Lukang Pharmaceutical renews trademark deal, boosts subsidiary capital

Shandong Lukang Pharmaceutical has extended its trademark licensing agreement for the "Lukang" brand with its controlling shareholder, Hualu Holdings Group Co. The renewed agreement is effective from January 1, 2026, to December 31, 2028, and will incur an annual fee of RMB 13.45 million. This transaction was approved by the company's eleventh board of directors, with related directors abstaining, and is aimed at ensuring the continued use of the trademark for product sales both domestically and internationally.

Concurrently, Lukang Pharmaceutical will inject capital into two wholly-owned subsidiaries using its own funds. Shandong Lukang Bio-pesticide Co. will receive a capital increase of RMB 108.75 million, raising its registered capital from RMB 41.25 million to RMB 150 million. Shandong Lukang Zerun Pharmaceutical Co. will see an increase of RMB 27 million, boosting its registered capital from RMB 3 million to RMB 30 million.

These strategic capital injections, totaling RMB 135.75 million, are intended to support the operational development of its pesticide and sales segments. The board approved the capital increases on December 11, 2025, noting that they do not constitute a connected transaction or a major asset restructuring.