China Resources Wandong Medical Co., Ltd. 2015 Annual Capital Reserve Conversion to Shareholding Implementation Announcement

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● Cash dividends of 0.50 yuan (including tax) for every 10 shares, that is, 0.05 yuan per share (including tax), and 6 shares for every 10 shares of all shareholders, that is, 0.6 shares per share.

● Cash dividend per share before tax deduction is 0.05 yuan; natural person shareholders and securities investment funds with unrestricted tradable shares will not withhold personal income tax when the company distributes dividends; Qualified Foreign Institutional Investors (“QFII”) shareholders, Hong Kong Central The natural person shareholder of the settlement company account and the restricted shares tradable shares shall withhold the income tax at the rate of 10%, and the cash dividend per share after tax shall be 0.045 yuan; for other institutional investors and legal person shareholders, the company will not withhold and pay the enterprise Income tax, the actual cash dividend found is 0.05 yuan per share.

● Equity registration date: Friday, June 24, 2016

● Ex-dividend ex-dividend date: Monday, June 27, 2016

● Cash dividend distribution date: Monday, June 27, 2016

● New Unrestricted Circulation Shares Listed on: June 28, 2016 (Tuesday)

I. The date and date of the shareholders' meeting through the profit distribution plan

China Resources Wandong Medical Equipment Co., Ltd. (hereinafter referred to as the "Company") distribution of profits and capital reserve capitalization motion was held May 19, 2016 2015 Annual General Meeting. The announcement of the resolutions of the 2015 Annual General Meeting of the Company was published on China Securities Journal, Shanghai Securities News, Securities Times and the website of Shanghai Stock Exchange () on May 20, 2016.

Second, the distribution plan

1. Release year: 2015

2. Distribution scope: As of the end of the trading on the Shanghai Stock Exchange in the afternoon of June 24, 2016 (the stock registration date), the Shanghai Branch of China Securities Depository and Clearing Co., Ltd. (hereinafter referred to as “Zhongdeng Shanghai Branch”) is registered. All shareholders of the company.

3. Specific allocation plan

In January 2016, the company implemented a non-public offering plan with 24,985,803 new shares. The total share capital of the company increased from 216,450,000 shares before the non-public offering to 241,435,803 shares. According to the “Proposal on the Non-public Issuance of A Shares in the Company” reviewed and approved at the 2015 First Extraordinary General Meeting of Shareholders held on June 26, 2015, “The Arrangement for Rolling Surplus Profits of the Company Prior to the Non-Public Issuance” According to the relevant regulations, the company intends to use the total share capital of 241,435,803 shares as the base, and every 10 shares will be paid a cash dividend of 0.50 yuan (including tax), and a total of 12,071,790.15 yuan will be distributed, with a total share capital of 241,435,803 shares. Based on the capital, the capital reserve will be increased by 6 shares for every 10 shares of all shareholders. After the implementation of this share capital increase, the company's total share capital increased from 241,435,803 shares to 386,297,285 shares.

4. Tax deduction instructions

(1) For the holders of natural persons and securities investment funds holding unrestricted shares, according to the “Notice on Issues Concerning the Individual Income Tax Policy for Dividend Dividends of Listed Companies” (Cai Shui [2015] No. 101) and “Implementation of Dividends on Listed Companies” The relevant provisions of the Notice on Issues Related to Dividend Differentiation of Individual Income Tax Policies (Cai Shui [2012] No. 85), the company’s shares obtained from the public issuance and transfer market, and the dividends received for a period of more than one year, the dividends are temporarily exempt from individuals. Income tax, the actual cash dividend per share is RMB 0.05; for individuals holding shares within one year (including one year), the company will not withhold personal income tax, and the actual cash dividend per share will be RMB 0.05. When the individual transfers shares, Zhongdeng Shanghai Branch calculated the actual tax payable according to its shareholding period. The stock company and other stock custodians deducted from the personal fund account and transferred to Zhongdeng Shanghai Branch. Zhongdeng Shanghai Branch worked in the next month. In the day when the company is paid, the company will report the tax to the competent tax authority within the statutory reporting period of the month in which the tax is received.

The specific actual tax burden is: if the shareholder's shareholding period is less than one month (including one month), the dividend income will be fully included in the taxable income, and the actual tax burden is 20%; the shareholding period is one. For those who are more than one month to one year (including one year), the temporary reduction is calculated as 50% of the taxable income, and the actual tax burden is 10%. If the shareholding period is more than one year, the income from dividends is temporarily exempt from personal income tax.

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