Tonghua Dongbao announces share repurchase, governance shake-up

Tonghua Dongbao Pharmaceutical announced a share repurchase program, committing between 20 million yuan and 40 million yuan using company-owned funds. The repurchase price will not exceed 10 yuan per share, with an estimated volume of 2 million to 4 million shares, representing 0.10% to 0.20% of total share capital. The shares are intended for employee stock ownership plans and/or equity incentives, to be completed within six months of board approval on October 17, 2025.

In conjunction with the repurchase, the company will revise its Articles of Association, eliminating the Supervisory Board and transferring its functions to the Board of Directors' Audit Committee. This change aligns with the latest legal and regulatory requirements. Additionally, multiple corporate governance policies will be updated or newly introduced to ensure consistency with the revised Articles.

Furthermore, Tonghua Dongbao will change its auditing firm for the 2025 financial year, appointing Daixin Certified Public Accountants (Special General Partnership) as the new auditor for financial reports and internal control. This decision, also approved by the board on October 17, 2025, follows a competitive bidding process, with an audit fee of 1.5 million yuan.