1. Overview of the Guarantee
Recently, Yantai Dongcheng Pharmaceutical Group Co., Ltd. (hereinafter referred to as "the Company" or "Party B") signed a "Guarantee Contract" with Ping An Bank Co., Ltd. Yantai Branch (hereinafter referred to as "Ping An Bank" or "Party A"), agreeing that the Company will provide joint liability guarantee for a loan of 300 million RMB applied by its wholly-owned subsidiary, Nanjing Jiangyuan Andico Positron Research and Development Co., Ltd. (hereinafter referred to as "Andico").
2. Review of Guarantee Matters and Usage of Limits
The Company held the 18th meeting of the 6th Board of Directors on March 25, 2026, and the 2025 Annual General Meeting on April 15, 2026, where it approved the proposal on the estimated guarantee limit for 2026. The Company agreed to provide guarantees for subsidiaries within the consolidated financial statements, with an estimated total guarantee limit for 2026 not exceeding 1.6 billion RMB (or equivalent foreign currency). The Company also agreed to allow its controlling subsidiaries to provide guarantees for subsidiaries with a debt-to-asset ratio exceeding 70%, with an estimated total guarantee limit for 2026 not exceeding 22.8716 million RMB (or equivalent foreign currency), which can be recycled within the limit. To meet the operational development needs of Qikangyuan Medical Technology (Changzhou) Co., Ltd. (hereinafter referred to as "Qikangyuan"), the Company agreed to provide a guarantee limit not exceeding 38 million RMB according to its equity holding in Qikangyuan, with other shareholders providing equivalent guarantees or counter-guarantees in proportion to their contributions. The Company and its subsidiaries' legal representatives or authorized personnel are authorized to sign relevant documents on behalf of their respective companies within the aforementioned limits based on actual operational needs. For details, please refer to the announcements published on March 26, 2026, and April 16, 2026, in the "Securities Times," "Securities Daily," "China Securities Journal," "Shanghai Securities Journal," and on the website of Giant Tide Information Network (www.cninfo.com.cn) regarding the estimated guarantee limit for 2026 and the resolutions of the 2025 Annual General Meeting (Announcement No.: 2026-021, 2026-027).