GUANZE MEDICAL (02427) has issued an announcement stating that the company's board of directors noted a certain increase in the price and trading volume of the company's shares on the Stock Exchange of Hong Kong on January 26, 2026. The company was informed by its controlling shareholder, Meng A Capital Limited, that it is in discussions and negotiations with a potential buyer regarding the possible sale of 699 million shares, representing approximately 73.60% of the company's total issued share capital. As of the date of this announcement, the details of the potential sale, including the price, are still under negotiation, and no formal agreement has been executed. Consequently, the potential sale may not proceed. As of the date of this announcement, Meng A Capital holds 699 million shares, representing approximately 73.60% of the company's total issued share capital. Meng A Capital is wholly owned by Mr. Meng Xianzhen, the Chairman of the Board, an Executive Director, and the Chief Executive Officer of the company. Subject to the execution of a formal agreement and the fulfillment or waiver of the conditions precedent potentially stipulated therein, it is expected that upon completion of the potential sale, the potential buyer and its concert parties would hold more than 50% of the company's issued share capital. In accordance with the provisions of the Takeovers Code, if the potential sale is finalized, the potential buyer and its concert parties would be required, under Rule 26.1 of the Takeovers Code, to make a mandatory unconditional general offer for all the issued shares not already owned or agreed to be acquired by them. As of the date of this announcement, the board has been informed by Meng A Capital that no formal agreement has been reached regarding the potential sale, negotiations are ongoing, and the transaction may not materialize. The company will issue further announcements in due course in compliance with the Listing Rules and the Takeovers Code to inform shareholders of any significant developments regarding the potential sale.