The grand family plans to increase its capital in Haihe Pharmaceuticals by no more than 300 million yuan.

Gorgeous Family Announcement: The company plans to participate in the rights issue financing of Haihe Pharmaceutical with cash not exceeding 300 million yuan, subscribing at a price of 4.75 yuan per share, and the number of subscribed shares shall not exceed 63.1579 million shares. After the capital increase, Gorgeous Family is expected to hold a proportion of Haihe Pharmaceutical's total share capital of no less than 5%, and up to 8.09%. This capital increase constitutes a related party transaction, as Haihe Pharmaceutical is a company in which the Gorgeous Family's controlling shareholder Nanjiang Group has a stake. This transaction has been approved by the company's board of directors and supervisory board, and still needs to be submitted to the shareholders' meeting for approval. Nanjiang Group currently holds approximately 11.54% of Haihe Pharmaceutical's equity.