Koran Pharmaceuticals: Announcement of Pledging and Release of Pledged Shares by Controlling Shareholders

Recently, Sichuan Kelun Pharmaceutical announced that its controlling shareholder, Liu Gexin, has partially pledged and released the pledge of some shares. In terms of release of pledge, a total of 36.52 million shares, accounting for 9.63% of the shares held by Liu Gexin, and 2.29% of the company's total share capital, have been released. In terms of pledge, a total of 27.50 million shares, accounting for 7.26% of the shares held by Liu Gexin, and 1.72% of the company's total share capital, have been pledged for personal fund needs. As of the disclosure date of the announcement, Liu Gexin and its concerted action parties have pledged a total of 94.347 million shares, accounting for 24.34% of the shares held by him and 5.9% of the company's total share capital. Liu Gexin has good creditworthiness, no risk of forced liquidation in the pledging, and this pledge does not affect the change of the company's actual controller or have any adverse effects on the company's operations and governance.