On July 25, 2018, the Intermediate People's Court of Heze City, Shandong Province (short name Heze Intermediate Court), based on the petition of Shandong Dongming Rural Commercial Bank Co., Ltd., decided to accept the case on bankruptcy of its debtor Shandong Fangming Pharmaceutical Group Co., Ltd. (short name Fangming Pharmaceutical Group) and published an announcement on public selection of receiver of bankruptcy and reorganization.

On August 8, 2018, ZhongYin Law Firm sent a team consisting of the firm director and senior partner Yan Penghe, the senior partner Liu Zhenyu, the partner Yuan Xinjian and the senior associate Gong Fu to Heze Intermediate Court to compete for the receiver. After competitive selection, ZhongYin Law Firm was appointed by Heze Intermediate Court as the receiver of Fangming Pharmaceutical Group and will provide comprehensive legal services for the bankruptcy and reorganization of Fangming Pharmaceutical Group.

Fangming Pharmaceutical Group mainly engages in production and sales of pharmaceuticals within the scope of its Pharmaceutical Manufacturer’s License; sales of golden products; purchase and sales of soybean oil, soybean cake powder and liquid glucose; export of self-produced products and self-developed technologies (except for those could be exported only by the state in a unified way); import of raw and auxiliary materials, instruments and meters, machinery and equipment, spare parts and technologies required for its production and research (except for those could be imported only by a company approved by the state); processing with materials imported within its business scope, and “Three-plus-one” trading-mix (business subject to approval according to law may be conducted only upon approval by relevant departments), and investment in a number of companies.