China Biologic Products Holdings, Inc. declared that Xinjiang Deyuan Bioengineering Co. Ltd. ("Xinjiang Deyuan"), China Biologic's source plasma supplier and cooperation partner, has materially breached its strategic cooperation with China Biologic by entering into plasma supply arrangements with Southern Shuanglin Bio-Pharmacy Co. Ltd. ("Shuanglin"), and that China Biologic will take all necessary measures to protect its rights. The Company has learned from a public announcement issued on May 15, 2020 by Shuanglin, a company listed on the Shenzhen Stock Exchange, that Shuanglin and Xinjiang Deyuan have entered into a cooperation framework agreement regarding expansion of plasma collection stations, pursuant to which Xinjiang Deyuan has entrusted five plasma collection stations to Shuanglin and has begun to supply source plasma to Shuanglin after receiving approval from the Xinjiang Heath Commission for the entrustment arrangement, and Shuanglin has paid an initial deposit of RMB 40 million to Xinjiang Deyuan (the "Shuanglin Transaction"). The five plasma collection stations that Xinjiang Deyuan entrusted to Shuanglin are among the six stations that Xinjiang Deyuan entrusted to China Biologic under the strategic cooperation agreement (the "Cooperation Agreement") entered into in August 2015 among the Company's subsidiary Guizhou Taibang Biological Products Co. Ltd. ("Guizhou Taibang"), Xinjiang Deyuan and its controlling shareholder (as supplemented by a supplementary agreement entered into in August 2018). Under the Cooperation Agreement, Xinjiang Deyuan has the obligation to supply to Guizhou Taibang no less than 500 tonnes of source plasma over a three year period from August 2018 to August 2021 and as of the date hereof, Xinjiang Deyuan has not fully discharged its plasma supply obligations, with approximately 192 tonnes of source plasma remaining to be supplied to Guizhou Taibang. The entry into the Shuanglin Transaction by Xinjiang Deyuan during the term of the Cooperation Agreement makes the five plasma collection stations entrusted to Shuanglin no longer able to supply source plasma to GuizhouTaibang, which the Company believes constitutes a material violation of the Cooperation Agreement.