GUSHENGTANG (02273.HK): Subsidiary to acquire 100% equity of three TCM clinics in Malaysia, expanding overseas offline network
NewTimeSpace News: On 27 August 2026, Gushengtang Holdings Limited (stock code: 02273) voluntarily announced that its subsidiary, Gushengtang Malaysia Sdn. Bhd., has entered into sale and purchase contracts with the shareholders of YC TCM (Taman Segar) Sdn. Bhd., YC TCM Sdn. Bhd. and SWS Medical Sdn. Bhd., pursuant to which Gushengtang Malaysia agreed to purchase the 100% equity interests of the three companies.
According to the announcement, YC TCM SEGAR, YC TCM and SWS Medical are medical institutions mainly engaged in the provision of traditional Chinese medicine consultation and treatment services in Malaysia. Upon completion of the acquisition, the three companies will become subsidiaries of the Company and their financial results will be consolidated into the Group's financial statements. The acquisition is in line with the Group's expansion strategy of growing its offline medical institution network through acquisitions, and is expected to add the Group's market share in Malaysia and create synergies between the target companies and the Group's other offline medical institutions and online medical platform.
The consideration was determined after fair negotiation between Gushengtang Malaysia and the sellers, with reference to the historical performance, qualifications, resources and prospects of the target companies, and will be funded by the net proceeds of the Company's placing and convertible bond issuance and the Group's idle funds. In terms of the Listing Rules, the target companies, the sellers and their respective ultimate beneficial owners are independent third parties, and the acquisition does not constitute a connected transaction; as none of the applicable percentage ratios exceeds 5%, it also does not constitute a discloseable transaction. Completion of the acquisition is subject to the satisfaction of conditions precedent and may or may not proceed.
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