China Traditional Chinese Medicine (00570) subsidiary signs a general contracting contract for a workshop renovation project and a general contract for a technical transformation project to increase production capacity

Zhitong Finance App News, China Traditional Chinese Medicine (00570) announced that the company's subsidiary signed the following contract on September 15, 2026: (1) Shandong Yifang signed a general contracting contract for the workshop renovation project with Sinopharm Engineering. Sinopharm Engineering as the contractor contracted the design, equipment procurement, construction engineering and installation project for the Shandong Chinese medicine tablet workshop renovation project. The contract amount was RMB 10.5569 million; and (2) Zhonglian Pharmaceutical and Sinopharm Engineering signed a general contract for the technical transformation project to increase production capacity. Design optimization, construction engineering, installation engineering and outdoor support projects for technological transformation projects to increase the production capacity of products such as isotretinoin erythromycin gel. The contract amount was RMB 11.34,800.

As far as the general contracting contract for the Shandong Yifang workshop renovation project is concerned, the Shandong side is currently actively expanding the empty Chinese medicine tablet market within and outside Shandong Province, and as the collection of Chinese medicine tablets continues to expand, the existing Chinese medicine tablet production capacity in Shandong Province will not be able to meet future market demand. The Chinese medicine tablet workshop renovation project will supplement the production capacity of future Chinese medicine tablets in Shandong Province, and can also lay the foundation for future production of all kinds of Chinese medicine tablets.

As far as the general contracting contract for Zhonglian Pharmaceutical's production capacity improvement technology transformation project is concerned, the original design capacity of Zoomlion Pharmaceutical's third key variety, isovitamin A erythromycin gel will not be able to meet the current market demand, and commissioned production will not be possible. Production capacity improvement and transformation must be implemented, while eliminating potential fire safety hazards and promoting the healthy and sustainable development of the enterprise.

By entering into such contracts with Sinopharm Engineering, it is possible to give full play to the synergy advantages within the Sinopharm Group, save project costs, and improve overall efficiency. Sinopharm Engineering has construction and management qualifications such as grade 2 general contracting for construction engineering, grade 1 for construction mechanical and electrical installation, grade 2 for building decoration and decoration engineering, grade 2 for environmental protection engineering, and grade B for engineering supervision. During the bidding process, the Group took into account the factors mentioned earlier in this notice and the qualifications of Sinopharm Engineering, and decided to accept Sinopharm Engineering's tender and entrust it to provide the aforementioned services.