Sunho Biologics, Inc. (Sunho Biologics) has engaged Cheng & Cheng Risk Advisory Services Limited as an independent internal control consultant to conduct a comprehensive three-phase review aimed at rectifying deficiencies that led to the suspension of its shares on The Stock Exchange of Hong Kong.

The review, approved by the Board’s Audit Committee on 4 August 2026, will proceed in three stages: 1. Preliminary assessment of the Group’s existing internal-control framework. 2. In-depth evaluation to identify control gaps and recommend remedial actions. 3. Follow-up verification of remediation effectiveness.

Key areas under examination include financial reporting, procurement, sales, cash and prepayment management, R&D, outsourcing, contract management, and overall compliance with Hong Kong Listing Rules—especially those covering notifiable and connected transactions and the disclosure of material information.

The initiative responds directly to the Stock Exchange’s resumption guidance, which requires Sunho Biologics to demonstrate (i) full rectification of material control deficiencies related to the trading suspension and (ii) the adequacy and effectiveness of its internal-control systems.

Trading in Sunho Biologics’ shares has been suspended since 9:00 a.m. on 1 April 2026, pending publication of the company’s FY 2025 annual results. The suspension will remain in force until the results are released and the Stock Exchange’s resumption conditions are met.

The Board stated that additional announcements will be made to inform shareholders and potential investors of significant progress and findings from the ongoing review.

The announcement was authorized for release by Chairman and Executive Director Mr. Zhang Feng on 4 August 2026.