Weigao Group acquires 76,342 sq.m. industrial land use right for RMB39.71 million from connected party

Shandong Weigao Group Medical Polymer Company Limited (Weigao Group) has signed a Land Use Right Transfer Agreement with related party Weigao Biotechnology on 27 March 2026, purchasing the land use right of an industrial parcel in Weihai, Shandong Province, for RMB39.71 million.

The site, located west of Sanguanshan Road and south of Tongzhai Road in the Torch Hi-tech Industrial Development Zone (land lot M1), covers approximately 76,342 sq.m. and carries use rights to 14 April 2070. The land was originally acquired by Weigao Biotechnology in June 2020 for RMB25.30 million.

Payment terms 1. RMB20.00 million within 10 working days of contract effectiveness 2. RMB10.00 million within 10 working days after completion of title transfer and receipt of a new Real Estate Title Certificate in the company’s name 3. RMB9.71 million within 10 working days after the land meets delivery standards and both parties sign the handover confirmation

Funding for the transaction will come from Weigao Group’s internal resources.

Connected-transaction status Weigao Biotechnology is wholly owned by Weigao Medical Investment Holding, which controls 89.83% of Weigao Holding—the controlling shareholder of Weigao Group. As a result, the acquisition constitutes a connected transaction under Chapter 14A of the Hong Kong Listing Rules. With the highest applicable percentage ratio exceeding 0.1% but below 5%, the deal requires announcement and reporting only; independent shareholder approval is not necessary.

Strategic rationale The land adjoins existing manufacturing facilities where Weigao Group has been constructing a sterilisation–warehousing integration centre since 2025. Management expects the contiguous site to streamline logistics, support automated warehousing systems, raise annual sterilisation throughput, expand storage capacity and reduce per-unit costs, thereby easing current capacity constraints and enhancing operational efficiency.

Board approval Directors Long Jing, Chen Lin and Tang Zhengpeng, who also serve as directors of Weigao Medical Investment Holding, abstained from voting. The remaining directors, including all independent non-executive directors, consider the terms fair, reasonable and in the ordinary course of business.