BAIYUNSHAN PH (00874) announced that on August 28, 2025, Guangzhou Pharmaceutical and Xingzheng Asset Management signed the "Additional Basic Assets Delivery Confirmation Letter" under the Basic Assets Purchase and Sale Agreement (Phase IV), confirming the sale of the fourth batch of additional basic assets (accounts receivable with a book value of RMB 508 million) to Xingzheng Asset Management, receiving a purchase price of RMB 502 million.

Through these transactions, Guangzhou Pharmaceutical utilizes asset securitization of accounts receivable, converting them into highly liquid cash assets to achieve the purpose of revitalizing existing asset inventory. Given the aforementioned reasons and the transaction terms disclosed in this announcement, the board of directors believes that the transaction terms are fair and reasonable, and are in line with the overall interests of the group and the company's shareholders.