Sansure biology and Zhuhai Baolian signed the termination agreement of the share transfer agreement on August 5, 2021. Both parties confirmed that the share transfer agreement was terminated on August 5, 2021, and both parties will not bear liability for breach of contract for the signing, performance and termination of the above agreement. If the shares of the target company held by the transferor are retransferred, the transferee has the preemptive right under the same conditions, and the priority is irrevocable.

Sansure Biology and Zhuhai Baolian signed the Share Transfer Agreement on May 12, 2021. Sansure planed to transfer 95,863,038 ordinary shares of KHB held by Zhuhai Baolian at the price of 1,950,000,000 yuan (equivalent to 20.34 yuan per share), accounting for 18.63% of the total share capital of KHB.The asset purchase was reviewed and approved by the fourth extraordinary meeting of the first board of directors of Sansure in 2021 and submitted to the first extraordinary meeting of shareholders in 2021. Sansure has paid the down payment of 585 million yuan to Zhuhai Baolian on May 28, 2021. Zhuhai Baolian shall pay the above amount to the account designated by Sansure within three working days after the effectiveness of this agreement. If the transferor delays in refunding, it shall pay liquidated damages to the transferee based on three thousandths (3%) of the amount paid by the transferee for each day of delay. 

Since the start of asset purchase, Sansure and relevant parties have conducted many consultations and coordination on this transaction to actively promote the relevant work of this asset purchase. However, in the process of promoting the project, the equity transfer has not been completed so far, which can not meet the expectations of all parties to the transaction. After full and careful study by the company and Zhuhai Insurance Union, both parties agreed to terminate the share transfer at this stage. This matter was deliberated and adopted at the fifth extraordinary meeting of the first board of directors of Sansure in 2021 on August 5, 2021, and will be submitted to the second extraordinary general meeting of shareholders of Sansure in 2021 for deliberation.

The transferee is optimistic about the future cooperation prospects with the target company KHB. Relying on the strategic cooperation agreement signed with the target company KHB biology, the transferee will strengthen the business cooperation with KHB biology and jointly promote the "China scheme" for in vitro diagnosis. The transferor will also strive to promote the cooperation between Sansure and KHB so as to promote the development of China's in vitro diagnosis industry to a higher level.

The termination of this asset purchase is the result of careful study by the company and consensus with all parties to the transaction. The termination of the purchase will not have a significant adverse impact on the company's operation and the development of existing business, nor will it affect the company's future development strategy, and there is no situation that damages the interests of the company and minority shareholders.