MODERN CHI MED (01643) plans to acquire a 30% stake in Shuzhi Health Global for 41.82 million Hong Kong dollars.

MODERN CHI MED (01643) announced that on January 19, 2026, the company entered into a sale and purchase agreement with the seller Emperor Royal Holdings Limited, under which the company conditionally agreed to purchase and the seller agreed to sell 3 million ordinary shares (30% of the total issued share capital of the target company Intelligent Health Global Holdings Limited) for a consideration of HK$41.82 million. Both the target company and Revival are investment holding companies. As of the date of this announcement, Yongming is wholly owned by Revival, and Revival is wholly owned by Yongsheng, which is wholly owned by the target company. The target company is owned 89% by the seller and 11% by Great Health. Yongsheng is mainly engaged in the production of registered traditional Chinese medicines, including a range of special products such as "Shendun Hai Gou Pill" and "Yongming Wujibaifeng Pill". Yongsheng has been licensed under the Chinese Medicine Ordinance of Chapter 549 of the Hong Kong Laws to manufacture proprietary Chinese medicines and has manufacturing facilities in Hong Kong. As of the date of this announcement, Yongsheng has registered 184 proprietary Chinese medicines in Hong Kong. Yongming is mainly engaged in online sales of proprietary Chinese medicines manufactured by Yongsheng. The target group has established different official flagship stores on major e-commerce platforms through Yongming. The company intends to use 50% of the net proceeds raised under the subscription for the acquisition for new business opportunities related to traditional Chinese medicine, including investment in traditional Chinese medicine manufacturers. The company believes that investing in a traditional Chinese medicine (TCM) manufacturer located in Hong Kong with production lines and sales points in Hong Kong will expand the group's sales footprint to Hong Kong and overseas. Given that Yongsheng is a licensed TCM manufacturer in Hong Kong with business coverage in Hong Kong and Macau, the board believes that the acquisition is in line with the group's development strategy.