North China Pharmaceutical subsidiary gets Cefprozil nod, parent provides guarantees

North China Pharmaceutical Co., Ltd. announced that its wholly-owned subsidiary, North China Pharmaceutical Hebei Huamin Pharmaceutical Co., Ltd., has received approval from the National Medical Products Administration for the marketing application of Cefprozil, a chemical raw material drug. Cefprozil, a second-generation cephalosporin antibiotic, is approved for domestic production and is effective against various bacterial infections. This approval expands Huamin Company's raw material drug product line.

Additionally, North China Pharmaceutical provided a linked responsibility guarantee of 170,000,000 yuan to its subsidiary, North China Pharmaceutical Jintan Biotechnology Co., Ltd. As of the disclosure date, the company's total external guarantees, including those for Jintan Company, amount to 170,100,060,000 yuan, representing 31.56% of its net assets. An outstanding overdue guarantee of 9,000,000,000 yuan relates to a debt from Shijiazhuang Coking Group Co., Ltd., which is currently under legal proceedings.

The company's board believes these guarantees are crucial for the stable operation and long-term development of its subsidiaries and that the risks associated with these guarantees are manageable, with minimal impact on the company's current operating performance.