Changshan Pharmaceutical Subsidiary Provides Guarantees for Parent Company Debt

Hebei Changshan Biochemical Pharmaceutical Co., Ltd. (the "Company") announced that its wholly-owned subsidiaries, Changshan Biochemical Pharmaceutical (Jiangsu) Co., Ltd. ("Jiangsu Subsidiary") and Hebei Changshan Kailong Biotechnology Co., Ltd. ("Kailong Biotechnology"), have provided guarantees for the Company's borrowing from Handan Bank Co., Ltd. Shijiazhuang Branch.

On July 18, 2025, the Jiangsu Subsidiary and Kailong Biotechnology each signed a Guarantee Contract with Handan Bank, providing a joint and several liability guarantee for the Company's RMB 130 million principal and other related expenses under the working capital loan contract. This falls within the previously approved guarantee limits of up to RMB 1.04 billion from the Jiangsu Subsidiary and RMB 640 million from Kailong Biotechnology, as approved by the 2024 annual shareholders' meeting.

As of the announcement date, the total guarantee amount provided by the Company and its controlled subsidiaries is RMB 2.06 billion, representing 131.86% of the Company's latest audited net assets. Following this guarantee, the actual total guarantee balance is RMB 1.2136381 billion, or 77.68% of net assets.