EPS Creative Health Technology Group Limited (3860) has disclosed that it entered into a memorandum of understanding (MOU) on 3 February 2026 with Honestar Medical Limited for the proposed acquisition of a 16.23% equity interest in China Genetic Limited (CG). CG currently holds approximately 67.68% of Shanghai Huaxin Biotechnology Co., Ltd., a biopharmaceutical company based in the People’s Republic of China.

Under the MOU, the total consideration for the proposed acquisition is expected to range between HK$40 million and HK$45 million, subject to negotiation and reference to an independent valuation of the target business. The rollover of certain key terms, including exclusivity and confidentiality, is binding, while other terms are non-binding. The completion of the proposed transaction remains conditional upon due diligence, necessary regulatory and shareholder approvals, and the absence of any material adverse change.

The proposed acquisition is intended to complement EPS Creative Health Technology Group Limited’s existing lines in healthcare product trading, medical device leasing, and provision of contract research organization services. Following completion, the acquired stake would be recognized as an investment in an associate in the group’s consolidated accounts. The MOU also notes that the proposed acquisition may be deemed a connected and discloseable transaction under applicable listing rules due to overlapping directorship and ownership in the vendor.

Shareholders and potential investors are advised to exercise caution when dealing in company shares, as the acquisition may or may not proceed.