Hunan Fangsheng Pharmaceutical Co., LTD

Announcement on the plan for senior managers of the Company to voluntarily increase their shares in the company

The Board of Directors and all directors of the Company guarantee that the content of this announcement does not contain any false records, misleading statements or material omissions, and bear legal responsibility for the authenticity, accuracy and completeness of its content.

Important content note:

Basic information about the shareholding increase plan: Mr. He Shi, Secretary of the Board of Directors of Hunan Fangsheng Pharmaceutical Co., LTD. (hereinafter referred to as the "Company"), intends to increase the shares of the Company through centralized bidding through the trading system of the Shanghai Stock Exchange during the period from December 8, 2023 to June 7, 2024, with the total proposed increase amount not less than RMB 1 million and not exceeding RMB 2 million;

Risk warning: This plan may be delayed or unable to be implemented due to changes in the securities market or policy factors, or delayed or unable to be implemented because the funds required for the increase in shares are not available in time. In the event of the above risk situation, the Company will fulfill the information disclosure obligation in a timely manner. Please pay attention to investment risks.

The Board of Directors of the Company recently received the "Notification Letter on the Plan to Increase the Company's shares" from Mr. He Shi, the secretary of the Board of Directors of the Company, and based on the confidence in the future development of the company and the recognition of the long-term investment value of the Company, it plans to voluntarily increase the company's shares through centralized bidding through the trading system of the Shanghai Stock Exchange. The details are hereby announced as follows:

First, the basic situation of the main body of increased holdings

The above-mentioned entities have not disclosed their plans to increase their holdings in the 12 months prior to this announcement.

Second, the main content of the plan to increase holdings

(1) The purpose of the proposed increase in shares: The main body of the increase in shares is based on the confidence in the future development of the company and the recognition of the long-term investment value of the company, and in order to further promote the sustainable and healthy development of the company, safeguard the interests of the company and all shareholders, stabilize market expectations, and enhance investor confidence, the proposed increase in shares of the company.

(2) The type of shares to be increased this time: A-shares of the company

(3) The method of the proposed increase in shares: centralized bidding trading

(4) The amount of shares to be increased this time:

(5) The price of the proposed increase in shares: there is no price range for the increase plan, and the subject of the increase will choose the opportunity to increase the company's shares during the window period allowed to increase according to the volatility of the company's stock price and the overall trend of the capital market.

(vi) The implementation period of this share increase plan: from December 8, 2023 to June 7, 2024. During the implementation of the plan, the Company and the subject of the increase will strictly abide by the relevant laws and regulations and the provisions of the Shanghai Stock Exchange restricting the trading of the Company's shares. If the Company's shares are suspended for more than 10 consecutive trading days due to the planning of major matters, the implementation of the increase plan will be postponed after the stock resumes trading.

(7) The fund arrangement for the proposed increase in shares: the subject of the increase has its own funds or self-raised funds.

Third, the uncertainty risk of the implementation of the plan to increase holdings

This plan may be delayed or unable to be implemented due to changes in securities market conditions or policy factors, or delayed or unable to be implemented because the funds required for the increase in shares are not available in time. If the above risk situation occurs, the company will disclose it in a timely manner.

Iv. Other instructions

(A) The main body of the increase commitment: during the implementation of this increase plan and within the legal period of the company's shares will not be reduced. In the process of implementing the shareholding increase plan, it will strictly abide by the relevant regulations of the China Securities Regulatory Commission and the Shanghai Stock Exchange on the changes in the interests of listed companies and the trading of company shares by senior executives.

(2) The Company will continue to pay attention to the increase of the Company's shares held by the increasing entity and fulfill the obligation of information disclosure in a timely manner in accordance with the relevant provisions of the Measures for the Administration of the Acquisition of Listed Companies, the Rules of the Shanghai Stock Exchange for Stock Listing, the No. 8 Management of Share Changes in the Self-Regulatory Guidelines for Listed Companies of the Shanghai Stock Exchange and other relevant provisions.

Hereby announce

Hunan Fangsheng Pharmaceutical Co., LTD

December 7, 2023