Sinopharm Group Co., Ltd. (01099) has announced a significant divestment plan. On August 19, 2026, the company, along with its parent entity China National Pharmaceutical Group Corporation (Sinopharm Group) and its subsidiary China National Medicines Corporation Ltd. (600511), entered into an equity transfer agreement with China State Institute of Pharmaceutical Industry (Sinopharm Modern).

Under the terms of the agreement, Sinopharm will sell its 30.13% equity stake in the target company, Sinopharm Group Guorui Pharmaceutical Co., Ltd. (Guorui Pharma), to Sinopharm Modern for RMB 240 million. Concurrently, China National Medicines Corporation Ltd. will transfer its 12.06% stake in the target for RMB 96.093 million, while Sinopharm Group will divest its 8.81% holding for RMB 70.1973 million.

The combined consideration for the total 51% equity transfer amounts to RMB 406 million. Upon completion of the transaction, the target company will cease to be a consolidated subsidiary of Sinopharm, and the company will no longer hold any direct equity interest in Guorui Pharma.

Following the transaction, Guorui Pharma will become a controlled subsidiary of Sinopharm Modern. This move is expected to help eliminate horizontal competition, optimize the group's asset structure and internal resource allocation, and promote the integration and synergistic development of the pharmaceutical manufacturing segment. The transaction aligns with the group's overall development strategy and serves the best interests of the company and its shareholders.