China Resources Sanjiu issues further guarantees to subsidiaries

China Resources Sanjiu Medical & Pharmaceutical (CR Sanjiu) announced it has provided additional guarantees for its controlling subsidiary, Kunyao Group. These guarantees are specifically for Kunyao Commercial Xishuangbanna Dai Medicine Operating Co., Ltd. and Dali Huirui Pharmaceutical Co., Ltd., both wholly-owned and controlled subsidiaries of Kunyao Commercial, which is itself a wholly-owned subsidiary of Kunyao Group. The latest guarantee totals 14 million yuan, raising the cumulative outstanding guarantee for these entities to 39.8 million yuan. This falls within the previously approved 2025 annual guarantee limit.

The guarantees support Kunyao Group's subsidiaries' operational and business development needs, aiming to enhance financing efficiency and reduce costs. Notably, Kunyao Commercial Xishuangbanna Dai Medicine Operating Co., Ltd. and Dali Huirui Pharmaceutical Co., Ltd. have asset-liability ratios exceeding 70%, a risk investors should note.

As of the announcement date, Kunyao Group and its subsidiaries’ external guarantee balance stands at 122.20 million yuan, representing 2.33% of Kunyao Group's latest audited net assets and 0.61% of CR Sanjiu’s latest audited net assets. There are no overdue external guarantees.