Transaction Overview - The company signed a technology transfer agreement with Shanxi Traditional Chinese Medicine Research Institute for the new Chinese medicine project "Chaiqin Ning Shen Granules" for a total of RMB 22 million [2][16] - The agreement includes the clinical trial approval, patent rights, and related technical materials for the drug [2][4] Counterparty Information - Shanxi Traditional Chinese Medicine Research Institute, established in 1957, is a leading institution in TCM research and has received numerous accolades and approvals for its contributions to the field [3] - The institute has undertaken over 1,033 research projects and has been recognized with multiple provincial and national awards [3] Product Details - The product "Chaiqin Ning Shen Granules" is classified as a Category 1.1 new drug and is designed to treat insomnia and anxiety symptoms [4][5] - The drug received clinical trial approval from the National Medical Products Administration in January 2025 [5] Agreement Details - The agreement stipulates that the company will pay the total amount of RMB 22 million based on milestone achievements related to the drug's development [6][11] - The payment structure includes specific amounts tied to the completion of various stages of clinical trials and regulatory approvals [12] Impact on the Company - The acquisition of the new drug's clinical trial approval and patent rights is expected to enhance the company's R&D pipeline and improve its competitive edge in the market [16] - The company aims to expedite the development of new products, aligning with its strategic goals and benefiting shareholders [16]

Core Viewpoint - The company has signed a technology transfer agreement for a new traditional Chinese medicine, which is expected to enhance its R&D capabilities and competitiveness in the market [1] Group 1: Agreement Details - On August 4, 2025, the company signed a technology transfer agreement with Shanxi Traditional Chinese Medicine Research Institute [1] - The company acquired the clinical trial approval, patent rights, and related technical materials for the Class 1 new drug "Chaiqin Ning Shen Granules" for a total of 22 million RMB [1] - This transaction does not constitute a related party transaction and does not require approval from the board of directors or shareholders [1] Group 2: Strategic Implications - The acquisition is expected to facilitate the rapid expansion of the company's pipeline for innovative traditional Chinese medicine [1] - It aims to accelerate the development of new products, thereby enhancing the company's core competitiveness and sustainable development capabilities [1] - The transaction aligns with the company's development strategy and benefits all shareholders [1] Group 3: Financial Impact - The transaction is not expected to have a significant impact on the company's operating performance in the short term [1]