HK Stock Market Move | SIHUAN PHARM(00460) rose more than 4% in early trading, planning to split off shares of Xuanzhu Bio and list them on the Main Board of the Stock Exchange.

SIHUAN PHARM (00460) rose more than 4% in early trading, rising 4.23% as of press time to HKD 0.74, with a turnover of HKD 3.3994 million. On the news front, SIHUAN PHARM announced that the company has proposed to split off shares of Xuanzhu Bio and list them on the main board of the Stock Exchange of Hong Kong. The company has obtained approval from the Stock Exchange for the proposed split of Xuanzhu Bio in accordance with Listing Rules Guidance Note 15. Between October 21, 2024 and November 8, 2024, Hainan Sihuan and the sellers of the previous acquisition separately entered into the previous equity transfer agreement. Hainan Sihuan agreed to acquire approximately 3.3717% equity of Xuanzhu Bio for a total consideration of approximately RMB 288 million. On November 12, 2024, Hainan Sihuan and Sun Life entered into the current equity transfer agreement. Hainan Sihuan agreed to further acquire approximately 3.6177% equity of Xuanzhu Bio for a total consideration of approximately RMB 308 million. The announcement stated that the board of directors fully recognized and expressed confidence in the development goals and strategies of Xuanzhu Bio. They unanimously believe that the development of the innovative product pipeline of Xuanzhu Bio will provide strong support and help for the future upgrading and development of the pharmaceutical business of the group, and is in line with the current national industry policy trend of "innovation-driven, cage-to-bird transformation". Therefore, they have decided to proceed with the acquisition at the proposed listing of Xuanzhu Bio on the main board of the Stock Exchange.