Tailing Pharmaceutical (01011) has major objections to the ruling and has appointed a compliance legal service team to initiate legal procedures such as applying to rescind the ruling

According to Zhitong Finance App, Tailing Pharmaceutical (01011) issued an announcement. The Company received the [2026] China Trade Arbitration Commission's ruling No. 1519 from the China International Economic and Trade Arbitration Commission on July 20, 2026. The arbitration matter stemmed from the guarantee arrangement under the 2020 asset transaction project signed by the Company with the relevant entity of Beijing Kangchen Pharmaceutical Co., Ltd. in 2020. The relevant equity transfer was settled in 2020.

The above ruling determined that the Company and related parties were required to pay a total of approximately RMB 92 million in liquidated damages, related expenses and arbitration contributions. The Company has significant objections to the ruling and has appointed a compliance legal service team to initiate legal procedures such as applying for annulment of the ruling.

Currently, the ruling is still within the legal cycle for which it is possible to apply for annulment in accordance with the law, and the relevant payment obligations have not yet entered the enforcement stage. The Group is carefully evaluating the potential financial impact in line with the joint parties' liability sharing arrangements and the liability boundaries of entities that have completed bankruptcy and restructuring. The Group's daily operations and cash flow are currently in a normal state.