FRONTAGE (01521) announced that on October 10, 2025, the company's wholly-owned subsidiary Frontage Shanghai (as the purchaser), Hangzhou Tigermed (as the seller of Sale Shares I), and Hangzhou Tigermed's wholly-owned subsidiary Jiaxing Xinge (as the seller of Sale Shares II) entered into a share transfer agreement. According to the agreement, Frontage Shanghai conditionally agreed to acquire, while Hangzhou Tigermed and Jiaxing Xinge each conditionally agreed to sell the sale shares (representing the entire issued share capital of the target company Shanghai GuanHe Pharmaceutical Technology Co., Ltd. after completion of the share buyback and capital reduction), for a total consideration of RMB 270 million.
After completion, the target company will become a wholly-owned subsidiary of the company, and the target group's financial performance will be consolidated into the group's financial statements.
To the directors' knowledge, Wuxi GuanHe, Wuxi GuanHe Phase II, Wuxi GuanHe Phase III, and Wuxi GuanHe Phase IV are all shareholding platforms owned by employees of the target company (collectively referred to as "shareholding platforms"). Under the buyback agreement, the target company will repurchase all shares held by the shareholding platforms. The repurchased shares will subsequently be cancelled, resulting in a reduction of the target company's registered capital.
As of the date of this announcement, the buyback and capital reduction have completed the announcement period under applicable Chinese laws and are expected to be formally completed on or before October 31, 2025. Upon completion of the buyback and capital reduction, the target company's registered capital will be reduced to RMB 45,169,326, with Hangzhou Tigermed and Jiaxing Xinge holding 57.94% and 42.06% of its issued share capital, respectively.
The target company is a joint stock company established in China, primarily engaged in clinical trial technical services, clinical trial-related services, and laboratory services. Wuxi GuanHe Medical and GuanHe Pharmaceutical Hong Kong are wholly-owned subsidiaries of the target company, mainly engaged in clinical research services.
The announcement stated that the acquisition aims to enhance the group's global laboratory service capabilities and consolidate its influence in China. The target group is a leading clinical research laboratory service provider with extensive experience in supporting over 1,500 clinical trials across multiple therapeutic areas, renowned for its GCP (Good Clinical Practice) compliant and internationally recognized services.
The acquisition will not only expand the group's central laboratory services in China but also strengthen its influence in the Asia-Pacific region, enabling it to support both domestic and multi-regional clinical trials. The target group's proven track record, including its role in the successful launch of 35 new drugs and support for regulatory audits, complements the group's existing expertise.
The acquisition will enhance the group's ability to provide high-quality one-stop services to pharmaceutical companies, contract research organizations, and research institutions, further consolidating its position as a trusted partner in the clinical research industry.