Overview - Shanghai Zhezhong Group Co., Ltd. participated in the establishment of Zhezhong Junxin (Shanghai) Private Fund Partnership with a total subscribed capital of 1.2 billion RMB, where the company contributed 300 million RMB, accounting for 25% of the total fund size [2] Fund Transfer and Reduction - The company signed agreements to transfer portions of its fund shares, transferring 3.33% of the fund shares to Shanghai Yuelai Port Industrial Group for a subscribed capital of 40 million RMB and 1.67% to Junxin (Shanghai) Equity Investment Fund Management for 20 million RMB, both with no actual payment [2] - The total fund size of Zhezhong Junxin Fund was reduced from 1.2 billion RMB to 624 million RMB, with the reduction completed and registered with the relevant authorities [3] Future Plans - The company plans to transfer its remaining 120 million RMB investment in the Zhezhong Junxin Fund to its wholly-owned subsidiary, Shanghai Zhezhong Investment Co., Ltd., for the same amount [4]

Group 1 - The company, Shandong Buchang Pharmaceutical Co., Ltd., is participating as a limited partner in the investment fund Hainan Sanya Yuhai Growth Equity Investment Fund Partnership, which is undergoing a capital reduction due to the withdrawal of its limited partner, Green Leaf Investment Group [1][3] - Following the withdrawal of Green Leaf Investment Group and the completion of the capital reduction, the total capital of Hainan Sanya Yuhai will decrease from 614.50 million to 514.50 million, while the company's subscribed capital remains unchanged, resulting in an increase in its ownership percentage from 16.2734% to 19.4363% [1][3] - The board of directors approved the capital reduction proposal on July 8, 2025, and this matter does not require approval from the shareholders' meeting [2][3] Group 2 - The capital reduction does not constitute a related party transaction and does not fall under the category of significant asset restructuring as defined by the regulations [2][3] - The financial data of Hainan Sanya Yuhai as of December 31, 2024, shows total assets of 238.22 million, total liabilities of 1.25 million, and a net asset of 238.09 million, with a net profit of -9.21 million for the year [2] - As of March 31, 2025, the fund's total assets were 235.79 million, total liabilities were 0.64 million, and net assets were 235.79 million, with a net profit of -0.23 million for the first quarter of 2025 [2][4]