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Announcement on Resolutions of the Fourteenth Meeting of the Fifth Board of Directors of Jilin Zixin Pharmaceutical Co., Ltd.

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Stock code: 002118 Securities abbreviation: Zixin Pharmaceutical Announcement No.: 2014-029

Jilin Zixin Pharmaceutical Co., Ltd.

Announcement on Resolutions of the Fourteenth Meeting of the Fifth Board

The company and all members of the board of directors guarantee that the content of the information disclosure is true, accurate and complete, and there are no false records, misleading statements or major omissions.

The 14th meeting of the 5th Board of Directors of Jilin Zixin Pharmaceutical Co., Ltd. (hereinafter referred to as the “Company”) was held on April 17, 2014 by way of on-site voting. The meeting was notified by telephone, electronic on April 7, 2014. Emission by mail, etc., in accordance with the provisions of the "Company Law" and "Articles of Association". The meeting should attend 7 directors and actually attend 7 directors. The convening of this meeting is in line with the relevant provisions of the Company Law and the Articles of Association. The convening procedures and voting results of this meeting are legal and valid.

The meeting was held in the conference room of the company. After careful consideration by the directors at the meeting, the following proposals were passed:

I. The “Proposal on Electing Mr. Guo Chunlin as the Chairman of the Fifth Board of Directors” was considered and approved.

Review results: 7 votes in favor, 0 votes against, 0 abstentions

In view of the resignation of Mr. Cao Enhui, the chairman of the company, the company has elected a new director at the second extraordinary general meeting of shareholders in 2014. The directors of this meeting elected Mr. Guo Chunlin as the chairman of the fifth board of directors of the company, and his term of office is from this meeting. From the date of adoption, until the expiration of the term of the fifth board of directors of the company.

2. The “Proposal on Election of the Special Committee of the Fifth Session of the Board of Directors” was considered and approved.

Review results: 7 votes in favor, 0 votes against, 0 abstentions

In view of the resignation of Mr. Cao Enhui, the chairman of the company, Ms. Zu Chunxiang, Mr. Yin Jinlong, and Ms. Li Fei, the independent director, the company has elected new directors and independent directors at the second extraordinary general meeting in 2014. Elect the members of the special committees of the board of directors as follows:

Audit Committee: It consists of 4 directors. Independent director Wang Xu is the convener of the Audit Committee. The members are: Guo Chunlin, Zhang Lianxue, Wang Xu, Fu Wei, among whom Zhang Lianxue, Wang Xu and Fu Wei are independent directors of the company.

Remuneration and Appraisal Committee: It consists of 3 directors. The independent director Fu Wei is the convener. The members are: Guo Chunlin, Wang Xu, Fu Wei, among them: Wang Xu and Fu Wei are independent directors of the company.

Nomination Committee: It consists of 3 directors. Zhang Lianxue, an independent director, serves as the convener. The members are: Guo Chunlin, Zhang Lianxue, and Wang Xu. Among them, Zhang Lianxue and Wang Xu are independent directors of the company.

Strategy and Investment Committee: composed of 5 directors, director Guo Chunlin as the convener, members are: Guo Chunlin, Zhang Zhongwei, Zhang Lianxue, Li Baozhi, Zhong Yunxiang, of which Zhang Lianxue is an independent director of the company.

The term of the members of the special committee is the same as that of the current board of directors.

3. The “Resolution on agreeing to wholly-owned subsidiaries to apply for loans and provide guarantees to Yanbian Branch of Jilin Bank Co., Ltd.” was considered and approved.

Review results: 7 votes in favor, 0 votes against, 0 abstentions

1. Agree to Jilin Zixin Chuyuan Pharmaceutical Co., Ltd. (hereinafter referred to as “Chaoyuan Pharmaceutical”) to apply for a working capital loan of no more than RMB 90 million to Yanbian Branch of Jilin Bank Co., Ltd. to supplement the company's working capital and loans. The term is one year, the loan method is mortgage, and the company provides joint liability guarantee. The guarantee period is two years from the expiration of the debt performance period agreed by the “Loan Contract” signed by Chuanyuan Pharmaceutical and Jilin Bank Yanbian Branch.

2. Agreed that Jilin Cao Dandan Pharmaceutical Co., Ltd. (hereinafter referred to as “Grass Huadan Pharmaceutical”) applied to the Yanbian Branch of Jilin Bank Co., Ltd. for a working capital loan of no more than RMB 110 million to supplement the company's working capital and loans. The term is one year, the loan method is mortgage, and the company provides joint and several liability guarantee. The guarantee period is two years from the expiration of the debt performance period stipulated in the “Loan Contract” signed by Cao Huadan Pharmaceutical and Jilin Bank Yanbian Branch.

For details, please refer to the “Announcement on Providing Guarantees for wholly-owned Subsidiaries” published by Juchao Information Network (www.cninfo.com.cn) and the company's designated information disclosure media (No. 2014-030)

IV. The “Proposal on Supplementing and Correcting the 2010 Annual Report” was reviewed and approved.

Review results: 7 votes in favor, 0 votes against, 0 abstentions

Supplementary Disclosure Company's "2010 Annual Report" in the company and Yanbian Yaoyu Ginseng Trade Co., Ltd., Yanbian Jinhui Ginseng Trade Co., Ltd., Yanbian Xinxin Ginseng Trade Co., Ltd., Tonghua Weicheng Ginseng Trade Co., Ltd., Tonghua Jiaxi Related party relationships and related transactions of Ginseng Trade Co., Ltd., Tonghua Zhenhao Ginseng Trade Co., Ltd. and Jilin Zhengde Pharmaceutical Co., Ltd. For details, please refer to the “2010 Annual Report” and the summary published in the website of www.cninfo.com.cn and the company's designated information disclosure media, and the “Announcement on Supplementary Correction of the 2010 Annual Report” (2014) -031).

Special announcement

Jilin Zixin Pharmaceutical Co., Ltd. Board of Directors

April 18, 2014