Fosun International Limited (00656) announced that its subsidiary Shanghai Fosun Pharmaceutical (Group) Co., Ltd. (Fosun Pharma; 02196, 600196) entered into a renewed Mutual Supply Framework Agreement on 28 November 2025 with Chongqing Pharmaceutical Holdings Company Limited (CQ Pharma Holdings; 000950). The arrangement covers the supply and purchase of various pharmaceutical products and related services between Fosun Pharma Group and CQ Pharma Holdings Group for three years, from 1 January 2026 to 31 December 2028.
Under the agreement, both parties will continue the sale and purchase of pharmaceutical products, raw materials, and reagents, as well as the provision of promotion, warehousing, transportation, and consulting services. The annual cap amounts for these transactions for the 2026–2028 period total RMB1,485 million, RMB1,802 million, and RMB2,122.4 million respectively. The figures reflect projected market pricing for product sales and purchases, along with anticipated service requirements during the agreement term.
According to the announcement, CQ Pharma Holdings is a substantial shareholder of an indirect non-wholly owned subsidiary of the group, making it a connected person at the subsidiary level under the Hong Kong Listing Rules. As the board has approved the agreement and the independent non-executive directors deem its terms to be fair and reasonable, the mutual supply transactions only require reporting, announcement, and annual review, and are exempt from circular, independent financial advice, and shareholders’ approval requirements.
Fosun Pharma has outlined internal control procedures to ensure compliance with the agreement’s pricing policies, including regular reviews, transaction monitoring, and audits. The company statement points out that the transactions are in the ordinary course of business and offer both procurement flexibility and consistent market access to relevant pharmaceutical and related services for the group.
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