LIVZON PHARMA (01513) plans to acquire approximately 3.50% of Xinbeijiang Pharmaceutical for about 107 million yuan.

LIVZON PHARMA (01513) announced that on August 21, 2026, the company entered into a share transfer agreement with Zhuhai Zhonghuiyuan Investment Partnership (Limited Partnership) (Zhonghuiyuan), under which the company agreed to acquire approximately 3.50% of the shares of New Bei Jiang Pharmaceutical for a cash consideration of approximately RMB 107 million (corresponding to approximately RMB 8.4065 million of the registered capital of New Bei Jiang Pharmaceutical). Upon the completion of the acquisition of shares in New Bei Jiang Pharmaceutical, the company's direct equity interest in New Bei Jiang Pharmaceutical will increase from approximately 87.14% to approximately 90.64%. Zhonghuiyuan, as the employee stock ownership platform of New Bei Jiang Pharmaceutical, aims to further optimize the equity structure of New Bei Jiang Pharmaceutical, strengthen the company's control over its core active pharmaceutical ingredient subsidiaries, and improve the efficiency of operational decision-making. The company intends to acquire some of the shares in New Bei Jiang Pharmaceutical held by Zhonghuiyuan. This transaction is a normal business arrangement for the company to optimize subsidiary governance and deepen industrial layout, aligning with the company's overall development strategy and serving the long-term interests of the company and all shareholders. This transaction will not lead to significant changes in the company's current and future financial condition and operational results, nor will it adversely affect the company's daily operations. The directors (including independent non-executive directors) believe that although the proposed acquisition of shares in New Bei Jiang Pharmaceutical under the share transfer agreement is not part of the groups general and routine business, the terms of the share transfer agreement and the proposed acquisition of shares are fair and reasonable, established on normal commercial terms, and the acquisition of shares in New Bei Jiang Pharmaceutical is in the overall interest of the company and its shareholders.