According to Hongri Pharmaceutical's announcement, the board of directors of the company reviewed and passed a capital reduction bill for the wholly-owned subsidiary Tianjin Hongri Kangrentang Pharmaceutical Co., Ltd., to reduce its registered capital by 310 million yuan. After the capital reduction, the registered capital of Tianjin Kangrentang was reduced from 920 million yuan to 610 million yuan. It is still a 100% owned subsidiary of the company, and the scope of the consolidated statement remains unchanged. This capital reduction does not involve related transactions, does not constitute a major asset restructuring, and does not require submission to the shareholders' meeting for review. The board of directors has authorized management to handle the relevant capital reduction procedures.

According to Hongri Pharmaceutical's announcement, the board of directors of the company reviewed and passed a capital reduction bill for the wholly-owned subsidiary Tianjin Hongri Kangrentang Pharmaceutical Co., Ltd., to reduce its registered capital by 310 million yuan. After the capital reduction, the registered capital of Tianjin Kangrentang was reduced from 920 million yuan to 610 million yuan. It is still a 100% owned subsidiary of the company, and the scope of the consolidated statement remains unchanged. This capital reduction does not involve related transactions, does not constitute a major asset restructuring, and does not require submission to the shareholders' meeting for review. The board of directors has authorized management to handle the relevant capital reduction procedures.