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Luye Pharma Group ( (HK:2186) ) has issued an update.
Luye Pharma Group has completed the transfer of a 25% equity interest in its subsidiary Nanjing Luye from an exiting investor to NJ Xinshi, a PRC limited partnership, for a consideration of RMB1.086 billion, effective 19 January 2026. Following the deal, Nanjing Luye is now owned 75% by Luye Pharma’s group and 25% by NJ Xinshi, with the price determined using a pre-agreed valuation formula from a prior investment agreement as an objective benchmark. The transaction, classified both as a discloseable and connected transaction under Hong Kong Listing Rules because the exiting investor was a substantial shareholder at the subsidiary level, has been approved by the board and deemed fair and reasonable by independent non-executive directors, allowing it to proceed under an announcement-only regime without requiring a circular, independent financial advice or shareholder approval. The introduction of NJ Xinshi as a new partner, under a partnership agreement involving Hangzhou Xinshi, Yantai Hexin, China Cinda and Shandong Luye, gives Luye Pharma greater influence over the identity and alignment of its minority partner in Nanjing Luye while providing an orderly exit for the previous investor.
The most recent analyst rating on (HK:2186) stock is a Hold with a HK$3.00 price target. To see the full list of analyst forecasts on Luye Pharma Group stock, see the HK:2186 Stock Forecast page.
More about Luye Pharma Group
Luye Pharma Group Ltd. is a Hong Kong-listed pharmaceutical company headquartered in Bermuda, operating through subsidiaries such as Nanjing Luye in China. The group focuses on developing, manufacturing and commercializing specialty pharmaceutical products, and actively manages its equity interests and partnerships to optimize control over key operating entities within its portfolio.
YTD Price Performance: 6.93%
Average Trading Volume: 18,276,326
Technical Sentiment Signal: Sell
Current Market Cap: HK$11.51B
Learn more about 2186 stock on TipRanks’ Stock Analysis page.