Yunnan Baiyao shareholder completes registration for exchangeable bonds

Yunnan Baiyao Group has announced that Xinhua Du Industrial Group Co., Ltd. ("Xinhua Du"), a shareholder with over 5%, has completed the guarantee and trust registration for a portion of its A-share holdings. This registration is for Xinhua Du's non-public issuance of exchangeable corporate bonds, with an issuance size not exceeding CNY2 billion, which received a no-objection letter from the Shenzhen Stock Exchange.

On September 29, 2025, Xinhua Du transferred 56,000,000 unrestricted circulating shares of Yunnan Baiyao to a dedicated account, to be held by Guoxin Securities Co., Ltd. as the nominal holder. These shares will serve as collateral for the bondholders' right to exchange shares and to ensure the repayment of principal and interest of the current bond issuance. This transaction represents 12.85% of Xinhua Du's total shares and 3.14% of Yunnan Baiyao's total share capital.

Following this registration, Xinhua Du's cumulative pledged, guaranteed, and trust-registered shares now total 131,000,000 shares, accounting for 29.14% of its holdings and 7.34% of Yunnan Baiyao's total share capital. The company states that the registered shares are not subject to performance compensation obligations from major asset restructurings.