Modern Chinese Medicine Group (01643) announced that on January 19, 2026, the company entered into a sale and purchase agreement with the vendor, Royal Guard Holdings Limited. Pursuant to the agreement, the company conditionally agreed to purchase, and the vendor agreed to sell, 3 million sale shares (representing 30% of the total issued share capital of the target company, Digital Health Global Holdings Limited) for a consideration of HK$41.82 million. Each of the target company and Fu Xing is an investment holding company. As of the date of this announcement, Wing Ming is wholly-owned by Fu Xing, which is in turn wholly-owned by Wing Sheng, and Wing Sheng is wholly-owned by the target company. The target company is 89% owned by the vendor and 11% owned by Da Jian Kang. Wing Sheng is primarily engaged in the production of registered traditional Chinese medicines, including a range of specialized products such as "Shen Dun Hai Gou Wan" and "Wing Ming Wu Ji Bai Feng Wan." Wing Sheng has been licensed under the Chinese Medicine Ordinance (Chapter 549 of the Laws of Hong Kong) to manufacture proprietary Chinese medicines and owns manufacturing facilities in Hong Kong. As of the date of this announcement, Wing Sheng has registered 184 proprietary Chinese medicines in Hong Kong. Wing Ming is primarily engaged in the online sales business of proprietary Chinese medicines manufactured by Wing Sheng. The target group has established various official flagship stores on major e-commerce platforms through Wing Ming. The company intends to allocate 50% of the net proceeds raised from the subscription to new business opportunities related to Chinese medicine, including investments in Chinese medicine manufacturing enterprises. The company believes that investing in traditional Chinese medicine (TCM) manufacturers located in Hong Kong with production lines and sales points in Hong Kong will expand the Group's sales footprint to Hong Kong and overseas. Given that Wing Sheng is a licensed Chinese medicine manufacturer in Hong Kong and its business scope covers Hong Kong and Macau, the Board of Directors considers the acquisition to be in line with the Group's development strategy.