Hong Kong – 1 September 2026 – Fosun International Limited (Fosun Intl, 00656) has revised the terms of its previously announced connected transaction with Zhejiang Shangmeng Technology Co., Ltd. (“Shangmeng Technology”), reducing both the size of its cash subscription and its resulting equity interest.
Under a supplemental agreement signed on 1 September 2026, Fosun Commercial Development—an indirect wholly owned subsidiary of Fosun Intl—will now inject RMB41.11 million for 20.00% of Shangmeng Technology’s enlarged registered capital of RMB205.53 million. The balance of the RMB105 million capital increase will be provided by existing controlling shareholder Yadong Xingchen, which will raise its holding to 79.74%. Ningbo Tongfu remains a 0.26% minority shareholder.
The original plan, announced on 4 February 2026, envisaged Fosun Commercial Development subscribing the full RMB105 million to secure a controlling 51.09% stake, turning Shangmeng Technology into a consolidated subsidiary. The revision follows discussions with regulators, who emphasised the importance of maintaining controlling shareholder stability to facilitate the renewal of Sum Payment’s China Payment Business Licence and other core payment approvals.
Key valuation metrics remain favourable to Fosun Intl:
• Independent valuer Shanghai Orient Appraisal pegged Shangmeng Technology’s equity at RMB223.00 million as of 31 May 2026, implying a 1.70× price-to-book multiple, within the 1.34×–1.93× range of peer transactions.
• The adjusted post-money valuation of RMB205.53 million represents an 8% discount to the independent valuation.
• Both Fosun Commercial Development and Yadong Xingchen will subscribe at an identical per-unit price; no control premium or minority discount was applied.
Following completion, Fosun Intl will account for its interest using the equity method rather than full consolidation. The group retains governance rights, including the nomination of one director to Shangmeng Technology’s board and full shareholder information rights.
Shangmeng Technology’s audited financials show a net profit after tax of RMB10.85 million for FY 2025, reversing a RMB17.88 million loss in FY 2024, with net assets of RMB32.29 million as at 31 December 2025.
Given the reduced investment outlay—down from RMB105 million to RMB41.11 million—management views the amended terms as fair, reasonable and in the company’s interest. The transaction remains classified as a connected transaction under Chapter 14A of the Hong Kong Listing Rules; with applicable percentage ratios below 5%, it is subject to reporting and announcement requirements only, and does not require independent shareholders’ approval.
Completion of the revised capital increase is contingent on satisfaction of the outstanding conditions precedent. Investors are advised to exercise caution when dealing in Fosun Intl’s securities.
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