Dongcheng biochemicals moves forward with subsidiary spin-off for HKEX listing

Yantai Dongcheng Biochemicals is advancing with the spin-off and separate listing of its subsidiary, Yantai Lannacheng Biotechnology Co., Ltd., on the Main Board of the Hong Kong Stock Exchange. The board has approved various resolutions, including the spin-off plan and related legal compliance. China International Capital Corporation Limited, as the independent financial advisor, confirmed that insider trading checks revealed no direct evidence of insider trading that would constitute a substantive legal impediment.

During the self-inspection period from February 28, 2025, to August 28, 2025, minor share transactions by relevant institutions and individuals, including the independent financial advisor's proprietary and asset management accounts, and an immediate family member of a Lannacheng director, were identified. However, these transactions were deemed unrelated to insider information or the spin-off process.

The company's board has been expanded to nine directors, including five non-independent, three independent, and one employee representative, to optimize governance. These changes were approved on September 15, 2025, following a shareholder meeting. Amendments to the company's articles of association and related internal control systems were also approved, ensuring compliance and smooth execution of the spin-off.