2.Company name:Microbio (Shanghai) Co., Ltd.

3.Relationship to the Company (please enter “head office” or

“subsidiaries”):subsidiary

4.Reciprocal shareholding ratios:NA

5.Cause of occurrence:

(1)Counterparty to the contract or commitment:

China Resources Double Crane Pharmaceutical Company Limited

(2)Relationship with the Company:NA

(3)Starting and ending dates (or rescission date) of the contract or

commitment:2024/07/19

(4)Major content (not applicable where rescinded):

A.Subsidiary Microbio (Shanghai) (hereinafter referred to as MBS, Microbio has direct and indirect ownership

of 58.32% shares) and Oneness Biotech Co., Ltd. (hereinafter referred to as Oneness) have jointly entered

into an exclusive agreement of commercial license in China (hereinafter referred to as the Agreement) of

Fespixon with China Resources Double Crane Pharmaceutical Company Limited (hereinafter referred to as

CR Double-Crane). CR Double-Crane will have the exclusive right of sales and marketing of Fespixon in the

licensed territory. The business transaction will be made between CR Double-Crane and MBS according to

the pre-agreed supply cost and MBS will place the order request to Oneness.

B.According to the Agreement, CR Double-Crane will make an upfront payment of up to US$34 million to MBS

and sales milestones of US$13.6 million based on every RMB 1 billion integer (the calculation each time minus

the paid sales milestones).The agreement term is 20 years and expires in 2043.

Three-fifth of the upfront payment shall be made by CR Double-Crane to MBS in 30 working days after the first

custom clearance of Fespixon, and one-fifth of the upfront payment shall be made in 6 months after the first

portion of upfront payment was made. The remaining one-fifth upfront payment will be made if Fespixon is

included in the National Reimbursement Drug List (NRDL) in the pre-agreed timeline. In case the first NRDL

price meets the mutual expectation, the remaining upfront payment will be exempted.

C.Fespixon will be manufactured and supplied by Oneness Nanchou Plant.

(5)Restrictive covenants (not applicable where rescinded):Per the agreement

(6)Commitment (not applicable where rescinded):Per the agreement

(7)Any other important agreement (not applicable where rescinded):NA

(8)Effect on company finances and business:Positive to finances and

business

(9)Concrete purpose/objective:

A.The exclusive agreement of Fespixon commercial license in China will bring substantial benefit resulted from

the successful research and development of the new drug and product launch to the shareholders’equity.

B.The commercialization of Fespixon is anticipated to significantly decrease the amputation of diabetic patients

and bring important health benefits to the patients.

6.Countermeasures:None

7.Any other matters that need to be specified(the information

disclosure also meets the requirements of Article 7, subparagraph 9

of the Securities and Exchange Act Enforcement Rules, which brings

forth a significant impact on shareholders rights or the price of

the securities on public companies.):

A.According to the license agreement signed with Oneness, MBS will pay Oneness a certain proportion of royalties

based on MBS’s net sales.

B.According to the cooperation agreement signed with Haihe Biopharma Co., Ltd., Shanghai (hereinafter referred to

as Haihe), MBS will pay Haihe a certain proportion of the net sales of the drug developed through cooperation.

C.Current Market : Diabetes is a prevalent disease in China. According to the international epidemiology literatures,

the number of adult diabetic patients in China has reached 148 million. The DFU incidence is up to 8.1% among

diabetic patients aged above 50 years so the DFU patient number has increased accordingly. It is estimated that

there are over 8.3 million DFU patients in China. Due to the complexity of DFU etiology, dressings, growth factors,

hospital pharmacy compounding, and Chinese OTC topicals for burns are not effective. This imposes a huge unmet

medical need in the treatment and an estimation of 1.6 million amputations.

According to Chinese guideline on prevention and management of diabetic foot(2019 edition), the diabetic foot, the

serious chronic complication, is the leading cause of amputation and death among diabetic patients. The patients often

ended up with amputation. The amputation rate is 19% among DFU patients, and the mortality rate is up to 50% in 5

years after amputation. It is estimated that a diabetic amputation occurs every 20 seconds globally, which is

life-threatening. The significant costs of diabetic foot treatment is contributing to one third of the diabetes medical expenses,,

causing huge burden to individuals, families, hospitals, and societies.

D.CR Double-Crane is a public-listed company on Shanghai Stock Exchange (ticker : 600062) with business in new drug

development, pharmaceutical finished products manufacturing, sales and marketing, API manufacturing, etc.

Please visit：https://www.sse.com.cn/home/search/index.shtml?webswd=600062 for its related finances and business information.

E.It takes considerable time and expenses to develop a new drug of which success can’t be guaranteed. Investors shall

bear such investment risk that warrants careful assessment before making investment decisions.