Huiyu Pharmaceutical announced that the company signed a “Settlement Agreement” with Zhejiang Tongyuankang Pharmaceutical Co., Ltd. to resolve all disputes and outstanding cases between the two parties in a comprehensive and final manner. According to the agreement, Tongyuankang should pay the total settlement amount of RMB 300 million to the company in two installments; after the agreement came into effect, the two parties jointly applied to the competent court to suspend the trial of the pending case, and the company applied to the court to withdraw the lawsuit within 3 working days after Tongyuankang paid the first installment of the settlement. The matter has been reviewed and approved by the fifth meeting of the third board of directors of the company and still needs to be submitted to the second extraordinary shareholders' meeting in 2026. The agreement will take effect from the date of review and approval by Tongyuankang's board of directors and the company's shareholders' meeting. The company said that if the settlement amount is recovered as agreed, it will have a positive impact on subsequent cash flow and financial conditions.

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