The board of directors of Consun Pharmaceutical Group Limited announced that Ms. LI Qian (Ms. Li) has resigned from the position of an executive Director of the Company, vice chairlady of the Board, the chief executive officer, a member of the remuneration committee of the Company (the Remuneration Committee) and all other positions with the Group with effect from 17 January 2024, due to health reasons. Ms. Li has confirmed that she has no disagreement with the Board and there is no matter relating to her resignation that needs to be brought to the attention of The Stock Exchange of Hong Kong Limited or the shareholders of the Company. The Company announces that Mr. An Meng, the Chairman of the Board and an executive Director, has been appointed as the chief executive officer with effect from 17 January 2024.

Pursuant to code provision C.2.1 of the Corporate Governance Code in Appendix 14 to the Rules Governing the Listing of Securities on the Stock Exchange (the Listing Rules), the roles of chairman and the chief executive officer should be separate and should not be performed by the same individual. Despite the deviation from C.2.1 of the code provision of the Listing Rules for Mr. An Meng serves as the Chairman of the Board as well as the chief executive officer of the Company, the Board believes that Mr. An Meng being the Chairman of the Board, is familiar with the Company's business operation and has excellent knowledge and experience of the Company's business which will be conducive to improving the efficiency of the Company's overall strategic planning. The Board believes that such management structure layout will be more beneficial to the future development of the Company and will improve the Company's operating conditions.

Under the supervision of the Board which will comprise of three executive Directors, one non-executive Director and three independent non-executive Directors, the Board is appropriately structured with balance of power to provide sufficient checks to protect the interests of the Company and its shareholders. With effect from 17 January 2024 and following the resignation of Ms. Li, Mr. An Meng has been appointed to be a member of the Remuneration Committee in place of Ms. Li.