KPC Pharmaceuticals strengthens subsidiaries with $1 million in external guarantees

KPC Pharmaceuticals Inc. has disclosed external guarantees totaling RMB 1,000万元 for its wholly-owned subsidiaries, including Baker Norton (Zhejiang) Pharmaceutical Co., Ltd. and Kunming Pharmaceutical Commercial (Zhaotong) Pharmaceutical Co., Ltd. Baker Norton (Zhejiang) received a RMB 500万元 guarantee with a current outstanding balance of RMB 500万元, while Kunming Pharmaceutical Commercial (Zhaotong) received a RMB 500万元 guarantee. These guarantees fall within previously approved forecast limits and are backed by counter-guarantees where applicable.

The company's total external guarantees, including those for subsidiaries and controlled entities, amount to RMB 45,615万元 as of the announcement date, representing 8.68% of the company's latest audited net assets. The guarantees are part of the RMB 456.15 million approved for 2025 to support the production, operations, and business development of its wholly-owned and controlled subsidiaries. This strategic move aims to enhance financing efficiency and reduce costs, aligning with the company's overall development strategy.

KPC Pharmaceuticals confirms that there are no overdue external guarantees. The guaranteed entities are deemed to have good credit standing, and the company maintains timely oversight of their operational status and financial health, mitigating associated risks. This aligns with the board's view that the guarantees are necessary and reasonable, supporting the long-term interests of the company and its shareholders.