REPUBLIC HC (08357) subsidiary plans to sell all shares of Life's Ark (Shenzhen) Technology Co., Ltd. for 13.7 million yuan

According to Zhitong Finance App, REPUBLIC HC (08357) announced that on July 31, 2026 (after the trading session of the Stock Exchange), the seller Life Ark Biotechnology Co., Ltd. (a direct wholly-owned subsidiary of the company) entered into the agreement with the buyer Shenzhen Ronghui Renhe Life Technology Group Co., Ltd., according to this, the seller has agreed to sell and the buyer has agreed to purchase the share capital to be sold (that is, all shares in the target company Life Ark (Shenzhen) Technology Co., Ltd.). The cash cost is RMB 13.7 million (equivalent to approximately HK$15.755 million).

After the sale is completed, the target company will no longer be a subsidiary of the Company, and the target company's financial results will no longer be consolidated into the Group's comprehensive financial statements.

The board of directors has reviewed the target company's business performance and future prospects. With the entry into force of Order No. 818 of the State Council of China on May 1, 2026, the operating environment for stem cell-related activities in China is facing further challenges. The new regulatory framework imposes stricter regulations on clinical research and application activities, leading to increased compliance responsibilities and operational restrictions.

Given the target company's loss situation, increasing regulatory uncertainty, and additional resources that may be needed to support future operations, the Board believes that the sale provides the Group with a sound opportunity to realize its investments, reduce regulatory and operational risks, and reallocate resources to other business opportunities.

Target companies require significant ongoing capital commitments, including rent, staff, compliance, and operating expenses. The sale enabled the Group to reduce cash outflows and focus resources on businesses with better profit prospects.