On December 15, Gelonghui reported that Maiwei Biotech (688062.SH) announced plans to seize opportunities from the national new era of Western Development strategy, deepening the cooperation in the transfer and transformation of Technology achievements between the East and West, and expanding both domestic and international markets at important strategic pivot points. The company intends to sign a project investment cooperation agreement with the Chongqing High-tech Zone Management Committee and the Health Fund to jointly invest in the construction of the Maiwei Biotech Bone Health Innovative Drug Project within the scope of the directly managed park of the Chongqing High-tech Industrial Development Zone (hereinafter referred to as "Chongqing High-tech Zone"). Based on the advanced manufacturing base of the Biomedical CDMO in Western (Chongqing) Science City, the project will use approximately 3,500 square meters of factory/building, focusing on the field of bone health, to bring relevant pipeline innovative drug research and development, pharmaceutical approval (including pharmaceutical production license B), commercial production, commercial rights and sales to Chongqing High-tech Zone. The total planned investment for this project is 2 billion yuan, of which the company plans to invest no less than 1.6 billion yuan (this round of investment is 1.008 billion yuan) in the form of intangible assets, and will also plan to invest in ongoing pharmaceutical projects in relevant fields in the future; the Health Fund plans to invest 0.4 billion yuan (this round of investment is 0.2 billion yuan) in MMF. The final total investment will be subject to actual investments.

The company held its second Board of Directors' fifteenth meeting on December 15, 2024, and reviewed and approved the proposal on introducing investors to Maiwei Chongqing and Taikang Bio's capital increase in the form of intangible assets, agreeing to cooperate with the Chongqing High-tech Zone Management Committee and the Health Fund to jointly invest in the construction of the "Maiwei Biotech Bone Health Innovative Drug Project" with Maiwei Chongqing as the project company.

According to the "Project Contract" signed between the company and the Chongqing High-tech Zone Management Committee and the Health Fund, in order to cooperate in the "Maiwei Biotech Bone Health Innovative Drug Project", the company plans to increase the registered capital of Maiwei Chongqing from 20 million yuan to 1008 million yuan and cancel the original registered capital of 20 million yuan that was contributed in the form of MMF; the 1008 million yuan registered capital will all be contributed by Jiangsu Taikang Biomedical Co., Ltd. in the form of intangible assets, using the technological achievements of the listed biomedical drug Mailishu (9MW0311, generic name: Dazhu Single Antibody Injection, drug approval number: National Drug Standard S20233111) for subscription. After this capital increase is completed, Maiwei Chongqing will still be a wholly-owned subsidiary of the company.

According to the "Project Contract" signed between the company and the Chongqing High-tech Zone Management Committee and the Health Fund, for cooperating on the "Maiwei Biotech Bone Health Innovative Drug Project", the Health Fund plans to invest in Maiwei Chongqing (increased capital), with an expected total investment amount of 400 million yuan, which will be paid in two stages based on the progress of project implementation, with the first capital increase payment of 200 million yuan. The second capital increase is planned to be carried out simultaneously with the company's (and its subsidiaries') intangible asset capital increase for Maiwei Chongqing in the future.

The Health Fund plans to sign the Phase One "Maiwei (Chongqing) Biomedical Co., Ltd. Capital Increase Agreement" (hereinafter referred to as the "Capital Increase Agreement") and the "Maiwei (Chongqing) Biomedical Co., Ltd. Shareholders Agreement" (hereinafter referred to as the "Shareholders Agreement") with Maiwei Chongqing, and after completing the delivery, the company plans to increase the registered capital of Maiwei Chongqing from 1008 million yuan to 1208 million yuan, of which 200 million yuan will be contributed by the Health Fund in cash. After this capital increase is completed, Maiwei Chongqing will change from a wholly-owned subsidiary of the company to a holding subsidiary, and the shareholding ratio of the company's wholly-owned subsidiary Taikang Biomedical in Maiwei Chongqing will change from 100.00% to 83.44%.