China Pioneer Pharma Holdings Limited entered into the Sales Contract with Angelina Environmental for the sale of protective face masks to Angelina Environmental for a total amount of EUR 2,595,968. Angelina Environmental is indirectly wholly-owned by Mr. Li, the chairman, an executive Director and a controlling shareholder of the Company, and Ms. Wu, a controlling shareholder of the Company. Ms. Wu is the spouse of Mr. Li. Accordingly, Angelina Environmental is a connected person of the Company. As all of the applicable percentage ratios of the Sales Transaction under the Sales Contract are more than 0.1% but less than 5%, the Sales Transaction is subject to the reporting and announcement requirements, but exempt from the independent shareholders' approval requirement pursuant to Rule 14A.76 of the Listing Rules.