JACOBIO-B(01167): Beijing JACOBIO intends to sell 90% equity of JACOCARE through capital increase agreement and equity transfer agreement.

JACOBIO-B (01167) announced that (1) Beijing Jacobi New Drug Development Co., Ltd. (Beijing Jacobi), Beijing Jacobi Realcan Pharmaceutical Group Technology Co., Ltd. (Jacobi Reican), and an industrial partner recently signed a capital increase agreement; and (2) Beijing Jacobi, Jacobi Reican, Shanxi Haisong Management Consulting Partnership Enterprise (Limited Partnership) (Haisong Capital), and the industrial partner recently entered into a equity transfer agreement. According to the capital increase agreement and equity transfer agreement, Haisong Capital agrees to pay Beijing Jacobi RMB 125 million in cash as the first payment, and RMB 75 million as the second milestone payment to acquire 80% of Jacobi Reican's equity. After the transaction is completed, Jacobi Reican will be owned by Beijing Jacobi (10%), Haisong Capital (80%), and the industrial partner (10%). As of the date of this announcement, Beijing Jacobi holds 100% equity in Jacobi Reican, and Beijing Jacobi is an indirectly controlled subsidiary of the Company. Jacobi Reican's main business is the internal development of cardiovascular disease treatment drugs, and it holds the intellectual property related to the early cardiovascular research and development projects in this transaction. The announcement states that the Company is committed to developing and providing new innovative oncology products and solutions to improve people's health. Jacobi Reican is a project company of the Group for an early cardiovascular research and development project. This transaction is in line with the Group's strategic development focus on key pipeline products in the oncology field targeting different critical cellular pathways (including KRAS, MYC, P53, and tumor immunity), optimizing capital allocation, ensuring the development of core pipeline products for cancer treatment, achieving strategic focus, enhancing organizational efficiency, and retaining future value of projects through a risk-sharing model. The consideration for the equity transfer (after deducting taxes and expenses) is intended to be used for the research, production, and commercialization of the Company's Pan-KRAS inhibitors and other innovative oncology projects.