CanSino Biologics : DISCLOSEABLE TRANSACTION PURCHASE OF STRUCTURED DEPOSITS

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CanSino Biologics Inc.

康 希 諾 生 物 股 份 公 司

(A joint stock company incorporated in the People's Republic of China with limited liability)

(Stock code: 6185)

DISCLOSEABLE TRANSACTION

PURCHASE OF STRUCTURED DEPOSITS

PURCHASE OF STRUCTURED DEPOSITS

The Board announces that (i) on April 29, 2021, the Company, entered into the Structured Deposit Agreement I with SPD Bank, pursuant to which the Company agreed to purchase structured deposit in the principal amount of RMB300 million from SPD Bank; and (ii) on May 17, 2021, the Company entered into the Structure Deposit Agreement II with SPD Bank, pursuant to which the Company agreed to purchase structured deposit of a similar nature as the structured deposit purchased under the Structured Deposit Agreement I in the principal amount of RMB600 million from SPD Bank.

LISTING RULES IMPLICATIONS

As all of the applicable percentage ratios (as calculated under Rule 14.07 of the Listing Rules) in respect of the transaction under the Structured Deposit Agreement I were below 5%, the purchase of structured deposit thereunder does not constitute a discloseable transaction of the Company under Chapter 14 of the Listing Rules on a standalone basis.

As the highest applicable percentage ratio in respect of the transaction under the Structured Deposit Agreement II exceeds 5% but all of the applicable percentage ratios are less than 25%, the purchase of structured deposit under the Structured Deposit Agreement II constitutes a discloseable transaction of the Company under Chapter 14 of the Listing Rules on a standalone basis. As the Structured Deposit Agreement II was entered into with the same bank and the transaction thereunder is of a similar nature as the transaction under the Structured Deposit Agreement I, the transactions contemplated under the Structured Deposit Agreements shall be aggregated pursuant to Rule 14.22 of the Listing Rules.

As the highest applicable percentage ratio in respect of the purchase of structure deposits under the Structured Deposit Agreements, on an aggregate basis, exceeds 5% but all of the applicable percentage ratios are less than 25%, the purchase of structured deposits under the Structured Deposit Agreements constitutes a discloseable transaction of the Company under Chapter 14 of the Listing Rules and is subject to the notification and announcement requirements under Chapter 14 of the Listing Rules.

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INTRODUCTION

The Board announces that (i) on April 29, 2021, the Company, entered into the Structured Deposit Agreement I with SPD Bank, pursuant to which the Company agreed to purchase structured deposit in the principal amount of RMB300 million from SPD Bank; and (ii) on May 17, 2021, the Company entered into the Structure Deposit Agreement II with SPD Bank, pursuant to which the Company agreed to purchase structured deposit of a similar nature as the structured deposit purchased under the Structured Deposit Agreement I in the principal amount of RMB600 million from SPD Bank.

THE STRUCTURED DEPOSIT AGREEMENTS

The principal terms of the Structured Deposit Agreements are set out as follows:

Agreement	Structured Deposit Agreement I
Date of purchase	April 29, 2021
Parties	(a)	The Company; and
	(b)	SPD Bank.
Name of the product	SPD Bank Li Duo Duo Company
	Stable Profit 21JG5889 (Bullish
	Three - tier) RMB - denominated
	Structured Deposit Product* (上
	海浦東發展銀行利多多公司穩利
	21JG5889期（三層看漲）人民幣對
	公結構性存款)
Type of return	Principal-guaranteed with variable
	return
Purchase amount	RMB300 million

Structured Deposit Agreement II

May 17, 2021

1. The Company; and
2. SPD Bank.

SPD Bank Li Duo Duo Company Stable Profit 21JG7100 (Bullish Three - tier) RMB - denominated

Structured Deposit Product* (上 海浦東發展銀行利多多公司穩利 21JG7100期（三層看漲）人民幣對 公結構性存款)

Principal-guaranteed with variable return

RMB600 million

The Company is of the view that the consideration of such purchase was determined on the basis of arm's length commercial terms.

The structured deposit was purchased without using the H-Share IPO proceeds of the Company.

The Company is of the view that the consideration of such purchase was determined on the basis of arm's length commercial terms.

The structured deposit was purchased without using the H-Share IPO proceeds of the Company.

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Term of deposit From April 29, 2021 to July 28, 2021

Expected annualized The initial price is the EUR-USD

floating rate of Bloomberg foreign exchange

returnfixing rate published on the "EUR CURNCY BFIX " page of the website of Bloomberg at 10:00 a.m. (Beijing time) on April 30, 2021.

The observation price is the EUR- USD Bloomberg foreign exchange fixing rate to be published on the "EUR CURNCY BFIX" page of the website of Bloomberg at 10:00 a.m. (Beijing time) on July 23, 2021.

The expected annualized floating rate of return will be 0% per annum if the observation price is less than 93.20% of the initial price.

The expected annualized floating rate of return will be 1.85% per annum if the observation price is equal to or higher than 93.20% but less than 105.47% of the initial price.

The expected annualized floating rate of return will be 2.05% per annum if the observation price is equal to or higher than 105.47% of the initial price.

From May 17, 2021 to August 16, 2021

The initial price is the EUR-USD Bloomberg foreign exchange fixing rate to be published on the "EUR CURNCY BFIX " page of the website of Bloomberg at 10:00 a.m. (Beijing time) on May 18, 2021.

The observation price is the EUR- USD Bloomberg foreign exchange fixing rate to be published on the "EUR CURNCY BFIX" page of the website of Bloomberg at 10:00 a.m. (Beijing time) on August 11, 2021.

The expected annualized floating rate of return will be 0% per annum if the observation price is less than 93.20% of the initial price.

The expected annualized floating rate of return will be 1.90% per annum if the observation price is equal to or higher than 93.20% but less than 104.35% of the initial price.

The expected annualized floating rate of return will be 2.10% per annum if the observation price is equal to or higher than 104.35% of the initial price.

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Principle for	Expected return = principal ×
calculation of return	(guaranteed return rate (1.40%) +
and interest	annualized floating rate of return) ×
	number of days of interest accrual
	÷ 360; actual return is calculated
	based on simple interest
	Number of days of interest accrual
	= the number of days during the
	period from the date of calculation
	of the return to the expiry date,
	i.e., the number of whole years ×
	360 + the number of whole months
	× 30 + the number of days (with
	beginning date inclusive and end
	date exclusive)
Right of early	The Company has no right of early
termination	termination (redemption) for this
	product.
	SPD Bank has the right to early
	terminate such product according
	to the actual investment situation
	without further notice to the
	Company, provided that it shall
	publish an information announcement
	at its business outlets or websites or
	in other means within 2 working days
	before the date of early termination.
Payment of principal	The principal and the return of the
and return	product will be paid on the maturity
	date of the product.

Expected return = principal × (guaranteed return rate (1.40%) + annualized floating rate of return) × number of days of interest accrual

• 360; actual return is calculated based on simple interest

Number of days of interest accrual

• the number of days during the period from the date of calculation of the return to the expiry date, i.e., the number of whole years × 360 + the number of whole months × 30 + the number of days (with beginning date inclusive and end date exclusive)

The Company has no right of early termination (redemption) for this product.

SPD Bank has the right to early terminate such product according to the actual investment situation without further notice to the Company, provided that it shall publish an information announcement at its business outlets or websites or in other means within 2 working days before the date of early termination.

The principal and the return of the product will be paid on the maturity date of the product.

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INFORMATION ON THE PARTIES

The Company

The Company is dedicated to exploring best solutions to the prevention of infectious diseases through engaging in research & development, manufacturing and commercialization of high quality vaccine products for human use worldwide.

SPD Bank

SPD Bank is a licensed bank in the PRC and a joint stock company established under the laws of the PRC, which provides corporate and personal banking business, treasury business, finance leasing, asset management and other financial services in the PRC. Its shares are listed on the Shanghai Stock Exchange (stock code: 600000). To the best of the Directors' knowledge, information and belief, having made all reasonable enquiries, SPD Bank and its ultimate beneficial owners are parties independent of the Company and its connected persons as of the date of this announcement.

REASONS FOR AND BENEFITS OF THE PURCHASE OF STRUCTURED DEPOSITS

The Company is of the view that the reasonable and efficient use of temporary idle funds will enhance the overall capital gain of the Company, which is consistent with the core objectives of the Company to ensure capital safety and liquidity. The impact of risk factors on the expected rates of return of the Structured Deposit Agreements is low, but the Group could get a higher return as compared with fixed term deposit in commercial banks in the PRC.

The Directors consider that the terms of the Structured Deposit Agreements and the transactions contemplated thereunder are fair and reasonable, on normal commercial terms or better and in the ordinary course of business of the Group, and are in the interests of the Company and its shareholders as a whole.

LISTING RULES IMPLICATIONS

As all of the applicable percentage ratios (as calculated under Rule 14.07 of the Listing Rules) in respect of the transaction under the Structured Deposit Agreement I were below 5%, the purchase of structured deposit thereunder does not constitute a discloseable transaction of the Company under Chapter 14 of the Listing Rules on a standalone basis.

As the highest applicable percentage ratio in respect of the transaction under the Structured Deposit Agreement II exceeds 5% but all of the applicable percentage ratios are less than 25%, the purchase of structured deposit under the Structured Deposit Agreement II constitutes a discloseable transaction of the Company under Chapter 14 of the Listing Rules on a standalone basis. As the Structured Deposit Agreement II was entered into with the same bank and the transaction thereunder is of a similar nature as the transaction under the Structured Deposit Agreement I, the transactions contemplated under the Structured Deposit Agreements shall be aggregated pursuant to Rule 14.22 of the Listing Rules.

As the highest applicable percentage ratio in respect of the purchase of structure deposits under the Structured Deposit Agreements, on an aggregate basis, exceeds 5% but all of the applicable percentage ratios are less than 25%, the purchase of structured deposits under the Structured Deposit Agreements constitutes a discloseable transaction of the Company under Chapter 14 of the Listing Rules and is subject to the notification and announcement requirements under Chapter 14 of the Listing Rules.

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