Venus Medtech plans property sale to boost liquidity, repay loans

Venus Medtech (Hangzhou) Inc. has announced a major transaction involving the disposal of its Industrial Park property, comprising construction in progress on Parcel 1 and Parcel 2, along with associated land use rights. The total consideration for the disposal is RMB374,563,969. This move follows the suspension of the Industrial Park's construction since 2024 and aims to alleviate financial burdens, including outstanding bank loans of approximately RMB265 million.

The company expects to record an unaudited net loss before taxation of approximately RMB5 million from the disposal, calculated as the difference between the total consideration (excluding value-added tax) of RMB343.6 million and the unaudited book value of RMB348.6 million as at September 30, 2025. The proceeds will primarily be used to repay bank loans, with RMB78.6 million allocated to general working capital.

Shareholders will vote on the proposed disposal at an extraordinary general meeting on Friday, November 28, 2025. The board believes the transaction is fair, reasonable, and in the best interests of the company, as it enhances financial liquidity and enables a focus on core business. The purchaser is Hangzhou Binjiang Urban Construction Development Co., Ltd., a state-owned enterprise.