Gansu Longshenrongfa Pharmaceutical Industry CO.,LTD signed a Share Subscription Agreement of 91,003,500 A Shares at an issue price of not less than 80% of the average price in the 20 trading days before the pricing reference date for the gross proceeds of CNY 485,796,067 on July 17, 2023. The transaction will include participation from returning investors Gansu Pharmaceutical Investment Group Co., Ltd.,Gansu Pharmaceutical Investment Group Co., Ltd.,a fund managed by Gansu Great Wall Xinglong Silk Road Fund Management Co., Ltd. and 33 other investors. Gansu Pharmaceutical Investment Group Co., Ltd. and Gansu Pharmaceutical Investment Group Co., Ltd.,a fund managed by Gansu Great Wall Xinglong Silk Road Fund Management Co., Ltd. who will subscribe to not more than 30.79% and 7.11% of the issuance, not more than CNY 149,558,200 and CNY 34,540,200, respectively.

The transaction has been approved in the 25th Meeting of the Company?s 4th Directorate, and is subject to the approvals of the Company?s Shareholders, the approving body of state-owned assets, the Shenzhen Stock Exchange, and the China Securities Regulatory Commission. The transaction has been approved in the 25th Meeting of the 4th Directorate and the 21st Meeting of the 4th Supervisory Board.