Core Viewpoint - The announcement from the Shaanxi Provincial Drug Administration details the results of GMP compliance inspections for three pharmaceutical companies, indicating varying levels of compliance with regulatory standards [2] Group 1: Company Compliance Results - Shaanxi Buchang Pharmaceutical Co., Ltd. was found to be compliant with GMP requirements during inspections conducted from September 16 to September 19, 2025, covering tablet production lines [2] - Xi'an Boai Pharmaceutical Co., Ltd. was found to be non-compliant with GMP requirements during inspections conducted from October 13 to October 17, 2025, focusing on raw material production lines [2] - Shaanxi Fujie Pharmaceutical Co., Ltd. was found to be compliant with GMP requirements during inspections conducted from October 28 to November 1, 2025, covering multiple production lines for raw materials [2]

Group 1 - Company provided a guarantee of 80 million RMB for its wholly-owned subsidiary, Shaanxi Buchang Pharmaceutical Co., Ltd., in a loan agreement with Huaxia Bank [2][7] - The board approved a total financing limit of up to 6.92 billion RMB for 2025, with specific guarantee limits for subsidiaries based on their debt ratios [3][12] - As of the announcement date, the total amount of guarantees provided by the company and its subsidiaries was 2.296 billion RMB, accounting for 22.48% of the company's audited net assets as of the end of 2024 [14] Group 2 - The company’s wholly-owned subsidiary, Shandong Danhong Pharmaceutical Co., Ltd., signed a contract with Beijing Excellent Future International Pharmaceutical Technology Development Co., Ltd. for clinical trials of a new drug [17] - The total cost for the clinical trial is 60.338 million RMB, covering 480 cases, with provisions for adjustments based on the final sample size [19] - This contract is expected to enhance the company's drug research and development capabilities, potentially saving time and costs in clinical trials [34] Group 3 - The company’s subsidiary, Shaanxi Buchang, received approval for changes to its drug production license, allowing for the addition of a new production line for tablets [42] - The changes are anticipated to optimize production structure and maintain stable production capacity to meet market demand [43]

Core Viewpoint - Company has received a new drug production license from the Shaanxi Provincial Drug Administration, allowing for the expansion of its production capabilities and self-manufacturing of certain products, which is expected to positively impact future operations [1] Group 1: License and Production Changes - The company’s subsidiary, Shaanxi Buchang, has obtained a revised drug production license from the Shaanxi Provincial Drug Administration [1] - The license change includes the addition of a tablet production line at the company’s facility located at 16 Buchang Road, Qindu District, Xianyang City, Shaanxi Province [1] - The production of Phosphate Sitagliptin Tablets, previously contracted to Shandong Danhong Pharmaceutical Co., Ltd., will now be produced in-house following compliance with GMP standards [1] Group 2: Impact on Operations - The changes are expected to optimize the company's production structure, ensuring stable production capacity to meet market demand [1] - The overall impact of these changes is anticipated to be positive for the company's future operations [1]