On December 23, 2017, it was announced that Zhejiang Cheng Yi Pharmaceutical Co., Ltd. had been re recognized as a high-tech enterprise in accordance with the "Reply on the Filing of the First Batch of High tech Enterprises in Zhejiang Province in 2017" (Guo Ke Huo Zi  No. 201) issued by the Office of the National High tech Enterprise Recognition Management Leading Group; The high-tech enterprise certificate number is GR201733001757, issued on November 13, 2017, and is valid for three years. Currently, the national high-tech enterprise certificate has not been obtained.
The recognition of this high-tech enterprise is a re recognition after the expiration of the original certificate. The company was first recognized as a high-tech enterprise in 2008 (with a validity period of three years) and passed the high-tech enterprise review in 2011 and 2014 (with a validity period of three years). According to the relevant provisions of the "Management Measures for the Recognition of High tech Enterprises", the validity period of the qualifications of high-tech enterprises that have passed the review is three years. After the expiration of the period, the enterprise needs to reapply for recognition. Therefore, the company conducts this re recognition of high-tech enterprises. According to relevant regulations, the company will continue to enjoy the relevant preferential policies for high-tech enterprises for three consecutive years (from 2017 to 2020) after being re recognized as a high-tech enterprise, that is, paying corporate income tax at a rate of 15%. The 2017 semi-annual report and the third quarter report disclosed by the company are all accounted for at a tax rate of 15%, and the above tax preferential policies will not affect the company's business performance in 2017.