Group 1 - The financial company is a non-bank financial institution established in July 2015 with a registered capital of 1 billion RMB, where the parent company holds a 70% stake [1] - The financial company's business scope includes providing entrusted loans, bond underwriting, non-financing guarantees, financial advisory, credit verification, and fixed-income securities investment [1][3] - As of June 30, 2025, the financial company reported total assets of 762.35 million RMB, total income of 88.67 million RMB, and a net profit of 32.31 million RMB [6][7] Group 2 - The financial company has established a robust internal control environment with a governance structure that includes a shareholders' meeting, board of directors, supervisory board, and senior management [2] - A total of 106 internal control systems have been developed to manage various risks, covering corporate governance, business regulations, internal control, financial management, and information systems [2] - The company has implemented strict operational procedures for its business activities, ensuring compliance with national regulations and safeguarding member units' funds [4][5] Group 3 - The financial company has a credit review committee to assess credit proposals and a decision-making committee for investment matters, ensuring collective decision-making and proper documentation [5] - The internal audit department conducts regular audits to monitor compliance and operational effectiveness, identifying potential risks and suggesting improvements [5][6] - As of June 30, 2025, the financial company had a deposit balance of 649.78 million RMB and a loan balance of 321.96 million RMB, with no safety issues reported regarding the funds deposited by the parent company [7][8] Group 4 - The financial company meets all regulatory requirements, including capital adequacy and liquidity ratios, as of June 30, 2025 [7][9] - The company has a comprehensive management information system that supports its main business areas and ensures timely and accurate processing of transactions [6] - The overall internal control system is deemed effective, with risks managed at a reasonable level [6][10]

Core Viewpoint - Shanghai Pharmaceuticals plans to acquire a 10% stake in Shanghai Shihua Group Financial Co., Ltd. for approximately RMB 143 million, increasing its ownership from 30% to 40% without changing the consolidation scope of the financial statements [1][2]. Group 1: Transaction Overview - The acquisition will be funded by the company's own capital and is classified as a related party transaction, but it does not constitute a major asset restructuring [2][6]. - The financial company has shown steady growth since its establishment in 2014, with cumulative cash dividends of approximately RMB 230 million since 2016 [2][16]. - The transaction is expected to enhance the company's control over significant decisions of the financial company and provide stable investment returns [2][16]. Group 2: Financial Information of the Target - The financial company has total assets of approximately RMB 1.17 billion and total liabilities of about RMB 1.03 billion, resulting in net assets of approximately RMB 143 million [8][9]. - The financial company reported operating income of approximately RMB 13 million and net profit of about RMB 6 million [8][9]. Group 3: Valuation and Pricing - The transaction price will be based on an evaluation report from a qualified asset appraisal agency, with the assessed value of the 10% stake being approximately RMB 143 million [9][11]. - The valuation methods used include the asset-based approach and market approach, with the asset-based approach being deemed more reflective of the company's market value [9][10]. Group 4: Approval and Compliance - The transaction requires internal approvals and regulatory filings, including approvals from state-owned asset supervision and financial regulatory authorities [12][15]. - The board of directors has approved the transaction, with related party director Yang Qiuhua abstaining from the vote [16].