Baiyang Pharmaceuticals: Controlling shareholder to increase capital and expand shares, leading to proposed changes in ownership structure.

Baiyang Pharmaceutical announced that its controlling shareholder Baiyang Group increased its capital by issuing new shares, adding 400 million RMB in registered capital, all of which was subscribed by the new shareholder Baiyang Huikang. After the capital increase, the equity structure of Baiyang Group changed to Baiyang Huikang holding 80%, Fu Gang holding 10.4%, Song Qing holding 3.2%, Chen Haishen holding 3.2%, and Zhu Xiaowei holding 3.2%. After this change, Baiyang Huikang will indirectly control 72.03% of Baiyang Pharmaceutical's shares through the increased capital, holding 80% of Baiyang Group's equity. Fu Gang will remain the actual controller of the listed company. This change will not affect the company's daily operations and governance structure.