Office of Company Directors     The 7^th Issue, 2016     July 14, 2015

Yunnan Daphne Pharmaceuticals Co., Ltd. Successfully Achieved Strategic Cooperation Relationship with Yunnan Panax NotoginsengScience & Technology Co. Ltd.

      Daphne has always been dreaming and pursuing to break through the developing bottleneck, expand the Panax Notoginseng industry and introduce a strategic partner. After several rounds of negotiation and discussion, Yunnan Daphne Pharmaceuticals Co., Ltd. had successfully achieved a strategic cooperation relationship with Yunnan Panax Notoginseng Science & Technology Co. Ltd. On July 13, 2015, both parties held a meeting for the responsible persons of the level above department. At the meeting, the Board Chairman of Yunnan Panax NotoginsengScience & Technology Co. Ltd. emphasized the principle of “three-not-change”, i.e., the existing organization structure would not change; the existing posts would not change; the existing remuneration would not change. Daphne will be listed successfully and its production and operation will be normalized with the deepening of the cooperation, so that it could contribute more for the development of Panax Notoginseng industry in Wenshan. The General Manager of Yunnan Panax Notoginseng Science & Technology Co. Ltd. indicated at the meeting that Daphne was a team with rules. The production and operation of the company were quite standard. After cooperation of both parties, the marketing related matters shall be addressed first. The goal and purpose of the cooperation would be achieved when the market bottleneck was broken through. Both parties shall unite and cooperate sincerely to create a prosperous future. The Board Chairman of Daphne, Mr. Tang Xiuwen emphasized that all the company staff shall be subject to the cooperation between the two companies, adapt to the macro environment of the market economy with a positive attitude and face the new challenge with entrepreneurial spirit. They shall built and protect the brand of Daphne together.