Shanghai Pharma's equity structure streamlined by intra-group transfer

Shanghai Pharmaceuticals Holding Co., Ltd. (Shanghai Pharma) has revealed an intra-group equity transfer involving its controlling entities. Shanghai SIIC (Group) Co., Ltd. (Shanghai SIIC) transferred its 100% equity in Shanghai Tandong Enterprise Consulting Services Co., Ltd. to SIIC International Holdings Ltd. (SIIC International), a wholly-owned subsidiary of Shanghai Industrial (Group) Co., Ltd. (SIIC Group). The transaction value for this indirect transfer was CNY 1,484,749,800.

This restructuring, effective September 22, 2025, aims to optimize SIIC Group's internal equity structure and facilitate long-term development. While Shanghai SIIC's direct and indirect control over Shanghai Pharma's A-shares decreased, SIIC International's holdings increased by the corresponding amount. This resulted in no change to SIIC Group's overall 38.465% ownership of Shanghai Pharma's total share capital. The transfer did not trigger a mandatory tender offer, and the company's controlling shareholder and ultimate controller remain unchanged.

Furthermore, SIIC International plans to increase its stake in Shanghai Pharma's H-shares by 55m to 74m shares (up to 2% of voting shares) through open market purchases on the Hong Kong Stock Exchange. This will occur between September 15, 2025, and September 14, 2026, and reflects confidence in Shanghai Pharma's future growth. SIIC International has committed not to reduce its holdings during the plan and for six months thereafter.