Changchun High-tech: The company strictly handles relevant expenses in accordance with accounting standards requirements.

Securities Star News, Changchun High & New Technology Industry Co., Ltd. (000661) responded to investor questions on the Investor Relations platform on March 20.

Investor: The company has invested over one billion yuan in R&D over the years, but the first-year sales of new products launched in 2025 are less than 200 million yuan. What are the main achievements of these R&D investments? Are there issues with capitalizing or expensing a large amount of R&D expenditure improperly?

Changchun High & New Technology Industry Secretary: Hello, the company strictly follows accounting standards to handle related expenses. There is no direct correlation between R&D investment and the first-year sales of new products. Regarding the pipeline status, capitalization, and expensing of R&D costs, these have been disclosed in periodic reports and announcements. Thank you!

Investor: The 315 Consumer Rights Day exposed youth height-increasing technology. As a leading enterprise in youth height-increasing technology, are the related medical techniques safe and effective? Do they have national certification and can they withstand scrutiny?

Changchun High & New Technology Industry Secretary: Hello, the exposure on March 15 involved unlicensed physical height-increasing scams, which are completely different from our medical-grade growth hormone treatments. Our related technologies and products have undergone rigorous clinical trials, received approval from the National Medical Products Administration, and have won the National Science and Technology Progress Second Prize. They are included in the national pharmacopoeia and medical insurance, classified as prescription drugs, and are used only in medical institutions under a doctor’s prescription. Thank you!

Investor: Are all the phenol preservatives added to the company’s growth hormone water injections? Does the company have products without phenol preservatives? Other companies market safer, additive-free products, and more parents are choosing products from other firms. I also see that the company continues to invest heavily in R&D management expenses. Why hasn’t the company developed growth hormones without phenol preservatives to compete with peers? Does this indirectly indicate limited R&D management capabilities?

Changchun High & New Technology Industry Secretary: Hello, under strict regulatory systems, preservatives are not optional “extra ingredients” but key technical support for safe, economical, environmentally friendly, and humane treatment in multi-dose formulations. Phenol and similar preservatives are the most mainstream antimicrobial agents used in global growth hormones, insulin, and other multi-dose biopharmaceuticals— their safety and efficacy have been thoroughly validated through decades of use by millions of patients. Multi-dose packaging is widely used for long-term treatment of children because it highly meets the need for individualized dose adjustments: reducing waste and facilitating fine-tuning according to the child’s growth pace. Thank you!

The above content is compiled from publicly available information by Securities Star and generated by AI algorithms (Network Information Backup 310104345710301240019). It does not constitute investment advice.