1. The basic situation of the proposed renewal of the accounting firm
(1) Institutional information
1. Basic information
Name of accounting firm: Lixin Accounting Firm (Special General Partnership)
Date of establishment: January 24, 2011
Organizational form: special general partnership
Registered address: 4th Floor, No. 61, Nanjing East Road, Huangpu District, Shanghai
Chief Partner: Zhu Jiandi
Number of partners at the end of the previous year: 232
Number of certified public accountants at the end of the previous year: 2,323
The number of certified public accountants who have signed the securities service business audit report at the end of the previous year: 2,323
Total income in the most recent year (audited): 3,814 million yuan
Audit business income in the most recent year (audited): 3.040 million yuan
Securities business income in the most recent year (audited): 1,246 million yuan
Number of audit clients of listed companies in the previous year: 576
Number of audited clients of listed companies in the previous year: 423
The top five major industries for auditing clients of listed companies last year:

 The top five major industries for audit clients of listed companies last year:

Audit fees for listed companies in the previous year: 721,012,100 yuan
Audit fees for listed companies last year: 96,850,800 yuan
Number of audit clients of the company’s listed companies in the same industry last year: 41
Number of audit clients of the company’s listed companies in the same industry last year: 17
2. Investor protection capabilities
Occupational risk fund at the end of the previous year: 129 million yuan
Occupational insurance accumulative compensation limit: 1.250 million yuan
Relevant professional insurance can cover civil liability for compensation caused by audit failure.
The purchase of occupational insurance complies with relevant regulations.
In the past three years (the last three complete natural years and the current year), there has been no civil liability in the civil litigation related to the practice.
3. Integrity record
Lixin has received no criminal penalties, 4 administrative penalties, 26 supervisory measures, no self-regulatory measures, and 3 disciplinary sanctions due to practice in the past three years, involving 62 practitioners.

(2) Project information
1. Basic information

(1) Project partners' practice in the past three years:
Name: Dai Jinyan

 (2) Signing CPA’s practice in the past three years:
Name: Lin Wei

(3) The practice of quality control reviewers in the past three years:
Name: Wu Rong

2. Integrity record
Project partners, signed certified public accountants, and project quality control reviewers have not received criminal penalties for practicing in the past three years (the most recent three complete natural years and the current year), and have been subject to administrative penalties from the China Securities Regulatory Commission, its dispatched agencies, and industry authorities. Supervision and management measures are subject to self-regulatory measures and disciplinary sanctions by self-regulatory organizations such as securities trading venues and industry associations.
3. Independence
Lixin Certified Public Accountants (Special General Partnership) is a partnership enterprise with securities-related business qualifications, which can meet the requirements of the company’s future financial auditing work. The company’s financial status is audited, and the renewal of the audit agency will not affect the audit quality of the company’s financial statements.
4. Audit fees
The current audit fee is 450,000 yuan, of which the annual report audit fee is 450,000 yuan.
The previous audit fee was 330,000 yuan, of which the annual report audit fee was 330,000 yuan.
The specific amount is subject to the actual signed contract, and the audit fee is based on industry standards and market prices, and is determined through friendly negotiation between the two parties.

2. Procedures to be performed by the proposed reappointment of the accounting firm
(1) The board of directors' review and voting of proposals
On April 19, 2021, the 13th meeting of the second session of the Board of Directors reviewed and approved the "Proposal on Renewing the Appointment of Lixin Certified Public Accountants (Special General Partnership)." The voting results of the proposal: 7 votes in favor; 0 votes against; 0 abstentions The voting results of the vote passed the proposal, and Lixin Certified Public Accountants (special general partnership) was re-appointed as the company's 2021 audit agency, and the proposal was submitted to the general meeting of shareholders for deliberation.

(2) Prior recognition and independent opinions of independent directors (if applicable)
Lixin Certified Public Accountants (Special General Partnership) has securities-related business qualifications. During the period of serving as the company's audit agency, it can follow the "Chinese Certified Public Accountants' Independent Auditing Standards" and diligently and dutifully express independent audit opinions. I agree to the company's re-appointment of Lixin Certified Public Accountants (Special General Partnership) as the company's 2021 audit agency.

(3) Effective date
The appointment of an accounting firm still needs to be submitted to the company’s general meeting of shareholders for deliberation.
3. List of available documents
Resolutions of the thirteenth meeting of the second board of directors of Shanghai Yanan Pharmaceutical Yangpu Co., Ltd.

Shanghai Yan'an Pharmaceutical Yangpu Co., Ltd.
Board of Directors
April 21, 2021