China Resources Sanjiu's subsidiary guarantees $16.2m for affiliates

China Resources Sanjiu Medical & Pharmaceutical announced on October 24, 2025, that its controlling subsidiary, Kunyao Group Co., Ltd., has provided guarantees totaling 16.2 million yuan for two of its wholly-owned subsidiaries: Yunnan Lijiang Pharmaceutical Co., Ltd. and Honghe Jiayu Pharmaceutical Co., Ltd. These guarantees fall within the previously approved 2025 annual guarantee limit of 456.15 million yuan for Kunyao Group and its affiliates. Yunnan Lijiang Pharmaceutical received a guarantee of 7.2 million yuan, while Honghe Jiayu Pharmaceutical received 9 million yuan.

The guarantees are non-associated and have no counter-guarantees. The board of directors of China Resources Sanjiu convened on October 23, 2025, passing resolutions related to the company's Q3 2025 report and confirming the aforementioned guarantee progress. The total external guarantee balance for Kunyao Group and its subsidiaries is 0.889 billion yuan, representing 1.69% of Kunyao Group's latest audited net assets and 0.45% of China Resources Sanjiu's latest audited net assets. The company emphasizes that these guarantees are necessary to support the operational development and financing efficiency of Kunyao Group and its affiliates, aligning with the overall development strategy and causing no harm to the interests of the company or its smaller shareholders.