BAO PHARMA-B (02659) business operations remain normal, controlling shareholders plan to increase holdings and initiate share repurchase authorization, demonstrating long-term confidence.

BAO PHARMA-B (02659) announced that the board of directors noted the abnormal fluctuations in the recent price and trading volume of the company's H shares. After conducting reasonable inquiries into the relevant circumstances, the board confirmed that it is not aware of (i) any reasons causing the abnormal fluctuations in the H share price and trading volume; or (ii) any information that needs to be disclosed to prevent the occurrence of false markets in the company's securities; or (iii) any insider information that needs to be disclosed in accordance with Rule 13.09(2) of the Listing Rules and Part XIVA of the Securities and Futures Ordinance of Hong Kong. The board also confirmed that the group's business operations remain normal, and there have been no significant changes in the group's business operations and financial condition. The company has received a notice from the chairman of the board and group member Dr. Liu Yanjun, the company's controlling shareholder, that, based on his confidence in the group's prospects and growth potential, as well as his recognition of the long-term investment value of the company, he intends to increase his shareholding in the company through open market transactions within three months from the date of this announcement. In accordance with the relevant minimum public float requirements under the Listing Rules, and to ensure compliance with these rules, the maximum number of shares that the controlling shareholder may acquire is approximately 38.89 million H shares. Furthermore, the company announced that it will present a special resolution at the upcoming annual general meeting of shareholders to approve a share repurchase authorization, authorizing the company's directors to repurchase up to 10% of the total number of H shares issued by the company on the day of the passing of the resolution at the upcoming annual general meeting (excluding any treasury shares). Upon the passing of the special resolution authorizing the share repurchase, the board intends to use the authorization to repurchase shares on the open market as it deems appropriate based on market conditions during the authorized period.