GUSHENGTANG (02273) plans to issue $110 million of convertible bonds.

GUSHENGTANG (02273) announced that on January 26, 2026 (after trading hours), the company has entered into a subscription agreement with related investors to issue convertible bonds with a total principal amount of 110 million US dollars. The initial conversion price is 37.77 Hong Kong dollars per share, representing a premium of approximately 22.23% over the closing price of 30.90 Hong Kong dollars per share reported on the Stock Exchange of Hong Kong on January 26, 2026. Upon completion of the issuance of convertible bonds, it is expected to raise a net amount of approximately 108.7 million US dollars, to be used for share buybacks to optimize capital structure and enhance shareholder value, develop artificial intelligence systems for traditional Chinese medicine diagnosis, health management, and expert experience inheritance, and for general working capital purposes. The related investors are Ginkgo Health Investment Ltd. Ginkgo Health Investment Ltd. is an exempt company registered under the laws of the Cayman Islands and wholly owned by Boyu Capital Growth Fund I, Pte. Ltd., which is a private equity fund advised by Boyu Capital Group Management Ltd. Boyu Capital Group Management Ltd. provides catalytic capital and strategic support to leading companies in the fields of global technology, healthcare, consumer goods, and sustainable energy.