I. General Principles

1. In order to strengthen the internal control of Livzon Pharmaceutical Group Inc. (hereinafter referred to as "the Company") and all its subsidiaries (collectively referred to as "the Group"), prevent various improper, illegal, and fraudulent behaviors, and ensure the standardized implementation of supervision and integrity management work, this method is specially formulated in accordance with laws and regulations and relevant provisions of the Group.

2. This method applies to all reporting and complaint work related to violations of discipline, law, fraud, and improper behavior within the Group.

3. All employees of the Group, as well as all clients, suppliers, service providers, contractors, and other relevant personnel who have business dealings with the Group, have the right to report and complain about the illegal, disciplinary, and rule-violating behaviors of all personnel in the Group. No unit or individual may retaliate against the whistleblower or complainant in any form.  

II. Scope of Responsibilities

4. The Audit Committee under the Board of Directors of the Company (hereinafter referred to as "the Audit Committee") serves as the reception center for reports and complaints of the Group, responsible for accepting reports and complaints, recording, reporting, investigating, and following up on reported disciplinary violations. The Audit Committee has authorized the Company’s Risk Management Headquarters (hereinafter referred to as "the Reporting Management Department") as its executive body, responsible for the daily implementation and execution of this method, and reporting to the Audit Committee.

5. The Company’s Risk Management Headquarters regularly submits work reports to the Audit Committee.

6. Main responsibilities include:

① Promoting and informing the Group about reporting and complaining about illegal and disciplinary behaviors as well as various fraudulent activities.

② Accepting, managing, and processing reporting and complaint materials and information.

③ Investigating, assigning, and supervising reported cases.

④ Reporting and notifying the investigation status of reported matters.

⑤ Regularly compiling, analyzing, and summarizing reporting management work.

⑥ Conducting protection and reward work for whistleblowers.

III. Reporting Methods

7. Reports and complaints can be made through letters, phone calls, WeChat, intranet mailboxes, emails, visits, etc. Real-name reporting is encouraged, but if specific clues regarding suspected illegal or disciplinary behavior can be provided and the whistleblower is responsible for the authenticity of the report, anonymous reporting is also allowed, and the legal rights of the whistleblower will be fully protected.

Contact for reporting and complaints: Mr. Wang, Mr. Xu

Fixed Tel for reporting and complaints: 0756-8135383, 0756-8135948

Mobile Tel for reporting and complaints: 18666123020

Email for reporting and complaints: wangwei@livzon.cn, xudan01@livzon.cn 

Address for reporting and complaints: 38 Chuangye North Road, Zhuhai City, Guangdong Province, Livzon Pharmaceutical Group Inc. Risk Management Headquarters 

8. The Reporting Management Department must keep the whistleblower's information confidential and must not disclose the whistleblower's personal information, the status of the report handling, etc., to the reported party or personnel unrelated to the handling of the report.

9. Whistleblowers must be responsible for the authenticity of the materials provided when reporting or complaining, and must not fabricate or distort facts, falsely accuse or frame others, or harm the interests of the Group and the legal rights of other employees, and must consciously maintain the order of the Company and the reporting order.

10. Regardless of the form of reporting, the whistleblower must allow the specific personnel responsible for accepting the reports and complaints to contact them; otherwise, the Reporting Management Department has the right to refuse to accept the report.

IV. Reporting Acceptance Process

11. The Reporting Management Department must carefully register complaints and reports, filling out the "Report and Complaint Registration Form." It should be submitted for approval by the Company’s responsible leaders according to the approval process, and personnel should be organized to conduct investigations according to the content of the report, which should be completed within 30 working days, and a written investigation report should be issued. If an extension of the investigation time is needed, the whistleblower should be informed, but it should not exceed 90 working days.

12. Handling of investigation results:

 ① If the reported or complained content is found to be unsubstantiated after investigation, the investigators should provide a factual explanation and clarify the facts.

② If the reported or complained content is found to be true but the circumstances are minor, the investigators should report to the Audit Committee, requesting the reported or complained party to correct the error and impose corresponding penalties as per regulations.

③ If the reported or complained content is found to be true and the circumstances are serious, the investigators should report to the Audit Committee and, after following the relevant procedures for approval, impose penalties on the responsible person; if a crime is committed, it should be handed over to judicial authorities.

13. After the investigation and handling of the report is completed, the handling results should be written and notified to the whistleblower within 5 working days to ensure the whistleblower's right to know. If the whistleblower has objections to the handling opinions, they can request a review by the superior of the original investigation department.

14. Investigators must be familiar with reporting management business, must abide by laws and regulations, be honest and clean, and keep secrets. They should adhere to the principle of seeking truth from facts, focusing on evidence, facts, and investigation research.

V. Authority of Reporting Management Institutions

15. The Reporting Management Department has the right to take the following measures when accepting and investigating reported cases:

① Request the relevant departments and personnel being investigated to provide documents, materials, financial accounts, and other relevant information related to the investigation.

② Request the relevant departments and personnel being investigated to explain and clarify issues related to the investigation.

③ Request the relevant departments and personnel being investigated to stop the disciplinary behavior.

④ If it is determined to be a serious disciplinary violation according to law, in conjunction with the human resources department, make decisions to terminate labor contracts or dismiss, and if a crime is constituted, immediately hand over to judicial authorities.

⑤ If any department conceals, fails to report, does not cooperate with the investigation, obstructs the investigation, or retaliates against the complainant or whistleblower, the relevant personnel will be held accountable, and the main leaders of that department will also be held accountable.

VI. Protection of Whistleblowers and Complainants

16. Fully protect the legal rights and interests of whistleblowers (including real-name and anonymous whistleblowers), their personal rights, property rights, work rights, democratic rights, reputation rights, and other legal rights are protected by law.

17. For verified reports and complaints, those meeting relevant conditions will be rewarded according to the nature of the case, with the reward conditions being:

① There is a clear and specific party being reported or complained against.

② The clues provided by the whistleblower or complainant have not been previously known to the relevant departments.

③ The situation of the report or complaint is verified to be true.

If you apply for a reward for anonymous reporting, it will be handled according to the regulations for real-name reporting.

7. Confidentiality System for Reporting and Complaints Management

18. The personal data and information of the whistleblower and the content of the report must be kept strictly confidential. Reporting materials and records should be managed as confidential documents, and completed reporting cases should be filed.

19. When the reporting management department accepts reports from whistleblowers or verifies situations with the whistleblower and related persons, confidentiality must be maintained, and the identity of the whistleblower and complainant should not be disclosed.

20. Publicizing rewards for whistleblowers must obtain their consent; otherwise, their personal information is not allowed to be disclosed.

8. Relevant Responsibilities

21. Those who violate the relevant provisions of these measures and leak the information of whistleblowers and complainants will be dealt with seriously according to relevant regulations. For minor circumstances, they may be transferred from their job or have their salary reduced; if a crime is constituted, they will be transferred to judicial authorities for criminal responsibility.

22. Whistleblowers and complainants who intentionally fabricate facts, falsely accuse others, create incidents under the guise of reporting, or interfere with the normal work of the reporting department will be dealt with seriously according to relevant regulations. If a crime is constituted, they will be transferred to judicial authorities for criminal responsibility.

23. Those who retaliate against whistleblowers and complainants will be dealt with seriously according to relevant regulations once verified. If a crime is constituted, they will be transferred to judicial authorities for criminal responsibility.

24. If a whistleblower or complainant suffers personal injury or damage to their reputation or finances due to retaliation, the reporting management department should handle it according to legal provisions. The whistleblower may also file a lawsuit in court to seek compensation for damages.

25. If it is confirmed that the whistleblower or complainant intentionally fabricated lies and created scenarios that caused interference to the reporting management department or resulted in waste of personnel, finances, or materials, legal responsibility or economic compensation responsibility may be pursued against the whistleblower.

26. The Audit Committee has full authority to execute, supervise, and regularly review the overall responsibility of these measures. The Audit Committee is responsible for the interpretation and revision of these measures. 

If there are any questions regarding the content of these measures, please contact the reporting management department. 

27. These measures shall take effect from the date of promulgation.

Lizhu Pharmaceutical Group Co., Ltd.

Attachment

                      Reporting and Complaint Registration Form

                                              Reporting and Complaint No.[    ] No. 

Note: This form is recorded and signed by the investigator.