Northland Biotech Announces Establishment of Wholly-Owned Subsidiary for Drug R&D

Source: Shanghai Securities News · China Securities Network

Shanghai Securities News China Securities Network News, April 23 evening,NorthlandAnnouncement: Based on the company's strategic layout and business development needs, the company plans to invest in establishing a wholly-owned subsidiary, tentatively named Beijing Northland Pharmaceutical Research and Development Co., Ltd. (hereinafter referred to as the "New Company"). The proposed registered address of the New Company is in Haidian District, Beijing, with a proposed registered capital of 1 million yuan. The relevant information such as the name, registered capital, registered address, and business scope of the New Company shall be subject to the final approval of the local market supervision and administration department. The proposed New Company will be a wholly-owned subsidiary of the company and will be included in the company’s consolidated financial statements.

The company stated that the establishment of this wholly-owned subsidiary through external investment is a carefully considered decision made in the long-term interest of the company. It does not involve entering new fields, and the risks are relatively controllable. However, certain market risks, policy risks, and operational risks still exist. The company will strengthen risk management for the newly established subsidiary by further improving internal control systems, clarifying business strategies and risk management measures, and actively preventing and addressing any potential risks.

The establishment of this wholly-owned subsidiary through external investment is of great significance to the company's long-term development and strategic layout. It will have a positive impact on the company's future financial condition and operating results, further enhance the company's comprehensive competitiveness, and align with the interests of the company and all shareholders. (Wang Zhiyuan)