Gelonghui, March 20, 丨 Kangji Medical (09997.HK) announced that on March 20, 2024, Weijing Healthcare shareholders have approved several amendments to Weijing Healthcare's organizational rules and changes in the composition of the board of directors. According to the revised Articles of Association of Weizheng Healthcare, the number of directors that Kangji Hong Kong is authorized to appoint has been reduced from 4 to 3 of the 7 directors of Weijing Healthcare's board of directors. As a result, Kangji Hong Kong will no longer be able to appoint most of the board members of Weijing Healthcare and will lose control of Weijing Healthcare. After the change in the composition of the board of directors takes effect, Weijing Medical will no longer be a subsidiary of the company, and Weijing Medical's financial performance will no longer be incorporated into the company's comprehensive financial statements. The company's reserved interests in Weijing Medical will be recorded in the company's comprehensive financial statements as an investment in a joint company.
The cancellation of the merger will not involve any change in the shareholding of Weijing Healthcare's shareholders. Kangji Hong Kong will continue to hold 35% of Weijing Healthcare's shares. As a result, Kangji Hong Kong retains significant influence on a number of major corporate decisions.