Pailin Biotech: Receipt of the Administrative Supervision Measure Decision Letter from Shanxi Securities Regulatory Bureau.

Pailin Biology announced on May 11th that the company recently received an "Administrative Supervision Measures Decision" from the Shanxi Securities Regulatory Bureau. It was found that the company's subsidiary signed supplementary agreements and memorandums with certain customers and promoters regarding some sales matters with additional liability obligations, but these agreements and commitments were not included in the company's internal control management system. There were deficiencies in the company's internal business and contract controls, leading to inaccurate information disclosure. Some significant matters of the company were not registered with insiders, and some insider registration files were incomplete. The Shanxi Securities Regulatory Bureau decided to take supervisory measures to order the company to correct its actions and to record it in the securities and futures market integrity records. Li Hao, Rong Xiankui, and Zhao Yulin, as the chairman, general manager, and board secretary of the company, and Fu Shaolan and Yuan Huagang, as the former chairman and general manager of the company, are primarily responsible for the above violations. The Shanxi Securities Regulatory Bureau decided to issue warning letters to the above individuals as supervisory measures and to record them in the securities and futures market integrity records.