Busilong Pharmaceuticals: the controlling subsidiary increased its capital and expanded its shares to introduce investors and issued convertible bonds, and the company waived its priority subscription rights, reducing its shareholding to 90.3464%.

Announcement by Bushan Pharmaceuticals: The company's holding subsidiary, Bushan in Luzhou, plans to introduce external investors such as Luxian Chantu, Southwest Medical, Shandong New Energy, and Yin Feng Investment through capital increase and share expansion, with a total capital increase of 320 million yuan. At the same time, Shandong New Energy plans to subscribe to 50 million yuan of convertible bonds issued by Luzhou Bushan at an annual interest rate of 4.5%. The company waives its preemptive right to subscribe to this capital increase and undertakes repurchase obligations in the equity increase, while also providing guarantees for the repayment and interest payment of the convertible bonds. After this equity increase, the company's ownership of Luzhou Bushan will change from 97.9545% to 90.3464%, with Luzhou Bushan remaining as a subsidiary. This transaction constitutes a related party transaction and does not require shareholder approval.