The board of directors of the ClouDr Group Limited announced that the Company entered into a non-legally binding strategic cooperation agreement (the Strategic Cooperation Agreement) with (China Resources Kunming Shenghuo Pharmaceutical Co. Ltd.) (CR Shenghuo), on March 5, 2024. Pursuant to the Strategic Cooperation Agreement, the Group will become the sole agent of CR Shenghuo's Lixuwang® Xuesaitong Soft Capsule in hospitals in the core provinces of sales and distribution of the product for a term of three years.

During the period of the cooperation, the Company will fully rely on its strengths in digitization and well-established hospital channel resources to further enhance patient access and promotional efficiency of Lixuwang® Xuesaitong Soft Capsule and to improve the brand power of such product. The Board is of the view that the Strategic Cooperation Agreement provides valuable opportunities for the parties to utilize their respective resources and expertise to create mutual benefits and synergies for each other. Accordingly, the Board is of the view that the entering into of the Strategic Cooperation Agreement is in the interests of the Company and its shareholders as a whole.