CSPC Pharmaceutical Group Limited and CHL for the Group's supply of the Pharmaceutical Products to the CHL Group for the period from 1 November 2021 to 31 October 2024. It is expected that the demand for the Group's supply of the Pharmaceutical Products under the 2021 Master Sales Agreement may exceed the previous estimation, and the Existing Sales Annual Caps will not be sufficient to meet the anticipated transaction amounts for the ten months ending 31 October 2024. Accordingly, the Company and CHL entered into the 2024 Master Sales Agreement on 19 April 2024 to renew the transactions relating to the supply of the Pharmaceutical Products from the Group to the CHL Group for a period of three years from 1 May 2024 to 30 April 2027 (both days inclusive), which will supersede the 2021 Master Sales Agreement with effect from 1 May 2024.

The Company agrees to supply, and procure its subsidiaries to supply Pharmaceutical Products to the CHL Group. The relevant Group Company and the relevant CHL Group Company will enter into separate sales agreement for each Transaction in accordance with the principal terms set out in the 2024 Master Sales Agreement. The unit price of the Pharmaceutical Products and the terms (including the payment terms) of the Transactions shall be determined by arm's length negotiation between the relevant Group Company and the relevant CHL Group Company with reference to the then prevailing market prices of comparable products and on general commercial terms which are no less favourable to the Group than those offered by the Group to independent third parties.

The selling price charged by any Group Company for the Pharmaceutical Products to any CHL Group Company shall not be lower than such prevailing market prices. Where no comparable market prices are available, the unit price of the Pharmaceutical Products shall be no less favourable to the Group than those offered by the Group to independent third parties for comparable type of products. The Group will regularly review, monitor and benchmark the market price of the Pharmaceutical Products.

The Group will compare the selling price of the Pharmaceutical Products with the set benchmark before the approval of separate sales agreement between members of the Group and members of the CHL Group to ensure that the relevant Group Company will only conduct the Transactions in the interest of the Group. The Board considers that the said methods and procedures can ensure that the Transactions be conducted on normal commercial terms and not prejudicial to the interests of the Company and its shareholders.