Kelon Pharmaceuticals: Partial Share Pledge and Release of Pledge by Controlling Shareholder.

Kailun Pharmaceutical announced that recently its controlling shareholder, Liu Gexin, partially pledged and released pledges on some shares. On February 10, he released the pledge on 10.19 million shares, accounting for 2.69% of his holdings and 0.64% of the total share capital; on February 6, he pledged 8.88 million shares, accounting for 2.34% of his holdings and 0.56% of the total share capital, for personal fund needs. As of the disclosure date of the announcement, Liu Gexin and its concerted parties have pledged a total of 93.037 million shares, accounting for 24.00% of their holdings and 5.82% of the total share capital. This pledge does not have the risk of margin calls, nor will it result in changes in the controlling shareholder, and will not have any adverse impact on the company.