Shenyang Kaishenglong Intelligent Technology Co., Ltd agreed to acquire Shenyang Bio-Chem Co., Ltd from Dalian BIO-CHEM Company Limited (SHSE:603360) on May 18, 2022. Shenyang Kaishenglong Intelligent Technology signed a Supplementary Agreement to the Equity Transfer Agreement to acquire 82% stake in Shenyang Bio-Chem Co., Ltd from Dalian BIO-CHEM Company Limited (SHSE:603360) on December 30, 2022. Under the terms of transaction, Kaishenglong, should pay 51% of the pricing amount to the Dalian BIO-CHEM before December 30, 2022, and complete the equity transfer. As of March 31, 2022, Shenyang Bio-Chem Co., Ltd reported total assets of CNY 246.50 million and total common equity CNY 134.88 million. Board of directors of Dalian BIO-CHEM Company Limited have approved the transaction. .Dalian BIO-CHEM Company Limited held the fifteenth meeting of the board of directors on December 30, 2022, and reviewed and approved the Proposal on Adjusting the Equity Transfer Plan by now sell a 82% stake in Shenyang Bio-Chem Co., Ltd

Shenyang Kaishenglong Intelligent Technology Co., Ltd completed the acquisition of 82% stake in Shenyang Bio-Chem Co., Ltd from Dalian BIO-CHEM Company Limited (SHSE:603360) for CNY 63.2 million on December 30, 2022. Dalian BIO-CHEM has received the amount of CNY 32,250,000 on December 30, 2022, and completed the registration procedures for the change of property rights related to this transaction on the same day. The equity transferee shall remit the remaining 49% transfer payment to the account of the equity transferor within one year after the audit report is issued.