Summary by Moomoo AI
Kangfang Biotechnology (Cayman) Co., Ltd. (“Kangfang Biotech”) announced on 28 April 2024 that the actual purchase cost of its subsidiary Tianqing Kangfang in fiscal 2023 was approximately RMB106.8 million, exceeding the annual cap of approximately RMB37.8 million. The overspend was primarily due to higher than expected demand for clinical services and materials in the Piampoli (PD-1 single anti-AK105) clinical trial. The company has taken steps to strengthen internal controls to prevent similar situations from happening in the future. Under the Listing Rules, the transaction is subject to the requirements of declarations, announcements and annual audits, but is exempt from compliance with Circulars, Independent Financial Opinions and Independent Shareholder Approvals. Kangfang Bio said that listing rules will be strictly adhered to if the annual cap is adjusted in 2024.