China Biotech Services Holdings Limited announced that the Company entered into a non-legally binding letter of intent of strategic cooperation with CSPC Pharmaceutical Group Limited. Under the Letter of Intent, the Company and CSPC Group intend to seek strategic cooperation in one or more of the following equity-based investments or projects initiated by the Company within the effective term of one year after signing of the Letter of Intent. If conditions allow and subject to the satisfaction of all regulatory and listing rules, CSPC Group intends to make a direct equity investment of 10% to 20% shareholding of the Company.

If such investment materializes, CSPC Group will be regarded as a strategic shareholder of the Company that may provide value-added contributions in the complete product commercialization process ranging from manufacturing, clinical testing, application for approval of marketing to sales. CSPC Group intend to make a direct equity investment of not less than 20% shareholding of CBSH Flourish (Hong Kong) BNCT Medical Centre Limited, a wholly-owned subsidiary of the Company, to participate in the project of setting up a cancer treatment center which adopts the boron neutron capture therapy technology in Hainan, China under development by the Company. The Company intends to license the technology of making a recombinant subunit vaccine for SARS-CoV2 under research and development of the Company to CSPC Group.

CSPC Group will be responsible for mass production and marketing of the products. The Board considers that the potential strategic cooperation with CSPC Group may bring in valuable strategic inputs in most, if not all, of the precision treatment businesses under development of the Company. If the cooperation materializes, the Board believes that it will create significant value to the shareholders of the Company.