Charmacy Pharmaceutical Co., Ltd. (Stock Code: 2289) has signed a New Framework Loan Agreement with Jiangyao, its controlling shareholder holding approximately 47.66% of the company’s total issued share capital. The existing framework loan arrangement will expire on 31 December 2025, and the new agreement will extend from 1 January 2026 to 31 December 2028.

Under the New Framework Loan Agreement, Jiangyao will provide the Group with a loan facility not exceeding the maximum limit approved by both parties’ statutory authorities. The company’s annual caps for each of the three years from 2026 to 2028 are set at RMB500 million. The interest rate will be determined with reference to Charmacy Pharmaceutical’s financing costs under similar periods and market conditions.

Because Jiangyao is a connected person of the company, this arrangement constitutes continuing connected transactions and is subject to reporting, announcement, shareholders’ approval, and annual review requirements under Chapter 14A of the Listing Rules. An extraordinary general meeting will be held for independent shareholders to vote on the proposal. The company has also set up an Independent Board Committee and appointed an independent financial adviser to evaluate the transaction’s fairness and reasonableness. A circular providing additional details is expected to be published on or before 24 November 2025.