On January 17, 2024, Weifang Aotong Pharmaceutical Co., Ltd. ("Aotong Pharmaceutical"), a wholly-owned subsidiary of Jiangxi Fushine Pharmaceutical Co., Ltd. ("the Company"), received a High-Tech Enterprise Certificate jointly issued by the Shandong Provincial Department of Science and Technology, the Shandong Provincial Department of Finance, and the Shandong Provincial Taxation Bureau of the State Administration of Taxation. This marks the first time Aotong Pharmaceutical has been recognized as a high-tech enterprise. The certificate, numbered GR202337006584, was issued on December 7, 2023, and is valid for three years.

Pursuant to the "Administrative Measures for the Recognition of High-Tech Enterprises" and the "Enterprise Income Tax Law of the People's Republic of China," Aotong Pharmaceutical will be eligible for preferential tax policies for high-tech enterprises for three consecutive fiscal years (i.e., 2023, 2024, and 2025) commencing in the year of its recognition as a high-tech enterprise. This preferential tax policy will not materially impact the company's 2023 financial results.

This recognition as a high-tech enterprise is a full affirmation of the technical strength and R&D level of the company's holding subsidiary, Aotong Pharmaceutical, which will help reduce its tax burden and have a positive impact on its subsequent business development.

About Aotong Pharmaceutical

In August 2016, Jiangxi Fushine Pharmaceutical Co., Ltd. acquired a 70% stake in Weifang Aotong Pharmaceutical Co., Ltd., becoming its controlling subsidiary. Aotong Pharmaceutical, located in the Binhai (Xiaying) Economic Development Zone, Changyi City, Weifang City, Shandong Province, occupies 168 mu (approximately 168 acres) and employs 220 people. It has become a modern R&D and production base for pharmaceutical intermediates, APIs, and new energy and materials, integrating multifunctional workshops, a research and development center, and an analytical center. Representative products include acyclovir, 2,4,5-triamino-6-hydroxypyrimidine sulfate, guanine, vinylene carbonate, and fluoroethylene carbonate.

Aotong Pharmaceuticals has been awarded numerous honorary titles, including "Trustworthy Unit," "Advanced Unit for Production Safety," "Advanced Unit for Technological Innovation," and "Shandong Province Specialized and Innovative Enterprise." Looking ahead, Aotong Pharmaceuticals will forge ahead with unwavering determination, contributing its strength to writing a new chapter in Fushine Pharmaceuticals' second venture.