EPS HEALTH TECH (03860) plans to acquire 16.23% equity of China Genetics.

EPS HEALTH TECH(03860) announced that on February 3, 2026, the company (as the buyer) and Hongshida Medical Limited (as the seller) entered into a memorandum of understanding for the proposed acquisition of 16.23% equity interest in China Genetic Engineering Limited (China Genetics). China Genetics is a company registered in Hong Kong, which effectively owns approximately 67.68% equity interest in Shanghai Huaxin Biotech Limited (Huaxin). Huaxin is a company registered in the People's Republic of China, together with China Genetics and its subsidiaries collectively known as "China Genetics Group". The consideration amount ranges from approximately HK$40 million to HK$45 million. China Genetics Group is mainly engaged in internal research, manufacturing, and sales of bio-pharmaceutical products in China, which complements the group's existing businesses in medical and healthcare product trading, medical equipment leasing, and providing contract research organization (CRO) services. Upon completion of the proposed acquisition, the group's investment in China Genetics will be recognized in the group's consolidated financial statements as an investment in an associate. The board of directors believes that the proposed acquisition presents an excellent opportunity for the group to increase its involvement in the operations of China Genetics Group; it is also a strategic investment that has the potential to create long-term value for the group and drive the group's business development in the promising healthcare industry.