Buchang Pharmaceuticals guarantees subsidiary's loan

Shandong Buchang Pharmaceuticals Co., Ltd. has provided a 100 million yuan joint liability guarantee for its wholly-owned subsidiary, Yangling Buchang Pharmaceuticals Co., Ltd., with Beijing Bank Xi'an Branch. This guarantee is for a comprehensive credit line agreement and is within previously approved annual guarantee limits.

The guarantee addresses the daily operational needs of Yangling Buchang Pharmaceuticals, which had an asset-liability ratio of 110.25% as of June 30, 2025 (unaudited), and reported a net loss of 2.12 million yuan for the first half of 2025. The subsidiary’s total assets were 102.89 million yuan, with total liabilities reaching 113.44 million yuan. The board believes the subsidiary has stable operations and repayment capability, making the risk controllable.

As of the disclosure date, the total amount of guarantees provided by the company and its controlled subsidiaries stands at 254.03 million yuan, representing 24.86% of the company's net assets as audited at the end of 2024. There are no overdue external guarantees.