At the Meeting dated 30 October 2017, the Board of Shandong Xinhua Pharmaceutical Company Limited resolved to recommend a special dividend of RMB 0.3 (tax included) in cash for every 10 shares of the Company based on the number of the total issued Shares of 478,353,421 Shares as of the date of the Meeting, amounting to RMB 14.351 million in total. Subject to the approval of the Shareholders at the EGM, the Special Dividend payable to the H Shareholders (whose names appear on the Company's register of holders of H Shares on 4 January 2018) will be paid on or before 19 January 2018.