Kanghua Biology: The conversion of on-going projects to fixed assets will be strictly implemented in accordance with relevant regulations.

Kanghua Biology answered investors' questions on the interactive platform on the 15th, stating that the company strictly follows the enterprise accounting standards and relevant regulations for the capitalization of construction in progress, and timely capitalizes based on the construction progress of specific projects and the conditions for reaching the planned usable state. Kanghua Biology's vaccine production expansion project is currently in the review stage of supplementary application for drug production license, and this project, once operational, will increase the production capacity of the company's core product, freeze-dried human rabies vaccine.