Kunyao Group secures guarantees for subsidiary business expansion

China Resources Sanjiu Medical & Pharmaceutical Co., Ltd. announced that its controlling subsidiary, Kunyao Group Co., Ltd., has provided guarantees totaling 10 million yuan for its wholly-owned subsidiaries, Baker Norton (Zhejiang) Pharmaceutical Co., Ltd. and Kunyao Commercial (Zhaotong) Pharmaceutical Co., Ltd. These guarantees fall within the previously approved 2025 annual guarantee plan for Kunyao Group and its subsidiaries, which totals 456.15 million yuan for bank financing credit facilities.

The latest guarantees include 5 million yuan for Baker Norton (Zhejiang) Pharmaceutical Co., Ltd., with a current guarantee balance of 5 million yuan, and 5 million yuan for Kunyao Commercial (Zhaotong) Pharmaceutical Co., Ltd., bringing its current guarantee balance to 10 million yuan. The cumulative actual guarantee balance for these entities now stands at 15 million yuan. Kunyao Commercial (Zhaotong) Pharmaceutical Co., Ltd. has a high asset-liability ratio of 85.08%, necessitating investor awareness of the associated risk.

As of the disclosure date, Kunyao Group and its subsidiaries' total external guarantees amount to 81.9 million yuan, representing 1.56% of Kunyao Group's latest audited net assets and 0.41% of China Resources Sanjiu's latest audited net assets. The company confirmed no outstanding overdue guarantees or guarantees provided to related parties outside the consolidated financial statements.