Tianjin Life Pharmaceutical Co., Ltd. Explanation on the Achievement of Performance Commitments for the Acquisition of Jiangxi Qingchun Kangyuan Pharmaceutical Co., Ltd.

Tianjin Life Pharmaceutical Co., Ltd. Explanation on the Achievement of Performance Commitments for the Acquisition of Jiangxi Qingchun Kangyuan Pharmaceutical Co., Ltd.

Tianjin Life Pharmaceutical Co., Ltd. (hereinafter referred to as "the Company" or "the Acquirer") signed the "Equity Acquisition Agreement of Jiangxi Qingchun Kangyuan Pharmaceutical Co., Ltd." (hereinafter referred to as the "Equity Acquisition Agreement") with Jiangxi Qingchun Kangyuan Group Co., Ltd. (hereinafter referred to as "Kangyuan Group"), Jiangxi Qingchun Kangyuan Chinese Medicine Co., Ltd. (hereinafter referred to as "Kangyuan Chinese Medicine", collectively referred to as "the Sellers" with Kangyuan Group), Liu Musheng (the actual controller), and Jiangxi Qingchun Kangyuan Pharmaceutical Co., Ltd. (hereinafter referred to as "Kangyuan Pharmaceutical", "the Target Company", or "the Target Company") in December 2023.

I. Basic Information The Company acquired 65% of the equity of Qingchun Kangyuan using its own funds through cash payment. The Company acquired 40% of the equity of the Target Company from the original shareholder of the Target Company, Kangyuan Group, and 25% of the equity of the Target Company from the original shareholder of the Target Company, Kangyuan Chinese Medicine. Upon completion of this transaction, the Company will hold 65% of the equity of the Target Company. The transaction price, determined based on the valuation of the Target Company as of the base date stated in the "Valuation Report", is RMB 13,699.1855 million.