The controlling shareholder and directors of Sichuan Zitong Palace Pharmaceutical intend to reduce their holdings by no more than 1,375,600 shares, accounting for 0.95% of the total share capital.

On March 26, 2026, Sichuan Zitongong Pharmaceutical Co., Ltd. (hereinafter referred to as “Zitongong Pharmaceutical”) announced a pre-disclosure regarding the intended share reduction by its shareholders. The company’s controlling shareholder, actual controller, and chairman Tang Xian, along with his concerted party Neijiang Jucai Enterprise Management Consulting Service Center (Limited Partnership) (hereinafter referred to as “Neijiang Jucai”), as well as director Wang Boyu, plan to reduce their shares in the company within a certain period, with a total reduction not exceeding 1,375,600 shares, accounting for 0.95% of the company’s total share capital.

Share Reduction Entities and Shareholding Situation

The announcement shows that this share reduction involves three shareholders, namely the company’s controlling shareholder, actual controller, and chairman Tang Xian, his concerted party Neijiang Jucai, and director Wang Boyu. As of the announcement date, the shareholding situation of these shareholders is as follows:

Specific Content of the Share Reduction Plan

According to the announcement, the specific share reduction plans of the three shareholders are as follows:

The announcement specifically points out that if the company undergoes capital changes such as dividend distribution, bonus shares, capital increases, new share issuance, or rights offerings during the implementation period of the share reduction plan, the corresponding reduction quantities will be adjusted to maintain the same reduction ratio.

Compliance and Risk Warning

Zitongong Pharmaceutical stated in the announcement that this share reduction plan does not violate the “Company Law,” “Securities Law,” “Beijing Stock Exchange Stock Listing Rules,” or “Beijing Stock Exchange Listed Company Continuous Supervision Guidelines No. 8 - Share Reduction,” and other legal regulations and related provisions, nor does it violate the commitments made by the relevant parties regarding share reductions. As of the announcement date, the commitments made by the aforementioned shareholders have been strictly fulfilled, and there have been no violations of commitments.

At the same time, the company emphasizes that this share reduction will not adversely affect the company’s production and operation and that there are no major negative issues or significant risks. If shares are reduced through block trading, the transferee of the block trading is prohibited from reducing their acquired shares within 6 months.

Regarding the risks of the share reduction plan, the announcement warns that the shareholders will decide whether to implement this share reduction plan based on market conditions, the company’s stock price, and other factors, thus presenting uncertainties regarding the timing, quantity, and price of the reduction, as well as uncertainties regarding whether it will be completed on schedule. However, this share reduction will not lead to a change in the company’s control.

Documents for Reference

The announcement disclosed that the reference documents include the “Notice of Tang Xian’s Share Reduction Plan,” “Notice of Neijiang Jucai Enterprise Management Consulting Service Center (Limited Partnership) Share Reduction Plan,” and “Notice of Wang Boyu’s Share Reduction Plan.”

Investors are encouraged to closely monitor the company’s subsequent announcements and rationally assess investment risks.

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