Office of Company Directors      The 9^th Issue, 2015        August 3, 2015

Signing Ceremony for Capital Increase and Stock Expansion in Yunnan Daphne Pharmaceuticals Co., Ltd. by Yunnan Panax Notoginseng Science & Technology Co. Ltd. was Held

      In the afternoon on July 31, 2015, the signing ceremony for capital increase and stock expansion in Yunnan Daphne Pharmaceuticals Co., Ltd. by Yunnan Panax Notoginseng Science & Technology Co. Ltd. was held in Wenshan. Mr. Na Jie, the Wenshan Prefecture Party Secretary, Mr. Xu Lei, the Board Chairman of Yunnan Urban Investment Group, Mr. Yang Tao, the Party Secretary of Yunnan Urban Investment Group and Mr. Li Yunlong, the Member of the Prefecture Standing Committee and the Municipal Party Secretary of Wenshan City were present. Mr. Sun Yong, the Member of the Prefecture Standing Committee and the executive vice governor made a speech.

     In Mr. Sun Yong’s speech, accelerating the development of Panax Notoginseng industry and nurturing the pillar Panax Notoginseng industry were the important strategic decision made by the prefecture party committee and the prefecture government. Yunnan Panax Notoginseng Science & Technology Co. Ltd. and Yunnan Daphne Pharmaceuticals Co., Ltd. signed the capital increase and stock expansion agreement to seek mutual development and win-win, which was the important cooperation between two companies and accelerated the development of Panax Notoginseng industry in Wenshan. It was expected to give full play to the advantages and features of both parties and to unite together to work hard by basing Wenshan and focusing on Panax Notoginseng. Advance bravely to become the first-class Panax Notoginseng enterprise in China and contribute more to the Panax Notoginseng industry in Wenshan. Relevant departments in the prefecture shall emancipate the thinking, strengthening the service awareness, quickening the efficiency, strengthening coordination and guidance and solving the subsequent matters after capital increase and share expansion.

     Mr. Feng Xuelan, the Vice President of Yunnan Urban Investment Group and the Board Chairman of Yunnan Panax Notoginseng Science & Technology Co. Ltd., and Mr. Tang Xiuwen, the Board Chairman of Yunnan Daphne Pharmaceuticals Co., Ltd. signed the agreement. During the future development of Daphne, both parties would fully cooperate in the fields of capital operation, talents supply and demand, technological needs, technological innovation, achievement transformation and production and sales to promote the healthy and fast development of Yunnan Daphne Pharmaceuticals Co., Ltd.