On August 3rd, Capital State learned that 688566.SH, a company of Science and Technology Innovation Board, issued an announcement about filing a counterclaim.

There was a contract dispute between the company and Hubei Kyushu Tonghe Pharmaceutical Co., Ltd. (hereinafter referred to as "Kyushu Tonghe") over the promotion service of the company's products, and Kyushu Tonghe filed a lawsuit against the company in the Intermediate people's Court of Wuhan City, Hubei Province.

The company submitted a "counterclaim" to the Intermediate people's Court of Wuhan City, Hubei Province, counterclaiming Kyushu Tonghe's breach of contract during the implementation of the agreement, which was recently accepted by the court.

Counterplaintiff (defendant): Jiangsu Jibel Pharmaceutical Co., Ltd.

Respondent (this lawsuit plaintiff): Hubei Jiuzhou Tonghe Pharmaceutical Co., Ltd.

Claim:

1. The decree confirms the termination of the Agreement on Marketing Services for Nitrenolol tablets and the Supplementary Agreement on Marketing Services for Nitrenolol tablets signed between the counterpart and the respondent.

2. Order the respondent to indemnify the counterparty for the economic loss of 6 million yuan (tentatively)

3. Order the respondent to bear the litigation costs of this case.

According to the Agreement on the Marketing Service of Nitrenolol tablets and the Supplementary Agreement on the Marketing Service Agreement of Nitrenolol tablets signed between the company and the respondent, the counterdefendant is the extension service operator of nitrenolol tablets of 10mg:20mg and 5mg:10mg specifications produced by the company.

After the signing of the agreement, the company organizes production in accordance with the agreement to meet the promotion and sales needs of the defendant.

By July 2020, there was a huge gap between the nitrenolol tablets of the above two specifications and the sales quantity agreed upon in the agreement, and after consultation between the company and the representatives of the defendant, both parties agreed to terminate the above-mentioned agreement and supplementary agreement, and was recognized by the legal representative of the defendant at that time.

As the respondent failed to execute in accordance with the agreement and the supplementary agreement, resulting in economic losses to the company, the company, taking into account the actual operating situation and performance capacity of the respondent, requested the court to confirm the rescission of the agreement and supplementary agreement signed by both parties, and ordered the respondent to compensate the company for economic loss of 6 million yuan.

As of the date of disclosure of the announcement, the case involved in this announcement has not yet been heard, and there is great uncertainty about the final judgment and its impact on the company's profits. at present, it is impossible to predict the impact on the company's current and future profits. the actual impact shall be subject to the final judgment of the court. The company will follow the progress of the above cases in a timely manner and fulfill the obligation of information disclosure in accordance with the relevant regulations.

On the same day, the company said it recently received an invention patent certificate issued by the State intellectual property Office.

The above invention patent is the compound patent of the company authorized by the State intellectual property Office to develop a new drug such as anti-gastric acid (JJH201701). Zhenjiang Shengan Pharmaceutical Co., Ltd. (hereinafter referred to as "Zhenjiang Shengan") is the cooperative unit of the above-mentioned research project of the company. at the stage of listing of the new drug, the two parties are distributed according to 90% of the profits of the company and 10% of the profits of Zhenjiang Shengan. Zhenjiang Shengan listing distribution period is 10 years.

The acquisition of the above invention patent is the embodiment and extension of the company's core technology, and the acquisition of this invention patent will not have a significant impact on the company's recent operation, but will help to further improve the company's intellectual property protection system, give full play to the technological advantages of independent intellectual property rights, and promote technological innovation, so as to enhance the company's core competitiveness.