Kaisa Health (00876) announced that on March 18, 2026, the company entered into an agreement with the seller, Yiwang Development Limited, to purchase the entire issued share capital of the target company, Chongxing Limited, for a consideration of RMB 21.6037 million. The total consideration will be settled in full by the following methods: assuming the share consolidation takes effect, the company will allot and issue 2.79 million consideration shares to the seller at an issue price of HK$8.75 per share upon completion; if the share consolidation does not take effect, the company will allot and issue 139 million consideration shares to the seller at an issue price of HK$0.175 per share upon completion. The consideration shares represent approximately 2.69% of the company’s enlarged issued share capital after the allotment and issuance of the consideration shares.

As of the date of the agreement, the target company holds the entire issued share capital of Chenghe, which in turn holds a 99% equity interest in Dongguan Chenghe. Dongguan Chenghe directly holds the entire issued share capital of Kaisa Medical Investment, which further directly holds a 54.84% equity stake in the project company, Qinghai Pharmaceutical Co., Ltd. The project company is engaged in the research, development, production, and sale of pharmaceutical products, including narcotic drugs, in China. It holds a drug manufacturing license issued by the Qinghai Provincial Medical Products Administration and owns self-operated R&D and production facilities in Xining, Qinghai Province, covering a total land area of approximately 76,000 square meters with a total gross floor area of about 43,890 square meters. The project company has also established the Shanghai Research Institute in Shanghai, focusing on the R&D of active pharmaceutical ingredients and finished dosage forms. These R&D investments are expected to facilitate further commercialization and support leapfrog development in the coming years.

Upon completion of the acquisition, Kaisa Health will hold a 54.84% stake in the project company through the target company. Each member of the target group, including the project group, will become a subsidiary of the company. As a result, their financial performance and position will be consolidated into the company’s financial statements.

Additionally, the board of directors has proposed a share consolidation on the basis of every 50 existing shares with a par value of HK$0.00125 each consolidated into one consolidated share with a par value of HK$0.0625 each. The share consolidation is subject to approval by shareholders through an ordinary resolution at an extraordinary general meeting. As of the date of this announcement, the existing shares are currently traded on the Stock Exchange in board lots of 10,000 existing shares. The board proposes that, upon the effectiveness of the share consolidation, the board lot size for trading on the Exchange will be changed from 10,000 existing shares to 2,000 consolidated shares.