Another Nicotine Producer for Vaping Products Receives License Renewal and Amendment

Zhuhai Runduo Pharmaceutical Co., Ltd.

Announcement on the Renewal and Amendment of the Tobacco Monopoly Production Enterprise License of Wholly Owned Subsidiary

We, the company and all members of the board of directors, guarantee that the content of the information disclosure is true, accurate, and complete, with no false records, misleading statements, or significant omissions.
Zhuhai Runduo Pharmaceutical Co., Ltd. (hereinafter referred to as "the company" or "this company") has recently received the "Tobacco Monopoly Production Enterprise License" issued by the National Tobacco Monopoly Administration for its wholly-owned subsidiary Runduo Pharmaceutical (Jingmen) Co., Ltd. (hereinafter referred to as "Runduo Jingmen Company") for the production of nicotine for e-cigarettes. This license has been amended to change the production scale and extend the validity period until June 30, 2025. The specific situation is announced as follows:

1. Main Content of the License

Company Name: Runduo Pharmaceutical (Jingmen) Co., Ltd.
License Number: 3142080055
Company Address (Main Operating Place): No. 325, 327, 329, Jingdong Avenue, Jingmen Chemical Circular Industry Park, Duodao District, Jingmen City
Legal Representative: You Xuehai
Company Type: Limited Liability Company
Scope of License: Production of nicotine for e-cigarettes (domestic sales); Production of nicotine for e-cigarettes (export)
Main Investor: Zhuhai Runduo Pharmaceutical Co., Ltd. (100% investment ratio)
Production Scale: Not exceeding the data approved by the National Tobacco Monopoly Administration
Validity Period: From June 30, 2023, to June 30, 2025

2. Impact on the Company and Risk Warning

The acquisition of the "Tobacco Monopoly Production Enterprise License" by Runduo Jingmen Company marks that it can legally produce and sell (domestic and export) nicotine for e-cigarettes, which will have a positive impact on the company's performance. However, the specific product sales may be affected by various factors such as national policies, market demand, and industry competition, which carry certain uncertainties. Investors are advised to make cautious decisions and pay attention to investment risks.

3. Documents for Reference

1. "Tobacco Monopoly Production Enterprise License".

This announcement is hereby made.

Zhuhai Runduo Pharmaceutical Co., Ltd.
Board of Directors
July 15, 2023