SIHUAN PHARM (00460) announced that following the disclosure of a framework agreement with Shenyuan Zhiyao Biotechnology (Beijing) Co., Ltd. (Shenyuan Zhiyao) in a voluntary announcement on September 1, 2025, the two parties have now formally executed a cooperation agreement. According to the agreement, the parties will jointly establish a joint venture company (JV) led and controlled by SIHUAN PHARM. This collaboration marks a new phase of comprehensive implementation for the group's strategic layout in the "AI + Medical Aesthetics" innovation track. The partnership aims to deeply integrate artificial intelligence (AI) technology with the medical aesthetics industry, committing to empower the entire industry chain—from R&D and production to sales of medical aesthetic products—with AI. The core mission of the JV is to explore and develop AI-driven novel medical aesthetic materials, such as biomacromolecules and polymers, and related products, applying AI across the full medical aesthetics value chain. Specific areas of cooperation include, but are not limited to: 1. AI-Driven Material and Product Innovation: Utilizing AI to empower the R&D of new medical aesthetic materials like biomacromolecules and polymers; applying AI to the design and development of related products, encompassing research on ingredient and material formulation parameters, injection scheme and tissue response prediction (for assessing injection efficacy and safety), and leveraging real-world data for continuous product optimization and iteration. 2. Clinical Research and Risk Control: Conducting in-depth research based on clinical outcomes and real-world data, using AI models to enhance injection safety and risk control capabilities. 3. Industry Empowerment and Ecosystem Development: Developing AI tools to assist medical aesthetic institutions in patient diagnosis and treatment plan decision-making, and applying them within professional doctor training systems to elevate overall industry service standards. Furthermore, the JV will collaborate with Shenyuan Zhiyao to jointly explore the use of AI technology in designing and developing novel protein and nucleic acid drugs, uncovering new growth opportunities. To further solidify the strategic partnership, SIHUAN PHARM has participated in Shenyuan Zhiyao's Pre-A round of financing, becoming a strategic investor. This move not only demonstrates the group's recognition of Shenyuan Zhiyao's core technological capabilities but also helps establish closer, longer-term capital and business ties between the two parties, enabling them to share in future development achievements. This powerful "resources + technology" alliance will leverage SIHUAN PHARM's deep industrial resources, commercial channels, and R&D pipeline in the medical aesthetics sector, combined with Shenyuan Zhiyao's independently innovative Automated Protein Design Platform (ADPSE) and core AI technology. Together, they aim to build an intelligent R&D closed loop from "AI design - high-throughput experimental validation - data feedback iteration," seeking to break through R&D bottlenecks for high-end medical aesthetic raw materials, significantly reduce R&D costs, shorten development cycles, improve product innovation success rates, and ultimately strengthen SIHUAN PHARM's core competitiveness and long-term value in the medical aesthetics market.
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