New Stock News | Weikang Probiotics Plans to IPO on Hong Kong Stock Exchange, China Securities Regulatory Commission Requests Supplementary Explanation on the Basis for Identifying the Controlling Shareholder and Actual Controller, among Other Matters

On August 7, the China Securities Regulatory Commission (CSRC) released the "Supplementary Material Requirements for Offshore Issuance and Listing Filing (July 27, 2026 - August 7, 2026)." The International Department of the CSRC issued supplementary material requirements for three companies. Among them, it requested Weikang Probiotics to provide additional explanations regarding the basis for the identification of its controlling shareholder and actual controller, as well as the reasonableness of the shareholding prices for new shareholders within the last 12 months. According to a disclosure by the Hong Kong Stock Exchange on April 29, Weikang Probiotics (Suzhou) Co., Ltd. submitted its listing application to the main board of the Hong Kong Stock Exchange, with Guotai Haitong as the sole sponsor. The CSRC requested Weikang Probiotics to supplement the following matters, and the legal counsel is to conduct verification and provide clear legal opinions: 1. Please your company: (1) In accordance with the "Guidance on Applicable Regulatory Rules - Offshore Issuance and Listing Class No. 2," further explain the basis for the identification of the controlling shareholder and actual controller; (2) Explain the reasonableness of identifying Fang Shuguang as the actual controller while Fang Shuguang, Chen Huialai (Fang Shuguang's spouse), Shanghai Chenkang, Suzhou Chenkang, Suzhou Zhongkang, Shanghai Huankang, and Suzhou Zekang are all deemed as concert parties. 2. Please explain: (1) The reasonableness of shareholding prices for new shareholders within the last 12 months, the reasons and rationality for the discrepancies in the share acquisition prices for Boyu Xinzhi's simultaneous capital increase and old share acquisition; (2) Provide clear concluding opinions on whether the shareholding prices for new shareholders within the last 12 months are fair and reasonable and whether there are any issues related to the transfer of interests. 3. Please explain whether there are any associated relationships among shareholders holding less than 5%, and if so, whether the shareholding proportions should be combined, and whether those exceeding 5% should be subjected to a penetrating investigation in accordance with the 5% shareholder rules. 4. Please explain: (1) The composition and employment status of personnel involved in your company's past equity incentives, whether there are associated relationships between the participants and other shareholders, directors, supervisors, and senior management of your company, and whether there are individuals who are clearly prohibited by law, administrative regulations, and the relevant national provisions from participating in company equity incentives; as well as the fairness of the shareholding prices, the conditions of agreements, decision-making procedures, and operational standard compliance; (2) The reasons and rationality for the equity incentive objects implemented by your company in 2023 being limited to the actual controller personally and not setting a lock-up period, as well as the fairness of the relevant shareholding prices; (3) Clear concluding opinions on the legality and compliance of previous equity incentives and whether there exist any interest transfers. 5. Please explain the complete specific details of special shareholder rights arrangements, the specific conditions of termination clauses and the decision-making procedures for their implementation, whether all shareholders reached a consensus, whether there are disputes, and whether these constitute substantive obstacles to this offshore issuance and listing. 6. Please explain: (1) The qualifications your company has obtained for relevant business, and with reference to patent usage, explain whether your company and its subsidiaries' businesses and operational scope involve fields restricted or prohibited in the "Special Management Measures for Foreign Investment Access (Negative List) (2024 Edition)," and whether compliance with the foreign investment access policy requirements continues before and after this issuance and listing and full circulation. (2) Whether your company's research and production involve the development and application of human stem cells, gene diagnosis, and treatment technologies. 7. Please explain whether the shares held by shareholders intending to participate in full circulation are subject to pledge, freeze, or other rights defects. 8. Please explain the business content of your company's overseas subsidiaries and the specific fulfillment status of the regulatory procedures involved in establishing overseas subsidiaries, such as overseas investment and foreign exchange registration, and provide conclusive opinions on compliance. 9. Please detail the intended use of funds raised by your company, whether it involves overseas investment, and whether relevant approval, registration, or filing procedures have been fulfilled. The prospectus indicates that Weikang Probiotics is a globally leading biomanufacturing company primarily engaged in the research, development, production, and sales of probiotic strains. According to Frost & Sullivan, the company ranked third globally in the production of probiotic raw powder in 2025 and first in Asia. The company is committed to providing high activity, high stability, and functional probiotic powders, probiotic preparations, and dairy fermentation agents to companies in fields such as human health (i.e., functional foods and dietary supplements), dairy products, and agriculture, leveraging its self-developed probiotic strain resources and supporting production processes. Currently, the core strains independently developed and industrialized by the company include WecLac strains such as Bifidobacterium animalis subsp. lactis BLa80, Lactobacillus rhamnosus LRa05, Bacillus coagulans BC99, Bifidobacterium longum subsp. longum BL21, and Akkermansia muciniphila Akk11.