Zhejiang Medicine (600216.SH) plans to spin off its controlling subsidiary Newcode Biotech and list it on the Hong Kong Stock Exchange.

Zhejiang Medicine (600216.SH) has announced that, in order to better promote the development of the company's pharmaceutical biological preparation sector, fully leverage the role of the capital market in optimizing resource allocation, and broaden financing channels to enhance the overall profitability and core competitiveness of the company, the company plans to spin off its controlling subsidiary Zhejiang Xinma Biopharmaceutical Co., Ltd. ("Xinma Biopharma") for listing on the Hong Kong Stock Exchange. If the spin-off listing is implemented, it will not result in the company losing control of Xinma Biopharma, nor will it have a significant adverse impact on the operational development of the company's other business sectors and its overall sustained profitability, and it will not undermine the company's independent listing status.