Zhejiang East-Asia Pharmaceutical (605177.SH) invested 60 million yuan to establish a wholly-owned subsidiary Zhejiang Shan Heng.

Zhejiang East-Asia Pharmaceutical (605177.SH) announced that in order to further enhance and improve the overall industry development layout, strengthen the competitiveness of the company's existing pharmaceutical industry pipeline, the company has invested 60 million yuan to establish a wholly-owned subsidiary Zhejiang Shanheng Pharmaceutical Co., Ltd. (hereinafter referred to as "Zhejiang Shanheng") in Sannmen County, Zhejiang Province, with its own funds, accounting for 100% of Zhejiang Shanheng's registered capital. The establishment of this wholly-owned subsidiary is conducive to enriching the industry pipeline, enhancing overall competitiveness, and seeking business expansion opportunities. Recently, Zhejiang Shanheng has completed the business registration procedures and obtained a "Business License" issued by the Sannmen County Market Supervision Administration. In line with the medium and long-term development strategy of "centered on APIs, extending forward and backward," the company continues to enrich its product pipeline. By investing in and establishing a wholly-owned subsidiary Zhejiang Shanheng in Sannmen County, Zhejiang Province, a comprehensive production base for the health industry will be built, which aligns with the company's strategic planning and business development needs. The establishment and smooth implementation of Zhejiang Shanheng will help enrich the company's product structure, empower the overall development of the company, and align with the company's long-term development planning and the interests of all shareholders.