Baiyunshan subsidiary to launch 3 bn yuan ABS program

Guangzhou Pharmaceutical Co. Ltd., a controlled subsidiary of Guangzhou Baiyunshan Pharmaceutical Holdings, plans to register and issue up to 3 billion yuan in accounts receivable asset-backed securities (ABS) on the Shanghai Stock Exchange. This strategic move aims to optimize financial structure and unlock asset value. Each tranche of the program is expected to have a maturity of up to two years. The ABS will be structured into senior and subordinated tranches, with subordinated tranches not exceeding 5% of the total issuance. The underlying assets for the ABS will consist of accounts receivable and related rights derived from pharmaceutical and medical device sales.

Concurrently, Guangzhou Baiyunshan Pharmaceutical Holdings announced the completion of its 2016 non-public A-share offering fundraising projects, with the "Danan Medicine" R&D platform project being fully implemented. The company will utilize remaining proceeds totaling 418.9371 million yuan to permanently supplement its working capital. This reallocation addresses operational needs and improves capital efficiency without increasing financial leverage.

The accounts receivable securitization program and the reallocation of remaining funds are subject to approval by the company's shareholders and the Shanghai Stock Exchange. These actions underscore Baiyunshan Pharmaceutical's commitment to optimizing its asset base and financial management for sustainable growth.