SANAI HEALTH GP (01889) announced that on November 10, 2025, the seller, Beijing Hangyang Health Technology Co., Ltd. (a non-wholly owned subsidiary of the company), entered into a share transfer agreement with the buyer, Xue Wenfen, for the sale of a 99% stake in the target company, Luannan Hangyang Health Industry Co., Ltd., for a consideration of approximately RMB18.69 million, to be settled in cash.

The target company, an indirect non-wholly owned subsidiary of SANAI HEALTH GP incorporated in China, has not commenced operations and currently holds a land parcel of approximately 67,000 square meters located in Luannan County, China. Since its establishment in January 2018, the target company has not engaged in any substantive business activities.

The land was originally intended for the construction of production facilities to expand health product capacity. However, due to unfavorable market conditions, management has decided to terminate the expansion plan. The board believes that retaining ownership of the target company and the land may not generate optimal returns for shareholders.

The sale presents an opportunity for the company to generate additional cash flow. Divesting the target company will allow the group to streamline operations, secure additional funding, and reallocate resources to markets and business segments where it holds stronger competitive advantages.

The estimated net proceeds from the sale (after deducting related expenses) amount to approximately RMB18.68 million, which will be used for general working capital and other business development purposes. Upon completion, the transaction is expected to improve the group's liquidity and financial position while enabling a sharper focus on core operations.