ST Guohua: Holding subsidiary involved in 95 million yuan technology transfer contract dispute.

ST Guohua announced that its holding subsidiary Shenzhen Guoke Zhijian Pharmaceutical Co., Ltd., holding 50.98% equity of Zhongshan Runle Pharmaceutical Co., Ltd., has been sued for a dispute over a technology transfer contract. The plaintiff Guangdong Xiangshantang Pharmaceutical Co., Ltd. claims that the transfer of the drug approval number holder registration and data has been completed, but Zhongshan Runle has not made the payment as agreed, constituting a breach of contract. The plaintiff issued a notice of termination on March 6. The lawsuit requests for the confirmation of the agreement being terminated on March 6, Zhongshan Runle to pay a penalty of 270,800 yuan for breach of contract, and to bear the litigation costs. The case has been accepted and has not yet been heard in court.