Kangmei Pharmaceutical Chairman Lai Zhijian Resigns; Ou Guoxiong to Act, Meng Jun Nominated

After market close on August 21, Kangmei Pharmaceutical announced that its board had received a written resignation from Chairman Lai Zhijian. Citing work adjustments, Lai resigned as chairman and director of the company, and will no longer serve as legal representative. He also stepped down as a member of the audit committee and convener of the strategy committee. Following his resignation, Lai will not hold any other position within the company, although he will continue to fulfill his audit committee duties until the replacement election is completed.

The company also announced that its board has elected Director and General Manager Ou Guoxiong to act as chairman and legal representative on an interim basis. Meanwhile, the controlling shareholder has nominated Meng Jun as a candidate for non-independent director on the tenth board. Ou, born in 1967, has extensive experience in the pharmaceutical distribution sector, having previously held positions at Guangzhou Caizhilin Pharmaceutical Co. , Ltd. before joining Kangmei, where he rose to deputy general manager, director, and general manager. Meng, born in May 1973, holds senior engineer and senior economist titles and receives a special allowance from the State Council. She previously served as party secretary and factory director of Baiyunshan Hejigong Pharmaceutical Factory under Guangzhou Baiyunshan Pharmaceutical Group, and is currently Kangmei's party secretary.

Kangmei Pharmaceutical was founded in 1997 and listed on the Shanghai Stock Exchange in 2001. Its core business is traditional Chinese medicine (TCM) decoction pieces, with a product range that also includes proprietary Chinese medicines, chemical drugs, health products, and foods. In 2020, the company fell into a severe debt crisis due to a major financial fraud case. In April 2021, Guangdong Jiedong Rural Commercial Bank filed for bankruptcy reorganization of the company with the Jieyang Intermediate People's Court, citing an inability to repay due debts. The court accepted the petition in June 2021, the reorganization plan was approved in November 2021, and the plan was completed in December 2021. Following the restructuring, the company's net assets attributable to shareholders turned positive, from RMB -10.536 billion at the end of 2020 to RMB 9.927 billion at the end of 2021.

Lai Zhijian, born in March 1969, spent much of his career in the Guangzhou Pharmaceutical Group system. In December 2021, he was designated by the group to serve on the decision committee of Guangdong Shennongshi Enterprise Management Partnership. He was elected chairman of Kangmei's ninth board in January 2022, and was re-elected in February 2025 to lead the tenth board, with a term originally scheduled to run until February 9, 2028. During his tenure, the company's net profit excluding non-recurring items narrowed from a loss of RMB 1.5 billion in 2022 to a loss of RMB 294 million in 2025. Net assets attributable to shareholders increased from RMB 6.948 billion at the end of 2022 to RMB 7.290 billion at the end of 2025. The resignation comes ahead of the scheduled term end, and the listed company expressed gratitude for Lai's work during his tenure.

Currently, Director and General Manager Ou Guoxiong is performing the duties of chairman and legal representative. According to the announcement, Meng Jun has no affiliated relationship with the controlling shareholder or other directors and senior executives, and does not hold any shares in the company.