Fosun Pharma Announces H-Share Repurchase Plan of Up to HK$ 1 Billion

Shanghai Fosun Pharmaceutical (Group) Co., Ltd. ("Fosun Pharma", stock code: 600196.SH; 02196.HK) today announced an H-share repurchase plan, under which the company intends to repurchase its H-shares with an aggregate amount of up to HK$1 billion. The shares so repurchased will be cancelled or held as treasury shares. Taking concrete action to respond to market concerns, this repurchase plan demonstrates management's unwavering confidence in the company's intrinsic value. The plan has come into effect and will be implemented as soon as practicable. As a continuation of the Group's long-term value management toolkit, the company will dynamically evaluate and execute repurchases on a rolling basis in response to market conditions, establishing a normalized mechanism for shareholder returns.

In the first half of 2026, Fosun Pharma's earnings quality continued to improve, with revenue contributions from innovative drugs and international markets steadily increasing. Core operational indicators further consolidated upon the foundation of 2025: Revenue: RMB 20,442 million, up 4.75% year-on-year; Profit attributable to shareholders of the listed company, net of non-recurring gains and losses: RMB 1,144 million, up 19.09% year-on-year; Net cash generated from operating activities: RMB 2,424 million, up 13.59% year-on-year.

The repurchase will be primarily funded by proceeds from the disposal of approximately 6.00% equity interest in Gland Pharma, with total consideration of around US$294 million. Upon completion of the transaction, Fosun Pharma remains the promoter of Gland Pharma with an approximate 45.76% equity interest, and Gland Pharma will continue to be consolidated into Fosun Pharma's financial statements. Net proceeds from the transaction will primarily be allocated toward the Company's R&D investments, share repurchases, and the repayment of interest-bearing debts. As the controlling shareholder, Fosun Pharma remains fully confident in Gland Pharma's long-term development and its enduring role as a key engine for overseas value creation.

Looking ahead, Fosun Pharma will stay focused on innovation and globalization, accelerating the R&D progress and commercialization of its major pipeline candidates. This repurchase program is intended to convey the Company's confidence in its intrinsic value and to generate sustainable returns for shareholders.