On January 19, the group company held the second meeting of the tenth board of directors, and reviewed and approved the "Proposal on Foreign Investment of Subsidiary Jianfeng Pharmaceutical". On the same day, Jianfeng Pharmaceutical signed an agreement to invest in Shanghai North Carolina Pharmaceutical Technology Co., Ltd. (hereinafter referred to as "Shanghai North Carolina") by acquiring shares and increasing capital.

Shanghai Beika is a high-tech enterprise in Shanghai. It has an academician expert workstation and a number of Shanghai high-tech achievements transformation projects. It has won the title of "second prize for scientific and technological progress" in Songjiang District, Shanghai, "patent pilot enterprise" and "enterprise technology center" in Songjiang District, Shanghai. The company has strong research and development capabilities and has obtained 14 patents. At present, its main business is to provide products and customized services for domestic and foreign pharmaceutical companies. The products mainly include Tinib, alkaloids, carbohydrates and other anti-tumor drug intermediates. The customized services are mainly CDMO (contract development and manufacturing) of new drugs and intermediates.

Shanghai North Carolina has two wholly-owned subsidiaries, Anhui Changtai Chemical Co., Ltd. (hereinafter referred to as "Changtai Chemical") and Anhui North Carolina Pharmaceutical Co., Ltd. (hereinafter referred to as "Anhui North Carolina"). Changtai Chemical is a pesticide manufacturer designated by the Ministry of Industry and Information Technology. It was established in July 2007. It now has three chemical synthesis workshops and a pesticide preparation compounding workshop, with 10 product approvals and 13 patents. Anhui Beika was established in December 2016. Its business scope includes the customization, production and sales of chemical raw materials and pharmaceutical intermediates, the wholesale and retail of chemical raw materials and products (except hazardous chemicals), etc., and has also been approved to undertake Anhui Province Major emerging industry engineering project "Small molecule targeted drug manufacturing base". After the cooperation is reached, Changtai Chemical will further extend to the direction of pharmaceutical intermediates on the basis of its existing business. Anhui North Carolina will be built into a production base based on pharmaceutical raw materials to undertake the transformation of Shanghai North Carolina's achievements.

This cooperation is an important measure to strengthen the development of pharmaceutical business according to the company's strategic policy of "strengthening the main business through cooperation and innovation, standardizing science and seeking development". If the cooperation can be successfully completed, Shanghai Beika and its subsidiaries will become the holding subsidiary of Jianfeng Pharmaceutical. Spike Pharmaceuticals will use Shanghai Beika and its subsidiaries as a platform to establish a research and development and production base for APIs and intermediates, further extend and improve the industrial chain, increase the scale of the industry, improve research and development capabilities, and provide a reliable guarantee for the production of APIs for Spike Pharmaceuticals, thereby enhancing the comprehensive strength of Spike Pharmaceuticals.