Chongqing Fuan Pharmaceutical (Group) Co., Ltd
Profit distribution policy and shareholder return plan for the next three years (2012-2014)

1、 Profit distribution policy
The company should attach importance to the reasonable demands and opinions of shareholders, especially small and medium-sized shareholders, and achieve reasonable investment returns for shareholders while taking into account the sustainable development of the company. It should establish a continuous, stable, and active dividend policy, and distribute profits through cash, stocks, a combination of cash and stocks, or other methods allowed by laws and regulations. The company shall follow the following regulations when implementing profit distribution:
（1） Basic principles of profit distribution
1. The company should fully consider the return to investors and distribute dividends to shareholders annually based on the prescribed proportion of distributable profits realized by the parent company in the current year.
2. The profit distribution policy of the company should maintain continuity and stability, while taking into account the long-term interests of the company, the overall interests of all shareholders, and the sustainable development of the company
3. The company distributes dividends in cash, stocks, or a combination of cash and stocks. The company prioritizes the profit distribution method of cash dividends.
4. The company adheres to the principle of distributing profits in accordance with the legal order, and upholds the principle of equal rights and benefits for equal shares.