Zhejiang Medicine plans Hong Kong spin-off, grants restricted shares

Zhejiang Medicine announced plans to spin off its controlled subsidiary, Zhejiang Xinma Biopharmaceutical Co., Ltd., for listing on the Hong Kong Stock Exchange. This move aims to enhance its biopharmaceutical segment and improve overall competitiveness. The spin-off will not result in a loss of control over Xinma Biopharmaceutical or negatively impact Zhejiang Medicine's other operations. The proposal was approved by the board on November 26, 2025.

Concurrently, the company is granting 10,284,000 restricted shares to 875 incentive recipients, including directors, senior management, and core employees, at a price of CNY 7.30 per share. The grant, approved on November 26, 2025, follows a rigorous review process by the board’s Compensation and Assessment Committee. The total expense for this equity incentive is projected to be CNY 69,211,300, to be amortized over the vesting period from 2025 to 2027.

The vesting of restricted shares is subject to performance targets for various business segments, including pharmaceutical chemical preparation R&D, biopharmaceutical preparation R&D, life nutrition products, pharmaceutical manufacturing, pharmaceutical commercial, and general management. For example, the pharmaceutical chemical preparation R&D segment needs to meet at least three out of four conditions for the first vesting period, such as obtaining approval for three generic drug listings.