The board of directors of Shandong Xinhua Pharmaceutical Company Limited announced that Mr. Zhang Daiming tendered his resignation as an executive Director and the chairman of the Board with effect on 19 September 2022. Mr. Zhang will also cease to be the chairman of the Strategic Development Committee, a member of the Nomination Committee and the Authorised Representative. Mr. Zhang joined the Group in 1987 and has served the Group diligently in various roles and positions before becoming the chairman of the Board in September 2010.

Mr. Zhang informed the Board that his resignation was due to his plan to retire. The Board would like to express its sincere gratitude to Mr. Zhang for his invaluable contribution and service to the Company during his tenure of office. Following the resignation of Mr. Zhang, the number of members of the Nomination Committee and the Strategic Development Committee, respectively, will be lower than the required numbers in accordance with the respective terms of reference of these committees.

The Board will nominate suitable candidates to fill the vacancy of these committees as soon as practicable. Upon the approval by a resolution of the Board, Mr. He Tongqing, an executive Director, has been elected as the successor to the chairman of the Board as well as the Authorised Representative with effect from 19 September 2022. Mr. He Tongqing, aged 53, is a senior economist.

He graduated from the Shandong Polytechnic University, specialising in materials science and engineering and obtained a Master of Business Administration (MBA) from Shandong University. Mr. He joined Shandong Xinhua Pharmaceutical Factory in 1991 and has worked in various positions within the Group (including as workshop technician, planner, sales officer, regional manager, manager of the drug department, marketing director and the general manager of Shandong Zibo XinCat Pharmaceutical Co., Ltd) for over 30 years. Mr. He was elected as a Director on 22 December 2020 and is currently an executive Director, a deputy general manager of the Company, the chairman of Shandong Xinhua Health Technology Co., Ltd, respectively, and an executive director of Zibo Xinhua Pharmacy Chain Co.

Ltd., Shandong Xinhua Pharmaceutical Trade Co. Ltd., Shandong Zibo XinCat Pharmaceutical Co. Ltd. and Xinhua Pharmaceutical (Gaomi) Co., Ltd, respectively.