Yixintang guarantees subsidiary's RMB 30m bank credit

Yixintang Pharmaceutical Group Co., Ltd. recently announced it has executed a maximum guarantee contract with the Taiyuan Branch of Shanghai Pudong Development Bank. This agreement provides a joint and several liability guarantee for its wholly-owned subsidiary, Shanxi Hongxiang Yixintang Pharmaceutical Co., Ltd., covering principal creditor's rights up to a maximum of RMB 30,000,000. This action falls within the scope of the previously approved estimated guarantee amount.

The guarantee is part of a broader resolution passed at the 2024 third extraordinary general meeting on December 13, 2024, which authorized the company to guarantee its subsidiaries for a total integrated credit line of RMB 1,368,000,000. Shanxi Hongxiang Yixintang Pharmaceutical Co., Ltd.'s asset-liability ratio as of its last audited financial statement (December 31, 2024) exceeded 70%, prompting the company to advise investors to pay close attention to the guarantee risk.

Following this transaction, the cumulative guarantee amount by Yixintang and its holding subsidiaries stands at RMB 1,342,270,000. As of the disclosure date, the total outstanding guarantee balance is RMB 843,779,200, representing 11.03% of the company's net assets as per the 2024 audited consolidated financial statements.