CR Sanjiu progresses on resolving competition with Kunyao Group

China Resources Sanjiu (CR Sanjiu) is actively addressing potential conflicts of interest following its major asset acquisition of Kunyao Group. Huatai United Securities, the independent financial advisor, has issued its 2024 special continuous supervision opinion. A key development is the resolution of competition in the blood vessel thrombosis capsule product sector. Kunyao Group acquired CR Sanjiu's stake in Kunming China Resources Holy Fire Pharmaceutical for RMB 1.791 billion in December 2024, thereby eliminating direct competition. Regarding other areas of potential competition, particularly in pharmaceutical distribution, CR Sanjiu is within the five-year commitment timeframe to address these issues using various methods like asset restructuring. Huatai United Securities affirms that CR Sanjiu is currently fulfilling its obligations.