SASAC, ministry of finance and securities regulatorycommission issued to implement Opinions on State-owned Enterprise with MixedOwnership Carrying out Employee Share-holding Pilot Program in August, 2016(NDRC[2016]No.133). Chongqing Longping Renhe Health industry Co., Ltd (whosename was changed into Chongqing Zhongliang Health industry Co., Ltd) was chosenas one of the employee share-holding pilot state-owned enterprises with mixedownership in Chongqing by Chognqing NDRC.

In March, 2016, Tahota senior partners LinZhongqun and Yang Jing, experienced lawyer Xu Zhiping and other related lawyerswere entrusted by Chongqing Longping Renhe Health industry Co., Ltd (whose namewas changed into Chongqing Zhongliang Health industry Co., Ltd) to providespecial legal services for the company’s implementing middle and long-termstockholder's rights drive plan. After NDRC [2016]133 document was issued,Tahota lawyers, based on the file spirit and relevant regulations, made anemployee share-holding pilot plan, assisted the company submit to ChongqingNDRC, accepted  NDRC experts’ inquiry andfurther improved the employee share-holding pilot plan and corresponding legaldocuments after repeatedly communicating and analyzing with the company andNDRC for many times.

At present, Chongqing Zhongliang Healthindustry Co., Ltd’s employee share-holding pilot plan mentioned above has beenapproved by Chongqing NDRC. The plan has been submitted to Chongqing NDRC tocheck after its further improvement and registration in NDRC will be finishedwithin this month.