--- title: "EPS HEALTH TECH plans to acquire 16.23% of the issued shares of China Gene for HKD 43 million" type: "News" locale: "en" url: "https://longbridge.com/en/news/275745050.md" description: "EPS HEALTH TECH announced plans to acquire a 16.23% stake in China Gene for HKD 43 million, with the transaction set to be completed on February 12, 2026. This acquisition will classify EPS HEALTH TECH's investment in China Gene as an investment in an associate company. China Gene focuses on biopharmaceuticals, particularly in the gynecology field, and the board believes this acquisition will bring good development opportunities for the company and may promote business cooperation with China Gene" datetime: "2026-02-12T11:12:03.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/275745050.md) - [en](https://longbridge.com/en/news/275745050.md) - [zh-HK](https://longbridge.com/zh-HK/news/275745050.md) --- > Supported Languages: [简体中文](https://longbridge.com/zh-CN/news/275745050.md) | [繁體中文](https://longbridge.com/zh-HK/news/275745050.md) # EPS HEALTH TECH plans to acquire 16.23% of the issued shares of China Gene for HKD 43 million According to the news from Zhitong Finance APP, EPS HEALTH TECH (03860) announced that on February 12, 2026, the company (as the buyer) entered into an agreement with the seller (as the seller), whereby the company conditionally agreed to acquire and the seller conditionally agreed to sell shares (1,623 ordinary shares of China Gene, accounting for 16.23% of the issued share capital of China Gene), for a total cash consideration of HKD 43 million. Immediately following the completion, the group's investment in China Gene will be recognized as an investment in an associate in the group's consolidated financial statements. As of the date of this announcement, China Gene beneficially owns approximately 67.68% of Huaxin. Huaxin is the main operating subsidiary of China Gene, a company registered in China, primarily engaged in the internal research and development, production, and sales of biopharmaceutical products. Its products focus on gynecological biopharmaceuticals and gene cell therapy, involving the application of interferons and interleukins. In recent years, China Gene Group has focused on the production and sales of "Xinfuning," which has become the preferred medication for gynecologists. The main business of China Gene Group complements the existing healthcare product trading, medical equipment leasing, and provision of professional contract research organization (CRO) services of the group. The board believes that the acquisition represents an excellent opportunity for the group to participate in the business operations of China Gene Group (which is continuously developing, generating substantial revenue, and has strong growth prospects in the favorable outlook of the Chinese healthcare and biopharmaceutical industry) and to further explore potential business cooperation between the group and China Gene Group. In particular, the group can assist in distributing the listed biopharmaceutical products of China Gene Group through its extensive sales network under its healthcare product trading business, thereby increasing the group's revenue. The complementary advantages of China Gene Group may create synergies with the HCP business and CRO business through the integrated value chain in the healthcare and biopharmaceutical ecosystem (i.e., from supplying and leasing laboratory consumables and R&D equipment to providing research support through CRO services, and then to the sales and distribution of biopharmaceutical products). The board believes that the acquisition is a strategic investment that will allow the group to expand its market participation in the Chinese healthcare and biopharmaceutical industry, align with the group's business strategy, create potential long-term value for the group, and facilitate the group's business development in the promising healthcare industry. Upon completion, China Gene will adopt a dividend policy, under which its goal is to allocate at least one-third of the after-tax profits for each fiscal year after making all necessary, reasonable, and prudent provisions and reserves for tax, repayment of the company's borrowings (if any), and the company's working capital and cash flow needs. The board believes that, given China Gene's profit record over the past three fiscal years and its dividend policy, the investment in China Gene is expected to bring positive financial returns to the group and provide good business opportunities for the group's future development. Given the potential business synergies that may arise from the integrated value chain in the healthcare and biopharmaceutical ecosystem with China Gene Group; the acquisition represents a strategic investment opportunity that will allow the group to expand its market participation in the Chinese healthcare and biopharmaceutical industry; and the excellent profit record and dividend policy of China Gene Group due to the favorable development prospects of the Chinese healthcare and biopharmaceutical industry, it is expected to make a positive contribution to the overall financial performance and long-term development of the group after completion The board of directors (excluding independent non-executive directors, who will express their opinions after considering the views of independent financial advisors) believes that the agreement and the terms of the proposed transactions thereunder are entered into on normal commercial terms, are fair and reasonable, and are in the overall interests of the company and its shareholders. As of the date of this announcement, the group has no plans or intentions to further acquire equity in China Gene Group in the foreseeable future ### Related Stocks - [EPS HEALTH TECH (03860.HK)](https://longbridge.com/en/quote/03860.HK.md) - [China Universal 800 Health Care ETF (159929.CN)](https://longbridge.com/en/quote/159929.CN.md) - [Minsheng Royal CSI Biotechnology Theme ETF (516930.CN)](https://longbridge.com/en/quote/516930.CN.md) - [Guotai SSE STAR Brand Name Drug ETF (589720.CN)](https://longbridge.com/en/quote/589720.CN.md) - [E Fund CSI 300 Health Care ETF (512010.CN)](https://longbridge.com/en/quote/512010.CN.md) - [BGI Genomics (300676.CN)](https://longbridge.com/en/quote/300676.CN.md) - [E Fund CSI Biotechnology Theme ETF (159837.CN)](https://longbridge.com/en/quote/159837.CN.md) - [China Merchants CSI Biotechnology Theme ETF (159849.CN)](https://longbridge.com/en/quote/159849.CN.md) ## Related News & Research - [Assessing BioArctic (OM:BIOA B) Valuation After New Lecanemab Data And Regulatory Milestones](https://longbridge.com/en/news/281644038.md) - [Biocytogen and Sihuan partner to advance new therapeutics for weight loss](https://longbridge.com/en/news/281501537.md) - [Xinhua Pharma Becomes Marketing Authorization Holder of Dental Drug After Regulatory Nod](https://longbridge.com/en/news/281343251.md) - [10:00 ETSanyou Milestone | Recognized as a "Shanghai Municipal Enterprise Technology Center," Further Validating for Innovation Excellence](https://longbridge.com/en/news/281035304.md) - [uBriGene and Cellinfinity BIO collaborate to accelerate in vivo CAR-T therapies](https://longbridge.com/en/news/281159926.md)