The Board announced that, on 28 April 2023, China Resources Sanjiu Medical & Pharmaceutical Company Limited (CR Sanjiu) entered into the Cooperation Agreement with China Resources Power Holdings Company Limited (CR Power) in relation to the proposed cooperation on the New Energy Projects for a term commencing from the date of the Cooperation Agreement to 31 December 2023. Term: From 28 April 2023 to 31 December 2023. Subject to compliance with the Listing Rules, listing rules of the Shenzhen Stock Exchange and other applicable laws and regulations, the parties may renew the term of the Cooperation Agreement. Scope of Transactions under the Cooperation Agreement: Pursuant to the Cooperation Agreement, CR Sanjiu and CR Power have agreed to cooperate with each other on new energy power generation project(s) (the "New Energy Project(s)") in the following manners: By leveraging their respective strengths, CR Sanjiu and CR Power will be beneficial for the development of their respective businesses. CR Power and/or its subsidiaries commissions CR Sanjiu and/or its subsidiaries to develop and provide land remediation services for abandoned land. CR Sanjiu and/or its subsidiaries solve the issue of abandoned land in new energy power projects by planting traditional Chinese medicinal herbs and provide comprehensive land management services to meet the land requirements of the projects. During the term of the Cooperation Agreement, the parties may enter into specific contracts in respect of specific management services, fees and other requirements for the relevant New Energy Projects in accordance with the principles set forth in the Cooperation Agreement. The terms of such specific contracts shall be negotiated between the parties on arm's length basis and shall be fair and reasonable in accordance with the principles set forth in the Cooperation Agreement, having regard to the actual conditions of the relevant New Energy Projects. Pricing Basis and Pricing Policies: The service fees payable for the specific services under the Cooperation Agreement
shall be determined through arm's length basis by the parties with reference to the then prevailing market price and taking into account various factors, including, but not limited to, the climatic conditions, soil conditions, labour costs and market conditions where the relevant New Energy Project is located, as well as the relevant parties' resources, budgets, experiences, quality assurance requirements and technical
requirements.