Fangsheng Pharmaceutical: Hunan Kexin plans to sell 51% of its subsidiary hospital Changsha Kexin

According to the announcement from Zhitong Finance APP, Fangsheng Pharmaceutical (603998.SH) stated that on April 7, 2025, its affiliate Fangsheng informed the company that Hunan Kexin recently held a shareholders' meeting and decided to sell 51% of its subsidiary hospital Changsha Kexin to INKON Life for 357 million yuan. Subsequently, based on the completion of performance commitment targets, it will transfer 29% and 20% of the equity of Changsha Kexin, respectively. Hunan Kexin plans to repurchase equity from relevant shareholders using the proceeds from the sale of its equity in Changsha Kexin according to the arrangements of its shareholders' meeting and distribute part of its non-cash assets.

The repurchase of equity will be paid in three installments according to the pace of the transaction of Changsha Kexin's equity between Hunan Kexin and INKON Life. Based on the 26.0018% equity held by the affiliate Fangsheng in Hunan Kexin (including 16.30% equity for which the transfer price to Mr. Chen Lihong or his designated related parties has not yet been paid), it is expected to receive a repurchase amount of 154.6834 million yuan. If Hunan Kexin completes the transfer of 51% of the equity of Changsha Kexin, the first installment of the repurchase amount to be paid to the affiliate Fangsheng will be 87.6055 million yuan.

As of the date of this announcement, the company has not yet recovered 98.5 million yuan of the paid-in capital from the affiliate Fangsheng. The affiliate Fangsheng has confirmed that after receiving the installment payments for the equity repurchase from Hunan Kexin and the equity transfer payment from Mr. Chen Lihong or his designated related parties, it will simultaneously pay the company's paid-in capital. It is expected that the first installment of the repurchase amount will recover up to 87.6055 million yuan (not considering the deduction of related daily operating expenses by the affiliate Fangsheng), accounting for 88.94% of the company's unrecovered paid-in capital. After the affiliate Fangsheng recovers the equity transfer payment and the equity repurchase amount, it is expected that the funds obtained will be sufficient to cover all of the company's unrecovered paid-in capital