Sanli Pharmaceutical: plans to privately place up to 123 million shares to the controlling shareholder, accounting for 30% of the total issued share capital before the transaction.

Sanli Pharmaceutical Announcement: The company plans to issue A shares to Guizhou Cenli Technology Co., Ltd., which is 100% owned by controlling shareholder Mr. Zhang Hai, for no more than 123 million shares, representing 30% of the total pre-issuance share capital of 409 million shares. After the completion of this issuance, the total shareholding ratio of Zhang Hai and his concerted parties will increase from 48.73% to no more than 60.56%, with Zhang Hai remaining as the controlling shareholder and actual controller of the company. The funds for Zhang Hai's subscription are from his own resources or self-raised funds. This issuance still needs to be approved by the company's shareholders' meeting, reviewed and approved by the Shanghai Stock Exchange, and obtain approval from the China Securities Regulatory Commission before implementation.