Fusen Pharmaceutical Co., Ltd. (HKEX: 01652) has announced the signing of a capital increase agreement for its subsidiary, Henan Fusen.

The agreement, dated June 18, 2026, involves investors Nanyang Industrial Investment, Henan Xisheng, Nanyang Hengsheng, and Wealth Depot (HK). These investors will contribute a total of CNY 300 million in cash to subscribe for new registered capital in the target company, Henan Fusen.

Following the capital increase, these investors will collectively hold approximately 34% of the enlarged registered capital of Henan Fusen.

The company will indirectly retain about 66% of the enlarged registered capital, ensuring Henan Fusen remains a subsidiary.

The board of directors believes this capital injection aligns with the overall interests of the company and its shareholders.

The funds will provide Henan Fusen with additional capital to repay certain debts and strengthen its working capital position.

This move is expected to enhance the financial resilience of Henan Fusen and, by extension, improve the financial robustness of the broader group.

This is particularly significant given the challenging operating environment reflected in the group's published results and the ongoing pressures on liquidity and working capital.

Furthermore, introducing investors with a Chinese state-owned background is anticipated to bring strategic and financing support to the group.

It is also expected to provide additional resources and market credibility for the development and optimization of the group's operations.