Charmacy Pharma renews loan, revamps governance, changes auditors

Charmacy Pharmaceutical Co. announced the renewal of a continuing connected transaction through a New Framework Loan Agreement with Jiangyao Group Co., effective from January 1, 2026, to December 31, 2028, with a principal amount not exceeding 500 million yuan. This agreement is crucial for the group's working capital, supporting accelerated pharmaceutical business expansion and increased direct purchases from manufacturers, and maintaining liquidity amid healthcare reforms. Historically, transaction amounts under the Existing Framework Loan Agreement were 92 million yuan in 2023, 150 million yuan in 2024, and 150 million yuan for the nine months ended September 30, 2025.

In parallel, Charmacy Pharmaceutical will abolish its Board of Supervisors, transferring its powers to the Audit Committee, and will amend its Articles of Association and related corporate governance policies. This change aims to streamline corporate governance in line with the Company Law and updated guidelines for listed companies.

Additionally, the company is changing its auditor from ShineWing Certified Public Accountants to Pan-China Certified Public Accountants LLP, effective for the year ending December 31, 2025. This decision aligns with PRC regulations limiting continuous employment of the same accounting firm to eight years. An Extraordinary General Meeting will be held on December 12, 2025, to approve these resolutions.