The Board announced that, on 11 October 2021, Fosun Health, a subsidiary of the Shanghai Fosun Pharmaceutical (Group) Co., Ltd. entered into the Joint Venture Agreement with Forte Industrial Development in relation to the formation of JV Company, pursuant to which the registered capital of the JV Company is RMB 70 million, of which Fosun Health agreed to make cash contribution in the amount of RMB 35.7 million to subscribe for the 51% of the registered capital of the JV Company, and Forte Industrial Development agreed to make cash contribution in the amount of RMB 34.3 million to subscribe for the 49% of the registered capital of the JV Company. Under the Joint Venture Agreement, Fosun Health agreed to make cash contribution in the amount of RMB35.7 million to subscribe for the 51% of the registered capital of the JV Company. Such amount of capital contribution was determined after arm's-length negotiation between the parties to the Joint Venture Agreement with reference to the capital requirements of the JV Company in carrying out its main business activities. The capital contribution to be made by Fosun Health under the Joint Venture Agreement will be financed by the self-raised funds of Fosun Health. Under the Joint Venture Agreement: subject to the filing with relevant competent authorities, the JV Company shall be mainly engaged in, among others, medical services. any dispute arising out of, or in relation to, the Joint Venture Agreement shall be resolved through amicable negotiation between the parties thereto, failing which any party shall have the right to bring proceedings in the court of its domicile. the Joint Venture Agreement shall become effective on the date of signing by both parties.