BAIYUNSHAN PH (00874) announced on December 1, 2025, that its board of directors approved a proposal for Guangzhou Pharmaceutical to initiate accounts receivable asset securitization. Under this arrangement, Guangzhou Pharmaceutical, as the seller and originator, intends to enter into a basic asset purchase agreement with the plan manager. The plan manager will acquire the underlying assets and establish a special-purpose vehicle (SPV) to issue asset-backed securities (ABS) with a total value not exceeding RMB 3 billion. The plan manager will also serve as the administrator of the SPV.

The issuance will be conducted in tranches within two years from the date of approval by the Shanghai Stock Exchange, with each tranche having a maturity of no more than two years. As of the announcement date, Guangzhou Pharmaceutical has not yet signed any legally binding agreements for the proposed transaction.

The underlying assets refer to accounts receivable claims and associated rights (if any) held by Guangzhou Pharmaceutical and its subsidiaries from sales of pharmaceuticals, medical equipment, and related businesses to public secondary or higher-tier hospitals or commercial entities (if applicable). These assets include both initial and additional receivables.

Through this securitization, Guangzhou Pharmaceutical aims to convert receivables into more liquid cash assets, thereby optimizing its asset utilization, diversifying financing channels, and improving its financial structure. Proceeds from the transaction are expected to be used for working capital replenishment or debt refinancing.