EXTRAWELL PHAR completed the placement of a total of 160 million shares

According to the Zhitong Finance APP, EXTRAWELL PHAR (00858) announced that a total of 160 million new shares have been allocated and issued at HKD 0.097 per share on September 10, 2025, of which (i) 30 million new shares were issued to Subscriber I, 20 million new shares were issued to Subscriber II, and 110 million new shares were issued to Subscriber III. The board of directors has conducted in-depth discussions on diversifying business operations, realizing that both pharmaceuticals and healthcare constitute the core of the "Healthy China 2030" national strategy, benefiting from structural trends such as an aging population, the increasing prevalence of chronic diseases, and consumers' growing emphasis on preventive healthcare. The group has its own pharmaceutical production base and has shown stable performance in recent years. Although the group has attempted to expand into international markets, the varying regulatory requirements across countries require significant time and financial investment, posing major challenges to overseas expansion. In contrast, developing healthcare business in overseas markets appears to be more immediately promising; health products typically face more lenient regulatory pathways, allowing for faster market entry. Additionally, the expanding middle class and rising healthcare expenditures in emerging markets of developing countries, combined with often insufficient local production capacity, make such markets particularly attractive. Furthermore, this new business has significant synergies with the group's existing manufacturing infrastructure and distribution network, which can effectively leverage partner networks and utilize the rich experience of some board members in medical devices, diagnostic services, and healthcare investment management. Once a successful trade framework is established, the group will later explore the feasibility of self-producing health products after identifying suitable products for large-scale production, thereby leveraging existing manufacturing capabilities and cost advantages. The board believes that this move will not only effectively supplement the core pharmaceutical business but also open up new sustainable revenue sources. The net proceeds from this completed matter will be strategically allocated to this promising new business, with approximately 70% earmarked for startup costs before early 2027, including product development, operating expenses (including facilities and personnel), marketing, and pilot projects, while the remaining 30% will be reserved as working capital (funds for ongoing operations) to support the scaling of successful initiatives before the end of 2027. This phased strategy helps the group systematically build its healthcare business while maintaining financial flexibility