I. General

1. The System is formulated to protect the legitimate rights and interests of employees of Livzon Pharmaceutical Group Inc. (hereinafter referred to as the “Company” or the “Headquarters”) and its subsidiaries (hereinafter referred to as “Livzon Group” or the “Group”), provide a formal and confidential escalation channel for employee grievances, and standardize grievance handling and related work.

2. The System applies to grievances related to human resources and the Code of Labor Employment and Ethical Conduct of Livzon Group (hereinafter referred to as the “Code”).

3. The System covers all of Livzon Group’s permanent employees, dispatched employees, outsourced employees, part-time employees, interns, and other personnel who have established labor relationships with Livzon Group.

4. Each subsidiary of the Company shall formulate its own employee grievance system in accordance with the System and implement it accordingly.

II. Grievance Acceptance Center

5. The human resource head office of the Company serves as the grievance acceptance center for employees at the Headquarters, while the human resource department of each of the Company’s subsidiary serves as the grievance acceptance center for their respective employees (collectively referred to as “grievance acceptance centers”). The grievance acceptance centers are responsible for receiving employee grievances and for recording, investigating, handling, reporting, and following up on reported violations of discipline and regulations.

6. The human resource head office of the Company is responsible for overseeing the handling of employee grievances by each subsidiary of the Company and regularly statistically analyzing and summarizing the Group’s employee grievance handling work.

7. The human resource department of each of the Company’s subsidiary shall report on their employee grievance handling work for the current year to the human resource head office of the Company before December 30 each year.

III. Grievance Methods

8. Grievants may raise a grievance to their supervisors or the officers of the grievance acceptance centers (hereinafter referred to as “grievance handlers”). If the grievant raises a grievance with his/her supervisor, the supervisor may directly investigate and deal with the grievance. A grievance may be closed if the grievant is satisfied with the resolution. The supervisor shall submit the investigation conclusion and resolution of the grievance in writing to a grievance acceptance center for record and shall be responsible for its follow-up; if the grievant is unsatisfied with the supervisor’s resolution or raises a grievance directly to a grievance acceptance center, the grievance acceptance center shall record, investigate, deal with and follow up on the grievance.

9. Grievance channels include telephone, WeChat, email, on-site visits, suggestion boxes, etc.

10. The grievant may raise a grievance with his/her real-name or anonymously. The content of the grievance will be kept strictly confidential.

11. The contact person for grievances at the human resource head office of the Company: Han Yali. Grievance hotline: 0756-8135172. Grievance mobile number (WeChat ID): 15916211373. Grievance email (internal): hanyali@livzon.cn. Grievance email (external): hanyali@livzon.com.cn. Grievance address: Human Resource Head Office of Livzon Pharmaceutical Group Inc., Chuangye North Road No.38, Zhuhai City, Guangdong Province Locations of suggestion boxes (i.e. president’s suggestion boxes) at Livzon Industrial Park in Zhuhai: the clock-in point in the lobby on the first floor of the Group, Hive Box lockers behind the Group headquarters building, the entrance to the P10 workshop of Pharmaceutical Factory, the lobby on the first floor of LivzonBio, the lobby on the first floor of Livzon Microsphere, and the stairway on the second floor of the Research Institute.

12. The issues raised in the grievant’s grievances should be objective and truthful. The grievant shall be responsible for the authenticity of the materials provided, and shall not fabricate or distort facts, make false accusations or frame others, or harm the interests of the Group and the legitimate rights of other employees.

IV. Grievance Acceptance and Investigation

13. The grievance handlers shall complete the investigation, reach a final conclusion, and issue a written Grievance Investigation Report in 15 working days from the date of receiving the grievance. If an extension is needed, the grievant shall be informed of the situation, but the extension shall not exceed 30 working days. The grievance handlers shall notify the grievant in writing within 3 working days from the date of issuing the Grievance Investigation Report, ensuring the grievant’s right to know.

14. If the grievant is unsatisfied with the investigation conclusion, he/she may raise another grievance within 10 days of knowing the investigation conclusion, requesting a review by the supervisor of the original grievance handlers. If more than 10 days have passed, it shall be deemed that the grievant has accepted the investigation conclusion.

V. Grievance Handling

15. If the investigation conclusion verifies the grievance, the grievance acceptance centers shall correct the violation within 30 working days after the grievance handlers issue the Grievance Investigation Report, or impose appropriate punishments according to regulations. If the circumstances are serious, the relevant departments shall, in accordance with the relevant regulations of the Group, punish the responsible person after completing the relevant procedures and approval, including warnings, demerits, major demerits, termination of labor contracts, etc.; any suspected criminal offense shall be transferred to the competent authorities for handling.

16. If the investigation conclusion shows that the grievance is not factual, the grievance handlers shall truthfully explain and clarify the facts.

17. After the grievance is handled, the grievance acceptance centers shall inform the grievant of the grievance handling results in written form in 3 working days, ensuring the grievant’s right to know.

VI. Grievance Confidentiality

18. Grievances are confidential in nature. The grievance handlers must keep grievants’ personal information and the content of their grievance strictly confidential. The grievance handlers should handle a grievance in a confidential manner without revealing the identity of the grievant. Grievance materials and records should be kept as confidential documents.

19. The grievant’s identity will not be disclosed unless the grievant agrees or under the following circumstances: (a) where the audit committee of the Company considers it significant for the investigation or interest of the Group; (b) where required by the regulatory authorities or other competent administrative and judicial authorities; and (c) where the reported facts and identity of the grievant have become known to the public.

VII. Grievant Protection and Related Responsibilities

20. Regardless of whether the grievance is made in real name or anonymously, the grievance acceptance centers shall take necessary measures to fully protect the legitimate rights and interests of the grievant, including personal rights, property rights, rights at work, democratic rights, reputation rights, and other legitimate rights.

21. Those who violate the relevant provisions of these regulations and disclose the information of the whistleblower or complainant shall be seriously dealt with in accordance with relevant regulations. If the circumstances are minor, they will be transferred out of their jobs or have their salaries reduced or have themselves demoted; if the circumstances constitute a crime, they will be transferred to public security organs for investigation of criminal responsibility in accordance with law.

22. Those who retaliate against, harass, or persecute the real grievant, once verified, shall be seriously dealt with in accordance with relevant provisions of the Group, punished in forms such as warnings, demerits, major demerits, and termination of labor contracts according to the seriousness of the circumstances, and shall be transferred to public security organs for investigation of criminal responsibility in accordance with law if the action constitutes a crime. If the grievant suffers personal injuries and reputational or economic losses due to retaliation, they shall be handled in accordance with law. The grievant may also sue in court for damages.

23. We will protect grievants who raise legitimate grievances according to the System from any unfair dismissal, persecution or unauthorized disciplinary action for such grievances. However, those who deliberately fabricate facts and make false charges or frame-ups under the pretext of grievances shall be seriously dealt with in accordance with relevant provisions of the Group, and shall be transferred to judicial organs for investigation of criminal responsibility in accordance with law if the action constitutes a crime. If it is confirmed that the grievant intentionally fabricates lies or fictional situations that interfere with the grievance acceptance centers or cause waste of human, financial, or material resources, the grievant may be held legally or financially liable.

24. If any department of the Group conceals or delays reporting on the grievance circumstances, does not cooperate with investigations, sets obstacles to obstruct investigations or retaliates against the grievant, the grievance acceptance centers have the right to investigate the responsibilities of the relevant persons and hold the main leaders of the department accountable.

VIII. Miscellaneous

25. For matters not covered in the System, relevant national and local laws and regulations shall apply.

26. The human resource head office is responsible for interpreting the System.

Livzon Pharmaceutical Group Inc.