BrightGene expands subsidiary, plans H-share listing and share buyback

BrightGene Bio-Medical Technology (SSE:688166) has announced that its wholly-owned subsidiary, BrightGene Bio-Medical Technology (Taixing) Co., Ltd., will undergo a capital increase by introducing an investor, Suzhou Xinborui Investment Co., Ltd. Suzhou Xinborui will subscribe to new registered capital of yuan 22,680,500 for a total investment of yuan 198,000,000, with the remainder allocated to capital reserves. Post-investment, BrightGene's direct ownership in Taixing will adjust from 100% to 70.80%.

Concurrently, BrightGene plans to issue H-shares and list on the Main Board of the Hong Kong Stock Exchange to accelerate internationalization, enhance overseas financing capabilities, and strengthen capital and competitiveness. The company also intends a share repurchase program of its A-shares, totaling yuan 10,000,000 to yuan 20,000,000 at a maximum price of yuan 139.77 per share, for employee equity incentives or stock ownership plans. The company's audit for the H-share listing will be conducted by Ernst & Young Hong Kong.

Furthermore, BrightGene estimates an increase in daily related-party transactions, primarily for raw material procurement from Shenzhen Aoli Biotechnology Co., Ltd. The company will also provide financial assistance of up to yuan 200,000,000 to its controlled subsidiary, Aitemei (Suzhou) Pharmaceutical Technology Co., Ltd. The previous shareholder, Advanced Manufacturing Industry Investment Fund (Limited Partnership), has completed its share reduction, selling 4,216,092 shares via centralized bidding and 1,085,700 shares via block trading.