On 26 October 2018, the Board of Tong Ren Tang Technologies Co. Ltd. resolved to renew the entrusted loan agreement with China Beijing Tong Ren Tang Group Co. Ltd. after the expiry of the original agreements on the same terms and conditions as set out therein, pursuant to which Tong Ren Tang Holdings will provide the Entrusted Loan of RMB 32 million in total to the Tong Ren Tang Technologies Co. Ltd. on normal commercial terms, of which the lending rate shall be no higher than the benchmark lending interest rate published by the People's Bank of China prevailing over the periods with moderate decrease and the term is one year (which can be extended upon maturity). The entrusted loan will not be secured by the assets of the group and will mainly be used for projects including the construction of security and quality system of medicine in production process. The entrusted loan will be transferred into capital injection by Tong Ren Tang Holdings into Tong Ren Tang Technologies Co. Ltd. when appropriate in the future and the corresponding approval procedures will be carried out.