Republic Healthcare Limited announced that its wholly owned subsidiary, Life Ark Biotechnology Limited, signed a sale and purchase agreement on 31 July 2026 to divest 100% of Life Ark (Shenzhen) Technology Co., Ltd. to Shenzhen Ronghui Renhe Life Technology Group Co., Ltd. for RMB13.70 million (approximately HK$15.76 million).

The cash consideration must be fully paid on or before 31 December 2026. Completion will occur upon registration of the purchaser as the new shareholder, after which the target company will no longer be consolidated into the group’s financial statements.

Financial metrics • Net asset value of the target: RMB5.74 million as at 31 May 2026; RMB8.60 million as at 31 December 2025. • 2025 loss after tax: RMB4.24 million. • Expected disposal gain to the group: about RMB7.96 million (HK$9.15 million), subject to final audit. • Net proceeds are earmarked for general working capital and potential future investments.

Strategic rationale Management cited the mainland’s tighter regulatory environment for stem-cell activities following State Council Order No. 818, the subsidiary’s loss-making status, and high ongoing funding needs. The disposal is viewed as an opportunity to realise the investment, cut cash outflows and redeploy resources into businesses with clearer profitability prospects.

Regulatory treatment One applicable percentage ratio under Chapter 19 of the GEM Listing Rules exceeds 25% but is below 75%, classifying the transaction as a major transaction. Written approval has been obtained from the controlling shareholder, which holds 56.09% of issued shares, so no general meeting will be convened. A circular detailing the disposal is slated for dispatch on or before 21 August 2026.