News Release

Impact of Tax Reduction on Beijing Continent

The China Government announced today a substantial reduction of value-added-tax (VAT) for all manufacture industries. The VAT will be reduced from 16% to 13%. In advance of this VAT reduction, the China Government also announced a series of incentives including tax reduction for orphan drugs. The goals of such policy changes are to boost the manufacture industry and to provide orphan disease patients with greater access to drugs. The implantation dates of these policies vary. Beijing Continent Pharmaceutical Co, Ltd., as a drug manufacture company, can expect to see a positive impact from such policy changes. GNI Group will revise our 2019 projection when such changes can be more accurately determined after details of such implementation are disclosed in the future.