Yidu Tech Inc. — Capital/Financing Update 2024

Oct 21, 2024

Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.

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Yidu Tech Inc. 醫渡科技有限公司

(incorporated in the Cayman Islands with limited liability)

(Stock Code: 2158)

VOLUNTARY ANNOUNCEMENT TOTAL RETURN SWAP

This announcement is made by the Board on a voluntary basis.

TOTAL RETURN SWAP

On 21 October 2024, a subsidiary of the Company entered into the TRS Transaction with a TRS counterparty. The maximum Equity Notional Amount of the TRS Transaction is HK$80 million. The TRS Transaction will be for a term of approximately 3 years. Subject to certain conditions, either party has the option to terminate the TRS Transaction early.

No physical delivery of Shares will be made to the Group under the TRS Transaction. Further, the TRS counterparty has no obligation to purchase any Shares and the Group has no right to direct the TRS counterparty to purchase any shares or enter into any hedge positions.

REASONS FOR AND BENEFITS OF THE TRS TRANSACTION

The Company entered into the TRS Transaction in accordance with the relevant terms, in order to hedge the Company’s exposure to future Share price appreciation. The costs to be incurred and cash flow to be expended by the Company to fund the purchase of Shares from time to time may increase the Company’s exposure to Share price appreciation. The Board believes that entering into the TRS Transaction in accordance with the relevant terms may assist to hedge the risk of increasing price faced by the Company in the acquisition of the Shares under the Post-IPO Share Award Scheme in the future.

Based on the abovementioned reasons and taking into account all relevant factors and considerations, the Board believes that the terms of the TRS Transaction are fair and reasonable, and the entering into of the TRS Transaction on such terms is in the interests of the Company, the Group and the Shareholders as a whole.

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Implications under the Listing Rules

As none of the applicable percentages under Rule 14.07 of the Listing Rules in relation to the TRS Transaction is 5% or more, the TRS Transaction is not subject to any of the reporting, announcement or shareholders’ approval requirements under Chapter 14 of the Listing Rules.

To the best knowledge, information and belief of the Directors having made all reasonable enquiries, the TRS counterparty is a third party independent of the Company and is not a connected person of the Company. As such, the TRS Transaction is not regarded as a connected transaction under Chapter 14A of the Listing Rules.

Information relation to the Company

The Company is a leading company in the AI medical industry, providing intelligent solutions to hospitals, government, pharmaceutical companies, insurance and other healthcare industry participants. Leveraging the proprietary intelligent ‘‘AI Medical Brain’’, YiduCore, that accumulated multi-dimensional, quantifiable knowledge graphs over a decade and integrated advanced large language model technology, the Company applies medical intelligence solutions in three major categories of healthcare scenarios, namely research, diagnosis and treatment and public health, to help reduce the cost of healthcare services, enhance the efficiency of the healthcare industry’s supply side, and to promote the establishment of an inclusive, precise, and efficient intelligent healthcare system.

Shareholders and potential investors are advised to exercise caution in dealing in the Shares.

DEFINITIONS

In this announcement, unless the context otherwise requires, the following expressions shall have the following meanings when used herein:

• ‘‘Board’’

the board of Directors

• ‘‘Company’’ Yidu Tech Inc. (醫渡科技有限公司), a company incorporated under the laws of the Cayman Islands with limited liability, and the shares of which are listed on the Main Board of the Stock Exchange (stock code: 2158)

• ‘‘Director(s)’’ the director(s) of the Company

• ‘‘Equity Notional an amount in HK$ equal to the initial price multiplied by the number Amount’’ of Shares underlying the TRS Transaction, subject to a maximum of HK$80 million

• ‘‘Group’’

  • the Company and its subsidiaries

• ‘‘Listing Rules’’ the Rules Governing the Listing of Securities on the Stock Exchange

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• ‘‘Post-IPO Share Award Scheme’’

  • the post-IPO share award scheme approved and adopted by our Company on 28 December 2020 with effect from the listing of the Company on the Main Board of The Stock Exchange of Hong Kong Limited and amended on 28 September 2023

• ‘‘TRS’’

  • a total return swap

• ‘‘TRS Transaction’’ the total return swap transaction entered into by the Company with the TRS counterparty on 21 October 2024

By order of the Board Yidu Tech Inc. Gong Yingying Executive Director and Chairlady

Hong Kong, October 21, 2024

As at the date of this announcement, the executive Directors are Ms. Gong Yingying, Mr. Xu Jiming, Dr. Yan Jun and Ms. Feng Xiaoying; the non-executive Director is Mr. Zeng Ming; and the independent non-executive Directors are Dr. Ma Wei-Ying, Ms. Pan Rongrong and Prof. Zhang Linqi.

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