Kangmei Pharmaceutical: Intends to Sign a Settlement Agreement with Affiliate Guangzhou Pharmaceutical Group to Resolve Historical Debt Issues with 43.5 Million Yuan

Kangmei Pharmaceutical announced that its wholly-owned subsidiary, Chengdu Kangmei Pharmaceutical Production Co., Ltd., plans to sign a settlement agreement with Guangzhou Pharmaceutical Group Co., Ltd., to repay the previous debts of 43.5 million yuan and related fees. After the payment is completed, Guangzhou Pharmaceutical Group will assist Chengdu Kangmei in handling the procedures for execution, unsealing, and closing the case. This transaction constitutes a related party transaction, but does not constitute a major asset restructuring.