Announcement on Supplementary Confirmation of Certain Related Party Transactions in 2025
The company and all members of the board of directors guarantee that the information disclosed is true, accurate, and complete, and that there are no false records, misleading statements, or major omissions.
I. Confirmation of Certain Related Party Transactions in 2025
(I) Overview of Daily Related Party Transactions
In December 2025, Shandong Blue Sail Health Technology Co., Ltd., a holding subsidiary of Blue Sail Medical Co., Ltd. (hereinafter referred to as the "Company"), acquired an 80% equity interest in Zibo Hongda Heat Power Co., Ltd. (hereinafter referred to as "Hongda Heat Power") from Mr. Li Zhenping and Shanghai Langhui Enterprise Development Co., Ltd. with its own funds of RMB 400 million. Hongda Heat Power was included in the Company's consolidated financial statements from the end of 2025.
According to the audit report "EY (2026) Audit No. 70038396_X01" issued by EY Hua Ming Certified Public Accountants (Special General Partnership), the daily related party transactions between Hongda Heat Power and the Company's related parties, Shanghai Blue Sail Industrial Co., Ltd. (hereinafter referred to as "Blue Sail Industrial") and Shandong Blue Sail Chemical Co., Ltd. (hereinafter referred to as "Blue Sail Chemical"), in 2025 amounted to RMB 118.037 million. Although Hongda Heat Power was only included in the Company's consolidated financial statements at the end of 2025, based on the principle of prudence, the Company is supplementing and confirming the related party transactions between Hongda Heat Power and the aforementioned related parties in 2025.