On 21 January 2019, China Traditional Chinese Medicine Holdings Co. Limited entered into a TCM Raw Materials Storage and Logistics Center Cooperation Strategic Framework Agreement with Shenzhen Pingan Real Estate Industrial Logistics Company Limited (Pingan Industrial Logistics). Both parties intend to combine their respective resource advantages to jointly build a storage and trading platform for TCM raw materials, fully display the industrial agglomeration effect, and to promote the upgrading of the supply chain of the TCM industry. The company will corporate with Pingan Industrial Logistics in distribution center or major production area of TCM raw materials such as Bozhou, Anhui and Longxi, Gansu etc. to carry out business cooperation in TCM raw materials storage and logistic center. According to the Company's business development plan and storage and trading requirements, both parties shall jointly research and propose the layout plan and design plan, and Pingan Industrial Logistics shall be responsible for the construction and implementation of the relevant storage and logistics center project. In the future, the company will use the relevant venues and facilities of the storage and logistics center through leasing, and shall be responsible for the actual operation of the TCM raw materials storage and logistics center. Meanwhile, the Company will combine this warehouse and logistics platform network to create a standardized procedure for the storage of the TCM raw materials, establish high-efficiency and economical TCM storage and logistics standards, so as to achieve the synergy of upstream and downstream TCM business and further strengthen the Company's integration ability in the field of TCM raw materials to improve business development and economic benefits. Since the introduction of Ping An Life Insurance as a long-term strategic investor of the Company in 2018, both parties have actively explored business cooperation in TCM field. This storage and logistics center project marks the beginning of close cooperation between both parties making full use of their resources. Both parties shall take this cooperation as an opportunity to continue to explore business strategic cooperation in related fields, achieve better synergic effect and thus the Company's value will be further enhanced.