BAIYUNSHAN PH (00874.HK): Guangzhou Pharmaceutical Disposes Accounts Receivable of Approximately RMB 149 Million

NewTimeSpace News: On 28 August 2026, Guangzhou Baiyunshan Pharmaceutical Holdings Company Limited (stock code: 00874) announced that Guangzhou Pharmaceutical, a non-wholly-owned subsidiary of the Company, had signed a Delivery Confirmation Letter for New Underlying Assets with Xingzheng Asset Management, confirming the sale of accounts receivable with a book value of RMB 149,443,214.73 (the first batch of new underlying assets) and the receipt of a purchase price of RMB 146,322,872.24.

According to the announcement, all applicable percentage ratios for the transaction, calculated on a standalone basis, are below 5%, so it does not by itself constitute a notifiable transaction. However, given that the transaction and a number of past transactions were entered into between Guangzhou Pharmaceutical and Xingzheng Asset Management within 12 months and are of similar nature, they are aggregated under Rule 14.22 of the Hong Kong Listing Rules; on an aggregated basis, the highest applicable percentage ratio exceeds 5% but is below 25%, and the transactions constitute a discloseable transaction under Chapter 14, subject to the reporting and announcement requirements but not shareholder approval.

Together with the past transactions, the total book value of the accounts receivable under these transactions amounts to RMB 2,543,474,127.29, with aggregate purchase prices of RMB 2,514,192,165.48; the difference of approximately RMB 29 million will be applied towards part of the financing costs and related taxes of the relevant asset-backed special plans. The proceeds are intended to replenish Guangzhou Pharmaceutical's working capital or repay debt.

Guangzhou Pharmaceutical is a non-wholly-owned subsidiary of Baiyunshan, 90.92% owned, mainly engaged in the distribution and retail of pharmaceutical products; Xingzheng Asset Management is a wholly-owned asset management subsidiary of Industrial Securities Co., Ltd., a company listed on the Shanghai Stock Exchange. The Company stated that the transactions securitize accounts receivable to revitalize asset stock, broaden financing channels and optimize the financial structure.

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