Fusen Pharm (01652) plans to sell its entire equity of Henan Fushen Smart Energy Technology for 73 million yuan.

FUSEN PHARM (01652) announced that on September 19, 2025 (after trading hours on the Stock Exchange), the buyer Henan Xisheng Industrial Development Co., Ltd. and the seller Henan FUSEN PHARM Co., Ltd. (an indirect wholly-owned subsidiary of the company) entered into an agreement. Under this agreement, the seller conditionally agreed to sell and the buyer conditionally agreed to purchase the entire equity of the target company Henan Fushen Smart Energy Technology Co., Ltd. for a total consideration of RMB 73 million, subject to and limited by the terms of the agreement. The announcement stated that the group is mainly engaged in the manufacturing and sale of pharmaceuticals. The target company is mainly engaged in the installation and operation of photovoltaic power generation systems, established to support the group's internal electricity needs, cooperate with the group in producing pharmaceuticals, and generate revenue from external sales. However, the photovoltaic business is not a core focus of the group. In order to streamline operations and focus on the long-term strategic direction of the business, the group has decided to sell this non-core subsidiary. The sale is a strategic move aimed at integrating resources, improving operational efficiency, and reallocating management and financial focus to the group's core pharmaceutical business. By restructuring its business portfolio and exiting peripheral industries, the group aims to strengthen its competitive position and enhance its capabilities to seize new growth opportunities in the pharmaceutical industry. In addition, the net proceeds from the sale will provide immediate cash inflow and are intended to be used for the group's general operating funds, including but not limited to funding operational expenses and supporting the continuous development of its core pharmaceutical business. The board of directors believes that the terms of the sale are fair and reasonable and are in the overall interest of the company and its shareholders.