Shanghai Industrial Holdings (00363) announced that Shanghai Shihui City Development & Shanghai Grand Health Management (an indirect subsidiary of the company) entered into a share transfer agreement with Shanghai Huashi and Shanghai Lingfeng Medical on November 13, 2025. Under the agreement, Shanghai Huashi and Shanghai Shihui City Development & Shanghai Grand Health Management conditionally agreed to sell, while Shanghai Lingfeng Medical conditionally agreed to purchase, a combined 49% stake in the target company, Shanghai Shihui Medical Beauty Hospital Co., Ltd., for a total consideration of RMB73.598 million.

As of the announcement date, the target company was owned 51% by Shanghai Lingfeng Medical, 30% by Shanghai Huashi, and 19% by Shanghai Shihui City Development & Shanghai Grand Health Management. The group’s 19% indirect interest in the target company was classified as an investment in an associate in the company’s consolidated financial statements.

Upon completion of the transaction, the company will no longer hold any stake in the target company, which will become wholly owned by Shanghai Lingfeng Medical. The target company will cease to be an associate of the company.

The group expects to recover and redeploy capital through the sale, streamline its investment portfolio, and focus resources on its core business, thereby improving operational efficiency and capital discipline. The transaction aligns with the group’s strategy of optimizing asset allocation, enhancing cash flow, and concentrating on core business development, supporting long-term sustainable growth.