600252: Guangxi Wuzhou Zhongheng Group Co.Ltd(600252) announcement on litigation involving the company’s holding subsidiaries and holding subsidiaries

Securities code: 600252 securities abbreviation: Guangxi Wuzhou Zhongheng Group Co.Ltd(600252) No.: pro 2022-10 Guangxi Wuzhou Zhongheng Group Co.Ltd(600252)

With regard to the announcement of litigation involving the company’s holding subsidiaries and holding subsidiaries, the board of directors and all directors of the company guarantee that there are no false records, misleading statements or major omissions in the contents of this announcement, and bear individual and joint liabilities for the authenticity, accuracy and completeness of its contents. Important content tips:

The stage of the case: the court has filed a case (first instance) and has not yet opened a court session;

The status of the parties of the listed company: Chongqing Lummy Pharmaceutical Co.Ltd(300006) (hereinafter referred to as ” Chongqing Lummy Pharmaceutical Co.Ltd(300006) “) and Chongqing Laimei Pharmaceutical Co., Ltd. (hereinafter referred to as “Laimei pharmaceutical”) are the defendants, which are the holding subsidiaries and holding subsidiaries of Guangxi Wuzhou Zhongheng Group Co.Ltd(600252) (hereinafter referred to as “company” or ” Guangxi Wuzhou Zhongheng Group Co.Ltd(600252) “) respectively;

Amount of this lawsuit: 51457500.00 yuan;

Whether it will have a negative impact on the profits and losses of listed companies: the lawsuit has not been officially heard, and the judgment result is uncertain.

The company will continue to pay attention to the progress of the case, timely fulfill the obligation of information disclosure, and invite investors to pay attention to investment risks.

Laimei pharmaceutical, the holding Sun company of the company, once signed the tadalafil tablet China licensing agreement with Changchun Haiyue Pharmaceutical Co., Ltd. (hereinafter referred to as “Haiyue pharmaceutical”), and both parties had litigation matters on exclusive sales agency and other matters in the process of performing the tadalafil tablet China licensing agreement. For details, see Chongqing Lummy Pharmaceutical Co.Ltd(300006) on May 11, 2020 and The relevant announcements disclosed on cninfo.com on June 20, 2020, October 23, 2021, November 16, 2021 and November 24, 2021 and the relevant announcements disclosed by the company on Shanghai Stock Exchange on October 23, 2021, November 17, 2021 and November 24, 2021 respectively.

Recently, the company’s holding subsidiary Chongqing Lummy Pharmaceutical Co.Ltd(300006) and its holding subsidiary, Laimei pharmaceutical, received legal documents such as civil ruling and civil complaint sent by the people’s Court of Changchun New Area (hereinafter referred to as “the people’s court”), Haiyue pharmaceutical sued Chongqing Lummy Pharmaceutical Co.Ltd(300006) and Laimei pharmaceutical according to the purchase and sales contract signed with Laimei pharmaceutical during the performance of tadalafil tablets in China, applied to the people’s court for property preservation, and requested to freeze part of the funds in Chongqing Lummy Pharmaceutical Co.Ltd(300006) and Laimei pharmaceutical’s bank account. The details are hereby announced as follows:

1、 Basic information of this lawsuit

(I) basic information of all parties

Defendant 1: Chongqing Lummy Pharmaceutical Co.Ltd(300006)

Legal representative: Peng Weimin (up to now, the legal representative of the company has been changed to Liang Jiansheng)

Address: 15 / F, Tower B, comprehensive R & D building, No. 2, Yangliu Road, Beibu new area, Chongqing

Defendant 2: Chongqing Laimei Pharmaceutical Co., Ltd

Legal representative: Qiu Rongzhao

Address: 15 / F, Tower B, comprehensive R & D building, No. 2, Yangliu Road, Beibu new area, Chongqing

Plaintiff: Changchun Haiyue Pharmaceutical Co., Ltd

Legal representative: Ren Zebo

Address: No. 672 chuangju street, high tech Zone, Changchun City, Jilin Province

Jurisdiction of Changchun New Area People’s Court: Changchun New Area People’s court

The litigation stage of the case: the court has filed a case (first instance) and has not yet opened a court session

(II) litigation claim of Haiyue pharmaceutical

1. Request the people’s court to order Chongqing Lummy Pharmaceutical Co.Ltd(300006) and Laimei pharmaceutical to pay 51457500.00 yuan for the sales of gifts to Haiyue pharmaceutical;

2. The acceptance fee of this case shall be borne by the defendant.

(III) basic information of the case

According to the civil complaint submitted by Haiyue pharmaceutical to the people’s court, after Haiyue pharmaceutical signed the authorization agreement for tadalafil tablets in China with Laimei pharmaceutical, both parties negotiated to carry out preferential promotion activities to consumers at the initial stage of the market in order to quickly open up the market. In the purchase and sales contract signed by Haiyue pharmaceutical and Laimei pharmaceutical, both parties agreed on the gift proportion of tadalafil tablets. In the follow-up sales process, Haiyue pharmaceutical believed that Laimei pharmaceutical did not give its tadalafil tablets to consumers, but sold them at a certain sales price, with a cumulative sales of 51457500.00 yuan, so it requested to pay this part of the sales to Haiyue pharmaceutical.

2、 Basic information of bank account being frozen

According to the civil ruling [(2022) Ji 0193 min Chu No. 85] issued by the people’s court, the applicant Haiyue pharmaceutical applied to the people’s court for property preservation and requested to freeze the bank deposits of the respondent Chongqing Lummy Pharmaceutical Co.Ltd(300006) and Laimei pharmaceutical of 51457500.00 yuan. The frozen bank accounts are as follows:

Account name opening bank account nature account balance (yuan) frozen amount (yuan)

Chongqing Chongqing Lummy Pharmaceutical Co.Ltd(300006) shares Hua Xia Bank Co.Limited(600015) shares

Copy Co., Ltd. Chongqing Liangjiang general deposit account 100000000.00 51457500.00 Jinkai sub branch

3、 The impact of this lawsuit and freezing on the company and the company’s Countermeasures

1. The dispute involved in this case is a dispute arising from the purchase and sales contract signed between Haiyue pharmaceutical and Laimei pharmaceutical in the process of performing the tadalafil tablet authorization agreement in China. The subjects of the contract are Haiyue pharmaceutical and Laimei pharmaceutical, Chongqing Lummy Pharmaceutical Co.Ltd(300006) is not the opposite party of the contract. In this case, all transactions conducted by lemy pharmaceutical are real transactions with commercial essence, and there is no illegal sales.

2. The frozen capital is 51457500.00 yuan, accounting for 4.39% of the latest audited net assets of Chongqing Lummy Pharmaceutical Co.Ltd(300006) and 0.75% of the latest audited net assets of the company, accounting for a relatively small proportion. The freezing of funds will not have a significant adverse impact on Chongqing Lummy Pharmaceutical Co.Ltd(300006) and the company’s daily production and operation activities. Chongqing Lummy Pharmaceutical Co.Ltd(300006) will eliminate the risk of freezing some funds as soon as possible and make the frozen bank account of Chongqing Lummy Pharmaceutical Co.Ltd(300006) return to normal as soon as possible. The bank account of the frozen funds this time is Chongqing Lummy Pharmaceutical Co.Ltd(300006) general deposit account, which does not involve the basic deposit account and the special deposit account of raised funds.

3. Chongqing Lummy Pharmaceutical Co.Ltd(300006) is actively contacting relevant courts. It has submitted an application for property preservation reconsideration to the people’s Court on February 17, 2022, and taken active response and other measures to safeguard the legitimate rights and interests of Chongqing Lummy Pharmaceutical Co.Ltd(300006) . This fund freeze is a judicial freeze conducted by the people’s court, and it is unclear how the litigation cases involved will be adjudicated. In view of the above litigation cases have not been heard in court, the impact of this litigation on the company’s current profits or future profits is uncertain.

4、 Documents for future reference

1. Civil indictment;

2. Civil ruling;

3. Chongqing Lummy Pharmaceutical Co.Ltd(300006) application for reconsideration of property preservation submitted to the people’s Court of Changchun new area.

The company will continue to pay attention to the progress of the above cases, timely fulfill the obligation of information disclosure, and invite investors to pay attention to investment risks.

It is hereby announced.

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Guangxi Wuzhou Zhongheng Group Co.Ltd(600252) board of directors February 18, 2022

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