Borui Pharmaceutical announced that its wholly-owned subsidiary Borui Biomedical Taixing City Co., Ltd. plans to sign a “Capital Increase Agreement” with Suzhou Xinborui Investment Co., Ltd. Suzhou Xinborui plans to use RMB 198 million to subscribe Borui Taixing's additional registered capital of 22.685 million yuan. The remaining 175 million yuan will be included in Borui Taixing's capital reserve. The company relinquishes the priority subscription rights for this capital increase. After the capital increase is completed, Borui Taixing's registered capital will increase from 55 million yuan to 776.805 million yuan, and the company's direct shareholding ratio in Borui Taixing will be changed from 100% to 70.80%. Borui Taixing is still a holding subsidiary within the scope of the company's consolidated statements. This transaction does not constitute a related transaction, nor does it constitute a major asset restructuring as stipulated in the “Administrative Measures on Major Asset Restructuring of Listed Companies”. The transaction was reviewed and approved by the 12th meeting of the fourth board of directors of the company, and there is no need to submit it to the company's shareholders' meeting for consideration.

Borui Pharmaceutical announced that its wholly-owned subsidiary Borui Biomedical Taixing City Co., Ltd. plans to sign a “Capital Increase Agreement” with Suzhou Xinborui Investment Co., Ltd. Suzhou Xinborui plans to use RMB 198 million to subscribe Borui Taixing's additional registered capital of 22.685 million yuan. The remaining 175 million yuan will be included in Borui Taixing's capital reserve. The company relinquishes the priority subscription rights for this capital increase. After the capital increase is completed, Borui Taixing's registered capital will increase from 55 million yuan to 776.805 million yuan, and the company's direct shareholding ratio in Borui Taixing will be changed from 100% to 70.80%. Borui Taixing is still a holding subsidiary within the scope of the company's consolidated statements. This transaction does not constitute a related transaction, nor does it constitute a major asset restructuring as stipulated in the “Administrative Measures on Major Asset Restructuring of Listed Companies”. The transaction was reviewed and approved by the 12th meeting of the fourth board of directors of the company, and there is no need to submit it to the company's shareholders' meeting for consideration.