Liaoning Chengda (600739.SH) to Co-Invest RMB 100 Million in Chengda Biopharma Industry Investment Fund

Gelonghui January 26thLiaoning Cheng Da Co.,Ltd.(600739.SH) announced that, in order to better implement the company's pharmaceuticals and healthcare sector strategic plan, enhance the company’s overall competitiveness and value, and seize market-based investment opportunities in a timely manner, the company intends to collaborate with its holding subsidiary.CDBIO, Chengda Coastal (a wholly-owned subsidiary) and Shenzhen Chengda Bio (a controlling subsidiary) will jointly invest in establishing the Chengda Bio-Pharmaceutical Industry Investment Fund (Limited Partnership) (provisional name, subject to the final registration with the market supervision authority).

The total scale of the fund will not exceed 1,000,000,000 yuan, with an initial scale of 502,000,000 yuan at its establishment. Among this: Chengda Coastal, acting as the fund manager, general partner, and executing partner, intends to contribute 1,000,000 yuan, accounting for approximately 0.1992% of the fund's shares at the time of establishment; Shenzhen Chengda Bio, acting as a general partner and executing partner, intends to contribute 1,000,000 yuan, accounting for approximately 0.1992% of the fund's shares at the time of establishment; Liaoning Cheng Da Co., Ltd., acting as a limited partner, intends to contribute 100,000,000 yuan from its own funds, accounting for approximately 19.9203% of the fund's shares at the time of establishment; CDBIO, acting as a limited partner, intends to contribute 400,000,000 yuan from its own funds, accounting for approximately 79.6813% of the fund's shares at the time of establishment.

During the investment period of the fund, each investor will make actual contributions according to the fund's investment requirements. Subsequently, the general partner will continue to raise funds from the initial limited partners or new subscribers within three years from the date of signing the fund partnership agreement until the total subscribed capital of the fund reaches 1 billion yuan. The fund focuses on the life and health sector in the industrial investment field. Currently, the fund is in the planning and establishment phase, and the partnership agreement has not been officially signed yet; the above-mentioned investment shares are subject to the final signed formal partnership agreement. After the completion of the above investment, the fund will be included in the company’s consolidated financial statements. While advancing the establishment of the fund, in order to lock in high-quality target projects in advance, Shenzhen CDBIO and Chengda Healthcare plan to jointly increase the capital of Beijing Gene Key Life Technology Co., Ltd according to the relative contribution ratio of CDBIO and Liaoning Cheng Da Co., Ltd to the fund. Among them, Shenzhen CDBIO will contribute 40 million yuan, and Chengda Healthcare will contribute 10 million yuan. Once the fund is legally established and registered, the fund will acquire all the shares of Beijing Gene Key Life Technology Co., Ltd held by Shenzhen CDBIO and Chengda Healthcare at cost. At that time, the company will indirectly enjoy the relevant rights of Beijing Gene Key Life Technology Co., Ltd through the fund.