Hengrui Medicine plans to increase investment in the affiliated company Ruihongdi to expand its gene and cell therapy layout

China Visitor Network Data
Jiangsu Hengrui Medicine Co., Ltd. (600276.SH) announced on March 25th that its 24th meeting of the 9th Board of Directors approved a related-party transaction proposal to increase capital in the associated company Shanghai Ruihongdi Pharmaceutical Co., Ltd. According to the announcement, Ruihongdi’s existing shareholders plan to contribute a total of 750 million yuan in proportion to their original holdings. Among them, Hengrui Medicine will invest 285 million yuan, its controlling shareholder Jiangsu Hengrui Pharmaceutical Group Co., Ltd. will contribute 210 million yuan, related party Shanghai Shengdi Biological Medicine Private Equity Investment Fund Partnership (Limited Partnership) will invest 142.5 million yuan, and Shenzhen Yingtai Asset Management Co., Ltd. will contribute 112.5 million yuan. After the capital increase, the shareholding ratios of all parties will remain unchanged, with Hengrui Medicine still holding a 38% stake in Ruihongdi.

The valuation for this capital increase is based on an appraisal value. According to the appraisal report issued by China FA International Asset Appraisal Co., Ltd., with December 31, 2025, as the valuation date, the total equity value of Ruihongdi shareholders is approximately 1.09B yuan, representing a significant increase from its book net assets (-66 million yuan). After negotiations, the final agreed-upon capital increase price is 7.60 yuan for every 1 yuan of registered capital. The capital contribution is expected to be paid within two months after the signing of the agreement.

Ruihongdi is a biotechnology company focused on the development of AAV gene therapy drugs, mRNA drugs, and cell therapy drugs, with a research pipeline centered on neurology, ophthalmology, and oncology. Hengrui Medicine stated that this capital increase aims to further optimize Ruihongdi’s asset structure and promote its operational development, aligning with the company’s strategic layout. The company believes that this transaction is fairly priced, will not have a significant impact on its financial condition or operating results, and does not harm the interests of the company or shareholders. This matter has been approved by a special meeting of the company’s independent directors and does not require submission to the shareholders’ meeting.