Kanghong Pharmaceutical streamlines operations with subsidiary absorption merger

Chengdu Kanghong Pharmaceutical Group Co., Ltd. (Kanghong Pharmaceutical) announced that its wholly-owned subsidiary, Beijing Kanghong Biological Medicine Co., Ltd., has completed the absorption merger of another wholly-owned subsidiary, Beijing Hongjian Medical Devices Co., Ltd. The merger was approved by the company's Eighth Board of Directors on April 25, 2025. Beijing Kanghong Biological will continue its operations with an unchanged company name, equity structure, and business scope, while Beijing Hongjian has been legally deregistered.

All assets, liabilities, business operations, personnel, and relevant qualifications of Beijing Hongjian have been legally transferred to Beijing Kanghong Biological. This move is expected to enhance operational efficiency, optimize resource allocation, and reduce management costs, aligning with the company's strategic development goals for sustained and healthy growth. The company confirmed that the financial statements of both merging entities were already consolidated within Kanghong Pharmaceutical's financial reports.

The company stated that the merger would not materially impact its consolidated financial statements, overall business development, or continuous profitability. Additionally, the company noted that Sichuan Jishengtang Xingshang Biomedical Technology Co., Ltd. and Beijing Hongjian have completed deregistration. The merger between Sichuan Kanghong Chinese Herbal Medicine Cultivation Co., Ltd. and Chengdu Kanghong Pharmaceutical Trading Co., Ltd. is currently undergoing legal procedures.