Fusen Pharmaceutical updates on Henan Fusen disposal valuation

Fusen Pharmaceutical Company Limited issued a supplemental announcement regarding the disposal of Henan Fusen Intelligent Energy Conservation Technology Company Limited. The consideration was determined after arm's length negotiations, taking into account an appraised net asset value of approximately RMB73.4 million as of 31 March 2025, according to a valuation report. Henan Jiuhe Land and Real Estate Assets Appraisal Co. prepared the report, using the asset approach.

The asset approach was selected due to the target company's relatively short history, making market and income approaches unreliable for practicable comparisons and future financial forecasts. The appraised net asset value of RMB73.4 million resulted from appraised total assets of RMB83.5 million minus appraised total liabilities of RMB10.0 million. This represents a negligible difference of approximately RMB0.2 million from the book value of RMB73.6 million.

The consideration may be subject to downward adjustments under specific conditions, including discrepancies in assets or liabilities, legal consequences, detrimental conducts during the transition period, and losses incurred by the target company. The board views the consideration and adjustment provisions as fair and reasonable.