A series of promotional articles on the special action for investor Protection of “Honest and trustworthy as a respected listed company”

A brief analysis and practical sharing of learning the new securities law and effectively strengthening investor protection

(Yunnan Baiyao 000538)

On March 1, 2020, the revised "Securities Law of the People's Republic of China" (hereinafter referred to as the "Securities Law") officially entered into force, marking the formal entry of the capital market into a brand new cycle.The revision of the “Securities Law” lasted for more than four years and finally completed the "major overhaul" after four deliberations by the Standing Committee of the National People's Congress. At the same time, this revision is also the most important revision of China's "Securities Law" in more than 20 years. The registration system has been incorporated into the law, the cost of securities violations and violations has been increased, the investor protection system has been improved, and the multi-level capital market system has been established and improved. Matters are of great significance and far-reaching impact.Among them, information disclosure and investor protection are all published as separate chapters, which is also one of the core contents of this revision of the Securities Law.

In the information disclosure chapter, the core has been revised: (1) In the principle requirements of information disclosure, based on truthfulness, accuracy, completeness, timeliness, fairness, etc., the requirements of “concise, clear, and easy to understand” have been added, which are investor-oriented and reduce the obstacles caused by excessive redundancy and incomprehensible information to investors reading the announcement; (2) Simultaneous disclosure at home and abroad, where securities are publicly issued and traded at the same time, the information disclosed abroad should be disclosed at the same time in the country; (3) For the first time, it is clear that “disclosure to all investors at the same time”, once again emphasizing and consolidating the fairness of credit disclosure; (4) The penalties for information disclosure violations have been increased. Compared with the maximum fine of 600,000 yuan under the original Securities Law, this revision has significantly increased the amount of fines, which will play a stronger deterrent effect on information disclosure violations; (5) The channels for information disclosure have been widened, and it has been further clarified that listed companies should publish information disclosed in accordance with the law on the websites of securities trading venues and media that meet the conditions stipulated by the securities regulatory agency of the State Council, and Internet channels have been added to make it more timely and convenient for investors to check the announcements.

Investor protection is a top priority in the work of the capital market and is inextricably linked to the promotion of corporate financing. It is necessary to seek the best balance through institutional constraints.When considering the draft revision of the Securities Law for the first time at the Fourteenth Meeting of the Standing Committee of the 12th National People's Congress in 2015, it was pointed out that the revision of the Securities Law should adhere to the issue orientation.The "Investor Protection“ chapter of the revised ”Securities Law" stipulates many investor protection systems, including the investor appropriateness system, the promotion of cash dividends system, the solicitation of shareholder rights system, the bondholder meeting and the bond trustee system, the first payment system, the securities civil compensation group litigation, support litigation, emphasize the mediation system of securities disputes, etc.This revision takes ”strengthening investor protection" as the fundamental purpose and mission of legislation and law revision, further improves the protection system of investors' legitimate rights and interests, and greatly improves the protection of investors, especially small and medium-sized investors. The protection of the legitimate rights and interests of investors.

Information disclosure and investor relations management are important tools for listed companies to standardize their operations in the capital market.First of all, effectively safeguarding the legitimate rights and interests of investors is a prerequisite for all work. Over the years, Yunnan Baiyao has strictly implemented various codes of conduct to ensure that information disclosure is true, accurate, complete, timely and fair; in addition, it uses multi-dimensional channels such as communications, research, interviews, visits, and product experiences to build a three-dimensional communication platform for investors, actively convey the company's cultural connotation, business situation, and strategic orientation, and continuously enhance the confidence of the majority of investors in the company.

On June 28, 2019, the Shenzhen Stock Exchange issued the "Notice on the 2018 Annual Information Disclosure Assessment Results of Listed Companies on the Main Board of the Shenzhen Stock Exchange". The assessment result of Yunnan Baiyao was A, and the company's information disclosure work has maintained a high level and standardized operation for a long time.In the past two years, the company has continuously optimized the resource allocation of investor relations management and comprehensively enhanced the protection of investors' rights and interests. Since 2018, it has received nearly 30 batches of nearly 600 domestic and foreign investors, disclosed more than 50 investor research materials in a timely manner, participated in dozens of strategic meetings such as UBS, China Merchants, Southwest, etc., and concentrated on receiving more than 200 investors and pharmaceutical researchers. , Organized more than 10 activities to enter listed companies, provided unobstructed telephone consultation services to more than 2,000 investors, and provided a three-dimensional direct communication system for global Baiyao investors and shareholders.In 2019, the company's major decision-making matters were frequently introduced. In the four general meetings of shareholders, the participation rate and consent rate of the majority of shareholders, especially the small and medium-sized shareholders, hit the highest in years.

In the future, we will continue to study the relevant laws, regulations and normative documents of the capital market in depth, and continue to use “obsessive-compulsive disorder” to build a strong line of information disclosure to protect the company's standardized operation.At the same time, we will continue to build and maintain a more accessible and healthy relationship with investors, effectively safeguard the legitimate rights and interests of investors, and strive to build a three-dimensional communication platform for investors, continuously innovate and optimize the methods and models of investor relations management, and be responsible for maintaining the company's reputation, protecting the rights and interests of investors, and fully fulfilling the company's solemn commitments and responsibilities in the capital market.

Yunnan Baiyao Group Co., Ltd.

May 12, 2020