HEALTHYWAY INC (02587) announced that on December 24, 2025, its wholly-owned subsidiary, Zhejiang Healthy Way Technology Group Co., Ltd., intends to sell a 51% equity stake in Fujian Jianchen Pharmaceutical Co., Ltd. to Ms. Xiao Jing for a total consideration of RMB 1.6779 million. The primary business activities of the company being sold involve drug wholesaling, operating Class III medical devices, and selling Class I and Class II medical devices.
The company being divested experienced a temporary surge in revenue due to stockpiling Oseltamivir during the influenza outbreak at the end of 2023. However, as the pandemic subsided, the limitations of the company operating as a single-product inventory drug wholesaler became apparent. Starting from August 2024, drugs procured under purchase and sale agreements with other pharmaceutical companies failed to deliver the expected performance, leading to a significant decline in both revenue and net profit. Given the relatively high fixed costs associated with drug procurement, warehousing, transportation, and employee compensation, coupled with the failure to meet operational performance targets, the Group decided to divest its stake in the company to reduce costs and improve efficiency. The Company plans to use the proceeds from the sale for the development of the Group's enterprise services and digital marketing services.
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