Sunshine Novo: Reaches settlement with Hengsheng Pharmaceutical regarding litigation matter

Sunshine Novo announced that the company and Hunan Hengsheng Pharmaceutical Co., Ltd. have reached a consolidated mediation agreement regarding multiple litigation cases involving both parties, and have received the "Civil Mediation Statements" served by the Hunan Provincial Higher People's Court and the Hengyang Intermediate People's Court. All contracts between the two parties have been terminated with no disputes remaining, and neither party bears any creditor's rights or debts toward the other. Hengsheng Pharmaceutical is not required to pay the remaining outstanding amounts, and the company is not required to refund amounts already received. All disputes have been settled in one lump sum. The company had previously made a full provision for bad debts on accounts receivable and contract assets, and this litigation matter will not have a negative impact on the company's current or subsequent profits.