Luye Pharma Injects RMB285 Million into Nanjing Unit via Structured Deal

An update from Luye Pharma Group ( (HK:2186) ) is now available.

Luye Pharma Group has announced a RMB285 million capital injection into its subsidiary Nanjing Luye by Nanjing Xinan and Ningbo Cinda, which will leave the company ultimately controlled by Shenzhen Luye with a 70.01% stake, alongside minority holdings by NJ Xinshi, Nanjing Xinan and Ningbo Cinda. As part of the deal, Luye’s affiliate Yantai Luye has entered into equity option agreements granting it call options to buy out the new investors’ stakes and granting those investors put options to sell their interests under certain conditions, with Luye Pharma also providing a guarantee for Yantai Luye’s obligations; the structure amounts to a deemed partial disposal and a series of discloseable but non-shareholder-approved transactions under Hong Kong listing rules, underscoring the group’s use of flexible financing while retaining long-term control over its Nanjing platform.

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 Bermuda-incorporated pharmaceutical company listed in Hong Kong that operates through various mainland China subsidiaries and affiliates to develop, manufacture and commercialize prescription drugs, with a focus on innovative and specialty therapies. Its operations involve structured shareholdings in regional entities, reflecting an active approach to capital and partnership management within China’s healthcare and pharmaceutical markets.

YTD Price Performance: 6.93%

Average Trading Volume: 18,276,326

Technical Sentiment Signal: Sell

Current Market Cap: HK$11.51B

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