Overview - The company, Hainan Shuangcheng Pharmaceutical Co., Ltd., is providing a guarantee for its subsidiary, Ningbo Shuangcheng Pharmaceutical Co., Ltd., to secure a loan of 40 million yuan from China Construction Bank [1][2]. Guarantee Details - The loan is needed for daily operations and has a term until July 31, 2028 [1]. - The company and its controlling shareholder, Shuangcheng Investment Co., Ltd., will provide joint liability guarantees for the loan [1][2]. - The guarantee period will last for three years after the main contract's debt fulfillment [1]. Financial Status - Ningbo Shuangcheng has a net asset value of 69.0791 million yuan and reported a net profit loss of 57.3425 million yuan [2]. - The total assets of Ningbo Shuangcheng are 338.6156 million yuan, with total liabilities of 296.7085 million yuan [3]. Impact on the Company - The board believes that the guarantee will support Ningbo Shuangcheng's funding needs and promote its business development [4]. - The company asserts that the guarantee does not harm the interests of the company or its shareholders and will not affect its independence [4][5]. Board and Independent Directors' Opinions - The board has approved the guarantee, stating it aligns with internal control systems and legal regulations [4][5]. - Independent directors unanimously support the guarantee, emphasizing its necessity for Ningbo Shuangcheng's operations and compliance with regulations [5]. Related Transactions - The total amount of related transactions with the controlling shareholder since the beginning of the year is 14.9383 million yuan, excluding the current transaction [5]. - After this guarantee, the total external guarantee amount by the company and its subsidiaries will be 165 million yuan, which does not exceed 41.94% of the company's latest audited net assets [5].

Group 1 - The board of directors of Hainan Shuangcheng Pharmaceutical Co., Ltd. held its 19th meeting of the 5th session on July 14, 2025, with all 6 directors present and participating in the voting [1] - The board approved a proposal to provide guarantees for its subsidiary, Ningbo Shuangcheng Pharmaceutical Co., Ltd., with a voting result of 3 in favor, 3 abstentions, and no opposition [2] - The board believes that providing guarantees will help the subsidiary secure funding and promote its business development, while the controlling shareholder will provide a guarantee of the same amount, ensuring manageable risk [2] Group 2 - The proposal for the guarantee will be submitted to the shareholders' meeting for approval, with related shareholders required to abstain from voting [2] - The board also approved a proposal to convene the first temporary shareholders' meeting of 2025, with a unanimous voting result of 6 in favor [2]