SIMCERE PHARMA (02096) announced that on March 25, 2026, the buyer, Simcere Pharmaceutical Co., Ltd. (an indirect wholly-owned subsidiary of the company), entered into an equity transfer agreement with the seller, Jiangsu Simcere Diagnostics Technology Co., Ltd. The buyer agreed to acquire, and the seller agreed to sell, the entire equity interest of the target company, Shanghai Simcere Diagnostics Technology Co., Ltd., for a cash consideration of RMB 30.7632 million. Upon completion of the acquisition, the target company will become an indirect wholly-owned subsidiary of the company, and its financial results will be consolidated into the group's financial statements.
The target company holds the land use rights for a parcel of land located in Huacao Town, Minhang District, Shanghai, China, with a total land area of 5,950.60 square meters. An ongoing construction project is situated on this land; as of the date of this announcement, the project has been suspended with only preliminary work completed.
The acquisition is intended to establish an open innovation and exchange center, which is a key strategic facility for implementing an innovation-driven development strategy. As a strategic facility, the center will develop an industry incubation and transformation platform to expand and attract a cohort of high-potential innovative entities for collaboration. Supporting living facilities will also be constructed to meet the needs associated with internal and external talent recruitment, project cooperation, and academic exchanges.
The center aims to create an innovation platform that aggregates the group's innovation resources and strengthens its capacity for external interaction, encouraging international industry partners to set up offices and fostering deep integration between global R&D resources and China's life sciences innovation ecosystem. It also plans to introduce a batch of innovative projects for incubation, engage in forward-looking planning, and seize opportunities presented by disruptive innovation. The center is expected to significantly enhance the group's external cooperation capabilities, thereby strengthening its capacity for innovation upgrading and strategic adaptability.
Based on the needs for ongoing business expansion and enhanced innovation capability, the group will continue to increase its talent density, attracting and retaining more outstanding talent, and establishing robust mechanisms for the selection, utilization, development, and retention of high-level personnel. Supporting living facilities are a crucial element for attracting high-end talent. Currently, the group's existing living support resources increasingly present significant limitations in meeting future talent reserve requirements. To overcome these existing constraints, constructing centralized living facilities has become a strategic necessity.
The target land is considered an ideal location for the center's development due to its superior geographical position and conformity with planned usage. Its convenient transportation conditions and proximity to the group's personnel and external partners will help optimize travel arrangements and establish a stable, sustainable communication hub. Since preliminary work has already begun on the target land, the acquisition can substantially shorten the center's completion timeline compared to finding a new site and initiating a full construction cycle, thereby avoiding redundant investment and reducing project uncertainty.
The acquisition is highly aligned with the group's operational planning and strategic development objectives, supporting the group's long-term growth and market competitiveness in an increasingly dynamic business environment.
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