On October 3, a recent announcement on the "Progress of Shareholder Return Plan Implementation" from Jinxin Fertility, the nation's largest integrated assisted reproductive service provider, revealed that over the past 12 months, cumulative shareholder returns through dividends and buybacks totaled RMB 429 million.

Meanwhile, citing robust cash flow and the view that the current share price does not fully reflect intrinsic value, Jinxin Fertility will continue and expand its buyback program in 2026. Recently, Jinxin Fertility also issued a "holding-type real estate asset-backed special plan."

In March of this year, Jinxin Fertility released its 2026–2028 shareholder return plan, explicitly pledging to return 50%–80% of annual adjusted EBITDA to shareholders and establishing a share buyback authorization of up to RMB 300 million over the next 12 months.

According to the progress disclosed this time, from the past 12 months up to the date of this announcement, Jinxin Fertility has paid approximately RMB 100 million in dividends and repurchased 162,609,000 shares for approximately RMB 328.9 million, bringing cumulative shareholder returns to RMB 428.9 million.

Jinxin Fertility expects that once the share market price more fully reflects its intrinsic value, it will gradually increase cash dividend distributions for the fiscal years ending December 31, 2027 and 2028, with a target annual payout ratio of approximately 20% to 40% of that year's non-IFRS adjusted EBITDA (non-IFRS adjusted EBITDA).

For the six months ended June 30, 2026, adjusted EBITDA was RMB 603 million, implying a shareholder return amount calculated between RMB 120 million and RMB 240 million.

On September 29, prior to this announcement, Shanghai Stock Exchange information showed that it had accepted the "Jinxin Fertility holding-type real estate asset-backed special plan," with a proposed issuance of RMB 1.93 billion. The plan manager is CICC, and the issuance will be carried out in two tranches, with the first tranche expected to be RMB 1.5 billion. After deducting the self-held portion, net cash recovered is expected to be approximately RMB 1.2 billion. Based on data as of June 30, 2026, after the transaction is completed, the company's net debt/EBITDA will decline from approximately 2.8 times to approximately 0.9 times, a significant deleveraging effect that can enhance financial stability and flexibility.

This REITs pertains solely to the property building itself, and the medical services and normal operations of Shenzhen Zhongshan Maternity and Child Health Hospital are completely unaffected.

Data shows that Jinxin Fertility has cash flow of approximately RMB 500 million. Regarding the specific approach to shareholder returns going forward, Jinxin Fertility stated that when market value is far below book value, it will prioritize buybacks while maintaining stable cash flow dividends; after market value has recovered to a certain extent, it will gradually increase the dividend ratio to continuously enhance shareholder returns.