Plum Blossom Biotech: Controlling shareholder Meng Qingshan sentenced to three years in prison for securities market manipulation, with a suspended sentence of five years.

Plum Blossom Biology announced that the company's controlling shareholder, Meng Qingshan, received a "Criminal Judgment" issued by the Intermediate People's Court of Langfang City, Hebei Province, which sentenced Meng Qingshan for the crime of manipulating the securities market to three years imprisonment, five years probation, and a fine. Meng Qingshan has not held any position in the company since retiring in January 2017. The above-mentioned matter only concerns Meng Qingshan personally and has no relation to the company. Currently, the company's production and operation activities are all normal. This matter will not have any impact on the company's equity structure, corporate governance, and production and operations.