Jiudian Pharmaceutical to absorb subsidiary, streamline operations

Hunan Jiudian Pharmaceutical Co., Ltd. announced on October 23, 2025, that its board of directors approved the absorption merger of its wholly-owned subsidiary, Hunan Huiyang Information Technology Co., Ltd. This strategic move aims to optimize resource allocation, improve operational efficiency, and reduce costs. Following the merger, Huiyang Information's legal entity will be canceled, with Jiudian Pharmaceutical assuming all assets, liabilities, and contractual rights and obligations.

The merger is considered an internal consolidation within the existing consolidated financial statement scope. It does not constitute a related party transaction or a major asset restructuring and will not alter Jiudian Pharmaceutical’s registered capital, company name, or equity structure. As of June 30, 2025, Huiyang Information reported total assets of CNY 1,827.26, total liabilities of CNY 2,002.99, and net assets of -CNY 175.73.

The board of directors unanimously approved the absorption merger, confirming it aligns with the company's development needs and will not adversely affect normal operations or financial performance.