.

2.1.6 Improve the efficiency of supply Chain and digitalization to achieve flexible supplyDuring the reporting period, the Company adopted a production model combining independentproduction, commissioned manufacturing, and procurement of finished products. During thereporting period, the Company continuously improved its independent production ratio by optimizingthe supply chain, conducting pre-production verification at self-operated factories, smoothingproduction capacity between peak and off-peak seasons, and dynamically adjusting supply plans. Theindependent production ratio increased to over 50%, ensuring a reliable and efficient supply chain.During the reporting period, the Company shortened supply cycles by preparing materials in advanceand continuously strengthened cross-regional supply and demand coordination, as well as dynamicinventory management across warehouses. This enabled rapid response capabilities for productiteration, production connection, demand forecasting, and actual dynamic adjustment for theCompany’s brands. The Company fully collaborated with upstream suppliers, optimizing precisionsupply, multi-organizational raw material sharing and coordination, managing tail material switching,and accelerating the consumption of slow-moving inventory. These efforts enhanced internal orderfulfillment while significantly improving inventory health.

During the reporting period, the Company continued to advance the digitalization of its supply chain,improving the scientific decision-making and agility of supply chain operations. The Companylaunched its self-developed supply chain planning and management platform, “Star Chain”, based onoperations research optimization algorithms. This system continuously enhances the scientificdecision-making of the end-to-end supply chain planning platform, efficiently outputs globallyoptimal planning solutions, leverages the synergistic advantages of human experience and operationsresearch algorithms, and improves the timeliness and precision of planning and decision-making.During the reporting period, the Company continued to advance digitalization projects such asproduction delivery large screen, SCM data platform report optimization, online tracking ofproduction material losses, online production, sales, and inventory reports, and slow-movinginventory reports. These efforts improved the transparency and visibility of plan execution anddynamic adjustments, empowering supply chain management to improve quality and efficiency.

2.1.7 Practice green ideas in everyday operations, and contribute to social progress and well-beingDuring the reporting period, the Company integrated sustainable development and socialresponsibility concepts into its business growth. Since its listing, the Company has released theSustainability and Environmental, Social, and Governance (ESG) Report for four consecutive years.During the reporting period, the Company was successfully included in the Wind “Top 100 Best ESGPractices among China’s Listed Companies” with an “AA rating” and rated “AA” in the “2024 A-share Listed Companies’ Outstanding ESG Performance Ranking in Major Consumer Industries”published by Sino-Securities. The Company ranked first in the household and personal product sector.

During the reporting period, the Company deeply engaged in efforts for the coordinated developmentof the local economy and ecology in Yunnan, focusing on the exploitation of unique Yunnan plantresources such as Prinsepia utilis Royle, Yunnan Camellia, and Ludwigia Adscendens. This not onlyprotected local biodiversity but also promoted sustainable regional economic development, achievinga balance between ecological protection and economic growth. In addition, the Company focused ondeveloping high-value-added specialty plant health products, striving to build a cluster of specialtyplant products and enterprises with sequential development in functional cosmetics, functional foods,and pharmaceuticals, while maintaining attention to the ecological balance of biodiversity.

During the reporting period, the Company firmly established itself as a green, low-carbon, andenvironmentally friendly enterprise. Through green, circular, and low-carbon production andoperational methods, it created a healthy ecology, forming a green supply chain management systembased on low-carbon cycles throughout the product lifecycle and an energy target management system.During the reporting period, the Company launched a series of packaging improvements andcontinued to promote the “Save the Earth: Recycle and Be Rewarded” program and the “Desert Oasis”recycling initiative, encouraging more consumers to participate in empty bottle packaging recycling.

2.4 Overview of Overall Performance in 2024

During the reporting period, the Company actively responded to the complex and changing marketenvironment, striving to overcome various adverse factors, and achieved certain results in itsoperational performance. During the reporting period, the Company achieved operating revenue ofCNY5,735.87 million, a year-on-year increase of approximately 3.87%; a net profit attributable tothe shareholders of the listed company of CNY503.1 million, a year-on-year decrease ofapproximately 33.53%; a net profit attributable to the shareholders of the listed company afterexcluding non-recurring gains and losses of CNY240.3 million, a year-on-year decrease ofapproximately 61.12%; a sales gross profit margin of approximately 73.74%, maintaining stabilitycompared to the previous year; and a weighted average return on net assets of approximately 8.53%,a year-on-year decrease of approximately 4.68 percentage points. The growth in operating revenueduring the reporting period was attributed to the Company’s continuous investment and effectiveimplementation of product strategies in areas such as brand expansion, product innovation, andchannel development. The fluctuations in profit-related indicators were mainly due to: 1) Sales duringonline promotional events, such as “Double 11” in the beauty industry in 2024, generally fell short ofexpectations, and the Company did not meet its “Double 11” sales target; 2) Increased marketcompetition led to higher marketing expenses; 3) As the commitment of Yuejiang investment was notfulfilled as expected, the Company, based on the principle of prudence, made provisions for long-term asset impairment; 4) The depreciation and amortization costs for long-term assets increased; 5)Personnel costs increased; and 6) The average customer acquisition cost for the Company’s mainonline self-operated stores rose during the reporting period. In the future, the Company will adhereto a long-term approach under the guidance of “one center, two fundamentals”, i.e., taking branddevelopment as the center and membership operation and full-domain collaborative growth as thefundamentals, the Company will focus on advantageous sectors, strengthen omnichannelcollaboration, continuously promote organizational transformation, and achieve both healthy branddevelopment and improved profit quality.

3. Key Accounting Data and Financial Indicators

3.1 Key Accounting Data and Financial Indicators for the Last Three YearsWhether the Company retrospectively adjusted or restated accounting data for previous years

□ Yes ? No

Unit: CNY

3.2 Key Accounting Data by Quarter

Unit: CNY

Whether there are any significant differences between the above financial indicators or their totalsand the financial indicators disclosed in the Company’s quarterly or semi-annual reports

□ Yes ? No

4. Share Capital and Shareholder Information

4.1 Number of ordinary shareholders and preferred shareholders with restored voting rights,and the shareholding of the top 10 shareholders

Unit: share

The situation of shareholders holding more than 5% of shares, the top 10 shareholders, and the top10 shareholders of unrestricted tradable shares participating in shares loan through refinancing? Applicable □ Not applicable

Changes occurred in the top 10 shareholders and the top 10 shareholders of unrestricted tradableshares compared with the previous period due to shares loan through refinancing/return

□ Applicable ? Not applicable

Whether the Company has differential voting rights arrangements

□ Applicable ? Not applicable

4.2 Total number of preferred shareholders and shareholding of the top 10 preferredshareholders

□ Applicable ? Not applicable

4.3 Disclosure of the ownership and control relationship between the company and the actualcontroller in the form of a block diagram

5. Bonds in Effect as of the Date of Approval of the Annual Report

□ Applicable ? Not applicable

III. Significant MattersFor details, please refer to the 2024 Annual Report of Yunnan Botanee Bio-Technology Group Co.,Ltd. (2025-008) disclosed on CNINFO (http://www.cninfo.com.cn).