BAO PHARMA-B (02659) announced that the company has received a notification from its Board Chairman and a member of the controlling shareholder group, Dr. Liu Yanjun. Based on his confidence in the group's future prospects and growth potential, as well as his recognition of the company's long-term investment value, Dr. Liu intends to increase his shareholding in the company through open market transactions within three months from the date of this announcement. According to the relevant minimum public float requirements under the listing rules, and to ensure the company's continued compliance with these regulations, the maximum number of shares the controlling shareholder can acquire is 38,893,900 H shares. As of the date of this announcement, the controlling shareholder group holds interests in a total of 25,956,900 H shares and 106 million domestic shares, representing approximately 40.57% of the company's total issued share capital. Based on the controlling shareholder's intention, following the implementation of the share increase plan, the total shareholding of the controlling shareholder group in the company is not expected to trigger a mandatory offer obligation under Rule 26 of the Takeovers Code, which applies when a controlling shareholder of a Hong Kong-listed company holds between 30% and 50% of share interests in any 12-month period. Based on the information available to the company and to the best of the Board's knowledge, it is expected that after the completion of the share increase plan, the company will continue to comply with the minimum public shareholding percentage requirement under Rule 19A.28B(1) of the Listing Rules.