The Board announced that on 16 January 2023, Livzon Pharmaceutical Group Inc. entered into the Joint Venture Framework Agreement with Joincare, pursuant to which, the Company and Joincare have agreed to establish the Joint Venture by way of investment in cash, of which the Company shall contribute RMB102 million and Joincare shall contribute RMB98 million. Accordingly, the Company and Joincare will directly be interested in 51% and 49%, respectively, of the Joint Venture. The major terms of the Joint Venture Framework Agreement are as follows: Date: 16 January 2023.

Parties: (a) Borderless Connection Sdn. Bhd.; and Joincare. Subject matter: The parties shall jointly establish a Joint Venture by way of investment in cash.

Amount of capital contribution: The registered capital of the Joint Venture shall be RMB200 million, of which the Company shall contribute RMB102 million and Joincare shall contribute RMB98 million. Organisation structure: The board of the Joint Venture shall comprise two directors nominated by the Company and one director nominated by Joincare. The chairman of the board of the Joint Venture shall be a director nominated by the Company.

The board of the Joint Venture shall exercise the powers of appointing the general manager, formulating the overall business strategic plan, formulating the annual budget, R&D plan, production plan and sales plan and relevant powers stipulated under the Company Law. The Joint Venture shall have a general manager to preside over the daily operation and management of the Joint Venture. Other senior management personnel shall be recruited by the Joint Venture according to actual operation needs.

There shall be no supervisory committee for the Joint Venture. The Joint Venture shall have a supervisor, who is nominated by Joincare, to exercise the relevant powers stipulated under the Company Law. Objectives of operation of the Joint Venture: To coordinate and operate animal health care business through the Joint Venture.

Conditions precedent: The effectiveness and enforcement of the establishment of the Joint Venture is conditional upon the parties obtaining the necessary approvals or waivers for the entering into of the Joint Venture Framework Agreement and the transactions contemplated thereunder, including but not limited to the approval by the Board in accordance to the relevant regulations of the place where the Company is listed. If the conditions precedent are not fulfilled within 60 days from the date of the Joint Venture Framework Agreement or such other date as the Company and Joincare may agree in writing, the Joint Venture Framework Agreement shall terminate with immediate effect without liability on any party.