SINOMAB BIO-B (03681) associated termination of lease agreement

SINOMAB BIO-B (03681) announced on March 12, 2026 that Hainan Salemin and its wholly-owned subsidiary Shenzhen Salemin Biotechnology Co., Ltd. (referred together as "the lessees") have entered into an agreement with Haikou Pharmaceuticals to terminate the lease agreement, effective from March 12, 2026 (termination agreement), and the lessees must vacate or clear any remaining items in the property within 15 days from the effective date. In consideration of the company's strategy to optimize resource allocation and enhance operational flexibility, the parties to the agreement have discussed the early termination of the lease agreement. After lengthy negotiations, the parties have agreed to terminate the lease agreement. The board believes that the termination agreement is reasonable and practical for the company's transition to a light-asset manufacturing model. The candidate drugs originally manufactured at the production base for preclinical research and clinical trials under the lease agreement will be outsourced to a Contract Development and Manufacturing Organization (CDMO). This move will bring significant cost advantages to the group. The board believes that the termination agreement will not have any significant adverse impact on the financial condition or operations of the group and is in line with the overall interests of the company and its shareholders.