Sihuan Bio: Completion of Industrial and Commercial Change Registration for Acquisition of 65.6146% Equity in Zhongrun Pharmaceutical

Sihuan Bio announced that the company acquired a 65.6146% equity interest in Zhongrun Pharmaceutical for RMB 160 million in cash. Zhongrun Pharmaceutical has now completed the industrial and commercial change registration and obtained a renewed business license. Zhongrun Pharmaceutical will be included in the company's consolidated financial statements and become a controlled subsidiary of the company. Subsequently, Zhongrun Pharmaceutical will carry out targeted capital reductions totaling 17.9817% of its equity toward Guangdong Kunhai and Guangdong Purun, with no consideration required for the capital reductions. After the capital reductions are completed, the company's shareholding ratio will rise to 80%. This transaction does not constitute a major asset restructuring or restructuring listing.