Kanghong Pharmaceutical streamlines corporate structure with absorption mergers

Chengdu Kanghong Pharmaceutical Group Co., Ltd. (Kanghong Pharmaceutical) has announced the completion of absorption mergers for multiple subsidiaries, following board approval on April 25, 2025. Sichuan Kanghong Chinese Herbal Medicine Planting Co., Ltd. (Kanghong Planting) absorbed Chengdu Kanghong Medical Trade Co., Ltd. (Chengdu Kangmao). Beijing Kanghong Biomedical Co., Ltd. (Beijing Kanghong Bio) absorbed Beijing Kangjian Medical Devices Co., Ltd. (Beijing Kangjian). Sichuan Jishengtang Pharmaceutical Co., Ltd. (Jishengtang) absorbed its wholly-owned sub-subsidiary, Sichuan Jishengtang Xingshang Biotechnology Co., Ltd. (Xingshang Bio).

Following the mergers, Kanghong Planting, Beijing Kanghong Bio, and Jishengtang will continue operations with their names, equity structures, and operating scopes remaining unchanged. Adjustments to registered capital will be made as necessary. Chengdu Kangmao, Beijing Kangjian, and Xingshang Bio have been legally deregistered, with all their assets, liabilities, businesses, personnel, and related qualifications transferred to the respective surviving entities.

The company states these mergers aim to enhance operational efficiency, optimize resource allocation, and reduce management costs, aligning with its development strategy. This move is expected to support sustained and healthy growth and will not materially impact the company's consolidated financial statements or overall profitability, nor will it harm the interests of shareholders.