Shanghai Fudan-Zhangjiang Bio-Pharmaceutical Co., Ltd. announced that the Company entered into the Sales and Distribution Agreement with Shanghai Pharmaceuticals on 11 September 2019 for the sales and distribution of the Group's pharmaceutical products by the Shanghai Pharmaceuticals Group during the Contractual Period. The Former Sales and Distribution Agreement will be terminated immediately upon the Sales and Distribution Agreement becoming effective. The Company has agreed to authorise the Shanghai Pharmaceuticals Group to sell and distribute the pharmaceutical products of the Group during the Contractual Period. The sales and distribution services to be provided to the Group by Shanghai Pharmaceuticals Group is on a non-exclusive basis with the terms of sales and distribution of each specific pharmaceutical product to be agreed upon in accordance with the principles set out in the Sales and Distribution Agreement. The credit period granted to the Shanghai Pharmaceuticals Group by the Group in respect of the trade receivables generated under the Sales and Distribution Agreement will not exceed 4 months, which is not superior to the credit period granted to other customers of the Group. The Sales and Distribution Agreement shall take effect upon execution by the duly authorised representatives with seal and approval by the relevant bodies of the parties (including the Board and the general meeting of the Company), with retrospective effect from 1 January 2019 and ending on 31 December 2020. The Former Sales and Distribution Agreement will be terminated immediately upon the Sales and Distribution Agreement becoming effective.