Core Points - The company, Falan Tech Heavy Industry Co., Ltd., has approved a proposal to apply for a comprehensive credit facility from banks, with a total limit not exceeding 4.5 billion RMB [1] - The credit facility will be used for daily operational needs and can be utilized in a revolving manner [1] - The types of credit include short-term working capital loans, long-term loans, bank acceptance bills, commercial acceptance bills, guarantees, letters of credit, asset pool business, and mortgage loans [1] - The board has authorized the legal representative or their delegate to handle the specific credit application process, with the authorization valid for 12 months from September 1, 2025, to August 31, 2026 [1]

Group 1 - The company held its 21st temporary meeting of the fifth supervisory board on August 8, 2025, to discuss the continuation of its asset pool business [1][2] - The supervisory board believes that continuing the asset pool business will enhance the efficiency and returns of the company's assets, benefiting long-term development without harming the interests of the company and minority shareholders [1][2] - The company plans to engage in asset pool business with a total amount not exceeding 100 million RMB and provide guarantees, in compliance with relevant regulations [2] Group 2 - The voting results for the proposal were 3 votes in favor, 0 against, and 0 abstentions, indicating unanimous support from the supervisory board [2] - The proposal will be submitted for approval at the shareholders' meeting [2]

Group 1 - The company has approved the establishment of an asset pool business with a total limit not exceeding RMB 100 million to enhance liquidity and asset management efficiency [1][2] - The asset pool business will involve the management of various financial assets such as certificates of deposit, acceptance bills, letters of credit, financial products, and accounts receivable [2][3] - The purpose of the asset pool business is to effectively activate financial assets, reduce capital occupation, and improve the efficiency of the company's current assets, ultimately maximizing shareholder value [2][4] Group 2 - The asset pool business will be conducted with reputable domestic commercial banks, ensuring a good cooperative relationship and leveraging the banks' asset pool service capabilities [2][3] - The company will implement risk control measures, including establishing a dedicated team to manage the asset pool and conducting audits to ensure the safety and liquidity of the pooled assets [3][4] - As of the announcement date, the company's external guarantee balance is RMB 53.72 million, accounting for 11.75% of the audited total assets for 2024, with no overdue guarantees reported [3][4]

Core Viewpoint - The company plans to continue its asset pool business with Zhejiang Commercial Bank, with a credit limit of 400 million yuan and a term of 12 months from the approval of the shareholders' meeting [1][2][3] Summary by Sections Asset Pool Business Overview - The asset pool business allows the company and its subsidiaries to manage and utilize their assets collectively, providing a comprehensive service platform for asset management and financing [1][2] - The financing limit for the asset pool is set at 400 million yuan, which accounts for 16.43% of the company's latest audited net assets of 2,435.31 million yuan [2][3] Guarantee Methods and Parties Involved - The company will provide maximum pledge guarantees, utilizing various forms of collateral such as certificates of deposit, bills, and margin deposits [2][3] - The maximum financing limit for the subsidiary, Guangdong Fuga Pharmaceutical Co., Ltd., is capped at 56 million yuan, with the company assuming joint liability for guarantees [3][4] Financial Status - As of March 31, 2025, the company's total assets were 427,768.32 million yuan, with net assets of 254,548.31 million yuan and a debt-to-asset ratio of 40.15% [5] - The subsidiary, Guangdong Fuga Pharmaceutical Co., Ltd., reported total assets of 58,102.82 million yuan and net assets of 4,952.81 million yuan as of March 31, 2025 [6] Agreements and Contracts - The company intends to sign a cooperation agreement with Zhejiang Commercial Bank for the asset pool business, which includes provisions for collateral rights and various financing methods [7][8] - A guarantee agreement will be established with Guangzhou Hongshan Investment Co., Ltd., which will pledge its entire equity in Fuga Pharmaceutical as collateral for financing within the asset pool limit [8][9] Impact and Risk Control - The asset pool business is expected to enhance the efficiency of the company's bill assets, reduce financial costs, and maximize shareholder equity [9][10] - The company will implement measures to manage liquidity risks associated with the asset pool, including tracking the collection of pledged bills and ensuring timely repayments [10][11]

Core Viewpoint - The company has approved the establishment of an asset pool business with a limit of up to 3.5 billion RMB, aimed at enhancing liquidity and maximizing shareholder value through efficient asset management [1][2]. Summary by Sections Asset Pool Business Overview - The asset pool will consist of various financial instruments such as bank acceptance bills, commercial acceptance bills, deposits, and accounts receivable, which can be used to obtain equivalent asset pool limits for shared use among the company and its subsidiaries [1][2]. Purpose of the Asset Pool Business - The initiative aims to centralize the management of financial assets, thereby improving liquidity, reducing capital occupation, and enhancing the efficiency of current assets, ultimately benefiting the company and its shareholders [2]. Risk Control Measures - The company has established strict approval processes and decision-making authority to mitigate risks associated with the asset pool business, ensuring compliance and safety of funds [3][4]. Authorization for Related Matters - The board of directors is authorized to make decisions regarding the selection of qualified commercial banks, specific asset pool limits, and the types and amounts of guarantees [3][4].