002317SZSE

Progress Announcement on Company's Guarantees for Subsidiaries within Consolidated Financial Statements

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Guangdong Zhongsheng Pharmaceutical Co., Ltd. announces progress on its guarantee for its wholly-owned subsidiary, Zhongsheng Medical Trading Co., Ltd. The company has signed a guarantee contract for a credit line of RMB 200 million. This action is within the scope of the shareholder meeting's authorization and aims to support the subsidiary's operations and reduce financing costs.

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Guangdong Zhongsheng Pharmaceutical Co., Ltd. Announcement on Progress of Company's Guarantees for Subsidiaries within Consolidated Financial Statements

The Company and the Board of Directors guarantee that the information disclosed in this report is true, accurate, and complete, and that there are no false records, misleading statements, or significant omissions.

I. Overview of Guarantee Situation

Guangdong Zhongsheng Pharmaceutical Co., Ltd. (hereinafter referred to as the "Company") held its 20th meeting of the 8th Board of Directors on April 24, 2025, and its 2024 Annual General Meeting on May 19, 2025. The proposal "Proposal on the Limit of Guarantees Provided by the Company to Subsidiaries within the Consolidated Financial Statements" was deliberated and approved. To coordinate the production and operation activities of subsidiaries (hereinafter referred to as "subsidiaries within the consolidated financial statements of the Company," and the same below) and ensure their sustained development and efficient use of capital, the Company will continue to provide joint liability guarantees for bank credit applications by subsidiaries, with a total limit not exceeding RMB 2 billion. The Chairman is authorized to handle relevant matters and sign relevant documents within the aforementioned limit based on specific circumstances.

For detailed information, please refer to the relevant announcements published by the Company on April 26, 2025, and May 20, 2025, in the "Securities Times" and on the Juchao Information Network (www.cninfo.com.cn).

Recently, Zhongsheng Medical Trading Co., Ltd. (hereinafter referred to as "Zhongsheng Medical Trading"), a wholly-owned subsidiary of the Company, applied for a comprehensive credit line from China Minsheng Bank Co., Ltd. Dongguan Branch (hereinafter referred to as "Minsheng Bank") to meet its daily production and operation needs and reduce financing costs.

In accordance with the above matters, the Company signed a "Maximum Amount Guarantee Contract" with Minsheng Bank, providing a joint liability guarantee for Zhongsheng Medical Trading's application for a comprehensive credit line of RMB 200 million from Minsheng Bank.

This guarantee matter is within the scope of authorization by the shareholders' meeting. The utilization of this guarantee is as follows:

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