CH BIOTECH SER (08037) announced that on May 18, 2026, the seller, a subsidiary of the company named Central Laboratory (Group) Limited, has agreed to sell the entire issued share capital of Standard Pathology Laboratory and the entire issued share capital of Zhuo Ji Healthcare to the buyer, Mr. Chan Kam Fuk. The total consideration for the transaction is HK$3.5 million, subject to the terms of the sale and purchase agreement.

The principal business of Standard Pathology Laboratory is providing medical laboratory testing and health examination services. Zhuo Ji Healthcare's main business is offering health check-up services.

Upon completion of the sale, Standard Pathology Laboratory and Zhuo Ji Healthcare will cease to be subsidiaries of the group. Consequently, their financial results will no longer be consolidated into the group's financial statements.

The group is consistently focused on enhancing its operational and financial performance by regularly reviewing its assets and business portfolio and considering asset disposals when suitable offers arise.

As of March 31, 2026, the target companies had an unaudited net liability position of approximately HK$29.013 million, indicating a state of severe insolvency. The divestment aims to shed this underperforming business segment, optimize the group's overall business performance, and avoid further financial strain on the group from the ongoing losses of the target companies. This disposal will allow the company to reallocate resources to support its broader strategic development.