Recently, Mr. Zhang Juan, Deputy Director of Accounting Standards Committee of the Ministry of Finance, and his team visited Fosun Pharmaceuticals' Shanghai headquarters to conduct a special investigation on the equity method project, and Mr. Sun Mei, Partner of Ernst & Young's Technology Department, participated in the investigation together.

The research centered on the equity method project being carried out by the International Accounting Standards Board (IASB), and included research and exchanges on the practical application of the equity method on the enterprise side.

Mr. Guan Xiaohui, Executive Director and Vice Chairman of Fosun Pharma, welcomed the delegation of the Accounting Standards Committee of the Ministry of Finance and believed that this exchange would help to improve the quality of the company's accounting information and further understanding of accounting standards. Mr. Guan indicated that Fosun has always attached great importance to the compliance of financial information disclosure, and has continuously strengthened the construction of financial system and system, and actively followed up the updating and application of accounting standards. During the meeting, Mr. Guan introduced the global layout of Fosun Pharma and the business of its associates and joint ventures to the leaders and experts.

In addition, Yan Jia, the co-CFO and chief accountant of Fosun Pharma, combined with the business frontline practice, fully exchanged views with the Accounting Department of the Ministry of Finance (MOF), relevant leaders of the Accounting Standards Board (ASB) and relevant experts of Ernst & Young (EY) on the practical challenges posed by the IASB's preliminary resolution on the equity method project on the initial recognition, measurement, and disclosure of information of the equity method of accounting for enterprises.

After listening to Fosun's report, Zhang Juan, Deputy Director of the Accounting Standards Board of the Ministry of Finance, expressed her gratitude to Fosun for providing valuable feedback on the equity method project from the aspect of accounting practice of pharmaceutical enterprises in China, and expressed her appreciation and affirmation of Fosun's achievements in the levels of innovative research and development, internationalized operation and ESG development.

Mr. Xu Huaxin, Director of Research Department of Accounting Standards Board of the Ministry of Finance (MOF), Mr. Shen Yukai, Deputy Director of the Second Division of System of Accounting Department of MOF, Mr. Lin Juhong, Grade 4 Researcher of Shanghai Municipal Bureau of Finance, Mr. Dong Xiaohong, Cadre of Research Department of the Accounting Standards Board of the MOF, and Mr. Hou Jie and Ms. Zhang Lili, partners of Ernst & Young's Audit Department, were also involved in the exchange.

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