SIPAI HEALTH (00314.HK): to sell 100% of target company to Dashenlin for RMB15 million in major transaction

NewTimeSpace News: According to the HKEX on October 29, Sipai Health Technology Co., Ltd. ("Sipai Health", 00314.HK) announced that after trading hours on October 29, 2026, its wholly-owned subsidiary Sipai Investment (as seller) entered into an equity transfer agreement with Dashenlin Pharmaceutical Group Co., Ltd. ("Dashenlin", 603233.SH), conditionally agreeing to sell the entire equity interest in the target company (Shanghai Zhongzhihe Information Technology Co., Ltd.) for a total consideration of RMB15 million. Upon completion, the Group will no longer hold any interest in the target group.

According to the announcement, the target group currently operates six pharmacies in Guangdong, Hebei, Sichuan, Shaanxi, Shanxi and Beijing. As the equity transfer agreement was entered into within 12 months of the Sipai Zhihe equity transfer agreement, both with Dashenlin, the sale must be aggregated with the Sipai Zhihe disposal under Rule 14.22. As the highest applicable percentage ratio exceeds 25% but is below 75%, the disposals constitute a major transaction under Chapter 14 of the Listing Rules.

The company expects to record a profit of approximately RMB14.25 million from the disposal. Since 2024, the Group has prioritized commercial medical insurance and health management businesses, which carry significantly higher gross margins than its specialty pharmacy business. Upon completion, the Group will no longer operate any specialty pharmacies and will continue to focus on commercial medical insurance and health management. The net proceeds will be used for corporate purposes and general working capital.