Busilai Pharmaceuticals: Subsidiary plans to acquire the technology of Yiqi Huoxue Jieyu Granules and conduct research cooperation.

Busil Pharmaceutical announced that its wholly-owned subsidiary, Shandong Danhong, intends to sign a "Technology Transfer and Scientific Research Cooperation Contract" with Hongyu Medicine, acquiring the pre-clinical research technology of Yiqi Huoxue Jieyu Granules and conducting new drug development. This matter has been approved by the 44th meeting of the 5th board of directors of the company, does not require approval by the shareholders' meeting, does not constitute a related-party transaction or a major asset restructuring. This cooperation is beneficial for expanding business, enriching product lines, and enhancing competitiveness, and will not have any adverse impact on financial and operating results. However, the research and development of pharmaceutical products have a long cycle and many uncertainties, and the company will disclose the progress in a timely manner.