Topchoice Medical's controlling shareholder adjusts stock pledges for new medical projects

Hangzhou Baoqun Industrial Group Co., Ltd. (Baoqun Industrial), Topchoice Medical's controlling shareholder, has pledged 12,700,000 shares, representing 8.38% of its holdings and 2.84% of Topchoice Medical's total share capital. Concurrently, Baoqun Industrial released 12,150,000 shares from pledge, accounting for 8.02% of its holdings and 2.72% of the company's total share capital. The new pledge, effective from October 17, 2025, to October 20, 2026, was made with China CITIC Bank Hangzhou Branch to fund medical projects outside its existing system.

Following these transactions, Baoqun Industrial's total pledged shares amount to 99,026,672, or 65.33% of its holdings and 22.14% of Topchoice Medical's total share capital. Including shares of its consistent action party, Lü Jianming, the combined pledged shares represent 64.44% of their total holdings and 22.14% of the company's total share capital. Mr. Lü Jianming himself holds 2,091,088 shares, or 0.47% of the total share capital, with no pledged shares.

The company stated that Baoqun Industrial maintains good credit and repayment capacity, with controlled pledge risks, and this will not affect the company's main business or operational continuity, nor will it lead to a change in actual control. Should any liquidation risks arise, Baoqun Industrial plans to take measures such as additional pledges or early repurchase of pledged shares.