【PAILONG BIOMEDICAL INC.】Announcement of Change in Capital Increase Fund Utilization Plan for 2025

1. Date of Board Resolution on Change: 2026/05/05
2. Original Plan Approval Effective Date: 2025/11/24
3. Date of Supplementary Issuance: Not applicable
4. Reason for Change: The company's 2025 cash capital increase for new share issuance, with a total fundraising amount of NT$1,860,000 thousand, was approved by the Financial Supervisory Commission on November 24, 2025 (Ref. No. 1140362006). The funds were raised on January 8, 2026, to support the new drug R&D expenditures for PL003 BCMA allogeneic CAR-T, PL002 mesothelin allogeneic CAR-T, and PP011 short-chain peptide. To meet the working capital needs arising from the significantly accelerated drug approval timeline for PL001, and to pursue early approval progress and policy incentives/subsidies for new drug development in mainland China, the company proposes to reallocate part of the funds originally designated for PL003 BCMA allogeneic CAR-T and PP011 short-chain peptide new drug R&D to augment working capital and invest in its mainland China subsidiary, Pei(Yue Tai).
5. Previous and Current Capital Raising Plan Changes:
Before Change: New drug R&D expenditures for PL003 BCMA allogeneic CAR-T, PL002 mesothelin allogeneic CAR-T, and PP011 short-chain peptide. The amounts for each new drug R&D project were NT$1,078,100 thousand, NT$366,570 thousand, and NT$563,766 thousand, respectively.
After Change: PL003 BCMA allogeneic CAR-T, PL002 mesothelin allogeneic CAR-T, PP011 short-chain peptide, working capital augmentation, and investment in mainland China subsidiary Pei(Yue Tai). The amounts for each project are NT$1,078,100 thousand, NT$366,570 thousand, NT$529,798 thousand, NT$301,850 thousand, and NT$48,150 thousand, respectively.
6. Expected Implementation Progress: PL003 BCMA allogeneic CAR-T to be completed in Q2 2030, PL002 mesothelin allogeneic CAR-T in Q2 2028, PP011 short-chain peptide in Q2 2030, working capital augmentation in Q3 2026, and investment in mainland China subsidiary Pei(Yue Tai) in Q3 2026.
7. Expected Completion Date: PL003 BCMA allogeneic CAR-T to be completed in Q2 2030, PL002 mesothelin allogeneic CAR-T in Q2 2028, PP011 short-chain peptide in Q2 2030, working capital augmentation in Q3 2026, and investment in mainland China subsidiary Pei(Yue Tai) in Q3 2026.
8. Expected Potential Benefits: Based on the company's operational needs and consideration of fund utilization efficiency, this change will contribute to product commercialization, cost savings in development, and acceleration of clinical trial progress.
9. Difference from Original Expected Benefits: Funds originally designated for PL003 BCMA allogeneic CAR-T and PP011 short-chain peptide are now reallocated to augment working capital and invest in the mainland China subsidiary Pei(Yue Tai). This reallocation will support the inspection and material procurement for the accelerated market launch of PL001, facilitate PP011's qualification as a domestic new drug in mainland China to accelerate approval and reduce development costs, thereby enhancing market competitiveness and strengthening the financial structure.
10. Impact of this Change on Shareholder Equity: This change addresses the working capital needs arising from the significantly accelerated drug approval timeline for PL001 and seeks to advance the approval progress and secure policy incentives/subsidies for PP011's new drug development in mainland China. These changes provide concrete and positive benefits for the company's operational development, thus this plan change should not have a significant adverse impact on shareholder equity.
11. Summary of Original Underwriter's Evaluation Opinion: The amount of this plan change does not exceed 20% of the total fundraising amount. According to the "Regulations Governing the Offering and Issuance of Securities by Issuers," the original lead underwriter is not required to issue an evaluation opinion.
12. Other matters to be specified: None.