SIHUAN PHARM (00460) intends to spin off its stake in Xuanzhu Biotech and list it on the main board of the Hong Kong Stock Exchange.

SIHUAN PHARM (00460) announced that the company proposes to spin off Xuanzhu Biotech's shares and list them on the main board of the Stock Exchange. The company has obtained approval from the Stock Exchange for the proposed spin-off of Xuanzhu Biotech according to Listing Rule 15 application guidance. Between October 21, 2024, and November 8, 2024, Hainan Sihuan and the seller of the previous acquisition separately entered into the previous share transfer agreement, with Hainan Sihuan agreeing to acquire approximately 3.3717% of Xuanzhu Biotech's shares for a total consideration of about RMB 288 million. On November 12, 2024, Hainan Sihuan entered into a share transfer agreement with Sunshine Life Insurance, agreeing to further acquire approximately 3.6177% of Xuanzhu Biotech's shares for a total consideration of about RMB 308 million. Under the careful cultivation of the Company, Xuanzhu Biotech has established a complete and unique integrated new drug R&D system after more than a decade of accumulation and development, becoming an innovative drug R&D company with two major R&D platforms for macromolecules and small molecules. In the fields of oncology, digestion, and NASH, Xuanzhu Biotech has built a product pipeline with balanced risks and differentiated competitive advantages, covering various types of products such as small molecule drugs, fusion proteins, and bispecific ADCs. Currently, more than twenty innovative drugs are in different stages of commercialization, clinical, and preclinical development. The Board of Directors is pleased to see that after years of accumulation and development, Xuanzhu Biotech has grown into a leading domestic biotechnology company with multiple commercializable products. In the future, Xuanzhu Biotech plans to continue developing internationally competitive new drug products and accelerate the overall international development of the company. Xuanzhu Biotech is committed to becoming a first-class innovative drug enterprise with several globally leading innovative drugs and globalized independent R&D, production, and sales capabilities. The Board of Directors fully supports Xuanzhu Biotech's development goals and strategies and believes that the development of its innovative product pipeline will provide strong support and help for the future upgrading and development of the pharmaceutical business of the Company. This also aligns with the current industry policy trend of "innovation-driven and bird replacement by giving the cage wings". Therefore, the decision was made to proceed with the acquisition at the time of Xuanzhu Biotech's proposed listing on the main board of the Stock Exchange.