FUSEN PHARM (01652) announced that on September 19, 2025 (after Hong Kong Stock Exchange trading hours), buyer Henan Xisheng Industrial Development Co., Ltd. entered into an agreement with seller Henan Fusen Pharmaceutical Co., Ltd. (an indirect wholly-owned subsidiary of the company). Under the agreement, the seller conditionally agreed to sell and the buyer conditionally agreed to purchase the sale shares, representing the entire equity interest in the target company Henan Fusen Smart Energy-Saving Technology Co., Ltd., for a total consideration of RMB 73 million, subject to the terms and conditions of the agreement.

The announcement stated that the group is principally engaged in the manufacture and sale of pharmaceutical products. The target company is primarily engaged in the installation and operation of photovoltaic power generation systems. It was established to support the group's internal electricity demand and complement the group's pharmaceutical production, while generating revenue through external sales. However, the photovoltaic business is not a core focus of the group.

In line with the group's long-term strategy to streamline operations and refine business focus, the group has resolved to dispose of this non-core subsidiary. The disposal represents a strategic action aimed at consolidating resources, improving operational efficiency, and reallocating management and financial focus to the group's core pharmaceutical business.

Through restructuring its business portfolio and exiting peripheral industries to its main business, the group aims to strengthen its competitive position and enhance its capabilities to capitalize on new growth opportunities in the pharmaceutical industry. Additionally, the net proceeds from the disposal will provide immediate cash inflow and are intended for the group's general working capital, including but not limited to funding operating expenses and supporting the continued development of its core pharmaceutical business.

The board of directors believes that the terms of the disposal are fair and reasonable and are in the interests of the company and its shareholders as a whole.