一、   Basic information of the meeting

(1)  The meeting of shareholders

This meeting is the second extraordinary shareholders meeting in 2018

(2) Convener

 The convener of this shareholders meeting is the board of directors.

(3) Legitimacy and compliance of the meeting

The meeting held relevant regulations in line with the "Company Law of PRC" and the "Articles of Association"

(4) Date and time of the meeting

The meeting will be open from 10:00 a.m. to 12:00 a.m. August 17, 2018. The expected duration is 0.5 days.

(5) Ways of meeting

The meeting will be held on-site.

(6) Attendance

 1. The shareholders who holding the company's shares on the equity registration date.

 2. Directors, supervisors and senior management personnel of the Company.

(7) Meeting place

Room 1116, NO.2 Wanshou Road West, Haidian District, Beijing

二、    Deliberations of the meeting

(一) To deliberate the proposal of setting up a wholly-owned subsidiary, Beth Hesda (Chengdu) Hospital Co., Ltd.

In order to promote the business development, expand the business scope and enhance the market competitiveness of the company, Sunny Medical plans to establish a wholly-owned subsidiary, Beth Hesda (Chengdu) Hospital Co., Ltd. (tentatively, the actual results based on the industrial and commercial approval), registered in No. 500 Xituan Road, Xipu Town, Pidu District, Chengdu, Sichuan. with a registered capital of 30 million yuan. The scope of business, including chronic disease management, kidney disease treatment, and hemodialysis services. This investment involves a new field, which extending the business of company to the downstream industry. After the establishment of the company, it is mainly engaged in hemodialysis services, which provided new service models in addition to product development, production and sales. For details of this investment, please refer to the “Investment Announcement” (establish a wholly-owned subsidiary) disclosed on the National Equities Exchange and Quotations information disclosure platform on July 30, 2018 (Announcement No. 2018-019)

(2) To deliberate the proposal of setting up a holding sub-subsidiary, Chengdu Shengzhi Medical Technology Co., Ltd."

Sichuan Sunny Medical Technology Co., Ltd. (hereinafter referred to as “Sichuan Sunny Medical”), is a wholly-owned subsidiary of Sunny Medical, plans to jointly establish a holding subsidiary, Chengdu Shengzhi Medical Technology Co., Ltd., (tentatively, the actual results based on the industrial and commercial approval), with CELL-CAPS SA company established by the staff of the University of Geneva, Switzerland. The registered place is No. 500 Xituan Road, Xipu Town, Pidu District, Chengdu, Sichuan. with a registered capital of 5 million yuan. of which Sichuan Sunny Medical invested 4 million yuan, accounting for 80% of the registered capital. CELL-CAPS SA company invested one million yuan, accounting for 20% of the registered capital. The tentative scope of business, including medical technology research and development, technology promotion, import and export of goods and technology, sales of medical equipment (the scope of business and the operating period involved in licensing approval are subject to the approval of the licensing authority)  This investment does not involve the new areas. For details of this investment, please refer to the “Investment Announcement” (establish a holding sub-subsidiary) disclosed on the National Equities Exchange and Quotations information disclosure platform on July 30, 2018 (Announcement No. 2018-020)

(3) To deliberate the proposal of using Idle Funds to purchase Wealth Management Products

In order to further improve the capital usage efficiency and the level of income, Sunny Medical intends to use the maximum amount of idle funds not exceeding RMB 60 million (including RMB 60 million) in the case of ensuring adequate and safe capital for normal business activities and R&D projects. Short, low-risk wealth management products. Within the above-mentioned quota, funds can be used in a rolling manner, and the proceeds from financial management can be reinvested. The amount of reinvestment is not included in the above amount. For details of this investment, please refer to the Announcement on the Use of Idle Funds to Purchase Wealth Management Products disclosed on the National Equities Exchange and Quotations information disclosure platform on July 30, 2018.