Kanghong Pharmaceutical's stock appreciation rights exercise conditions met

Chengdu Kanghong Pharmaceutical Group has announced the fulfillment of exercise conditions for the third period of its 2022 stock appreciation rights incentive plan. One eligible participant can now exercise 180,000 units of stock appreciation rights at an exercise price of yuan 12.34 per share, representing 0.0195% of the company's total share capital as of September 30, 2025. This exercise period spans from August 30, 2025, to August 29, 2026. The company’s board of directors and supervisory committee approved the resolution on October 28, 2025.

The company's third-quarter report for 2025 shows a net profit attributable to shareholders of yuan 303,207,431.06 for the period, an increase of 7.71% year-on-year. For the nine months ending September 30, 2025, the net profit was yuan 1,032,906,564.53, up 6.08% from the previous year. The exercise of these rights is not expected to significantly impact the company’s share capital, basic earnings per share, or net asset value per share.

The performance targets for the third exercise period, based on 2023 audited net profit (excluding non-recurring gains and losses and incentive costs), required a net profit growth rate of at least 10% for 2024. The company achieved this with a growth rate exceeding 10%, according to independent auditor reports, allowing the eligible participant to proceed with the exercise of their rights.