Shanghai Haohai fully acquires subsidiary, bolstering ophthalmic market position

Shanghai Haohai Biological Technology Co., Ltd. announced on November 7, 2025, the acquisition of the remaining 20% equity interest in its indirectly 80%-owned subsidiary, the Target Company, for RMB74m. Upon completion, the Target Company will become a wholly-owned subsidiary of Shanghai Haohai. The sellers, including Mr. Zhang and Shenzhen Baina, are connected persons at the subsidiary level. The acquisition is a connected transaction under Chapter 14A of the Listing Rules.

The RMB74m acquisition consideration will offset the total monetary compensation owed by the sellers for profit guarantee shortfalls. The Target Company's valuation as of June 30, 2025, was RMB541,588,000, determined by an independent valuer. The monetary compensation for 2024 is approximately RMB27,681,500, due to the 2024 actual profit of RMB22,006,200 being lower than the 2024 profit guarantee of RMB59,100,000.

The decrease in consideration compared to an earlier 2023 valuation for a similar stake is attributed to significant changes in the IOL market. This includes its inclusion in national centralized procurement in November 2023, which led to a decline in gross profit margins and company performance. This acquisition is expected to improve management and operational efficiency, bolstering the group's competitiveness in ophthalmology.