On September 21st, the awarding ceremony of Hunan Pharmaceutical Development and Investment Group Co., Ltd. was held in Changsha. Chen Fei, the Vice Governor of Hunan Provincial People's Government and Secretary of the Party Committee of the Provincial State-owned Assets Supervision and Administration Commission, attended the ceremony and presented the award to the company. Zhou Yixiang, the Deputy Secretary General of the Provincial People's Government, presided over the awarding ceremony and the working symposium of Hunan Pharmaceutical Development and Investment Group held on the same day.

Chen Fei stated that with the change in the principal contradiction in society, health has been placed in an important position in people's aspirations for a better life. Hunan Pharmaceutical Group bears the heavy responsibility of providing people with assured medicines and assured elderly care services. It is hoped that the group will keep its mission and tasks in mind, focus on the "4+1" business direction of "medicine, medical equipment, inspection and testing, medical consumables + elderly care", strengthen industrial research, enhance business research on assigned enterprises, plan well for development direction, operate well-managed enterprises, produce assured medicines, provide assured elderly care services, and diligently safeguard people's life and health, so as not to disappoint the high hopes of the provincial party committee and government, as well as the expectations of the people of the province.

At the symposium, Cong Peimo, Director of the Provincial State-owned Assets Supervision and Administration Commission, pointed out that the establishment of Hunan Pharmaceutical Development Group is an important measure for the second phase of layout optimization and structural adjustment of provincial state-owned enterprises this year, marking the beginning of a new journey for the development of Hunan's pharmaceutical industry. He hoped that the Group would follow the decisions and deployments of the Provincial Party Committee and Provincial Government, operate steadily, deepen reforms, strengthen management, and continue to innovate, striving to build a leading enterprise in Hunan's pharmaceutical industry and become a chain leader.

Hunan Pharmaceutical Development and Investment Group is a Class A commercial enterprise established with the approval of the provincial people's government, with the provincial SASAC fulfilling the responsibilities of a contributor. It undertakes the functional task of emergency supply guarantee for the province's drug, medical device, and consumable reserves. Focusing on medicines, medical devices, inspection and testing, and medical consumables needed for people's life and health, it is committed to building an industrial chain encompassing research and development, production, circulation, healthcare, and investment and financing, aiming to become a leading enterprise in the chain. With a registered capital of 3.5 billion yuan, as of August 31, 2022, the group's total assets amounted to 7.473 billion yuan, total liabilities to 3.98 billion yuan, and net assets to 3.493 billion yuan. The consolidated operating revenue from January to August exceeded 2.8 billion yuan. It has a total of nine subsidiaries, including Hunan Nanxin Pharmaceutical Co., Ltd., Hunan Jianlang Pharmaceutical Co., Ltd., Hunan Chunguang Jiuhui Modern Chinese Medicine Co., Ltd., Hunan Tianjin Pharmaceutical Co., Ltd., Hunan Carnation Elderly Care Industry Investment and Property Co., Ltd., Hunan Pharmaceutical Group Co., Ltd., Hunan Chuangwang Medical Technology Co., Ltd., Shenzhen Xindajun Medical Device Co., Ltd., and Hunan Pharmaceutical Development Group Healthy Elderly Care Fund Management Co., Ltd.

Responsible comrades from relevant provincial departments, key leaders of relevant provincial-affiliated regulatory enterprises, and members of the preparatory group of Hunan Pharmaceutical Development Group attended the awarding ceremony and symposium.

In accordance with the relevant arrangements and deployments of the Provincial Party Committee, Provincial Government, and Provincial State-owned Assets Supervision and Administration Commission, the 79.65% equity stake held by Hunan Xingxiang Investment Holding Group Co., Ltd. in our company has been transferred to the newly established Hunan Pharmaceutical Development Investment Group without compensation. As a result, our controlling shareholder has changed from Xingxiang Group to Hunan Pharmaceutical Development Investment Group.