Lukang Pharmaceutical to acquire remaining stake in Hecheng subsidiary

Shandong Lukang Pharmaceutical will participate in a bidding process to acquire the 1.9231% equity held by the Zoucheng Economic Development Zone Management Committee in Shandong Lukang Hecheng Pharmaceutical Co., Ltd. This acquisition aims to optimize resource allocation and enhance operational efficiency, bringing Lukang Pharmaceutical’s direct ownership in Hecheng Pharmaceutical to 100%. The transaction is not expected to change the company's consolidated financial statements and will be funded by its own capital.

The company's board of directors approved the acquisition on September 19, 2025. The board also approved an adjustment to the 2025 investment plan, increasing fixed asset investments by CNY 0.08 bn and long-term equity investments by CNY 1.87 bn. These decisions will be presented for shareholder approval at the Second Interim Shareholders' Meeting of 2025, scheduled for October 10, 2025.

The acquisition of Hecheng Pharmaceutical's equity, valued at CNY 1.1602 m for the Zoucheng Economic Development Zone Management Committee's stake as of February 28, 2025, is considered a non-related party transaction and does not constitute a major asset reorganization. The company's board of supervisors also approved the 2025 investment plan adjustments.