Junshi Bio Reorganises R&D Vehicle Junyan Hongshi; Controlled VC Arm Injects RMB0.10 Billion for 9.09% Stake

Bulletin Express06-05

Shanghai Junshi Biosciences Co., Ltd. (Junshi Bio, 01877) will introduce its controlled venture capital subsidiary, Ningbo Yongyuan Xinglun Junjin Venture Capital Investment Partnership, as a new minority shareholder in Ningbo Junyan Hongshi Biomedical Technology Co., Ltd., an implementation platform for part of the group’s “R&D projects of innovative drugs”.

Junyan Hongshi’s registered capital will rise from RMB10 million to RMB110 million. The change comprises: 1) RMB90 million converted from Junyan Hongshi’s capital reserves attributable to Junshi Bio; and 2) RMB100 million cash injected by Yongyuan Xinglun Junjin for RMB10 million of newly issued registered capital.

Post-transaction, Junshi Bio will directly hold 90.91% of Junyan Hongshi, while Yongyuan Xinglun Junjin will hold 9.09%. The subsidiary therefore changes from wholly owned to controlled, but remains fully consolidated.

Yongyuan Xinglun Junjin, established in December 2025 with registered capital of RMB500 million, is 49% owned by Junshi Bio and 51% owned by three external partners.

Impact on raised-fund projects • Junyan Hongshi is responsible for certain sub-projects under the “R&D projects of innovative drugs”, one of two initiatives financed by Junshi Bio’s 2022 RMB3.78 billion A-share private placement (net proceeds: RMB3.74 billion). • As at 31 December 2025, RMB1.39 billion had been deployed, including RMB1.14 billion to R&D projects and RMB0.25 billion to the Shanghai headquarters and R&D base. • The revised shareholding structure does not alter investment amounts, project scope or use of proceeds, and does not constitute a related-party transaction or a major asset restructuring.

Governance and timetable The board approved the capital increase at its 20th meeting of the fourth session on 5 June 2026. Implementation is subject to shareholder approval. Sponsor Guotai Haitong Securities issued an unqualified verification opinion, confirming compliance with regulatory requirements and no adverse effect on shareholders’ interests or project execution.

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