On 8 June 2026, Consun Pharmaceutical Group Limited (CONSUN PHARMA) announced that its wholly owned subsidiary, Guangzhou Consun Pharmaceutical Company Limited, has signed an investment agreement to acquire a 30% equity interest in Shanghai Huamao Pharmaceutical Co., Ltd. for a total cash consideration of RMB191.40 million. The transaction combines a purchase of existing shares with a capital injection; upon completion, Shanghai Huamao will become an associate of CONSUN PHARMA and will not be consolidated into the Group’s financial statements.

Shanghai Huamao, an existing supplier to CONSUN PHARMA, operates in Shanghai Xinzhuang Industry Park and holds National High-Tech Enterprise status as well as multiple regional innovation accolades. Its capabilities span synthetic biology, precision fermentation, and active pharmaceutical ingredient (API) production, particularly in dextran and enzymatic lactulose.

Management cites five principal synergies: 1. Vertical integration from API to finished dosage forms via Shanghai Huamao’s synthetic biology and precision-fermentation platforms, enhancing supply security and cost efficiency. 2. Expansion within nephrology, leveraging Huamao’s peritoneal dialysis technologies alongside CONSUN PHARMA’s domestic sales network. 3. Strengthened supply chain and growth prospects in gynaecology and pediatrics through secured access to dextran, a key raw material for “Yuanli Kang,” and entry into chronic-constipation and pediatric formulations. 4. Shared R&D and production resources, enabling process optimisation and reduced development costs. 5. Early positioning in high-value synthetic biology applications for female anti-aging and children’s health products.

The board affirmed that the agreement’s terms are fair, reasonable, and in the interests of shareholders. As all applicable percentage ratios are below 5%, the deal is exempt from Chapter 14 notification and announcement requirements of the Hong Kong Listing Rules.