Shede Liquor Industry expects that the daily related-party transaction amount will not exceed 276 million yuan in 2026, and it needs to be submitted to the shareholders' meeting for approval.

Shedde Liquor Co., Ltd. held a board meeting on March 19, 2026, and approved the proposal for the company’s projected routine related-party transactions in 2026. According to the proposal, the total amount of routine related-party transactions with the actual controller Mr. Guo Guangchang and his controlled companies (collectively referred to as “Fosun and its subsidiaries”) is expected not to exceed 275.757 million yuan in 2026. The proposal still needs to be submitted for approval at the company’s 2025 annual general meeting, where related shareholders will abstain from voting.

The expected routine related-party transactions mainly involve three categories: sales of goods, procurement of goods, and acceptance of services. Among these, sales of goods are expected to reach a maximum of 82.3 million yuan, primarily involving Sichuan Tuopai Biotechnology Co., Ltd. and other Fosun-related companies. Procurement of goods is estimated at 162.3 million yuan, mainly involving Sichuan Tuopai Shede Group Co., Ltd. and its subsidiaries, Sichuan Fuyu Automation Equipment Co., Ltd., and others. The amount for accepting services and other offerings is projected at 31.157 million yuan.

The announcement shows that the actual amount of similar related-party transactions in 2025 was 89.5647 million yuan, which is lower than the initial estimate of 382.7772 million yuan. The company explains that the difference between the projected amount for 2026 and the actual amount in 2025 is due to changes in business needs, such as an increase in sales of goods mainly driven by higher procurement demand from related parties, and an increase in procurement of goods based on growth in demand for raw materials, packaging, and engineering equipment.

The company’s independent directors believe that the projected routine related-party transactions for 2026 are reasonable, following principles of equality, voluntariness, and fair compensation. The prices are fair, and there is no harm to the company or shareholders’ interests. During the board meeting, seven related directors, including Pu Jizhou and Wu Yifei, abstained from voting.

Shedde Liquor states that the above related-party transactions are part of the company’s normal production and operation activities, which are beneficial to business development. These transactions will not affect the company’s independence, nor will they cause the company to become dependent on related parties.