Cheezheng Tibetan Medicine's controlling stake diluted by convertible bond conversion

Tibet Cheezheng Tibetan Medicine Co., Ltd. (SZSE:002287) announced that the conversion of its "Cheezheng Convertible Bonds" resulted in a passive dilution of its controlling shareholder's stake. Between August 15 and August 28, 2025, the company's total share capital increased from 559,123,535 shares to 571,050,578 shares due to 11,927,043 shares being converted.

Gansu Cheezheng Industrial Group Co., Ltd., the controlling shareholder, saw its stake passively dilute from 65.20% to 63.84%, a decrease of 1.36%. Its concert party, Tibet Yuetuo Cultural Development Co., Ltd., experienced a passive dilution from 17.60% to 17.23%, a 0.37% decrease. Combined, their total shareholding diluted from 82.80% to 81.07%. The number of shares held by both entities remained unchanged.

Despite the dilution, Cheezheng Group remains the controlling shareholder, and Ms. Lei Jufang continues as the actual controller. The company confirmed that this change will not affect the company's control, corporate governance structure, or ongoing operations.