Yatai Group and 5 Subsidiaries Applied for Reorganization

On July 19, Yatai Group announced that the company and some wholly-owned subsidiaries and holding subsidiaries were applied for reorganization and pre-reorganization by creditors.

The announcement shows that on July 17, Yatai Group received the Notice served by Changchun Intermediate People's Court. Creditors applied to Changchun Intermediate Court for reorganization of Yatai Group on the grounds that Yatai Group could not pay off its debts due and obviously lacked solvency, but had the value of reorganization, and at the same time applied for pre-reorganization. The application involves six creditors, including Yatai Pharmaceutical Group Co., Ltd., Jilin Northeast Asia Pharmaceutical Co., Ltd., Jilin Longxin Pharmaceutical Co., Ltd., Jilin Pharmacy Pharmaceutical Co., Ltd., and Jilin Yatai Pharmaceutical Logistics Co., Ltd. Among them, the application debt for the headquarters of listed companies is 3 billion 290 million yuan of entrusted loans. The board of directors

of Yatai Group emphasizes that the reorganization procedure is different from the bankruptcy liquidation procedure and is a judicial procedure aimed at saving the debtor's enterprise and restoring the company's sustained profitability. The company will promote its early return to the track of healthy and sustainable development. During the period when the court reviews the application for reorganisation and pre-reorganisation, the board of directors of the Company will cooperate with the court to study and demonstrate the feasibility of the reorganisation of the Company and the above subsidiaries in accordance with the law, while ensuring the stability of production and operation, so as to avoid significant impact on the daily production and operation of the Company and the above subsidiaries.

It is understood that during the reorganization review period, the company's production and operation will remain stable, and daily operations, order delivery, customer and supplier cooperation will be carried out normally. At the same time, the company will maintain the stability of the workforce, pay wages in full and on time, pay social security normally, and keep the posts basically unchanged, and make every effort to stabilize the core team.