MEILLEUREHEALTH (02327) plans to acquire all equity in Dexin Pharmaceutical Development for HK$35.2 million.

MEILLEUREHEALTH (02327) announces that on 21 September 2026 (after trading hours), the Company and the vendor, Yucheng Industrial Limited, entered into an agreement pursuant to which the vendor has agreed to sell, and the Company has agreed to acquire through the purchaser, Meirui Group Development Limited (a wholly-owned subsidiary of the Company), the sale shares (representing the entire issued share capital of the target company, Dexin Pharmaceutical Development Limited), at a total consideration of HK$35.2 million. Upon completion, the Company will indirectly hold the entire issued share capital of the target company through the purchaser. Accordingly, the target company will become an indirect wholly-owned subsidiary of the Company, and its financial results will be consolidated into the consolidated financial statements of the Group. As at the date of this announcement, the core asset of the target company is the property, which is a Grade A commercial property located in Admiralty, Hong Kong. Admiralty, Hong Kong is a core business district of Hong Kong's central business district, with a well-developed transportation network and in close proximity to major financial institutions. The Board believes that Grade A office properties located in prime locations in Hong Kong have demonstrated long-term value preservation and appreciation potential, and the acquisition provides a strategic opportunity for the Group to strengthen its asset base with a high-quality commercial property. The Group intends to use part of the property as its own office premises, which will enable the Group to reduce its ongoing office rental expenses and provide greater operational stability, while leasing the remaining portion of the property to tenants will provide the Group with a stable and recurring rental income stream. The Directors believe that the acquisition is consistent with the Group's existing principal property investment and leasing business and will complement the Group's existing property portfolio, thereby enhancing the Group's income diversification and long-term earnings visibility. In addition, the Directors note that the consideration of HK$35.2 million for the acquisition under the agreement represents a discount of approximately 43.9% compared to the consideration of HK$62.74 million at which the Group previously disposed of the target company in 2020. Having considered the prevailing market conditions of the Hong Kong commercial property market and the current valuation of the property, the Directors believe that the consideration provides a favorable re-entry price for the Group to re-acquire the target company and the property at a substantial discount to the historical disposal price, thereby enabling the Group to capture the value of the property at an attractive cost basis. In view of the above, the Directors (including the independent non-executive Directors, but excluding (i) Mr. Zhou Xuzhou and (ii) Ms. Zhou Wenchuan (an executive Director and chief executive officer of the Company and an associate of Mr. Zhou Xuzhou), who have abstained from voting on the Board resolution as they have a material interest in the acquisition) believe that the terms of the acquisition are on normal commercial terms, are fair and reasonable, and are in the interests of the Company and the shareholders as a whole.