Zhejiang Jiuzhou Pharmaceutical reports asset impairment, proposes governance changes

Zhejiang Jiuzhou Pharmaceutical Co., Ltd. announced a significant asset impairment provision of CNY 69,781,900 for the first three quarters of 2025. This includes a credit impairment loss of -CNY 20,837,600 and an asset impairment loss of CNY 90,619,499.16. The company emphasized that this provision, which directly impacts the profit for the period, aims to accurately reflect its financial position and operating results.

Concurrently, the company is proposing to cancel the Supervisory Board and amend its Articles of Association, subject to shareholder approval. These changes involve reassigning the Supervisory Board's functions to the Board of Directors' Audit Committee and repealing related internal control policies. A First Extraordinary General Meeting of Shareholders is scheduled for October 31, 2025, to vote on these and other governance-related matters.

The company's third-quarter financial report for 2025 highlights a 35.27% increase in total profit and a 42.30% rise in net profit attributable to shareholders, primarily due to increased sales and improved gross profit margins. Operating cash flow also saw a significant increase of 105.19%.