According to Zhitong Finance App News, Chuangsheng Group Pharmaceutical-B (06628) issued an announcement. On August 6, 2026 (after the transaction period), the seller (a wholly-owned subsidiary of the Company) signed an asset purchase agreement with the buyer Hangzhou Mingde Biomedical Technology Co., Ltd., and the seller conditionally agreed to purchase CDMO assets. The total cost was RMB 190 million (which can be adjusted according to the asset purchase agreement).
After the completion of Phase II, the Company will no longer have any interest in CDMO assets.
CDMO assets include all rights, title, and interest in the following:
(a) Land use rights and housing ownership (target real estate) of the CDMO plant owned by the seller, the property located at No. 291 Fucheng Road, Xiasha Street, Qiantang New District, Hangzhou, Zhejiang, China;
(b) The final list of all facilities and equipment owned and/or used by the seller, including ancillary usage rights (such as software usage rights) and operating data (such as operation manuals and maintenance records) (target equipment), and inventory relating to such transferred business agreements as of the effective date of the transfer shall be confirmed in writing by both parties; and
(c) Buildings owned by the seller and permanently attached to or forming part of such buildings, and ancillary facilities, ancillary facilities, ancillary buildings and other rights (structures), target real estate, target equipment, and business contracts that are part or inseparable from the target real estate (such as all claims, recourse, rights of set-off, and other rights against third parties) (for the avoidance of doubt, excluding any intellectual property rights held by the seller relating to them), and all materials necessary for the buyer to own, operate, maintain and use CDMO assets (such as asset ledgers, contract files, drawings, operating procedures, maintenance records) (collectively, related assets and rights).
CDMO assets mainly include GMP production facilities involved in the Group's past provision of CDMO services. The transaction did not involve the sale of any intellectual property rights held by the Group in relation to its drug candidate product pipeline or its core biomanting platforms and technologies (including highly enhanced continuous bioprocessing (HiCB) platforms and cell culture medium ExcelPro CHO). After the transaction is completed, the Company will continue to generate revenue through external licensing and cooperation arrangements for core technologies related to these CDMO services.
The Company believes that the transaction is beneficial to the Company and its overall shareholders for the following reasons:
(a) The transaction will provide the Group with significant short-term cash inflows without diluting the Company's shareholders' equity and is expected to significantly improve the Group's continuing operating assumptions for fiscal year 2026. According to the Company's current estimates, assuming that all prerequisites are met or waived, and there is no significant reduction in costs, the first installment, second instalment, and third instalment of the costs are expected to be collected in 2026; the final payment of the costs is expected to be collected in the first quarter of 2027.
(b) Transactions enable the Group to focus resources on its main business, namely the discovery, development and commercialization of its product pipeline:
(i) The Group has retained all intellectual property rights relating to its drug candidate product pipeline, so its main business is not affected by transactions. The net proceeds from transactions will be used for the Group's general working capital and the development of the Group's product pipeline.
(ii) It is anticipated that the sale of CDMO assets will significantly reduce the Group's operating expenses. In particular, as of December 31, 2025, more than half of the Group's employees were employed by CDMO assets. The transaction will enable the Group to conduct its main business with a streamlined cost structure.
(c) The Group has retained all intellectual property rights relating to its core biomanufacturing platforms and technologies (including the HiCB platform and the cell culture medium ExcelPro CHO), and is able to continue to license and establish cooperative arrangements for such technologies, and generate revenue from them. Although providing CDMO services in the past generated a significant portion of the Group's revenue, this is because the company's product pipeline was previously composed of clinical stage and pre-clinical drug candidates, so the company's main business has not yet begun to generate real revenue. The Company does not consider providing CDMO services to be a core part of its main business.
(d) The Group has retained some of its internal CMC capabilities to support the continued development of its drug candidate pipeline, as well as the continued development and external licensing of these biomantry platforms and technologies. If the company requires additional CMC support for its drug candidate pipeline, it will hire other CDMO service providers to provide services as needed. The Company anticipates that the transaction will not cause any interruption in the continued development of its pipeline.