On 19 December 2014, CK Life Sciences Int'l., (Holdings) Inc. entered into the new HIL supply agreement for a term of three years commencing from 1 January 2015. As the applicable percentage ratios (other than the profits ratio) calculated in accordance with chapter 14A of the listing rules in respect of the estimated total amount of the New HIL Continuing Connected Transactions will, on an annual basis, be more than 0.1% but less than 5%, the New HIL Continuing Connected Transactions are exempt from the independent shareholders approval requirements under the listing rules, and are only subject to the reporting, announcement and annual review requirements under chapter 14A of the listing rules. Under the Existing HIL Supply Agreement, HIL engages the company and the company agrees to provide and/or procure to be provided the Products to the HIL Group for sale and distribution on a non-exclusive basis for a term from 1 January 2012 to 31 December 2014.

In that connection, relevant members of the group may make the sales related payments to the relevant members of the HIL Group.