Wai Yuen Tong Medicine Holdings Limited (Wai Yuen Tong) has announced that its board will seek shareholder approval at the upcoming annual general meeting (AGM) for a share-premium reduction of approximately HK$1.12 billion, the entire balance standing to the credit of the company’s Share Premium Account as at 31 March 2026. Upon the expected effective date—the business day following the AGM—this amount will be transferred to the Contributed Surplus Account.

The proposal is subject to two key conditions: (1) approval via special resolution by shareholders at the AGM, and (2) directors’ confirmation, in accordance with section 46(2) of the Bermuda Companies Act, that the company will remain able to meet its liabilities as they fall due after the reduction.

Management states that reallocating the HK$1.12 billion to contributed surplus will enlarge Wai Yuen Tong’s distributable reserves, thus positioning the company to consider dividend payments when its financial circumstances allow. The reduction will not alter the authorised or issued share capital, the nominal value of shares, or existing trading arrangements.

The board affirms that, apart from associated implementation expenses, the transaction is not expected to have a material adverse impact on the group’s assets, operations, or shareholders’ proportional interests. No shareholder is required to abstain from voting on the special resolution.

A circular detailing the proposal and the AGM notice will be dispatched in accordance with Hong Kong Listing Rules. The company cautions that the share-premium reduction may or may not proceed, and investors are advised to exercise due care when dealing in Wai Yuen Tong shares.