Announcement • Apr 24
DaShenLin Pharmaceutical Group Co., Ltd., Annual General Meeting, May 15, 2026 DaShenLin Pharmaceutical Group Co., Ltd., Annual General Meeting, May 15, 2026, at 10:00 China Standard Time. Location: The Company's Meeting Room, Guangzhou, Guangdong China Reported Earnings • Apr 24
First quarter 2026 earnings: EPS exceeds analyst expectations while revenues lag behind First quarter 2026 results: EPS: CN¥0.45 (up from CN¥0.40 in 1Q 2025). Revenue: CN¥6.97b (flat on 1Q 2025). Net income: CN¥511.1m (up 11% from 1Q 2025). Profit margin: 7.3% (up from 6.6% in 1Q 2025). Revenue missed analyst estimates by 2.9%. Earnings per share (EPS) exceeded analyst estimates by 3.3%. Revenue is forecast to grow 11% p.a. on average during the next 2 years, compared to a 10.0% growth forecast for the Consumer Retailing industry in China. Over the last 3 years on average, earnings per share has fallen by 1% per year but the company’s share price has fallen by 14% per year, which means it is performing significantly worse than earnings. Announcement • Apr 23
DaShenLin Pharmaceutical Group Co., Ltd. (SHSE:603233) signed a equity transfer agreement to acquire Sipai Zhihe Technology (Guangzhou) Co., Ltd. from Sipai Healthcare Investment Group Co., Ltd. for CNY 79.1 million. DaShenLin Pharmaceutical Group Co., Ltd. (SHSE:603233) signed a equity transfer agreement to acquire Sipai Zhihe Technology (Guangzhou) Co., Ltd. from Sipai Healthcare Investment Group Co., Ltd. for CNY 79.1 million on April 22, 2026. The consideration is CNY 51.73 million (all PRC stamp duties in relation to this transaction shall be borne by the Seller), representing the valuation of the target and target subsidiaries and subject to adjustment. The Consideration shall be paid by the Purchaser to the Seller in five instalments and subject to the special payment arrangement: The first instalment of CNY 4.674 million shall be paid to the Seller within 15 business days after the date of the Equity Transfer Agreement; second instalment of CNY 16.2362 million shall be paid to the Seller within 15 business days after completion of the changes to effect the Disposal, third instalment of CNY 17.0828 million shall be paid to the Seller within 15 business days after completion of operational handover matters and certain qualifications confirmed by the Purchaser, fourth instalment of CNY 2.46 million shall be paid to the Seller within 15 business days after delivery of operating systems and data to the Purchaser; and the fifth instalment of CNY 7.337 million shall be paid to the Seller within 15 business days after the earlier of (a) the first anniversary of the Closing Date; or (b) the second anniversary of the date of the equity transfer agreement. Pursuant to the Equity Transfer Agreement, an amount representing no more than 50% of the third instalment attributable to specific pharmacies may be withheld by the Purchaser and an additional CNY 3.94 million may be payable depending on the status of the lease agreement entered as prescribed by the equity transfer agreement.
If any target subsidiaries are unable to operate normally following completion, the consideration shall be reduced by an amount equal to the attributed valuation of such target subsidiaries. In the event that the net assets of the target company at the closing date exceed the target net asset value of CNY 2.59 million, the consideration should be adjusted upwards to reflect the excess net asset, provided that net asset value at the closing date shall not exceed CNY 30 million and in any event, the total consideration (after any upward adjustment) shall not exceed CNY 79.14 million.
As of March 31, 2026, Sipai Zhihe Technology (Guangzhou) Co., Ltd. reported total common equity of CNY 15.08 million.
The completion of this transaction is contingent upon several key financial, operational, and structural conditions. Financially, the target company must maintain consolidated net assets of at least CNY 2.59 million and have accurate, compliant financial records. Operationally, all its subsidiaries must hold the necessary licenses and qualifications. Within 45 days after the date of the equity transfer agreement, the Reorganization should be completed and all of the target subsidiaries should become wholly-owned subsidiary of Sipai Zhihe Technology (Guangzhou) Co., Ltd.
The net proceeds from the transaction will be applied for corporate purposes and as general working capital of the group.
Ignite Capital Limited acted as financial advisor for Sipai Health. 
