GUANGJI PHARMA: Received a notice of administrative penalty in advance

GUANGJI PHARMA announced that the company received the "Advance Notice of Administrative Penalty" issued by the Hubei Regulatory Bureau of the China Securities Regulatory Commission. Due to the company's suspected violations of information disclosure laws and regulations, the Hubei Regulatory Bureau intends to decide to issue a warning to the company and impose a fine of 1.5 million yuan; a warning will be issued to the then Chairman Ruan Shu, along with a fine of 800,000 yuan; a warning will also be issued to the then Chief Financial Officer Hu Mingfeng, along with a fine of 800,000 yuan. The company does not fall under the circumstances of major illegal mandatory delisting, nor does it fall under other risk warning situations. The final result of this administrative penalty will be subject to the "Administrative Penalty Decision" issued by the Hubei Regulatory Bureau