LIVZON PHARMA (01513) announced that on December 30, 2025, the company, its controlling shareholder Joincare Pharmaceutical Group Industry Co.,Ltd., Xin You Mao Hai, and Mao Haizi entered into a capital increase subscription and equity transfer agreement. Xin You Mao Hai agreed to subscribe for a cash capital increase of RMB 15 million in Mao Haizi. Concurrently, Joincare agreed to transfer its entire 49% equity stake in Mao Haizi to Xin You Mao Hai.
Upon completion of this transaction, Xin You Mao Hai will hold a 52.56% stake in Mao Haizi. The company's stake in Mao Haizi will be diluted from 51.00% to 47.44%, and Joincare will no longer hold any equity in Mao Haizi. Consequently, Mao Haizi will cease to be consolidated within the company's financial statements.
The company is strategically focused on pharmaceutical research and development, production, and sales. While it remains optimistic about the development potential of the pet pharmaceutical industry in which Mao Haizi operates, this transaction represents a significant step to sharpen the company's focus on its core business, optimize its asset structure, and enhance governance efficiency.
This move is beneficial for concentrating resources to advance core operations while still allowing the company to participate in Mao Haizi's long-term growth potential. Following the transaction's completion, the company will dedicate more effort and resources to technological innovation and market expansion within its pharmaceutical segment.
This strategic reallocation aims to further consolidate and improve the company's profitability, aligning with its long-term development strategy and serving the overall interests of all shareholders.