Securities Code: 688363 Securities Abbreviations: Huaxi Bio Announcement No.: 2023-001

Huaxi Biotechnology Co., Ltd.

Follow-up progress of investment Medybloom and arbitration announcement

The board of directors and all directors of the company guarantee that there are no false records, misleading statements or major omissions in the contents of this announcement, and bear legal responsibility for the authenticity, accuracy and completeness of its contents in accordance with the law.

Important note:

Huaxi Biotechnology Co., Ltd. (hereinafter referred to as "the Company"), a wholly-owned subsidiary of Hong Kong, has entrusted a lawyer to GentixLimited the Company in 2022.

On July 29, 2012, a lawyer's letter was sent to South Korean company Medytox Inc. (the "Medytox").

The main purpose of the termination and/or revocation and/or dissolution of its rights signed by both parties on May 7, 2015 is

Joint venture agreement for the development, expansion and sale of Medytox-produced medical beauty products such as botulinum toxin type A for injection (hereinafter referred to as "botulinum toxin products") in mainland China (hereinafter referred to as "joint venture agreement") and

Other relevant agreements signed under the joint venture agreement. For details, please refer to the company's website on August 2, 2022.

Announcement on the Follow-up Progress of Huaxi Biotechnology Co., Ltd. on Investment Medybloom (Announcement No. 2022-028) disclosed on the website of the Shanghai Stock Exchange (www.sse.com.cn).

As the Company and the Medytox have not terminated and/or rescinded and/or rescinded the joint venture agreement and pursuant to the agreement

Other relevant agreements signed under the capital agreement were agreed upon, and the company was issued to Singapore on 18 January 2023.

The International Arbitration Center (hereinafter referred to as the "Arbitration Center") initiated arbitration and filed a claim for breach of contract Medytox under the joint venture agreement. The initial claim amount is 0.75 billion Hong Kong dollars (approximately RMB 642,180,000). Julang Company reserves the right to adjust the aforementioned amount based on the progress of the case and other relevant factors.

The company recently received a letter from the Arbitration Center (hereinafter referred to as the "Arbitration Center Reply"), according to

Arbitration Rules, the Arbitration Court of the Arbitration Center decided that the commencement date of this arbitration was January 18, 2023, and designated.

Case number: ARB020/23/ZY.

According to the charging standard of the arbitration center and the amount of the arbitration request, the arbitration center estimates the total arbitration fee of about 1,359,182.24 Singapore dollars (about 6,990,274.26 yuan), and determines that the first advance fee is

543,672.90 Singapore dollars (about 2,796,109.72 yuan), half of which will be paid by both parties to the arbitration, and the final manner of commitment will be decided by the arbitration tribunal in the arbitration award.

Basic information on 1. application for arbitration

1. Case number: ARB020/23/ZY

2, arbitration parties

Applicant for arbitration: Julang Company

Arbitration Respondent: Medytox

3. Arbitration request:

Due to the Medytox's inability to provide botulinum toxin products to Julang under the joint venture agreement, the purpose of signing the joint venture agreement and operating the project under the joint venture agreement cannot be realized in the foreseeable future.

The Company filed a claim against the Medytox, with an initial claim amount of HK $0.75 billion (approximately RMB 642,180,000).

Yuan), Julang Company reserves the right to adjust the aforementioned amount based on the progress of the case and other relevant factors.

4. Arbitration matters and reasons

For the arbitration matters and reasons, please refer to the company's website on the Shanghai Stock Exchange on August 2, 2022.

(www.sse.com.cn) "Announcement on the Follow-up Progress of Huaxi Biotechnology Co., Ltd. on Investment Medybloom" (Announcement No. 2022-028).

2. risk warning

1. This arbitration is proposed by Julang Company in accordance with the agreement of the joint venture agreement in order to protect its own legitimate rights and interests. The arbitration parties have large differences on the facts of breach of contract and the amount of claim, and the arbitration result and the impact of this arbitration on the company's profits There is greater uncertainty, and the possibility of anti-arbitration by the arbitration respondent is not ruled out.

2. The company will perform its information disclosure obligations in a timely manner according to the follow-up progress of this arbitration to safeguard the interests of investors. Investors are requested to invest cautiously and pay attention to investment risks.

It is hereby announced.

Board of Directors of Huaxi Biotechnology Co., Ltd.

3 February 2023