News Release

2023 New Year Greeting

Dear Shareholders, Friends, and Colleagues:

2022 presented an unprecedented challenge to our Group. China experienced extensive lockdown of major cities, and the USA struggled to recover from Omicron all while Global capital markets experienced a melt-down in the biotech sector. Under such difficult circumstances, our Group nonetheless achieved a good outcome, and we are proud of our achievement.

Our Group’s revenue and profit in both the pharmaceutical sector and the medical device/biomaterial sector continued growing, even though we continued to invest heavily in clinical development including F351 for liver fibrosis at Beijing Continent and cancer related TPD (targeted protein degradation) at Cullgen. Meanwhile, Berkeley Advanced Biomaterials expanded use of biomaterial from bone-filler to derma-filler for aesthetic use, which we believe represents a promising area of new growth in the coming years. Our staffing has also grown close to 700 persons strong in 2022.

Our model is unique in that it remains based on the cost-efficient use of our R&D facilities in China to mitigate the inherent risks associated with drug development for which a long-term view is essential. However, we have also never lost sight of the largest healthcare market in the world, the USA. As a result of our strategic business combination announced in the end of 2022, we have finally added a second foothold in the US to speed up clinical development of F351. I believe this strategic move will be pivotal for the Group in the next 10 years to establish itself on the global healthcare stage and create value for our shareholders.

Looking forward into 2023, our strategy is to steadily execute our profitable drug discovery business model worldwide so that the Group can become a full-fledged healthcare company in the future. This is a dream many firms have, but not many are as close to realizing it as we are today. I must thank all the staff of the Group for their dedicated work and our shareholders for your unwavering belief in our corporate strategy. Following our strong performance in 2022, I have no reason to doubt our performance in 2023.

Finally, I want to wish you all a prosperous and healthy 2023.

Ying Luo, PhD

Director, Representative Executive Officer, President and CEO