EPS HEALTH TECH (03860) announced that on February 3, 2026, the company (as the buyer) and Hongshida Medical Co., Ltd. (as the seller) entered into a non-binding memorandum of understanding concerning the proposed acquisition of a 16.23% equity interest in China Gene Engineering Co., Ltd. (China Gene).

China Gene is a company incorporated in Hong Kong, which beneficially owns approximately 67.68% of the equity interest in Shanghai Huaxin Biotechnology High-Technology Co., Ltd. (Huaxin).

Huaxin is a company established in the People's Republic of China, and together with China Gene and its subsidiaries, they are collectively referred to as the "China Gene Group".

The consideration is expected to range from approximately HK$40 million to HK$45 million.

The China Gene Group is primarily engaged in the internal research and development, manufacturing, and sales of biopharmaceutical products in China, which complements the Group's existing principal businesses of healthcare product trading, medical device leasing, and providing Contract Research Organization (CRO) services.

Upon completion of the proposed acquisition, the Group's investment in China Gene will be recognized as an investment in an associate in the Group's consolidated financial statements.

The Board of Directors believes that the proposed acquisition presents an excellent opportunity for the Group to expand its involvement in the operations of the China Gene Group; it is also considered a strategic investment that will create potential long-term value for the Group and facilitate its business development within the promising healthcare industry.