THIS CIRCULAR IS IMPORTANT AND REQUIRES YOUR IMMEDIATE ATTENTION

Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this circular, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this circular.

This circular appears for information purposes only and does not constitute an invitation or offer to acquire, purchase or subscribe for any securities of Pharmaron Beijing Co., Ltd.* (康龍化成(北京)新藥技術股份有限公司).

If you are in any doubt as to any aspect of this circular or as to the action to be taken, you should consult your stockbroker or other registered dealer in securities, bank manager, solicitor, professional accountant or other professional adviser.

If you have sold or transferred all your shares in Pharmaron Beijing Co., Ltd.* (康龍化成(北京)新藥技術股份有限公司), you should at once hand this circular and the accompanying form of proxy to the purchaser or transferee or to the bank, stockbroker or other agent through whom the sale or transfer was effected for transmission to the purchaser or transferee.

Pharmaron Beijing Co., Ltd.*

康龍化成(北京)新藥技術 股份有限公 司

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

(Stock Code: 3759)

    1. WORK REPORT OF THE BOARD OF DIRECTORS FOR THE YEAR 2020;
    2. WORK REPORT OF THE SUPERVISORY COMMITTEE FOR THE YEAR 2020;
    3. FINANCIAL STATEMENTS FOR THE YEAR 2020;
      1. 2020 PROFIT DISTRIBUTION PLAN;
  2. 2020 ANNUAL REPORT'S FULL TEXT AND REPORT SUMMARY AND 2020 ANNUAL RESULTS ANNOUNCEMENT;
  3. REMUNERATION OF THE DIRECTORS FOR THE YEAR 2021;
  4. REMUNERATION OF THE SUPERVISORS FOR THE YEAR 2021;
  5. ENGAGEMENT OF DOMESTIC AUDITOR FOR THE YEAR 2021;
    1. ENGAGEMENT OF INTERNATIONAL AUDITOR

FOR THE YEAR 2021;

    1. GUARANTEES QUOTA FOR THE YEAR 2021;
  2. FOREIGN EXCHANGE HEDGING QUOTA FOR THE YEAR 2021;
    1. REPURCHASE AND CANCELLATION OF PART OF THE RESTRICTED A SHARES GRANTED UNDER THE A SHARE

INCENTIVE SCHEME;

    1. PROPOSED REDUCTION OF REGISTERED CAPITAL;
  2. PROPOSED AMENDMENTS TO THE ARTICLES OF ASSOCIATION;
    1. PROPOSED AUTHORIZATION FOR REGISTRATION

OF THE REDUCTION IN REGISTERED CAPITAL AND AMENDMENTS

TO THE ARTICLES OF ASSOCIATION;

  1. PROPOSED GRANTING OF GENERAL MANDATE TO ISSUE A SHARES AND/OR H SHARES

    1. AND
    2. NOTICES OF ANNUAL GENERAL MEETING AND FIRST H SHARES CLASS MEETING OF 2021

The notices convening the AGM and the H Shares Class Meeting to be held at 6 Tai-He Road, Beijing Economic Technological Development Area, Beijing, the PRC on Friday, May 28, 2021 at 2 p.m. are set out in this circular.

For H Shareholders, if you intend to attend the AGM and/or the H Shares Class Meeting, please complete and return the enclosed reply slip in accordance with the instructions printed thereon as soon as possible and in any event on or before Monday, May 24, 2021.

Whether or not you are able to attend the AGM and/or the H Shares Class Meeting, please complete and sign the reply slips and form of proxy for use at the AGM in accordance with the instructions printed thereon and return it to the Company's H Share Registrar, Computershare Hong Kong Investor Services Limited, at 17M Floor, Hopewell Centre, 183 Queen's Road East, Wanchai, Hong Kong as soon as possible and in any event not less than 24 hours before the time appointed for the holding of the AGM and/or the H Shares Class Meeting or any adjournment thereof. Completion and return of the form of proxy will not preclude you from attending and voting in person at the AGM and/or the H Shares Class Meeting or any adjournment thereof (as the case maybe) if you so wish.

This circular together with the form of proxy are also published on the websites of the Stock Exchange (www.hkexnews.hk) and the Company (www.pharmaron.com).

  • For identification purposes only

April 28, 2021

CONTENTS

Page

DEFINITIONS . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

1

LETTER FROM THE BOARD . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

4

Appendix I(A)

- Work Report of the Board of Directors for the

Year 2020 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

12

Appendix I(B)

- Work Report of the Independent Directors for the

Year 2020 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

31

Appendix II

- Work Report of the Supervisory Committee for the

Year 2020 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

65

Appendix III

- Financial Statements for the Year 2020 . . . . . . . . . . . . . . .

71

Appendix IV

- Guarantees Quota for the Year 2021 . . . . . . . . . . . . . . . . .

81

Appendix V

- Foreign Exchange Hedging Quota for the Year 2021. . . . .

88

Appendix VI

- Proposed Granting of General Mandate to

Issue A Shares and/or H Shares . . . . . . . . . . . . . . . . . . .

91

NOTICE OF ANNUAL GENERAL MEETING . . . . . . . . . . . . . . . . . . . . . . . . . . .

93

NOTICE OF THE FIRST H SHARES CLASS MEETING OF 2021 . . . . . . . . . . .

96

- i -

DEFINITIONS

In this circular, the following expression shall have the meanings set out below unless the context requires otherwise:

"2020 Profit Distribution Plan"

the profit distribution plan of the Company for the year

ended December 31, 2020, i.e., the proposed distribution

of Dividends

"A Share(s)"

ordinary share(s) of the Company with nominal value of

RMB1.00 each listed on the Shenzhen Stock Exchange

"A Share Incentive Scheme"

the share incentive scheme adopted by our Company on

August 15, 2019, the principal terms are summarized in

the paragraph headed "Appendix VII - Statutory and

General Information - 2. Further Information about our

Business - B. Share Incentive Schemes" in the

prospectus of the Company dated November 14, 2019

"AGM"

the annual general meeting of the Company to be held at

6 Tai-He Road, Beijing Economic Technological

Development Area, Beijing, the PRC on Friday, May 28,

2021 at 2 p.m., or any adjournment thereof and notice of

which is set out on pages 93 to 95 of this circular

"Article of Association"

the articles of association of the Company, as amended,

modified or otherwise supplemented from time to time

"Board" or "Board of Directors"

the board of Directors

"Class Meeting of

the 2021 first class meeting of H Shareholders to be held

H Shareholders" or

after the conclusion of the AGM on Friday, May 28,

"H Shares Class Meeting"

2021, the notice of which is set out on pages 96 to 97 of

this circular

"Company"

Pharmaron Beijing Co., Ltd.* (康龍化成(北京)新藥技術

股份有限公司), a joint stock company incorporated in the

PRC with limited liability, the H Shares of which are

listed on the Stock Exchange (stock code: 3759)

"Director(s)"

the director(s) of the Company

- 1 -

DEFINITIONS

"Dividends"

proposed distribution of 2020 final dividends to the

Shareholders whose names appear on the register of

members for the A Shareholders and the H Shareholders

at the close of business on the Record Date, based on a

rule of receiving RMB0.3 per Share held by the

Shareholders payable in RMB to the A Shareholders and

in HK$ to the H Shareholders

"General Mandate"

a general mandate proposed to be granted to the Directors

to allot, issue or deal with additional A Shares and/or

H Shares of not exceeding 20% of the total number of

issued A Shares and/or H Shares of the Company as at the

date of passing of the proposed special resolution

contained in item 16 of the notice of AGM

"Group"

the Company and its subsidiaries

"H Share(s)"

overseas listed foreign invested ordinary share(s) in the

share capital of the Company, with a nominal value of

RMB1.00 each, listed on the Main Board of the Stock

Exchange

"H Shares Registrar"

Computershare Hong Kong Investor Services Limited,

the H Shares registrar of the Company

"H Shareholder(s)"

holder(s) of H Share(s)

"HK$"

Hong Kong dollars, the lawful currency of Hong Kong

"Hong Kong"

the Hong Kong Special Administrative Region of the

People's Republic of China

"Latest Practicable Date"

April 22, 2021, being the latest practicable date prior to

the printing of this circular for the purpose of

ascertaining certain information contained in this circular

"Listing Rules"

the Rules Governing the Listing of Securities on the

Stock Exchange, as amended from time to time

"PRC"

the People's Republic of China but excluding, for the

purposes of this circular only, Hong Kong, Macau and

Taiwan

- 2 -

DEFINITIONS

"PRC Company Law"

the Company Law of the People's Republic of China, as

the same may be amended, supplemented or otherwise

modified from time to time

"Record Date"

Tuesday, June 8, 2021, being the record date for

ascertaining the entitlement to dividend on shares

"Restricted A Shares"

the restricted A Shares granted by our Company under the

A Share Incentive Scheme

"RMB"

Renminbi, the lawful currency of the PRC

"SFO"

the Securities and Futures Ordinance, Chapter 571 of the

Laws of Hong Kong, as amended from time to time

"Share(s)"

share(s) in the share capital of the Company, with a

nominal value of RMB1.00 each, including both A

Share(s) and H Share(s)

"Shareholder(s)"

the holder(s) of the Share(s)

"Stock Exchange" or "Hong

The Stock Exchange of Hong Kong Limited

Kong Stock Exchange"

"Supervisor(s)"

the supervisor(s) of the Company

"Supervisory Committee"

the supervisory committee of the Company

"%"

per cent

- 3 -

LETTER FROM THE BOARD

Pharmaron Beijing Co., Ltd.*

康龍化成(北京)新藥技術 股份有限公 司

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

(Stock Code: 3759)

Executive Directors:

Registered office, Headquarters and principal

Dr. Lou Boliang (Chairman)

place of business in the PRC:

Mr. Lou Xiaoqiang

8th Floor, Block 1

Ms. Zheng Bei

6 Tai-He Road

Beijing Economic Technological Development Area

Non-executive Directors:

Beijing

Mr. Chen Pingjin

China

Mr. Hu Baifeng

Mr. Li Jiaqing

Place of business in Hong Kong:

Mr. Zhou Hongbin

40th Floor, Dah Sing Financial Centre

No. 248 Queen's Road East

Independent Non-executive Directors: Wanchai

Mr. Dai Lixing

Hong Kong

Ms. Chen Guoqin

Mr. Tsang Kwan Hung

Mr. Yu Jian

April 28, 2021

To the Shareholders

Dear Sir or Madam,

    1. WORK REPORT OF THE BOARD OF DIRECTORS FOR THE YEAR 2020;
    2. WORK REPORT OF THE SUPERVISORY COMMITTEE FOR THE YEAR 2020;
    3. FINANCIAL STATEMENTS FOR THE YEAR 2020;
      1. 2020 PROFIT DISTRIBUTION PLAN;
  2. 2020 ANNUAL REPORT'S FULL TEXT AND REPORT SUMMARY AND 2020 ANNUAL RESULTS ANNOUNCEMENT;
  3. REMUNERATION OF THE DIRECTORS FOR THE YEAR 2021;
  4. REMUNERATION OF THE SUPERVISORS FOR THE YEAR 2021;
  5. ENGAGEMENT OF DOMESTIC AUDITOR FOR THE YEAR 2021;
    1. ENGAGEMENT OF INTERNATIONAL AUDITOR

FOR THE YEAR 2021;

    1. GUARANTEES QUOTA FOR THE YEAR 2021;
  2. FOREIGN EXCHANGE HEDGING QUOTA FOR THE YEAR 2021;
    1. REPURCHASE AND CANCELLATION OF PART OF THE RESTRICTED A SHARES GRANTED UNDER THE A SHARE

INCENTIVE SCHEME;

    1. PROPOSED REDUCTION OF REGISTERED CAPITAL;
  2. PROPOSED AMENDMENTS TO THE ARTICLES OF ASSOCIATION;
    1. PROPOSED AUTHORIZATION FOR REGISTRATION

OF THE REDUCTION IN REGISTERED CAPITAL AND AMENDMENTS

TO THE ARTICLES OF ASSOCIATION;

    1. PROPOSED GRANTING OF GENERAL MANDATE TO ISSUE A SHARES AND/OR H SHARES

      1. AND
      2. NOTICES OF ANNUAL GENERAL MEETING AND FIRST H SHARES CLASS MEETING OF 2021
  • For identification purposes only

- 4 -

LETTER FROM THE BOARD

INTRODUCTION

The purpose of this circular is to provide the Shareholders with information in respect of certain resolutions to be proposed at the AGM to be held on Friday, May 28, 2021 at 2 p.m. to enable to make an informed decision on whether to vote for or against the proposed resolutions at the AGM. For the details of the proposed resolutions at the AGM, please also refer to the notice of the AGM enclosed with this circular.

MATTERS TO BE RESOLVED AT THE AGM

  1. Work Report of the Board of Directors for the Year 2020

An ordinary resolution will be proposed at the AGM to consider and approve the work report of the Board of Directors for the year 2020, the text of which is set out in Appendix I(A) to this circular.

The work report of the Independent Non-executive Directors of the Company for the year

2020 will be submitted to the AGM for consideration but no resolution is required to be made thereat. The text of the report are set out in Appendix I(B) to this circular for the Shareholders' reference.

  1. Work Report of the Supervisory Committee for the Year 2020

An ordinary resolution will be proposed at the AGM to consider and approve the work report of the Supervisory Committee for the year 2020, the text of which is set out in Appendix II to this circular.

  1. Financial Statements for the Year 2020

An ordinary resolution will be proposed at the AGM to consider and approve the Group's audited financial statements for the year 2020 (the "Financial Statements 2020"), the text of which is set out in Appendix III to this circular.

  1. 2020 Profit Distribution Plan

An ordinary resolution will be proposed at the AGM to consider and approve the Company's 2020 Profit Distribution Plan.

Reference is made to the Company's results announcement for the year ended December 31, 2020 dated March 26, 2021 that the payment of the Dividends for the year ended December 31, 2020 of RMB0.30 per Share (inclusive of tax), totaling approximately RMB238.3 million would be proposed. The aforesaid proposal is subject to the conditions set out in this circular.

- 5 -

LETTER FROM THE BOARD

The Company proposes to declare the Dividends of RMB0.30 per Share on or about Thursday, July 15, 2021 to A Shareholders and H Shareholders whose names appear on the register of members of the Company on the Record Date in cash, which amount to the actual distributable cash profit of RMB238.3 million. If there is any corporate actions resulting in changes in the amount of registered share capital of the Company (such as issuance of new Shares, repurchase of Shares, etc.) during the period from the Company's results announcement for the year ended December 31, 2020 dated March 26, 2021 to the Record Date, the amount of Dividends, i.e., RMB0.30 per Share, shall remain unchanged and the total payable amount shall be adjusted according to the number of A Shareholders and H Shareholders appearing on the register of members of the Company on the Record Date.

Subject to the approval of this proposal at the AGM, the Dividends will be payable to the Shareholders whose names appear on the register of members of the Company after the close of the market on Tuesday, June 8, 2021. The share register of members of the Company will be closed from Thursday, June 3, 2021 to Tuesday, June 8, 2021 (both days inclusive), during which period no transfer of shares will be registered. For the H Shareholders of the Company who wish to be entitled to receive the final dividends but have not registered the transfer documents, all transfer documents accompanied by the relevant share certificates must be lodged with the H Share Registrar, Computershare Hong Kong Investor Services Limited, at 17M Floor, Hopewell Centre, 183 Queen's Road East, Wanchai, Hong Kong on or before Wednesday, June 2, 2021 at 4:30 p.m.

The Dividends are denominated and declared in RMB and payable in RMB to A Shareholders and HK dollars to H Shareholders. The actual amount declared in HK dollars is converted based on the average benchmark exchange rate of Renminbi against HK dollars as promulgated by the People's Bank of China for the five business days preceding the date of the AGM. Subject to the approval of 2020 Profit Distribution Plan, the Dividends will be distributed within two months after the date of the AGM.

In accordance with the Enterprise Income Tax Law (the "EIT Law"), non-resident enterprises shall be subject to an applicable tax rate of 10% on its profits generated within the PRC. As such, any H Shares registered in the name of non-individual enterprise, including HKSCC Nominees Limited, other nominees or trustees, or other organizations and groups, shall be deemed to be H Shares held by non-resident enterprise shareholder(s) (as defined in the EIT Law). The Company, after withholding and paying the 10% enterprise income tax, shall distribute Dividends to those non-resident enterprise shareholders.

If any resident enterprise (as defined in the EIT Law) listed on the Company's register of members for H Shares which is duly incorporated in the PRC or under the laws of a foreign country (or a region) but with a PRC-based de facto management body, does not wish to have the Company withhold and pay the said 10% enterprise income tax, it shall timely lodge with Computershare Hong Kong Investor Services Limited legal advices (affixed with the seal of the law firm) and relevant documents from a PRC certified lawyer confirming that the enterprise is a resident enterprise.

- 6 -

LETTER FROM THE BOARD

According to "The Notice on the Issues Concerning the Collection and Administration of Individual Income Tax Following the Repeal of Guo Shui Fa [1993] No. 045" (《關於國稅 發[1993] 045 號文件廢止後有關個人所得稅徵管問題的通知》) issued by the State Administration of Taxation of the PRC on June 28, 2011 (the "Notice"), when non-foreign invested enterprises of the mainland which are listed in Hong Kong distribute dividends to their overseas residential individual shareholders, the individual shareholders in general will be subject to a withholding tax rate of 10%. However, the income tax rate of each overseas residential individual shareholder shall be different depending on the tax treaties between their residing countries and the PRC. As such, when the Dividends are to be distributed to the individual holders of H Shares whose names appeared on the H Shares register of members of the Company on the Record Date, the Company generally withholds 10% of the final dividends as individual income tax unless otherwise specified by the relevant tax regulations, tax treaties or notices. The Company will not be liable for any claim arising from any delay in, or inaccurate determination of the status of the shareholders or any disputes over the mechanism of withholding.

  1. 2020 Annual Report's Full Text and Report Summary and 2020 Annual Results Announcement

An ordinary resolution will be proposed at the AGM to consider and approve the 2020 annual report's full text and report summary and 2020 annual results announcement which are published on the websites of the Hong Kong Stock Exchange and the Shenzhen Stock Exchange.

  1. Remuneration of the Directors for the Year 2021

An ordinary resolution will be proposed at the AGM to consider and approve the remuneration plan for the Directors for the year ending December 31, 2021 formulated in accordance with the Company's internal policies and relevant regulatory requirements, details of which are as follows.

Save for our Independent Non-executive Directors, our Directors shall not receive any Directors' fees for their role as Directors. Each of our Independent Non-executive Directors is entitled to an annual remuneration of RMB220,000 (before tax), payable monthly. The Company shall reimburse the Directors all necessary and actual expenses in relation to the participation of Board meetings, the Board committee meetings, the meetings of the Supervisors and the general meetings of shareholders.

  1. Remuneration of the Supervisors for the Year 2021

An ordinary resolution will be proposed at the AGM to consider and approve the remuneration plan for the Supervisors for the year ending December 31, 2021 formulated in accordance with the Company's internal policies and relevant regulatory requirements, details of which are as follows.

- 7 -

LETTER FROM THE BOARD

The Supervisors shall not receive any remuneration for their roles as Supervisors. The Company shall reimburse the Supervisors all necessary and actual expenses in relation to the participation of Board meetings, the Board committee meetings, the meetings of the Supervisors and the general meetings of shareholders.

  1. Engagement of Domestic Auditor for the Year 2021

An ordinary resolution will be proposed by the AGM to consider and approve the appointment of Ernst & Young Hua Ming (LLP) as the domestic auditors for the Company in 2021 with a term of one year. The relevant annual audit fees will be determined by the management, as to be authorized at the general meeting through a proposal of the Board, based on the specific efforts and market price level of the audit work in 2021.

  1. Engagement of International Auditor for the Year 2021

An ordinary resolution will be proposed by the AGM to consider and approve the appointment of Ernst & Young as the international auditors for the Company in 2021 with a term of one year. The relevant annual audit fees will be determined by the management, as to be authorized at the general meeting through a proposal of the Board, based on the specific efforts and market price level of the audit work in 2021.

(10) Guarantees Quota for the Year 2021

An ordinary resolution will be proposed at the AGM to consider and approve the granting of quota of the provision of guarantees to subsidiaries of the Company in 2021, details of which are set out in Appendix IV to this circular.

(11) Foreign Exchange Hedging Quota for the Year 2021

An ordinary resolution will be proposed at the AGM to consider and approve the granting of quota on the engaging in foreign exchange hedging in 2021, details of which are set out in Appendix V to this circular.

  1. Repurchase and Cancellation of Part of Restricted A Shares Granted under the A Share Incentive Scheme

A special resolution will be proposed at the AGM and H Shares Class Meeting to consider and approve the proposed repurchase and cancellation of part of the Restricted A Shares granted under the A Share Incentive Scheme.

The principal terms of the A Share Incentive Scheme are summarized in the paragraph headed "Appendix VII - Statutory and General Information - 2. Further Information about our Business - B. Share Incentive Schemes" in the prospectus of the Company dated November 14, 2019.

- 8 -

LETTER FROM THE BOARD

Pursuant to the relevant provisions of the A Share Incentive Scheme and the proposal on repurchase and cancellation of part of the Restricted A Shares granted under the A Share Incentive Scheme, due to the resignation of three Participants (as defined in the A Share Incentive Scheme), the Company intends to repurchase a total of 193,024 Restricted A Shares issued to such Participants at the repurchase price (as the grant price) of RMB17.85 per Share. The 193,024 Restricted A Shares have been granted to these Participants but are still in the lock-up period pursuant to the provisions of the A Share Incentive Scheme. None of these Participants are connected persons of the Company as defined under the Listing Rules.

Upon the completion of the repurchase and cancellation of the 193,024 Restricted A Shares, the number of total issued Shares of the Company will drop from 794,387,462 Shares to 794,194,438 Shares, amongst which the number of domestic-listed domestic shares will drop from 660,370,962 Shares to 660,177,938 Shares whilst the number of H Shares will remain unchanged at 134,016,500 Shares.

The repurchase and cancellation of part of Restricted A Shares will not have a substantive impact on the Company's financial conditions or operating results. The 2020 Profit Distribution Plan and the amount of Dividends are not affected by the repurchase and cancellation of the 193,024 Restricted Shares to be repurchased and cancelled.

(13) Proposed Reduction of Registered Capital

In light of the proposed repurchase and cancel part of the Restricted A Shares granted under the A Shares Incentive Scheme as detailed under "(12) Repurchase and Cancellation of Part of Restricted A Shares Granted under the A Share Incentive Scheme" above, the Board proposes to decrease the registered capital of the Company.

A special resolution will be proposed at the AGM and the H Shares Class Meeting to consider and approve the decrease of the number of issued shares of the Company from 794,387,462 Shares to 794,194,438 Shares, and the decrease of the Company's registered capital from RMB794,387,462 to RMB794,194,438.

(14) Proposed Amendments to the Articles of Association

In light of the proposed repurchase and cancellation of part of the Restricted A Shares granted under the A Shares Incentive Scheme as detailed under "(12) Repurchase and Cancellation of Part of Restricted A Shares Granted under the A Share Incentive Scheme" above, the Board proposes to make amendments to the Articles of Association.

A special resolution will be proposed at the AGM to consider and approve the amendments to the Company's Articles of Association as set out below:

Before amendment

After amendment

Article 6 The registered capital of the

Article 6 The registered capital of the

Company is RMB794,387,462.

Company is RMB794,194,438.

- 9 -

LETTER FROM THE BOARD

Before amendment

Article 21 The shareholding structure of the Company is: 794,387,462 ordinary shares, including 660,370,962 shares held by holders of domestic-listed domestic shares, and 134,016,500 shares held by holders of H shares.

After amendment

Article 21 The shareholding structure of the Company is: 794,194,438 ordinary shares, including 660,177,938 shares held by holders of domestic-listed domestic shares, and 134,016,500 shares held by holders of H shares.

  1. Proposed Authorization for Registration of the Reduction in Registered Capital and Amendments to the Articles of Association

In light of the special resolutions to consider and approve the decrease of registered capital of the Company and amendments to the Articles of Association of the Company under paragraphs 13 and 14 above, an ordinary resolution will be proposed at the AGM to consider and authorize the Board to handle the registration matters in relation to the decrease in registered capital and amendments to Articles of Association.

(16) Proposed Granting of General Mandate to Issue A Shares and/or H Shares

In order to give the Company the flexibility to issue Shares if and when appropriate, a special resolution will be proposed at the EGM to approve the granting of the General Mandate to the Directors to allot, issue or deal with additional A Shares and/or H Shares of not exceeding 20% of the respective total number of issued A Shares and/or H Shares of the Company as at the date of passing of the proposed special resolution.

The Directors wish to state that they have no immediate plan to issue any new Shares pursuant to the General Mandate.

Further details of the special resolution to be passed with respect to the grant of General Mandate to issue A Shares and/or H Shares are set out in Appendix VI to this circular.

THE AGM

Notices convening the AGM and the H Shares Class Meeting of the Company to be held at 6 Tai-He Road, Beijing Economic Technological Development Area, Beijing, the PRC on Friday, May 28, 2021 at 2 p.m. and the reply slip and form of proxy for use at the AGM and the H Shares Class Meeting are enclosed. To be valid, the forms of proxy must be completed and signed in accordance with the instructions printed thereon, together with the power of attorney or other authority (if any) under which it is signed or a certified copy of that power of attorney or authority at the Company's H Share Registrar, Computershare Hong Kong Investor Services Limited, at 17M Floor, Hopewell Centre, 183 Queen's Road East, Wanchai, Hong Kong as soon as possible but in any event not less than 24 hours before the time

- 10 -

LETTER FROM THE BOARD

appointed for the holding of the AGM (i.e., not later than 2 p.m. on Thursday, May 27, 2021) or the adjourned meeting (as the case may be). Completion and delivery of the forms of proxy will not preclude you from attending and voting in person at the AGM or any adjournment thereof if you so wish.

CLOSURE OF REGISTER OF MEMBERS

For the purpose of determining the H Shareholders entitled to attend and vote at the AGM, the register of members of the H Shares of the Company will be closed from Tuesday, May 25, 2021 to Friday, May 28, 2021 (both days inclusive), during which no transfer of H Shares will be registered. H Shareholders whose names appear on the register of members of the Company on Tuesday, May 25, 2021 shall be entitled to attend and vote at the AGM.

VOTING BY POLL

According to Rule 13.39(4) of the Listing Rules, apart from certain exceptions, any vote of Shareholders at a general meeting must be taken by poll.

On a poll, every Shareholder present in person or by proxy (or being a corporation by its duly authorised representative) shall have one vote for each Share registered in his/her name in the register of members. A Shareholder entitled to more than one vote needs not use all his/her votes or cast all the votes he/she has in the same manner.

RECOMMENDATION

The Board considers that each ordinary resolution to be proposed at the AGM is in the interests of the Company and the Shareholders as a whole, and accordingly, recommends the Shareholders to vote in favour of all the resolutions to be proposed at the AGM.

RESPONSIBILITY STATEMENT

This circular, for which the Directors collectively and individually accept full responsibility, includes particulars given in compliance with the Listing Rules for the purpose of giving information with regard to the Company. The Directors, having made all reasonable enquiries, confirm that to the best of their knowledge and belief the information contained in this circular is accurate and complete in all material respects and not misleading or deceptive, and there are no other matters the omission of which would make any statement herein or this circular misleading.

Yours faithfully

For and on behalf of the Board

Dr. Lou Boliang

Chairman

- 11 -

APPENDIX I(A)

WORK REPORT OF THE BOARD OF

DIRECTORS FOR THE YEAR 2020

WORK REPORT OF THE BOARD OF DIRECTORS FOR THE YEAR 2020

The year 2020 is extremely unusual as the world was hard hit by a pandemic that was not seen in nearly a century. All staff worked side by side under the unified leadership of the Company in tiding over the difficulties to protect our health by implementing all necessary preventive measures. Under the guidance of the objectives set at the beginning of the Year, the Company operated in an orderly manner in all respects. Laboratory services continued to grow in size and strengthen; its early competitive advantage of CMC (small molecule CDMO) was strengthened and its late-stage service capacity was enhanced; strategic layout of clinical development service platform in China was completed in a phased manner; construction of large molecule CDMO platform was accelerated.

In 2020, the Company recorded a total revenue of RMB5,133.6 million, representing an increase of 36.64% over the same period last year; achieved a net profit attributable to owners of the listed company of RMB1,172.4 million, representing an increase of 114.3% over the same period last year; a gross profit margin from main business was 37.4%; the net cash flows from operating activities was RMB1,648.6 million, representing an increase of 75.7% over the same period last year. As at the end of 2020, the total assets of the Company were RMB11,908.8 million, representing an increase of 19.9% over the beginning of the period; the net assets attributable to owners of the listed company at the end of the reporting period were RMB8,870.3 million, representing an increase of 14.2% over the beginning of the period.

During the year of 2020, the Board strictly complied with laws and regulations such as the Company Law, Securities Law, Rules Governing the Listing of Shares on the ChiNext Market of Shenzhen Stock Exchange, and Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited, and rules and procedures such as the Articles of Association, and Rules of Procedure for Board Meetings, earnestly implemented the resolutions passed at shareholders' general meetings, actively promoted the implementation of resolutions of the Board, and continuously regulated corporate governance. All directors performed their duties carefully and diligently, ensuring the sustainable and stable development of the Company. The work report of the Board for 2020 is set out as follows:

  1. OVERVIEW OF MAIN RESULTS IN 2020
    1. More contribution to the R&D of new drugs in the globe and innovative drugs in China. Our pharmaceutical R&D service platform provided services to 1,500 customers (of which 721 were new customers) in 2020, including the world top 20 pharmaceutical companies. At the same time, the Company contributed to the development of Chinese innovative drug R&D by applying our long-accumulated experience in new drugs R&D. In 2020, the Company participated in studies for 58 investigational new drugs (IND) or new drug applications (NDA) filing for domestic pharmaceutical and biotech companies, of which, 46 projects applied simultaneously in multiple countries, including China, U.S. and Europe. In 2020, our pharmaceutical process development and manufacturing services covered 739

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APPENDIX I(A)

WORK REPORT OF THE BOARD OF

DIRECTORS FOR THE YEAR 2020

APIs or intermediates, including 487 preclinical stage, 202 Phase I-II clinical stage, 47 Phase III clinical stage and 3 in commercial stage. The Company conducted extensive scientific collaboration with customers and jointly published research findings. In 2020, a total of 15 papers were published on J. Med. Chem., Bioorg. Med. Chem. Lett. and Synlett and other international academic journals, together with 19 patented inventorship at home and abroad (with intellectual properties owned by customers).

  1. Further strengthening of the fully-integrated platform services model with competitive advantage further highlighted. In 2020, the Company continued to vigorously enhance the synergy of the service platform from two directions. Vertically, we strengthened the synergies of the same discipline in different stages of new drug R&D, further improved our professional expertise of such discipline and diversified our service content. Horizontally, we strengthened the collaboration and achieve seamless cooperation between different disciplines in the same stage of new drug R&D, which promoted interdisciplinary transformations and created value for our customers by saving time and costs. In 2020, over 80% of the revenue of our discovery stage in vitro and in vivo bioscience services contributed by our existing laboratory chemistry customers, and approximately 77% of CMC (small molecule CDMO) revenue contributed by our existing customers from drug discovery services (laboratory chemicals and bioscience services).
  2. Strengthening international operation. With international operation as one of our core competitiveness, we effectively strengthened the capabilities of our fully integrated services platform and provided customized services and solutions with the cutting-edge technology to our customer by utilizing the R&D resources of our global service network. In 2020, we overcame the negative impact of the epidemic and further strengthened our international operations. Our process chemistry and drug discovery teams in China and the U.K. worked closely together to provide model customized with hybrid model solutions which gained recognition from a growing number of customers. Furthermore, leveraging on our experience in international R&D services and our understanding of the Chinese customers' needs, we continuously tailored our service offerings for the Chinese customers and bridged them with our overseas operations, such as, our early clinical center in U.S.
  3. Continuing international development. The Company successfully acquired Absorption Systems in November 2020 to further strengthen and consolidate its leading position in the fully-integratedDMPK service platform. With the world- class drug evaluation capabilities in the emerging field of cell therapy and gene therapy ("CGT"), the Company begun to develop a service platform for CGT products. At the same time, the Company is able to create additional value to the customers with Absorption Systems' capability to evaluate CGT products in the rapidly growing field of emerging therapies, combined with the established services in the areas of ophthalmology and medical devices.

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APPENDIX I(A)

WORK REPORT OF THE BOARD OF

DIRECTORS FOR THE YEAR 2020

  1. Continuing to intensify infrastructure construction to further expand the laboratory area and laboratory facilities. The Company increased 22,500 m2 of laboratory space in Beijing to further enhance the capacity of the laboratory services. During the reporting period, the Company was about to complete the construction of phase III of Tianjin plant (40,000 m2) and schedule to be operational in the first quarter of 2021. The first 120,000 m2 of laboratory space of phase II of Ningbo Hangzhou Bay R&D service center was about to complete and expected to be operational in the first quarter of 2021. The remaining 42,000 m2 of phase II of Ningbo Hangzhou Bay R&D service center was under construction and expected to complete the main structure and start internal installation in 2021. As a key project in Shaoxing, the construction of the Shaoxing Phase I facility with an area of 81,000 m2 was sped up at full in 2020. Upon completion, the capacity of chemical reactors will be increased by 600 cubic meters, of which 200 cubic meters are expected to be brought into use in the second half of 2021, while the remaining 400 cubic meters will be completed and brought into use in 2022. In 2020, we started the construction of nearly 70,000 m2 of our biologics product development and manufacturing facility at our Ningbo Hangzhou Bay service center II phase I and was expected to start internal installation in June 2021 and become operational for GMP production in the second half of 2022.
  2. Constant increase in technological investment. Continuous advancement of our technology and scientific platform is a key to maintain the leading position in the industry and the Company putting great emphasis on technological investment during the Reporting Period. In the chemical synthesis and manufacturing technology area, we focused on the application of the high throughput chemical reaction screening platform, flow chemical technology and biocatalysis technology. Using infinitesimal reaction materials to attempt a reaction condition, the high throughput chemical reaction screening platform can assess dozens or even hundreds of catalytic reaction conditions in a short time, to assist in finding the best synthetic solutions. In 2020, it assisted the chemistry departments in resolving nearly 2,000 challenging chemical reactions. The flow chemistry team completed more than 50 different types of flow reaction projects with the largest scale up to 140kg. Furthermore, the Company established a dedicated biocatalysis department in 2020, which had developed nearly 1,000 biocatalytic enzymes for a wide range of organic synthesis reactions, including oxidation, reduction, transamination, esterification and ester hydrolysis.
    In the discovery and bioscience area, the Company had established and improved Pharmaron DNA-encoded Library (DEL) screening platform, chemoproteomics platform, in vivo imaging technology platform and 3D spheroid and organoid screening platform. In 2020, the Company conducted hit screening campaigns using Pharmaron DEL against the new biological target of interest and successfully identified several novel hit compound series for the customers, which not only helped our customers to speed up their drug discovery programs, but also laid concrete foundation for attracting more customers for Pharmaron DEL services. The

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APPENDIX I(A)

WORK REPORT OF THE BOARD OF

DIRECTORS FOR THE YEAR 2020

chemoproteomics platform using activity and reactivity-based probes together with proteomics profiling allows quick identification of interacting proteins and targets of small molecule within the cells or tissues. The in vivo imaging technology platform can provide valuable data to support drugability evaluation with respect to the efficacy and safety of drug candidates. Our image technology platform can quantify drug candidates' tissue distribution dynamically in rodent tumor model using radioisotope labelled compounds. In addition, we had developed a simplified method that could conduct isotopic tracing and assess the qualitative and quantitative distribution of compounds in animal at different time points in a faster, more efficient and low-cost manner which can further promote the application of such technology in early drug discovery programs. Also, we are in the process of building up 3D spheroids and organoid screening platform which are closer to the complex in vivo conditions as compared to traditional 2D culture. Using 3D spheroids and organoids as in vitro assay platform to investigate the efficacy and safety of drug candidates has more clinical significance.

  1. 7. Strengthening personnel development. As of December 31, 2020, we had a total number of employees exceeding 11,000. Among in-service employees, 50.7% has bachelor degree, and 32.4% has master degree or above. The Company continued to implement the talent team building, continued to introduce outstanding talents from home and abroad, and at the same time, used a multi-dimensional comprehensive on-the-job learning platform to cultivate young talents needed for the Company's development. Through recruitment, training and promotion, we systematically absorbed and retained all kinds of professionals to form an echelon comprising senior, middle and junior talents to reserve excellent human resources for the long-term development.

  2. PERFORMANCE OF THE BOARD

1 Information disclosure and investor relation management

The Board of Directors operates in strict accordance with the New Securities Law, the Articles of Association and the Rules of Procedure of the Board of Directors, and other relevant regulations. The Board was active in fulfilling information disclosure obligations, and strengthening investor relationship management. In 2020, the Board of Directors made timely, truthful, accurate and complete information disclosure and received an "A" rating in the information disclosure assessment by Shenzhen Stock Exchange, which helps the Company establish a good corporate image. Meanwhile, an investor relation service team was formed in 2020 to particularly provide investor services. The Board of Directors, within the scope of information disclosure, attached importance to communication and exchange with investors and their requests, actively listened to investors' suggestions, and valued investors' shareholding experience. The Company actively organized and participated in investor relation activities, including participation in teleconference, results presentations and otherwise, promoting close communication between domestic and foreign investors and the Company.

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APPENDIX I(A)

WORK REPORT OF THE BOARD OF

DIRECTORS FOR THE YEAR 2020

2. Convening of meetings

Based on the Company's development needs, the Board convened a meeting in time to make decisions on major issues. A total of 12 board meetings and 4 shareholders' general meetings were held throughout the year. At these meetings, resolution on Profit Distribution Plan for 2019, Resolution on the General Election of the Board of Directors of the Company and the Election of Non-Independent Directors of the Second Session of the Board of Directors, Resolution on the General Election of the Board of Directors of the Company and the Election of Independent Directors of the Second Session of the Board of Directors, Resolution on Initial H-share Incentive Trust Plan (Draft) of Pharmaron Beijing Co., Ltd. And other important matters were decided. The Board earnestly organized the implementation of resolutions of the meetings, thus greatly promoted the development of the Company. Information on the Company's board meeting in 2020 is as follows:

Session

Time

Resolutions passed through considerations

The 25th Meeting of the

January 9, 2020

1.

Resolution on Using Additional Idle Proceeds

First Session of the

from Offering of H-shares to Purchase Wealth

Board of Directors

Management Products Quota

2.

Resolution on Increasing Estimated Hedging

Quota

3.

Resolution on Increasing the Capital of the

Wholly-owned Subsidiary

4.

Resolution on Participating in Private Equity

Investment Fund & Connected Transactions

5.

Resolution on Increase of the Company's

Registered Capital

6.

Resolution on Amending Articles of Association

of Pharmaron Beijing Co., Ltd.

7.

Resolution on Authorization by the Shareholders'

General Meeting to the Board of Directors of the

Company to Handle the Registration Change

Procedures with the Market Supervision and

Regulation Department Related to the Increase of

Registered Capital and Amendments to the

Articles of Association

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APPENDIX I(A)

WORK REPORT OF THE BOARD OF

DIRECTORS FOR THE YEAR 2020

Session

Time

Resolutions passed through considerations

8.

Resolution on Proposing the Convening of the

First Extraordinary General Meeting for 2020, the

First Class A Shareholders Meeting for 2020 and

the First Class H Shareholders Meeting for 2020

The 26th Meeting of the

February 27, 2020

1.

Resolution on Proposing the Convening of the

First

Session

of

the

First Extraordinary General Meeting for 2020, the

Board of Directors

First Class A Shareholders Meeting for 2020 and

the First Class H Shareholders Meeting for 2020

The 27th Meeting of the

27 March 2020

1.

Resolution on Work Report of the Board of

First

Session

of

the

Directors for 2019

Board of Directors

2.

Resolution on Work Report of the General

Manager for 2019

3.

Resolution on Final Accounts Report for 2019

4.

Resolution on Profit Distribution Plan for 2019

5.

Resolution on the Company's Self-Evaluation

Report of Internal Control for 2019

6.

Resolution on the Full Text and Summary of the

Annual Report for 2019 and Annual Results

Announcement for 2019

7.

Resolution on Remunerations Plan for

Supervisors

8.

Resolution on Remunerations Plan for Senior

Management of the Company

9.

Resolution on the Appointment of Domestic

Accounting Firms for 2020

10. Resolution on the Appointment of Overseas Accounting Firms for 2020

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APPENDIX I(A)

WORK REPORT OF THE BOARD OF

DIRECTORS FOR THE YEAR 2020

Session

Time

Resolutions passed through considerations

11.

Resolution on Confirmation of the Daily Related-

party Transactions in 2019 and Estimation of the

Daily Related-party Transactions in 2020

12.

Resolution on the Estimated Application of Credit

Lines to Unrelated Financial Institutions in 2020

13.

Resolution on the Estimation of the Company's

External Guarantee Quota in 2020

14.

Resolution on Special Report on Deposit and Use

of the Proceeds from Offering of A-shares in 2019

15.

Resolution on Using Some Idle Self-own Funds to

Purchase Wealth Management Products

16.

Resolution on Estimating Hedging Product

Transaction Quota in 2020

17.

Resolution on Report on Social Responsibility

and Environment, Society and Governance for

2019

18.

Resolution on Purchasing Liability Insurance for

Directors, Supervisors and Senior Management of

the Company

19.

Resolution on Proposing the Convening of the

Annual General Meeting for 2019

The 28th Meeting of the

28 April 2020

1.

Resolution on the First Quarterly Report of the

First Session of the

Company for 2020

Board of Directors

2.

Resolution on Increasing Estimation of the Daily

Related-party Transactions in 2020

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APPENDIX I(A)

WORK REPORT OF THE BOARD OF

DIRECTORS FOR THE YEAR 2020

Session

Time

Resolutions passed through considerations

The 29th Meeting of the

June 24, 2020

1.

Resolution on the General Election of the Board

First

Session

of

the

of Directors of the Company and the Election of

Board of Directors

Non-Independent Directors of the Second Session

of the Board of Directors

2.

Resolution on the General Election of the Board

of Directors of the Company and the Election of

Independent Directors of the Second Session of

the Board of Directors

3.

Resolution on Amending the Articles of

Association of Pharmaron Beijing Co., Ltd.

4.

Resolution on Authorization by the Shareholders'

General Meeting to the Board of Directors of the

Company to Handle the Registration Change

Procedures with the Market Supervision and

Regulation

Department

Related

to

the

Amendments to the Articles of Association

5.

Resolution on Providing Guarantee for the

Wholly-owned Subsidiary

6.

Resolution on Proposed Authorization by the

General Meeting to the Board of Directors for

Issue of Domestic and Overseas Debt Financing

Instruments

7.

Resolution on the Grant of General Mandate by

the General Meeting to the Board of Directors for

Additional Issue of A-shares and/or H-shares

8.

Resolution on Proposing the Convening of the

Second Extraordinary General Meeting for 2020

First

Meeting

of

the

July 28, 2020

1

Resolution on the Election of Chairman of the

Second Session

of

the

Second Session of the Board of Directors

Board of Directors

2.

Resolution on Appointment of the Company's

CEO (Managers)

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APPENDIX I(A)

WORK REPORT OF THE BOARD OF

DIRECTORS FOR THE YEAR 2020

Session

Time

Resolutions passed through considerations

3.

Resolution on Appointment of the Company's

Deputy Managers

4.

Resolution on Appointment of the Company's

CFO

5.

Resolution on Appointment of the Company's

Secretary of the Board

6.

Resolution on Remunerations Plan for Senior

Management of the Company for 2020

7.

Resolution on the Election of Members of special

Committees under the Second Session of the

Board of Directors

8.

Resolution on Revising the Information

Disclosure Management System of the Company

Second

Meeting

of

the

August 26, 2020

1

Resolution on the Full Text and Summary of the

Second

Session

of

the

Semi-annual Report for 2020 and Interim Results

Board of Directors

Announcement for 2020

Third

Meeting

of

the

October 28, 2020

1.

Resolution on the Third Quarterly Report of the

Second

Session

of

the

Company for 2020

Board of Directors

2.

Resolution on Increase in Expected Quota of

Daily Related-Party Transactions with Beijing

Anikeeper Biotech Co., Ltd.

Fourth

Meeting

of

the

October 28, 2020

1.

Resolution on the Issuance of H-share

Second

Session

of

the

Convertible Corporate Bonds by the Company

Board of Directors

Fifth Meeting

of

the

6 November 2020

1.

Resolution on 2020 Restricted A-share Incentive

Second

Session

of

the

Plan (Draft) of Pharmaron Beijing Co., Ltd. and

Board of Directors

Its Abstract

2.

Resolution on Measures on Management of

Implementation and Assessment of 2020

Restricted A-share Incentive Plan of Pharmaron

Beijing Co., Ltd.

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APPENDIX I(A)

WORK REPORT OF THE BOARD OF

DIRECTORS FOR THE YEAR 2020

Session

Time

Resolutions passed through considerations

3.

Resolution on Requesting the General Meeting to

Authorize the Board of Directors to Handle the

Affairs Related to the A-share Incentive Scheme

4.

Resolution on Initial H-share Incentive Trust Plan

(Draft) of Pharmaron Beijing Co., Ltd.

5.

Proposal on Requesting the General Meeting to

Authorize the Board of Directors and

Management Committee to Handle the Affairs

Related to the Initial H-share Incentive Trust Plan

6.

Resolution on Amending the Articles of

Association of Pharmaron Beijing Co., Ltd.

7.

Resolution on Authorization by the Shareholders'

General Meeting to the Board of Directors of the

Company to Handle the Filing Procedures with

the Market Supervision and Regulation

Department Related to the Amendments to the

Articles of Association

8.

Resolution on Proposing the Convening of the

Third Extraordinary General Meeting for 2020,

the Second Class A Shareholders Meeting and the

Second Class H Shareholders Meeting

Sixth Meeting

of

the

6 November 2020

1.

Resolution on Acquisition of 100% Equity of

Second

Session

of

the

Absorption Systems LLC and Its Wholly-owned

Board of Directors

Subsidiaries

Seventh

Meeting

of

the

November 25,

1.

Resolution on Fulfilment of Conditions for

Second

Session

of

the

2020

Unlocking within the First Unlocking Period and

Board of Directors

Temporary Non-listing with Respect to The First

Grant under the Restricted Stock and Stock

Option Incentive Plan for 2019

2.

Resolution on Amending the Articles of

Association of Pharmaron Beijing Co., Ltd.

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APPENDIX I(A)

WORK REPORT OF THE BOARD OF

DIRECTORS FOR THE YEAR 2020

3. Execution of resolutions of general meetings

In 2020, the Company held one annual general meeting and three extraordinary general meetings. The Company's Board strictly performed its duties in accordance with the laws and regulations such as the Company Law, Securities Law, and the Articles of Association, and earnestly implemented the resolutions passed at general meetings in strict accordance with the resolutions and authorizations of general meetings.

4. Performance of special committees under the Board

  1. Performance of audit committee during the Reporting Period

The audit committee mainly supervised, inspected and evaluated the Company's internal control and financial information in accordance with the Articles of Association. The establishment of the audit committee strengthened the decision-making of the Board, ensured the Board's effective supervision of senior management, and improved the corporate governance structure. During the Reporting Period, the audit committee held a total of 5 meetings to review the Company's internal control self-evaluation report and the resolution on the reappointment of auditor. The details are as follows:

Session

Time

Resolutions passed through considerations

The 15th Meeting of the

January 15, 2020

1.

Resolution on Audit Plan for 2019

Audit Committee of

the

Financial Statements

First

Session

of

the

Board of Directors

2.

Resolution on Confirming the Company's

Related Legal Persons, Related Natural

Persons and Related Persons

The 16th Meeting of the

March 26, 2020

1.

Resolution on Final Accounts Report for

Audit Committee of the

2019

First

Session

of

the

Board of Directors

2.

Resolution on the Company's Self-

Evaluation Report of Internal Control for

2019

3.

Resolution on the Full Text and Summary

of the Annual Report for 2019 and Annual

Results Announcement for 2019

4.

Resolution on the Appointment of

Domestic Accounting Firms for 2020

5.

Resolution on the Appointment of Overseas

Accounting Firms for 2020

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APPENDIX I(A)

WORK REPORT OF THE BOARD OF

DIRECTORS FOR THE YEAR 2020

Session

Time

Resolutions passed through considerations

6.

Resolution on the Special Examination on

the Occupation of Funds by the Company's

Controlling Shareholders and Other Related

Parties

7.

Resolution on Confirmation of the Daily

Related-party Transactions in 2019 and

Estimation of the Daily Related-party

Transactions in 2020

8.

Resolution on Estimating Hedging Product

Transaction Quota in 2020

9.

Resolution on Internal Audit Work Report

for 2019

10.

Resolution on the Summary of the Audit

Work in 2019

The 17th Meeting of the

28 April 2020

1.

Resolution on the First Quarterly Report of

Audit Committee of the

the Company for 2020

First Session

of

the

Board of Directors

2.

Resolution on Increasing Estimation of the

Daily Related-party Transactions in 2020

3.

Resolution on Confirming the Company's

Related Legal Persons, Related Natural

Persons and Related Persons

4.

Resolution on Special Report of Internal

Audit Department for 2019

The First Meeting of the

August 26, 2020

1

Resolution on the Full Text and Summary

Audit Committee of the

of the Semi-annual Report for 2020 and

Second Session

of

the

Interim Results Announcement for 2020

Board of Directors

2.

Resolution on Confirming the Company's

Related Legal Persons, Related Natural

Persons and Related Persons

3.

Resolution on Interim Review Results for

2020

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APPENDIX I(A)

WORK REPORT OF THE BOARD OF

DIRECTORS FOR THE YEAR 2020

Session

Time

Resolutions passed through considerations

4.

Resolution on the Work Summary of the

Internal Audit Department in the First Half

of 2020

The Second Meeting of

October 28, 2020

1.

Resolution on the Work Report on the

the Audit Committee of

Internal Control and Internal Audit of the

the Second Session of

Company in the Third Quarter of 2020

the Board of Directors

2.

Resolution on the Third Quarterly Report of

the Company for 2020

3.

Resolution on Increase in Expected Quota

of Daily Related-Party Transactions with

Beijing Anikeeper Biotech Co., Ltd.

4.

Resolution on Audit Plan for 2020

  1. Performance of remuneration committee during the Reporting Period

The remuneration committee mainly reviewed and supervised the implementation of the remuneration and performance evaluation systems with effective incentives and constraints. The remuneration committee recommended to the Board of the remuneration system, performance evaluation system and incentive scheme for directors, supervisors and senior management, and evaluated the performance and behavior of directors and senior management. Four meetings were held during the Reporting Period.

Session

Time

Resolutions passed through considerations

The 5th Meeting of the

March 26, 2020

1.

Resolution on Remunerations Plan for

Remuneration

and

Directors of the Company

Appraisal Committee of

the First Session of the

2.

Resolution on Remunerations Plan for

Board of Directors

Senior Management of the Company

3.

Resolution on Remunerations Plan for

Supervisors of the Company

4.

Resolution on the Performance Evaluation

of Senior Management of the Company in

2019

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APPENDIX I(A)

WORK REPORT OF THE BOARD OF

DIRECTORS FOR THE YEAR 2020

Session

Time

Resolutions passed through considerations

The 6th Meeting of the

July 24, 2020

1.

Resolution on Remunerations for Senior

Remuneration

and

Management Appointed after the General

Appraisal Committee of

Election of the Board of Directors of the

the First Session of the

Company for 2020

Board of Directors

The 1st Meeting of the

6 November 2020

1.

Resolution on 2020 Restricted A-share

Remuneration

and

Incentive Plan (Draft) of Pharmaron

Appraisal Committee of

Beijing Co., Ltd. and Its Abstract

the Second Session

of

the Board of Directors

2.

Resolution on Measures on Management of

Implementation and Assessment of 2020

Restricted A-share Incentive Plan of

Pharmaron Beijing Co., Ltd.

3.

Resolution on Reviewing the List of

Qualified Employees of 2020 Restricted

A-share Incentive Plan

4.

Resolution on Requesting the General

Meeting to Authorize the Board of

Directors to Handle the Affairs Related to

the A-share Incentive Scheme

5.

Resolution on Initial H-share Incentive

Trust Plan (Draft) of Pharmaron Beijing

Co., Ltd.

6.

Resolution on Requesting the General

Meeting to Authorize the Board of

Directors and Management Committee to

Handle the Affairs Related to the Initial

H-share Incentive Trust Plan

The 2nd Meeting of the

November 25,

1.

Resolution on Fulfilment of Conditions for

Remuneration

and

2020

Unlocking within the First Unlocking

Appraisal Committee of

Period and Temporary Non-listing with

the Second Session

of

Respect to The First Grant under the

the Board of Directors

Restricted Stock and Stock Option

Incentive Plan for 2019

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APPENDIX I(A)

WORK REPORT OF THE BOARD OF

DIRECTORS FOR THE YEAR 2020

  1. Performance of strategy committee during the Reporting Period

The strategy committee mainly studied and made recommendations on the Company's medium- and long-term development strategies and major investment decisions, and assisted the Board in carrying out related work within its scope of authority. Two meetings of Strategy Committee were held during the Reporting Period.

Session

Time

Resolutions passed through considerations

The 5th Meeting of the

March 26, 2020

1.

Resolution on the Estimated Application of

Strategy

Committee

of

Credit Lines to Unrelated Financial

the First Session of the

Institutions in 2020;

Board of Directors

2.

Resolution on Using Some Idle Self-own

Funds to Purchase Wealth Management

Products;

3.

Resolution on Estimating Hedging Product

Transaction Quota in 2020

The 1st

Meeting of

the

23 December 2020

1.

Resolution on Acquisition of 100% Equity

Strategy

Committee

of

of Overseas Company

the Second Session

of

the Board of Directors

  1. Performance of nomination committee during the Reporting Period

The nomination committee mainly formulated selection criteria and procedures for directors and managers of the Company, searched for candidates, made selections and gave recommendations. Two meetings were held during the Reporting Period.

Session

Time

Resolutions passed through considerations

The Third

Meeting of

June 24, 2020

1. Resolution on the General Election of the

the

Nomination

Board of Directors of the Company and the

Committee

of the First

Election of Non-Independent Directors of

Session of the Board of

the Second Session of the Board of

Directors

Directors

2. Resolution on the General Election of the Board of Directors of the Company and the Election of Independent Directors of the Second Session of the Board of Directors

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APPENDIX I(A)

WORK REPORT OF THE BOARD OF

DIRECTORS FOR THE YEAR 2020

Session

Time

Resolutions passed through considerations

The Fourth

Meeting of

July 24, 2020

1. Resolution on the Proposed Appointment of

the

Nomination

Senior Management after the General

Committee

of the First

Election of the Board of Directors of the

Session of the Board of

Company

Directors

5. Performance of Independent Directors

In accordance with relevant regulations and requirements such as the Company Law, Articles of Association and the Working System for Independent Directors, the independent directors, with a responsible attitude to the Company and shareholders, performed their duties diligently and faithfully, actively attended relevant meetings, carefully discussed each resolution, objectively expressed own opinions and views taking an independent stand, and put forward professional opinions or suggestions on major issues such as the Company's business management, financial management, connected transactions, and profit distribution. Independent directors fully paid attention to the Company's important matters such as internal control construction, risk prevention and control, and financial audits, and played a positive role in regulating the Company's operations and safeguarding the legitimate rights and interests of the Company and its shareholders.

III. PROSPECTS FOR 2021

1. Information Disclosure

As the Company has its stocks listed on A-shares and H-shares markets in Shenzhen and Hong Kong, the Board will strictly comply with the Company Law, New Securities Law, Administrative Measures for the Information Disclosure of the Listed Companies, Guidelines for the Standardized Operation of Listed Companies on the ChiNext Market of Shenzhen Stock Exchange, the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited and relevant laws, regulations, rules and regulatory documents in order to improve professional quality. The Board will, as always, consciously fulfill its information disclosure obligations and strictly control information disclosure to effectively improve the Company's standard operation and transparency, ensure the timeliness, truthfulness, accuracy and completeness of information disclosure, maintain the "A" rating in the information disclosure assessment by Shenzhen Stock Exchange and establish a good corporate image in the capital market.

- 27 -

APPENDIX I(A)

WORK REPORT OF THE BOARD OF

DIRECTORS FOR THE YEAR 2020

2. Standardized corporate governance

The Board will continue to strengthen the corporate governance standardization, and promote the improvement of internal control and internal audit systems to establish strict and effective internal control and risk control systems in strict accordance with laws and regulations, such as the Company Law, New Securities Law, Rules Governing the Listing of Shares on the ChiNext Market of Shenzhen Stock Exchange, and The Rules Governing the Listing of Securities on the Stock Exchange of Hong Kong Limited, and plans to set up a ESG Executive Commission under the Strategy Committee to improve the ESG structure and strengthen the social and environmental risk management. At the same time, the Board will also strengthen communication with institutional investors, listen to their reasonable suggestions to improve corporate governance. The Board will combine with the Company's actual conditions, standardize the Company's operations through business integrity, transparent management, and constantly improving the corporate governance structure, so as to effectively maximize the interests of all shareholders and the Company.

3. Investor relation management

The Company will continue to strengthen investor relation management in Shenzhen and Hong Kong. The Board will urge relevant departments and personnel to actively manage investor relations based on the needs of investors, and strengthen contact and communication with investors through various channels, such as results presentation, hotline and emails for investors, investor interaction platforms, field research and online briefings, to help investors deepen their understanding and recognition of the Company and promote long-term, stable and good interaction between the Company and investors. The Board will make appropriate arrangements for reception of target audience, such as institutional investors and news media, to visit the Company for on-site discussion and survey, and for maintaining properly the confidentiality of undisclosed information.

4. The Company's operational strategy

  1. Strengthening and reinforcing our leadership position in small molecule R&D services and further enhancing our technology and global expansion

Through years of efforts, the Company has basically established a full-processfully-integrated small molecule drug development service platform. The Company will continue to increase the technical investment in small molecule service and continue to expand the service contents. Only by mastering advanced technology can we consolidate and strengthen our leading position in the industry. On the other hand, we will pay more attention to our own brand building when we expand our business, improve customer loyalty and enhance the brand awareness in small molecule services with our high quality services. Platform building and brand building will be two-pronged to build our international competitiveness in small molecule services.

- 28 -

APPENDIX I(A)

WORK REPORT OF THE BOARD OF

DIRECTORS FOR THE YEAR 2020

  1. Accelerating the construction of service platforms for biologics and CGT services platform

While developing biologics discovery service capabilities, we will also accelerate the construction of the CDMO service platform for biologics and CGT products. In 2021, we will further develop our biologics drug discovery service capabilities, expand our team and introduce more professional talent and broaden our services offering. We will accelerate the construction of the pilot and production workshop for large molecule biologics in Ningbo, establish a quality system that follows the highest level of international quality control standards, and build a large platform for large molecule CDMO. Furthermore, we will leverage on the existing CGT service capabilities of Absorption Systems and the acquisition of Liverpool-based AbbVie's Allergan Biologics Limited, which is expected to be completed in second quarter of 2021, to establish the CDMO service for cell and gene products.

  1. Enhancing management capabilities

From the perspective of creating our core competitiveness, we improved international operations and effectively integrated global resources to build a global services platform. We improved the execution efficiency of the management team to effectively implement our global expansion strategy. Our management capabilities also involve quality and safety management. In 2021, the Company will continue to value quality management, provide high quality services and products to our customers by adhering to the highest international quality standards. Safety production will continue to be the top priority of our daily operation which is crucial for the sustainability of the Company businesses. On top of that, information security will become an important component of our safety production efforts. We will commit to improving and upgrading the information system of our global operation to constantly safeguard customers' information and intellectual properties.

  1. Continuing to expand domestic and overseas markets

For the overseas market growth, we will continue to maintain our solid relationships with our existing customer base, deeply analyze and explore customer needs, expand our service offerings. We will make efforts to introduce new customers with the help of our reputation and brand influence. For the domestic market, we will further increase investment in the domestic market to achieve greater breakthroughs. Based on the characteristics of domestic market, we will adopt a specific market strategy to address the domestic needs to improve our competitiveness in the domestic market. With the increase of our late stage CMC (small molecule CDMO) service capacity, we are seeking further expansion in the domestic market.

- 29 -

APPENDIX I(A)

WORK REPORT OF THE BOARD OF

DIRECTORS FOR THE YEAR 2020

  1. Continuing to strengthen our talent pool to support our long-term and sustainable growth

Human resources are the foundation of innovation and key to strengthen our core competitiveness. As future development of the Company relies on high caliber talents in different areas, we need building an inclusive and open talent development platform and deeply understand the urgency and necessity of discover and develop talents to continually infuse new energy to fuel our company innovation and growth.

Board of Directors of Pharmaron Beijing Co., Ltd.

March 2021

- 30 -

APPENDIX I(B)

WORK REPORT OF THE INDEPENDENT

DIRECTORS FOR THE YEAR 2020

WORK REPORT OF THE INDEPENDENT DIRECTORS FOR THE YEAR 2020

(Independent director: Dai Lixin)

Dear shareholders and shareholder representatives:

I was an independent director of the First Session of the Board of Directors of Pharmaron Beijing Co., Ltd. ("The Company"), and has been an independent director of the Second Session of the Board of Directors of the Company since July 23, 2020. I was also a member of the Strategy Committee of the First Session of the Board of Directors of the Company, and has been a member of the Strategy Committee of the Second Session of the Board of Directors of the Company since July 28, 2020. I have performed my duties diligently, faithfully and faithfully in strict accordance with the Company Law, the Securities Law, the Guidelines on the Standard Operation of Companies Listed on the ChiNext of Shenzhen Stock Exchange and other relevant laws and regulations, as well as the provisions and requirements of the Articles of Association of the Company, the Rules of Procedure of the Board of Directors and the Working System of Independent Directors since I took office. I have actively attended the general meetings and meetings of the Board of Directors, carefully deliberated various proposals of the Board of Directors, expressed independent opinions on relevant matters of the Company, given full play to the role of independent directors, and safeguarded the overall interests of the Company and the legitimate rights and interests of all shareholders. Now I will report my performance of duties in 2020 as follows:

  1. DAILY PERFORMANCE OF DUTIES

During my tenure in 2020, I actively participated in the meetings of the Board of Directors and the general meetings held by the Company, carefully reviewed the meeting materials, actively participated in the discussion of various proposals and put forward reasonable suggestions, and played a positive role in the correct decision-making of the Board of Directors.

During my tenure in 2020, the Company held 12 meetings of the Board of Directors. I attended 10 meetings of the Board of Directors in person and 2 by proxy, without absence. After careful review of the proposals, I did not find that the resolutions considered by the Board of Directors were harmful to the interests of the Company and all shareholders. Therefore, I voted yes in all the voting of the Board meetings I attended in 2020, with no objection or abstention. In 2020, I attended the annual general meeting of the Company for 2019.

In 2020, the Company convened 2 meetings of the Strategy Committee, and I, as a member of the Strategy Committee, attended 1 meeting in person and 1 by proxy. I voted yes at all meetings of the Strategy Committee I attended in 2020, with no objection or abstention.

- 31 -

APPENDIX I(B)

WORK REPORT OF THE INDEPENDENT

DIRECTORS FOR THE YEAR 2020

  1. INDEPENDENT OPINIONS AND PRIOR APPROVAL

As an independent director of the Company, I provided independent opinions and prior approval of opinions for the following matters in 2020:

1. Independent opinions

Meeting

Matters on which I provided independent

Type of

Date

Session

opinions

opinions

January 9,

The 25th Meeting of the

1.

Resolution on Using Additional Idle

For

2020

First Session of the

Proceeds from Offering of H-shares

Board of Directors

to Purchase

Wealth

Management

Products Quota

2.

Resolution

on

Increasing Estimated

Hedging Quota

3.

Resolution on Participating in Private

Equity Investment Fund & Related-

party Transactions

March 27,

The 27th Meeting of the

1.

Resolution

on

Profit

Distribution

For

2020

First Board of Directors

Plan for 2019

  1. Resolution on the Company's Self- Evaluation Report of Internal Control for 2019
  2. Resolution on Remunerations Plan for Directors
  3. Resolution on Remunerations Plan for Senior Management
  4. Resolution on the Appointment of Domestic Accounting Firms for 2020
  5. Resolution on the Appointment of Overseas Accounting Firms for 2020
  6. Special Explanation and Independent Opinion on the Capital Occupation and External Guarantee by the Company's Related Party

- 32 -

APPENDIX I(B)

WORK REPORT OF THE INDEPENDENT

DIRECTORS FOR THE YEAR 2020

Meeting

Matters on which I provided independent

Type of

Date

Session

opinions

opinions

  1. Resolution on Confirmation of the Daily Related-party Transactions in 2019 and Estimation of the Daily Related-party Transactions in 2020
  2. Resolution on Special Report on Deposit and Use of the Proceeds from Offering of A-shares in 2019
  3. Resolution on Using Some Idle Self- Owned Funds to Purchase Wealth Management Products
  4. Resolution on Estimating Hedging Product Transaction Quota in 2020
  5. Resolution on Purchasing Liability Insurance for Directors, Supervisors and Senior Management of the Company

April 28,

The 28th Meeting of the

1.

Resolution on Increasing Estimation

For

2020

First

Session

of

the

of

the

Daily

Related-party

Board of Directors

Transactions in 2020

June 24,

The 29th Meeting of the

1.

Independent

Opinions

on Matters

For

2020

First

Session

of

the

Related to General Election of Board

Board of Directors

of Directors

July 28,

The First Meeting of the

1.

Resolution on Appointment of Senior

For

2020

Second Session

of

the

Management of the Company

Board of Directors

2.

Resolution

on Remunerations Plan

for Senior Management of the

Company for 2020

August 26,

The Second Meeting

of

Special Explanation and Independent For

2020

the

Second Session

of

Opinion on the Capital Occupation and

the Board of Directors

External Guarantee by the Related Party

- 33 -

APPENDIX I(B)

WORK REPORT OF THE INDEPENDENT

DIRECTORS FOR THE YEAR 2020

Meeting

Matters on which I provided independent

Type of

Date

Session

opinions

opinions

October 28,

The

Third

Meeting

of

Independent Opinion on Increase in

For

2020

the

Second

Session

of

Expected Quota of Daily Related-Party

the Board of Directors

Transactions with

Beijing

Anikeeper

Biotech Co., Ltd.

November 6,

The Fifth Meeting of the

1.

Independent

Opinion

on

Matters

For

2020

Second Session of

the

Related to 2020 Restricted A-share

Board of Directors

Incentive Plan

2.

Independent Opinion on Measures on

Management of Implementation and

Assessment

of 2020

Restricted

A-share Incentive Plan

3.

Independent

Opinion

on

Initial

H-share Incentive Trust Plan (Draft)

November 6,

The Sixth Meeting of the

Independent Opinion on Acquisition of

For

2020

Second Session of

the

100% Equity of Absorption Systems LLC

Board of Directors

and Its Wholly-owned Subsidiaries

November 25,

The Seventh Meeting of

Independent Opinion on Fulfilment of

For

2020

the

Second

Session

of

Conditions for Unlocking within the First

the Board of Directors

Unlocking Period and Temporary Non-

listing with Respect to The First Grant

under the Restricted Stock and Stock

Option Incentive Plan for 2019

2. Prior approval

Meeting

Type of

Date

Session

Matters subject to prior approval

opinions

January 9,

The 25th Meeting of the

Prior Approval Opinion on Participating in

For

2020

First

Session

of

the

Private Equity Investment Fund & Related-

Board of Directors

party Transactions

March 27,

The 27th Meeting of the

1.

Prior

Approval

Opinion

on

For

2020

First

Session

of

the

Resolution on the Appointment of

Board of Directors

Domestic Accounting Firms for 2020

2.

Prior

Approval

Opinion

on

Resolution on the Appointment of

Overseas Accounting Firms for 2020

- 34 -

APPENDIX I(B)

WORK REPORT OF THE INDEPENDENT

DIRECTORS FOR THE YEAR 2020

Meeting

Type of

Date

Session

Matters subject to prior approval

opinions

3. Prior Approval Opinion on Confirmation of the Daily Related- party Transactions in 2019 and Estimation of the Daily Related-party Transactions in 2020

April 28,

The 28th Meeting of the

Prior

Approval

Opinion

on

Increasing

For

2020

First

Session of

the

Estimation of the Daily Related-party

Board of Directors

Transactions in 2020

October 28,

The

Third

Meeting

of

Prior

Approval

Opinion

on

Increase in

For

2020

the

Second

Session

of

Expected Quota of Daily Related-Party

the Board of Directors

Transactions with Beijing

Anikeeper

Biotech Co., Ltd.

III. EFFORTS MADE TO PROTECT THE RIGHTS OF INVESTORS

Supervision on corporate governance structure and operation management: I kept timely communication with the management to have an in-depth understanding of the improvement and implementation of the Company's production and operation, internal control and other systems, the implementation of the resolutions of the Board of Directors and the general meeting, financial management and business development and other related matters, paid attention to the daily operation and governance of the Company, and fully expressed opinions on this basis at the Board meetings, and actively and effectively performed the duties of the independent director. I actively provided suggestions for the development of the Company, making use of my expertise in business management.

I strengthened my study and deepened my understanding and understanding of the relevant laws and regulations regulating corporate governance structure and protecting the rights and interests of public shareholders, with an aim to continuously improve my performance ability through study, provide better opinions and suggestions for the Company's scientific decision-making and risk prevention, and earnestly perform my duties of protecting the rights and interests of the Company and investors.

IV. OTHER WORKS

  1. No proposal was made to convene Board meeting and general meeting;
  2. No proposal was made to appoint or fire the accounting firm;
  3. No independent external audit institutions and advisory bodies were hired.

- 35 -

APPENDIX I(B)

WORK REPORT OF THE INDEPENDENT

DIRECTORS FOR THE YEAR 2020

  1. CONTACT INFORMATION
    Name: Dai Lixin
    Email: dailx@sioc.ac.cn

My performance of duties in 2020 has been reported above. In 2021, I will, as always, in line with the principle of diligence, good faith and prudence, actively and effectively perform the duties of the independent director in accordance with the provisions and requirements of laws, regulations and Articles of Association, make use of professional knowledge and experience to provide suggestions for the development of the Company, give play to the role of independent directors, and safeguard the legitimate rights and interests of the Company and shareholders, especially minority shareholders.

Independent Director:

Dai Lixin

March 29, 2021

- 36 -

APPENDIX I(B)

WORK REPORT OF THE INDEPENDENT

DIRECTORS FOR THE YEAR 2020

WORK REPORT OF THE INDEPENDENT DIRECTORS FOR THE YEAR 2020

(Independent Director: Chen Guoqin)

Dear shareholders and shareholder representatives:

As an independent director of the First Session of the Board of Directors of Pharmaron Beijing Co., Ltd. ("The Company") and having been an independent director of the Second Session of the Board of Directors of the Company since July 23, 2020, I have performed my duties diligently and faithfully in strict accordance with the Company Law, the Governance Guidelines for Listed Companies, the Guiding Opinions on the Establishment of Independent Directors System in Listed Companies, the Listing Rules of ChiNext of Shenzhen Stock Exchange, the Guidelines on the Standard Operation of Companies Listed on the ChiNext of Shenzhen Stock Exchange and other relevant laws, regulations and normative documents, as well as the provisions and requirements of the Articles of Association of the Company and the Working System of Independent Non-executive Directors. I have actively attended the relevant meetings of the Company, carefully deliberated various proposals of the board of directors and made prudent decisions, expressed independent opinions on the major issues of the Company, given full play to the independent and professional role of independent directors, paid attention to the development of the Company, timely understood its production and operation information, promoted its standardized operation, and safeguarded the overall interests of the Company and the legitimate rights and interests of all shareholders, especially the minority shareholders. Now I will report my performance of duties as an independent director in 2020 as follows:

  1. ATTENDANCE TO AND VOTING AT THE MEETINGS OF BOARD OF DIRECTORS AND GENERAL MEETINGS IN 2020

In 2020, the Company held 12 meetings of the Board of Directors. I attended 12 meetings in person, without absence. The Board meetings in 2020 were convened and held according to the statutory requirements, legal and effective decision-making procedures were performed for major business decisions and other major issues, and none of the resolutions harmed the interests of all shareholders, especially minority shareholders. Therefore, I voted for all resolutions approved by the Board of Directors in 2020, without any objection or abstention.

In 2020, the Company held four shareholders' general meetings and I attended two shareholders' general meetings, namely (1) the 2019 Annual General Meeting of Shareholders held on May 28, 2020; (2) the 2020 Third Extraordinary General Meeting of Shareholders, the 2020 Second Class A Shareholders' Meeting and the 2020 Second Class H Shareholders' Meeting held on December 11, 2020.

- 37 -

APPENDIX I(B)

WORK REPORT OF THE INDEPENDENT

DIRECTORS FOR THE YEAR 2020

  1. INDEPENDENT OPINIONS AND PRIOR APPROVAL

As an independent director of the first session and the second session of the Board of Directors of the Company, I provided independent opinions and prior approval opinions for the following matters in 2020:

1. Independent opinions

Meeting

Matters on which I provided independent

Type of

Date

Session

opinions

opinions

January 9,

The 25th Meeting of the

1.

Resolution on Using Additional Idle

For

2020

First

Session

of

the

Proceeds from Offering of H-shares

Board of Directors

to Purchase

Wealth

Management

Products Quota

2.

Resolution

on

Increasing Estimated

Hedging Quota

3.

Resolution on Participating in Private

Equity Investment Fund & Related-

party Transactions

March 27,

The 27th Meeting of the

1.

Resolution

on

Profit

Distribution

For

2020

First

Session

of

the

Plan for 2019

Board of Directors

2.

Resolution on the Company's Self-

Evaluation Report of Internal Control

for 2019

3.

Resolution

on

Remunerations

Plan

for Directors

4.

Resolution

on

Remunerations

Plan

for Senior Management

5.

Resolution on the Appointment of

Domestic Accounting Firms for 2020

6.

Resolution on the Appointment of

Overseas Accounting Firms for 2020

7.

Special Explanation and Independent

Opinion on the Capital Occupation

and External Guarantee by the

Company's Related Party

- 38 -

APPENDIX I(B)

WORK REPORT OF THE INDEPENDENT

DIRECTORS FOR THE YEAR 2020

Meeting

Matters on which I provided independent

Type of

Date

Session

opinions

opinions

  1. Resolution on Confirmation of the Daily Related-party Transactions in 2019 and Estimation of the Daily Related-party Transactions in 2020
  2. Resolution on Special Report on Deposit and Use of the Proceeds from Offering of A-shares in 2019
  3. Resolution on Using Some Idle Self- Owned Funds to Purchase Wealth Management Products
  4. Resolution on Estimating Hedging Product Transaction Quota in 2020
  5. Resolution on Purchasing Liability Insurance for Directors, Supervisors and Senior Management of the Company

April 28,

The 28th Meeting of the

1.

Resolution on Increasing Estimation

For

2020

First

Session

of

the

of

the

Daily

Related-party

Board of Directors

Transactions in 2020

June 24,

The 29th Meeting of the

Independent Opinions on Matters Related to

For

2020

First

Session

of

the

General Election of Board of Directors

Board of Directors

July 28,

The First Meeting of the

1.

Resolution on Appointment of Senior

For

2020

Second Session

of

the

Management of the Company

Board of Directors

2.

Resolution

on Remunerations Plan

for Senior Management of the

Company for 2020

August 26,

The Second Meeting

of

Special Explanation and Independent For

2020

the

Second Session

of

Opinion on the Capital Occupation and

the Board of Directors

External Guarantee by the Related Party

- 39 -

APPENDIX I(B)

WORK REPORT OF THE INDEPENDENT

DIRECTORS FOR THE YEAR 2020

Meeting

Matters on which I provided independent

Type of

Date

Session

opinions

opinions

October 28,

The

Third

Meeting

of

Independent Opinion on Increase in

For

2020

the

Second

Session

of

Expected Quota of Daily Related-Party

the Board of Directors

Transactions with

Beijing

Anikeeper

Biotech Co., Ltd.

November 6,

The Fifth Meeting of the

1.

Independent

Opinion

on

Matters

For

2020

Second Session of

the

Related to 2020 Restricted A-share

Board of Directors

Incentive Plan

2.

Independent Opinion on Measures on

Management of Implementation and

Assessment

of 2020

Restricted

A-share Incentive Plan

3.

Independent

Opinion

on

Initial

H-share Incentive Trust Plan (Draft)

November 6,

The Sixth Meeting of the

Independent Opinion on Acquisition of

For

2020

Second Session of

the

100% Equity of Absorption Systems LLC

Board of Directors

and Its Wholly-owned Subsidiaries

November 25,

The Seventh Meeting of

Independent Opinion on Fulfilment of

For

2020

the

Second

Session

of

Conditions for Unlocking within the First

the Board of Directors

Unlocking Period and Temporary Non-

listing with Respect to The First Grant

under the Restricted Stock and Stock

Option Incentive Plan for 2019

2. Prior approval

Meeting

Type of

Date

Session

Matters subject to prior approval

opinions

January 9,

The 25th Meeting of the

Prior Approval Opinion on Participating in

For

2020

First

Session

of

the

Private Equity Investment Fund & Related-

Board of Directors

party Transactions

March 27,

The 27th Meeting of the

1.

Prior

Approval

Opinion

on

For

2020

First

Session

of

the

Resolution on the Appointment of

Board of Directors

Domestic Accounting Firms for 2020

- 40 -

APPENDIX I(B)

WORK REPORT OF THE INDEPENDENT

DIRECTORS FOR THE YEAR 2020

Meeting

Type of

Date

Session

Matters subject to prior approval

opinions

2.

Prior

Approval

Opinion

on

Resolution on the Appointment of

Overseas Accounting Firms for 2020

3.

Prior

Approval

Opinion

on

Confirmation of the Daily Related-

party Transactions in 2019 and

Estimation of the Daily Related-party

Transactions in 2020

April 28,

The 28th Meeting of the

Prior

Approval

Opinion

on

Increasing

For

2020

First

Session of

the

Estimation of the Daily Related-party

Board of Directors

Transactions in 2020

October 28,

The

Third

Meeting

of

Prior

Approval

Opinion

on

Increase

in

For

2020

the

Second

Session

of

Expected Quota of Daily Related-Party

the Board of Directors

Transactions

with Beijing

Anikeeper

Biotech Co., Ltd.

III. PERFORMANCE OF SPECIAL COMMITTEES

1. Attendance to and voting at meetings of Audit Committee

As a member of the Audit Committee, I actively performed my duties and participated in the meetings of the Audit Committee in strict accordance with the relevant provisions of the Working System of Independent Directors and the Working Rules of the Audit Committee. The Audit Committee held five meetings in 2020, and I attended the meeting and voted for resolutions thereat by way of communication, without attendance or voting by proxy.

2. Attendance to and voting at meetings of Remuneration and Appraisal Committee

As a member of the Remuneration and Appraisal Committee, I paid close attention to the scope of work and main responsibilities of the senior executives, and supervised the formulation and implementation of the compensation system and performance appraisal system of the Company in strict accordance with the relevant provisions of the Working System of Independent Directors and the Working Rules of the Remuneration and Appraisal Committee. The Remuneration and Appraisal Committee held four meetings in 2020, and I attended the meeting and voted for resolutions thereat by way of communication, without attendance or voting by proxy.

- 41 -

APPENDIX I(B)

WORK REPORT OF THE INDEPENDENT

DIRECTORS FOR THE YEAR 2020

3. Attendance to and voting at meetings of Nomination Committee

The Nomination Committee held a total of two meetings in 2020. As a member of the Nomination Committee, I attended the meeting and voted for resolutions thereat by way of communication, without attendance or voting by proxy.

IV. EFFORTS MADE TO PROTECT THE RIGHTS OF INVESTORS

    1. I actively and effectively performed the duties of the independent director, paid attention to the operating conditions and the construction and implementation of financial management and internal control systems of the Company, timely understood the Company's operating conditions and possible operating risks, independently, objectively and impartially exercised the right to vote, and fully maintained independence in the work, thus effectively safeguarding the rights and interests of the Company and all shareholders, especially minority shareholders.
    2. I paid close attention to the information disclosure of the Company, and urged the Company to complete the information disclosure in a true, accurate, complete and timely manner according to the Listing Rules of ChiNext of Shenzhen Stock Exchange, the Guidelines on the Standard Operation of Companies Listed on the ChiNext of Shenzhen Stock Exchange, Hong Kong Listing Rules and other relevant laws and regulations as well as the Information Disclosure Management System of the Company.
    3. Since I became an independent director of the Company, I have been paying attention to learning the latest laws, regulations and rules. In addition, I have learned about the management systems of listed companies through a variety of ways and channels, continuously improved my ability to perform my duties, and formed the ideological consciousness of consciously protecting the rights and interests of the public shareholders, so as to provide better opinions and suggestions for the scientific decision-making and risk prevention of the Company, and promote the Company to further improve the corporate governance structure and improve the standard operation.
  2. FIELD VISIT TO THE COMPANY
    By leveraging my expertise in law and other professions, I actively conducted field visit

to the Company to understand its production and operation, internal control and financial situation during my attendance to the Board meetings and general meetings as well as by seeking other opportunities. I took the initiative to communicate with other directors, senior management and related personnel of the Company, timely followed up the implementation of the resolutions of the board of directors, general meeting and internal system, paid attention to the impact of external environment and market changes on the Company, and actively put forward reasonable suggestions for the operation and management of the Company.

- 42 -

APPENDIX I(B)

WORK REPORT OF THE INDEPENDENT

DIRECTORS FOR THE YEAR 2020

VI. OTHER WORKS

  1. No proposal was made to convene Board meeting in 2020;
  2. No proposal was made to appoint or fire the accounting firm in 2020;
  3. No independent external audit institutions and advisory bodies were hired in 2020.

VII. CONTACT INFORMATION

Name: Chen Guoqin

Email: chenguoqin@splf.com.cn

As an independent director of the second session of the Board of Directors of the Company, in 2021, I will continue to diligently, responsibly and faithfully perform my duties, actively participate in the Company's operation and management decisions, and earnestly safeguard the rights and interests of the Company and all shareholders, especially minority shareholders. I will make full use of my professional knowledge and experience to put forward more reasonable suggestions for the decision of the board of directors, promote the objective and fair decision of the Board, improve the decision-making ability and leadership of the Board, and safeguard the legitimate rights and interests of the Company and all shareholders.

Independent Director:

Chen Guoqin

March 29, 2021

- 43 -

APPENDIX I(B)

WORK REPORT OF THE INDEPENDENT

DIRECTORS FOR THE YEAR 2020

WORK REPORT OF THE INDEPENDENT DIRECTORS FOR THE YEAR 2020

(Independent Director: TSANG Kwan Hung Benson)

Dear shareholders and shareholder representatives:

As an independent director of the first session and second session of the Board of Directors of Pharmaron Beijing Co., Ltd. ("The Company"), I have performed my duties diligently and faithfully in strict accordance with the Company Law, the Governance Guidelines for Listed Companies, the Guiding Opinions on the Establishment of Independent Directors System in Listed Companies, the Listing Rules of ChiNext of Shenzhen Stock Exchange, the Guidelines on the Standard Operation of Companies Listed on the ChiNext of Shenzhen Stock Exchange and other relevant laws, regulations and normative documents, as well as the provisions and requirements of the Articles of Association of the Company and the Working System of Independent Directors. I have actively attended the relevant meetings of the Company, carefully deliberated various proposals of the board of directors and made prudent decisions, expressed independent opinions on the major issues of the Company, given full play to the independent and professional role of independent directors, paid attention to the development of the Company, timely understood its production and operation information, promoted its standardized operation, and safeguarded the overall interests of the Company and the legitimate rights and interests of all shareholders, especially the minority shareholders. Now I will report my performance of duties as an independent director in 2020 as follows:

  1. ATTENDANCE TO AND VOTING AT THE MEETINGS OF BOARD OF DIRECTORS AND GENERAL MEETINGS IN 2020

In 2020, the Company held 12 meetings of the Board of Directors and 4 shareholders' general meetings. I attended and voted at 11 meetings of the Board of Directors in person by communication, and authorized the director Shen Rong to attend and vote at 1 meeting of the Board of Directors on behalf of me. To be specific, I authorized the director Shen Rong to attend the 25th Meeting of the First Session of the Board of Directors on behalf of me. Since I was unable to attend this meeting in person and could not fully discuss on the resolution with other directors, I chose to abstain from voting on the Resolution on Participating in Private Equity Investment Fund & Related-party Transactions. Except the absence above, I attended all other meetings of the Board of Directors and committees under the Board in 2020, and voted for all resolutions at such meetings.

The annual general meeting for 2019 was held on May 28, 2020 and I attended it by communication.

- 44 -

APPENDIX I(B)

WORK REPORT OF THE INDEPENDENT

DIRECTORS FOR THE YEAR 2020

  1. INDEPENDENT OPINIONS AND PRIOR APPROVAL

As an independent director of the first session and the second session of the Board of Directors of the Company, I provided independent opinions and prior approval opinions for the following matters in 2020:

1. Independent opinions

Meeting

Matters on which I provided independent

Type of

Date

Session

opinions

opinions

January 9,

The 25th Meeting of the

1.

Resolution on Using Additional Idle

For

2020

First

Session

of

the

Proceeds from Offering of H-shares

Board of Directors

to Purchase

Wealth

Management

Products Quota

2.

Resolution

on

Increasing Estimated

Hedging Quota

3.

Resolution on Participating in Private

Equity Investment Fund & Related-

party Transactions

March 27,

The 27th Meeting of the

1.

Resolution

on

Profit

Distribution

For

2020

First

Session

of

the

Plan for 2019

Board of Directors

2.

Resolution on the Company's Self-

Evaluation Report of Internal Control

for 2019

3.

Resolution

on

Remunerations

Plan

for Directors

4.

Resolution

on

Remunerations

Plan

for Senior Management

5.

Resolution on the Appointment of

Domestic Accounting Firms for 2020

6.

Resolution on the Appointment of

Overseas Accounting Firms for 2020

7.

Special Explanation and Independent

Opinion on the Capital Occupation

and External Guarantee by the

Company's Related Party

- 45 -

APPENDIX I(B)

WORK REPORT OF THE INDEPENDENT

DIRECTORS FOR THE YEAR 2020

Meeting

Matters on which I provided independent

Type of

Date

Session

opinions

opinions

  1. Resolution on Confirmation of the Daily Related-party Transactions in 2019 and Estimation of the Daily Related-party Transactions in 2020
  2. Resolution on Special Report on Deposit and Use of the Proceeds from Offering of A-shares in 2019
  3. Resolution on Using Some Idle Self- owned Funds to Purchase Wealth Management Products
  4. Resolution on Estimating Hedging Product Transaction Quota in 2020
  5. Resolution on Purchasing Liability Insurance for Directors, Supervisors and Senior Management of the Company

April 28,

The 28th Meeting of the

1.

Resolution on Increasing Estimation

For

2020

First

Session

of

the

of

the

Daily

Related-party

Board of Directors

Transactions in 2020

June 24,

The 29th Meeting of the

1.

Independent

Opinions

on Matters

For

2020

First

Session

of

the

Related to General Election of Board

Board of Directors

of Directors

July 28,

The First Meeting of the

1.

Resolution on Appointment of Senior

For

2020

Second Session

of

the

Management of the Company

Board of Directors

2.

Resolution

on Remunerations Plan

for Senior Management of the

Company for 2020

August 26,

The Second Meeting

of

Special Explanation and Independent For

2020

the

Second Session

of

Opinion on the Capital Occupation and

the Board of Directors

External Guarantee by the Related Party

- 46 -

APPENDIX I(B)

WORK REPORT OF THE INDEPENDENT

DIRECTORS FOR THE YEAR 2020

Meeting

Matters on which I provided independent

Type of

Date

Session

opinions

opinions

October 28,

The

Third

Meeting

of

Independent

Opinion

on

Increase

in

For

2020

the

Second

Session

of

Expected Quota of Daily Related-Party

the Board of Directors

Transactions

with

Beijing

Anikeeper

Biotech Co., Ltd.

November 6,

The Fifth Meeting of the

1.

Independent

Opinion

on

Matters

For

2020

Second Session of

the

Related to 2020 Restricted A-share

Board of Directors

Incentive Plan

2.

Independent

Opinion

on

Administrative

Measures

on

Implementation

of

Assessment

for

2020 Restricted A-share Incentive

Plan

3.

Independent

Opinion

on

Initial

H-share Incentive Trust Plan (Draft)

November 6,

The Sixth Meeting of the

Independent

Opinion

on

Acquisition

of

For

2020

Second Session of

the

100% Equity of Absorption Systems LLC

Board of Directors

and Its Wholly-owned Subsidiaries

November 25,

The Seventh Meeting of

Independent

Opinion

on

Fulfilment

of

For

2020

the

Second

Session

of

Conditions for Unlocking within the First

the Board of Directors

Unlocking Period and Temporary Non-

listing with Respect to The First Grant

under the Restricted Stock and Stock

Option Incentive Plan for 2019

2. Prior approval

Meeting

Type of

Date

Session

Matters subject to prior approval

opinions

January 9,

The 25th Meeting of the

Prior Approval Opinion on Participating in

For

2020

First

Session

of

the

Private Equity Investment Fund & Related-

Board of Directors

party Transactions

March 27,

The 27th Meeting of the

1.

Prior

Approval

Opinion

on

For

2020

First

Session

of

the

Resolution on the Appointment of

Board of Directors

Domestic Accounting Firms for 2020

- 47 -

APPENDIX I(B)

WORK REPORT OF THE INDEPENDENT

DIRECTORS FOR THE YEAR 2020

Meeting

Type of

Date

Session

Matters subject to prior approval

opinions

2. Prior Approval Opinion

on

Resolution on the Appointment of

Overseas Accounting Firms for 2020

3. Prior Approval Opinion on Confirmation of the Daily Related- party Transactions in 2019 and Estimation of the Daily Related-party Transactions in 2020

April 28,

The 28th Meeting of the

Prior

Approval

Opinion

on

Increasing

For

2020

First

Session of

the

Estimation of the Daily Related-party

Board of Directors

Transactions in 2020

October 28,

The

Third

Meeting

of

Prior

Approval

Opinion

on

Increase in

For

2020

the

Second

Session

of

Expected Quota of Daily Related-Party

the Board of Directors

Transactions with Beijing

Anikeeper

Biotech Co., Ltd.

III. PERFORMANCE OF SPECIAL COMMITTEES

I have been a member of the Audit Committee, Remuneration and Appraisal Committee, and Nomination Committee under the Second Session of the Board of Directors since July 28, 2020.

As a member of the Audit Committee of the Second Session of the Board of Directors, I actively performed my duties in strict accordance with the relevant provisions of the Working System of Independent Directors and the Working Rules of the Audit Committee. I actively participated in the meetings of the audit committee. The Audit Committee of the Second Session of the Board of Directors held two meetings in 2020, and I attended these two meetings. I paid close attention to the Company's financial position, internal control work and its implementation, regularly checked the use of raised funds, and supervised the internal audit work.

As a member of the Remuneration and Appraisal Committee under the Second Session of the Board of Directors, I paid close attention to the scope of work and main responsibilities of the senior executives, and supervised the formulation and implementation of the compensation system and performance appraisal system of the Company in strict accordance with the relevant provisions of the Working System of Independent Directors and the Working Rules of the Remuneration and Appraisal Committee. In 2020, the Remuneration and Appraisal Committee under the Second Session of the Board of Directors held two meetings, and I attended these meetings.

- 48 -

APPENDIX I(B)

WORK REPORT OF THE INDEPENDENT

DIRECTORS FOR THE YEAR 2020

The Nomination Committee under the Second Session of the Board of Directors didn't hold any meeting in 2020, so I didn't attend any meeting of the Nomination Committee as a member of the Nomination Committee under the Second Session of the Board of Directors.

IV. EFFORTS MADE TO PROTECT THE RIGHTS OF INVESTORS

  1. I actively and effectively performed the duties of the independent director, paid attention to the operating conditions and the construction and implementation of financial management and internal control systems of the Company, timely understood the Company's operating conditions and possible operating risks, independently, objectively and impartially exercised the right to vote, and fully maintained independence in the work, thus effectively safeguarding the rights and interests of the Company and all shareholders, especially minority shareholders.
  2. I paid close attention to the information disclosure of the Company, and urged the Company to complete the information disclosure in a true, accurate, complete and timely manner according to the Listing Rules of ChiNext of Shenzhen Stock Exchange, the Guidelines on the Standard Operation of Companies Listed on the ChiNext of Shenzhen Stock Exchange, Hong Kong Listing Rules and other relevant laws and regulations as well as the Information Disclosure Management System of the Company.
  3. Since I became an independent director of the Company, I have been paying attention to learning the latest laws, regulations and rules. In addition, I have learned about the management systems of listed companies through a variety of ways and channels, continuously improved my ability to perform my duties, and formed the ideological consciousness of consciously protecting the rights and interests of the public shareholders, so as to provide better opinions and suggestions for the scientific decision-making and risk prevention of the Company, and promote the Company to further improve the corporate governance structure and improve the standard operation.

V. OTHER WORKS

  1. No proposal was made to convene a meeting of the Board of Directors or EGM in 2020;
  2. No proposal was made to appoint or fire the accounting firm in 2020;
  3. No independent external audit institutions and advisory bodies were hired in 2020.

- 49 -

APPENDIX I(B)

WORK REPORT OF THE INDEPENDENT

DIRECTORS FOR THE YEAR 2020

VI. CONTACT INFORMATION

Name: TSANG Kwan Hung Benson

Email: tsangbkh@yahoo.com.hk

As an independent director of the first session and second session of the Board of Directors of the Company, in 2021, I will continue to diligently, responsibly and faithfully perform my duties, actively participate in the Company's operation and management decisions, and earnestly safeguard the rights and interests of the Company and all shareholders, especially minority shareholders. I will make full use of my professional knowledge and experience to put forward more reasonable suggestions for the decision of the board of directors, ensure the objective and fair decision of the board, improve the decision-making ability and leadership of the board, and safeguard the legitimate rights and interests of the Company and all shareholders.

Independent Director:

TSANG Kwan Hung Benson

March 29, 2021

- 50 -

APPENDIX I(B)

WORK REPORT OF THE INDEPENDENT

DIRECTORS FOR THE YEAR 2020

WORK REPORT OF THE INDEPENDENT DIRECTORS FOR THE YEAR 2020

(Independent Director: Yu Jian)

Dear shareholders and shareholder representatives:

I became an independent director of the Second Session of the Board of Directors of Pharmaron Beijing Co., Ltd. ("The Company") upon approval by the shareholders' general meeting on July 23, 2020, and became a member of the Audit Committee, Remuneration and Appraisal Committee and Nomination Committee under the second session of the Board of Directors of the Company upon approval by the Board of Directors on July 28, 2020. As an independent director of the second session of the Board of Directors of the Company, I have performed my duties diligently and faithfully in strict accordance with the Company Law, the Governance Guidelines for Listed Companies, the Guiding Opinions on the Establishment of Independent Directors System in Listed Companies, the Listing Rules of ChiNext of Shenzhen Stock Exchange, the Guidelines on the Standard Operation of Companies Listed on the ChiNext of Shenzhen Stock Exchange and other relevant laws, regulations and normative documents, as well as the provisions and requirements of the Articles of Association of the Company and the Working System of Independent Directors. I have actively attended the relevant meetings of the Company, carefully deliberated various proposals of the Board of Directors and made prudent decisions, expressed independent opinions on the major issues of the Company, given full play to the independent and professional role of independent directors, paid attention to the development of the Company, timely understood its production and operation information, promoted its standardized operation, and safeguarded the overall interests of the Company and the legitimate rights and interests of all shareholders, especially the minority shareholders. Now I will report my performance of duties as an independent director in 2020 (actual tenure) as follows:

  1. ATTENDANCE TO AND VOTING AT THE MEETINGS OF BOARD OF DIRECTORS AND GENERAL MEETINGS

In 2020 (actual tenure), I attended 7 meetings of the Board of Directors, 2 meetings of Audit Committee, 2 meetings of Remuneration and Appraisal Committee, 0 meeting of Nomination Committee, and 1 general meeting. Actually, I attended 7 meetings of the Board of Directors, 2 meetings of Audit Committee, 2 meetings of Remuneration and Appraisal Committee, and 0 general meeting, and presented at 1 meeting of Strategy Committee. In 2020, I attended the meetings of the Board of Directors and its committees in person by communication, without voting by proxy. I believed the Board meetings were convened and held according to the statutory requirements, legal and effective decision-making procedures were performed for major business decisions and other major issues, and none of the proposals harmed the interests of all shareholders, especially minority shareholders. Therefore, I had no objection to the proposals of the Board of Directors and other matters of the Company in 2020, and voted for them without any objection or abstention.

- 51 -

APPENDIX I(B)

WORK REPORT OF THE INDEPENDENT

DIRECTORS FOR THE YEAR 2020

  1. INDEPENDENT OPINIONS AND PRIOR APPROVAL

As an independent director of the second session of the Board of Directors of the Company, I provided independent opinions and prior approval of opinions for the following matters in 2020:

1. Independent opinions

Meeting

Matters on which I provided independent

Type of

Date

Session

opinions

opinions

July 28,

The First Meeting of the

1.

Resolution on Appointment of Senior

For

2020

Second Session of

the

Management of the Company

Board of Directors

2.

Resolution

on

Remunerations

Plan

for Senior Management of the

Company for 2020

August 26,

The Second Meeting

of

Special Explanation

and

Independent

For

2020

the

Second

Session

of

Opinion on the Capital Occupation and

the Board of Directors

External Guarantee by the Related Party

October 28,

The

Third

Meeting

of

Independent Opinion on Increase in

For

2020

the

Second

Session

of

Expected Quota of Daily Related-Party

the Board of Directors

Transactions with

Beijing

Anikeeper

Biotech Co., Ltd.

November 6,

The Fifth Meeting of the

1.

Independent

Opinion

on

Matters

For

2020

Second Session of

the

Related to 2020 Restricted A-share

Board of Directors

Incentive Plan

2.

Independent

Opinion

on

Administrative

Measures

on

Implementation

of Assessment

for

2020 Restricted A-share Incentive

Plan

3.

Independent

Opinion

on

Initial

H-share Incentive Trust Plan (Draft)

November 6,

The Sixth Meeting of the

Independent Opinion on Acquisition of

For

2020

Second Session of

the

100% Equity of Absorption Systems LLC

Board of Directors

and Its Wholly-owned Subsidiaries

- 52 -

APPENDIX I(B)

WORK REPORT OF THE INDEPENDENT

DIRECTORS FOR THE YEAR 2020

Meeting

Matters on which I provided independent

Type of

Date

Session

opinions

opinions

November 25, The Seventh Meeting of

Independent Opinion on Fulfilment of

For

2020

the Second

Session of

Conditions for Unlocking within the First

the Board of Directors

Unlocking Period and Temporary Non-

listing with Respect to The First Grant

under the Restricted Stock and Stock

Option Incentive Plan for 2019

2. Prior approval

Meeting

Type of

Date

Session

Matters subject to prior approval

opinions

October 28,

The

Third

Meeting

of

Prior Approval Opinion on Increase in

For

2020

the

Second

Session

of

Expected Quota of Daily Related-Party

the Board of Directors

Transactions with Beijing Anikeeper

Biotech Co., Ltd.

III. PERFORMANCE OF SPECIAL COMMITTEES

As a member of the Audit Committee, I actively performed my duties in strict accordance with the relevant provisions of the Working System of Independent Directors and the Working Rules of the Audit Committee. I actively participated in the meetings of the audit committee. The Audit Committee held 2 meetings in 2020 (actual tenure), and I attended these meetings. I paid close attention to the Company's financial position, internal control work and its implementation, regularly checked the use of raised funds, and supervised the internal audit work.

As a member of the Remuneration and Appraisal Committee, I paid close attention to the scope of work and main responsibilities of the senior executives, and supervised the formulation and implementation of the compensation system and performance appraisal system of the Company in strict accordance with the relevant provisions of the Working System of Independent Directors and the Working Rules of the Remuneration and Appraisal Committee. In 2020 (actual tenure), the Remuneration and Appraisal Committee held two meetings, and I attended these meetings.

In 2020 (actual tenure), the Nomination Committee didn't hold meeting.

In 2020 (actual tenure), I presented at 1 meeting of Strategy Committee.

- 53 -

APPENDIX I(B)

WORK REPORT OF THE INDEPENDENT

DIRECTORS FOR THE YEAR 2020

IV. EFFORTS MADE TO PROTECT THE RIGHTS OF INVESTORS

    1. I actively and effectively performed the duties of the independent director, paid attention to the operating conditions and the construction and implementation of financial management and internal control systems of the Company, timely understood the Company's operating conditions and possible operating risks, independently, objectively and impartially exercised the right to vote, and fully maintained independence in the work, thus effectively safeguarding the rights and interests of the Company and all shareholders, especially minority shareholders.
    2. I paid close attention to the information disclosure of the Company, and urged the Company to complete the information disclosure in a true, accurate, complete and timely manner according to the Listing Rules of ChiNext of Shenzhen Stock Exchange, the Guidelines on the Standard Operation of Companies Listed on the ChiNext of Shenzhen Stock Exchange, Hong Kong Listing Rules and other relevant laws and regulations as well as the Information Disclosure Management System of the Company.
    3. Since I became an independent director of the Company, I have been paying attention to learning the latest laws, regulations and rules. In addition, I have learned about the management systems of listed companies through a variety of ways and channels, continuously improved my ability to perform my duties, and formed the ideological consciousness of consciously protecting the rights and interests of the public shareholders, so as to provide better opinions and suggestions for the scientific decision-making and risk prevention of the Company, and promote the Company to further improve the corporate governance structure and improve the standard operation.
  2. FIELD VISIT TO THE COMPANY
    By leveraging my expertise in financial and accounting and other professions, I actively

understood its production and operation, internal control and financial situation during my attendance to the Board meetings and general meetings as well as by seeking other opportunities. I took the initiative to communicate with other directors, senior management and related personnel of the Company, timely followed up the implementation of the resolutions of the Board of Directors, general meeting and internal system, paid attention to the impact of external environment and market changes on the Company, and actively put forward reasonable suggestions for the operation and financial management of the Company.

VI. OTHER WORKS

  1. No proposal was made to convene Board meeting or EGM in 2020;
  2. No proposal was made to appoint or fire the accounting firm in 2020;
  3. No independent external audit institutions and advisory bodies were hired in 2020.

- 54 -

APPENDIX I(B)

WORK REPORT OF THE INDEPENDENT

DIRECTORS FOR THE YEAR 2020

VII. CONTACT INFORMATION

Name: Yu Jian

E-mail: yujian@snai.edu

As an independent director of the second session of the Board of Directors of the Company, in 2021, I will continue to diligently, responsibly and faithfully perform my duties, actively participate in the Company's operation and management decisions, and earnestly safeguard the rights and interests of the Company and all shareholders, especially minority shareholders. I will make full use of my professional knowledge and experience to put forward more reasonable suggestions for the decision of the Board of Directors, ensure the objective and fair decision of the board, improve the decision-making ability and leadership of the board, and safeguard the legitimate rights and interests of the Company and all shareholders.

Independent Director:

Yu Jian

March 29, 2021

- 55 -

APPENDIX I(B)

WORK REPORT OF THE INDEPENDENT

DIRECTORS FOR THE YEAR 2020

WORK REPORT OF THE INDEPENDENT DIRECTORS FOR THE YEAR 2020

(Independent Director: Li Lihua)

Dear shareholders and shareholder representatives:

As an independent director of the first board of directors of Pharmaron Beijing Co., Ltd. ("The Company"), I have performed my duties justly and independently in strict accordance with the Company Law, the Securities Law, the Governance Guidelines for Listed Companies and other relevant laws and regulations, as well as the provisions of the Articles of Association of the Company, Rules of Procedure for Board Meetings and the Working System of Independent Directors since I took office in October 2016. I have attended the meetings of the Board of Directors, and the shareholders' general meetings on time, actively participate in major decision making of Company, carefully deliberated various resolutions of the Board of Directors, exercised the right to vote prudently, expressed independent opinions on relevant matters of the Company, given full play to the role of independent directors, and safeguarded the overall interests of the Company and the legitimate rights and interests of all shareholders.

I resigned from the position of the independent director of the first session of the Board of Directors of the Company on July 23, 2020, and from the position of the member of the Audit Committee, Remuneration and Appraisal Committee, and Nomination Committee under the first session of the Board of Directors of the Company on July 28, 2020.

Now I will report my performance of duties in 2020 as follows:

  1. DAILY PERFORMANCE OF DUTIES

1. Attendance to meetings of the Board of Directors and general meetings

Before my resignation date in 2020, the Company held 5 Board meetings and 3 shareholders' general meetings. As an independent director of the Company, I attended 5 meetings of the Board of Directors and 1 shareholder's general meeting in person by communication according to requirements.

I actively attended relevant meetings held by the Company. At the 2019 annual general meeting, I carefully listened to the opinions and suggestions of shareholders and their representatives, thoroughly understood their requirements, and created conditions for performing my duties as an independent director and safeguarding the interests of shareholders. During the tenure of office, I attended all meetings of the first session of the Board of Directors in 2020. Before the holding of each Board meeting, I took the initiative to carry out investigation and research, carefully reviewed relevant materials of the meeting, maintained regular communication with senior management, accessed the relevant information and information needed for the meeting, and made full use of my professional knowledge to put forward reasonable suggestions and opinions for the Board's proposals and decisions. At the meeting, I carefully considered each topic, actively participated in the discussion and put forward reasonable suggestions, and played the role of independent director for the correct and

- 56 -

APPENDIX I(B)

WORK REPORT OF THE INDEPENDENT

DIRECTORS FOR THE YEAR 2020

scientific decision-making of the Board of Directors. In addition, I exercised the right to vote in a prudent manner to safeguard the legitimate rights and interests of all shareholders, especially those of minority shareholders.

The meetings of the Board of Directors and shareholders' general meetings held by the Company were in accordance with legal procedures. Legal and effective review and approval procedures were performed for major business decisions and other major issues. As an independent director of the Company, I have earnestly performed my duties, and I have been diligent to promote the development and growth of the Company within the scope of my duties.

2. As a member of the Remuneration and Appraisal Committee, Audit Committee and Nomination Committee, my main performance in 2020 is as follows:

  1. Remuneration and Appraisal Committee

Before my resignation date in 2020, as a member of the Remuneration and Appraisal Committee of the first session of the Board of Directors, I attended two meetings of Remuneration and Appraisal Committee, and considered resolution on the remunerations plan for the directors, supervisors and senior management, and on performance evaluation plan, etc. The Remuneration and Appraisal Committee believed that the compensations disclosed by the directors, supervisors and senior management were true, accurate and free from falseness. It reached a resolution and submitted it to the Board of Directors or Supervisory Committee for consideration.

  1. Audit Committee

Before my resignation date in 2020, as a member of the Audit Committee, I attended three meetings of the Audit Committee and considered various resolutions, such as the Resolution on Audit Plan for 2019 Financial Statements, Resolution on Final Accounts Report for 2019, and Resolution on the First Quarterly Report of the Company for 2020. The Audit Committee had a detailed understanding of the Company's financial position and operating conditions, strictly reviewed the establishment and implementation of the internal control system, and provided effective supervision and guidance for the financial position and operating conditions of the Company.

  1. Nomination Committee

Before my resignation date in 2020, I attended 2 meetings of the Nomination Committee as a member of the Nomination Committee. At these meetings, Resolution on the General Election of the Board of Directors of the Company and the Election of Non-Independent Directors of the Second Session of the Board of Directors, Resolution on the General Election of the Board of Directors of the Company and the Election of Independent Directors of the Second Session of the Board of Directors, and other resolutions were approved.

- 57 -

APPENDIX I(B)

WORK REPORT OF THE INDEPENDENT

DIRECTORS FOR THE YEAR 2020

  1. INDEPENDENT OPINIONS AND PRIOR APPROVAL
    Independent opinions:
    1. On January 9, 2020, I attended the 25th Meeting of the First Session of the Board of Directors, and expressed my independent opinions to agree upon the Resolution on Using Additional Idle Proceeds from Offering of H-shares to Purchase Wealth Management Products Quota, Resolution on Increasing Estimated Hedging Quota, and Resolution on Participating in Private Equity Investment Fund & Related-party Transactions;
    2. On March 27, 2020, I attended the 27th Meeting of the First Session of the Board of Directors, and expressed my independent opinions to agree upon the following 12 resolutions:
      1. Resolution on Profit Distribution for 2019
      2. Resolution on the Company's Self-Evaluation Report of Internal Control for 2019
      3. Resolution on Remunerations Plan for Directors
      4. Resolution on Remunerations Plan for Senior Management
      5. Resolution on the Appointment of Domestic Accounting Firms for 2020
      6. Resolution on the Appointment of Overseas Accounting Firms for 2020
      7. Special Explanation and Independent Opinion on the Capital Occupation and External Guarantee by the Related Party
      8. Resolution on Confirmation of the Daily Related-party Transactions in 2019 and Estimation of the Daily Related-party Transactions in 2020
      9. Resolution on Special Report on Deposit and Use of the Proceeds from Offering of A Shares in 2019
      10. Resolution on Using Some Idle Self-owned Funds to Purchase Wealth Management Products
      11. Resolution on Estimating Hedging Product Transaction Quota in 2020
      12. Resolution on Purchasing Liability Insurance for Directors, Supervisors and Senior Management of the Company

- 58 -

APPENDIX I(B)

WORK REPORT OF THE INDEPENDENT

DIRECTORS FOR THE YEAR 2020

  1. On April 28, 2020, I attended the 28th Meeting of the First Session of the Board of Directors, and expressed my independent opinion to agree upon the Resolution on Increasing Estimation of the Daily Related-party Transactions in 2020;
  2. On June 24, 2020, I attended the 29th Meeting of the First Session of the Board of Directors, and expressed my independent opinion to agree upon the Resolution on the General Election of the Board of Directors of the Company.

Prior approval:

    1. On January 9, 2020, I attended the 25th Meeting of the First Session of the Board of Directors, and expressed my prior approval opinion to agree upon the Company's Participating in Private Equity Investment Fund & Related-party Transactions;
    2. On March 27, 2020, I attended the 27th Meeting of the First Session of the Board of Directors, and expressed my prior approval opinion to agree upon the Resolution on the Appointment of Domestic Accounting Firms for 2020, Resolution on the Appointment of Overseas Accounting Firms for 2020, and the Resolution on Confirmation of the Daily Related-party Transactions in 2019 and Estimation of the Daily Related-party Transactions in 2020;
    3. On April 28, 2020, I attended the 28th Meeting of the First Session of the Board of Directors, and expressed my prior approval opinion to agree upon the Resolution on Increasing Estimation of the Daily Related-party Transactions in 2020.
  2. EFFORTS MADE TO PROTECT THE RIGHTS OF INVESTORS
    As an Independent Director, I made several field visits to the Company in 2020, inspected

documents, listened to reports and inquired about relevant personnel, and learned about the production and operation, the establishment and implementation of internal control system, the implementation of meeting resolutions, and the financial operation of the Company. I believed that the Company's business activities were standardized and orderly. In my daily work, I had in-depth communication with the directors and management through phone calls and emails, and took the initiative to understand the corporate governance situation. I strictly reviewed the relevant matters and documents submitted by the Company to the Board of Directors, and jointly analyzed the market situation, industry development trend and the impact of market changes on the Company. I urged the Company to improve its information disclosure management system in strict accordance with the requirements of the Administrative Measures for the Information Disclosure of the Listed Companies, and paid attention to the Company's daily operation and governance. I fully expressed my opinions at the meetings of the Board of Directors, safeguarded the rights and interests of the Company and minority shareholders, and actively and effectively performed the duties as an independent director.

- 59 -

APPENDIX I(B)

WORK REPORT OF THE INDEPENDENT

DIRECTORS FOR THE YEAR 2020

IV. OTHER WORKS IN 2020

    1. No proposal was made to convene Board meeting or EGM;
    2. No proposal was made to appoint or fire the accounting firm;
    3. No independent external audit institutions and advisory bodies were hired.
  2. CONTACT INFORMATION
    Name: Li Lihua
    Email: llh0113@sohu.com

Independent Director:

Li Lihua

March 29, 2021

- 60 -

APPENDIX I(B)

WORK REPORT OF THE INDEPENDENT

DIRECTORS FOR THE YEAR 2020

WORK REPORT OF THE INDEPENDENT DIRECTORS FOR THE YEAR 2020

(Independent Director: Shen Rong)

Dear shareholders and shareholder representatives:

As an independent director of the first session of the Board of Directors of Pharmaron Beijing Co., Ltd. ("The Company") from January 1, 2020 to July 23, 2020, I have conscientiously fulfilled my duties, earnestly performed the duties of the independent director in 2020, and given full play to the supervisory role of the independent director in strict accordance with the Company Law, Securities Law, the Governance Guidelines for Listed Companies, the Guiding Opinions on the Establishment of Independent Directors System in Listed Companies, other relevant laws and regulations, as well as Articles of Association of Pharmaron Beijing Co., Ltd. and the Working System of Independent Directors of Pharmaron Beijing Co., Ltd. When reviewing the resolutions of the Board meetings held by the Company during my tenure in 2020, I carefully checked relevant matters and communicated with other directors, and made an independent and objective judgment based on the opinions of all parties. I hereby report to the shareholders and their representatives the performance of my duties as an independent director during my tenure in 2020 as follows:

  1. ATTENDANCE TO AND VOTING AT THE MEETINGS OF BOARD OF DIRECTORS AND SHAREHOLDERS' GENERAL MEETINGS IN 2020
    I attended and voted yes on resolutions of five Board meetings of the Company in 2020.

During my tenure in 2020, I attended the annual general meeting of the Company for 2019.

During my tenure in 2020, the Board meetings and shareholders' general meetings were convened and held in accordance with relevant laws and regulations. Relevant review and approval procedures were performed for major business decisions. The resolutions passed at the meetings were legal and valid. When reviewing various proposals, I actively consulted the management on the related matters, and put forward reasonable suggestions and opinions according to my own judgment, which helped the Board of Directors make correct decisions. During my tenure in 2020, I did not raise any objection to the resolutions of the Board of Directors and other matters of the Company.

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APPENDIX I(B)

WORK REPORT OF THE INDEPENDENT

DIRECTORS FOR THE YEAR 2020

  1. INDEPENDENT OPINIONS AND PRIOR APPROVAL

During my tenure in 2020, I provided independent opinions on various matters of the Company, detailed as follows:

  1. On January 9, 2020, at the 25th Meeting of the First Session of the Board of Directors, I expressed my independent opinions to agree upon the Resolution on Using Additional Idle Proceeds from Offering of H-shares to Purchase Wealth Management Products Quota, Resolution on Increasing Estimated Hedging Quota, and Resolution on Participating in Private Equity Investment Fund & Related-party Transactions.
  2. On March 27, 2020, at the 27th Meeting of the First Session of the Board of Directors, I expressed my independent opinions to agree upon the Resolution on Profit Distribution Plan for 2019, Resolution on the Company's Self-Evaluation Report of Internal Control for 2019, Resolution on Remunerations Plan for Directors, Resolution on Remunerations Plan for Senior Management, Resolution on the Appointment of Domestic Accounting Firms for 2020, Resolution on the Appointment of Overseas Accounting Firms for 2020, Special Explanation and Independent Opinion on the Capital Occupation and External Guarantee by the Company's Related Party, Resolution on Confirmation of the Daily Related-party Transactions in 2019 and Estimation of the Daily Related-party Transactions in 2020, Resolution on Special Report on Deposit and Use of the Proceeds from Offering of A-shares in 2019, Resolution on Using Some Idle Self-owned Funds to Purchase Wealth Management Products, Resolution on Estimating Hedging Product Transaction Quota in 2020, and Resolution on Purchasing Liability Insurance for Directors, Supervisors and Senior Management of the Company.
  3. On April 28, 2020, at the 28th Meeting of the First Session of the Board of Directors, I expressed my independent opinion to agree upon the Resolution on Increasing Estimation of the Daily Related-party Transactions in 2020.
  4. On June 24, 2020, at the 29th Meeting of the First Session of the Board of Directors, I expressed my independent opinion to agree upon the Resolution on the General Election of the Board of Directors of the Company.

During my tenure in 2020, I provided prior approval opinions on various matters of the Company, detailed as follows:

1. On January 9, 2020, at the 25th Meeting of the First Session of the Board of Directors, I expressed my prior approval opinion to agree upon the Company's Participating in Private Equity Investment Fund & Related-party Transactions.

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APPENDIX I(B)

WORK REPORT OF THE INDEPENDENT

DIRECTORS FOR THE YEAR 2020

  1. 2. On March 27, 2020, at the 27th Meeting of the First Session of the Board of Directors, I provided my consent to the Prior Approval Opinion on the Appointment of Domestic Accounting Firms for 2020, Prior Approval Opinion on the Appointment of Overseas Accounting Firms for 2020, and Prior Approval Opinion on Confirmation of the Daily Related-party Transactions in 2019 and Estimation of the Daily Related-party Transactions in 2020.

  2. PERFORMANCE OF DUTIES
    During my tenure, I personally attended all the Board meetings of the Company in 2020,

and had no objection to the matters under consideration and voted for them.

During my tenure, I listened to the report of the management on the operation, financial position and outward investment of the Company.

I kept in close contact with other directors, supervisors, senior management, audit department and other relevant personnel of the Company through phone calls and emails, paid close attention to the impact of external environment and market changes on the Company, and kept abreast of the progress of major issues of the Company. As the convener of the meetings of the Audit Committee, and Remuneration and Appraisal Committee of the first session of the Board of Directors of the Company, I convened and held such meetings in accordance with relevant regulations. As a member of the Nomination Committee of the first session of the Board of Directors, I actively participated in all the meetings of the Nomination Committee during my tenure.

IV. EFFORTS MADE TO PROTECT THE RIGHTS OF INVESTORS

As an independent director of the Company, I kept abreast of the Company's operation conditions, industry development, internal management, related party transactions, progress of major projects and other information through on-site inspection, telephone communication, material review and communication with the management, and supervised and inspected the performance of directors and senior management; actively attended relevant meetings, carefully reviewed all materials submitted by the Company, and exercised voting rights independently, objectively and prudently. I have fully performed the duties of the independent director, promoted the scientific and objective decision-making of the Board of Directors, and effectively safeguarded the rights and interests of the Company and shareholders.

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APPENDIX I(B)

WORK REPORT OF THE INDEPENDENT

DIRECTORS FOR THE YEAR 2020

  1. OTHER MATTERS
    1. I did not make any proposal to convene Board meeting during my tenure in 2020.
    2. I did not make any proposal to convene the extraordinary general meeting during my tenure in 2020.
    3. I did not make any proposal to appoint or fire the accounting firm during my tenure in 2020.
    4. I did not hire any independent external audit institutions and advisory bodies during my tenure in 2020.

VI. CONTACT INFORMATION

Name: Shen Rong

Email: sr_shen@zhonghuacpa.com

As a former independent director of the Company, I earnestly studied the laws, regulations and rules of China Securities Regulatory Commission, Shenzhen Stock Exchange and other regulatory authorities during my tenure in 2020, constantly improved my performance and ability, actively expressed independent opinions on major issues of the Company, and safeguarded the legitimate rights and interests of the Company and minority shareholders.

Independent Director:

Shen Rong

March 29, 2021

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APPENDIX II

WORK REPORT OF THE SUPERVISORY

COMMITTEE FOR THE YEAR 2020

WORK REPORT OF THE SUPERVISORY COMMITTEE FOR THE YEAR 2020

In 2020 (hereafter collectively as "Reporting Period"), according to the Company Law, Securities Law, Articles of Association, other laws and regulations and the requirements of the Rules of Procedures of Supervisory Committee of the Company, the Supervisory Committee of Pharmaron Beijing Co., Ltd. earnestly performed the supervisory duties, diligently performs the functions and powers, and effectively monitored the major events such as decision making procedures of company operation, production and operation activities, financial condition and the performance of duty of directors and senior management of the Company, which promoted the standard operation and healthy development of the Company, and actively safeguarded the legitimate rights and interests of the Company and all Shareholders. The performance of duty of Supervisory Committee of the Company in 2020 was as follows:

  1. MEETINGS OF THE SUPERVISORY COMMITTEE

The Supervisory Committee organized and convened 9 meetings in total during the Reporting Period, which shall be attended by 3 supervisors and were actually attended by 3 supervisors. Details of these meetings are as follow:

  1. The 15th Meeting of the First Session of the Supervisory Committee of the Company was held on January 9, 2020, which considered and approved:
    1. Resolution on Using Additional Idle Proceeds from Offering of H-shares to Purchase Wealth Management Products Quota;
    2. Resolution on Increasing Estimated Hedging Quota;
    3. Resolution on Participating in Private Equity Investment Fund & Connected Transactions.
  1. The 16th Meeting of the First Session of the Supervisory Committee of the Company was held on March 27, 2020, which considered and approved:
    1. Resolution on Work Report of the Supervisory Committee for 2019;
    2. Resolution on Final Accounts Report for 2019;
    3. Resolution on Profit Distribution Plan for 2019;
    4. Resolution on the Company's Self-Evaluation Report of Internal Control for 2019;

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APPENDIX II

WORK REPORT OF THE SUPERVISORY

COMMITTEE FOR THE YEAR 2020

    1. Resolution on the Full Text and Summary of the Annual Report for 2019 and Annual Results Announcement for 2019;
    2. Resolution on Remunerations Plan for Supervisors;
    3. Resolution on the Appointment of Domestic Accounting Firms for 2020;
    4. Resolution on the Appointment of Overseas Accounting Firms for 2020;
    5. Resolution on Confirmation of the Daily Related-party Transactions in 2019 and Estimation of the Daily Related-party Transactions in 2020;
    6. Resolution on Special Report on Deposit and Use of the Proceeds from Offering of A-shares in 2019;
    7. Resolution on Using Some Idle Self-own Funds to Purchase Wealth Management Products;
    8. Resolution on Estimating Hedging Product Transaction Quota in 2020.
  2. The 17th Meeting of the First Session of the Supervisory Committee of the Company was held on April 28, 2020, which considered and approved:
    1. Resolution on the First Quarterly Report of the Company for 2020;
    2. Resolution on Increasing Estimation of the Daily Related-party Transactions in 2020.

(IV) The 18th Meeting of the First Session of Supervisory Committee of the Company was held on June 24, 2020, which considered and approved:

  1. Resolution on the General Election of the Supervisory Committee of the Company and the Election of Non-Employee Representative Supervisors of the Second Session of the Supervisory Committee;
  2. Resolution on Proposed Authorization by the General Meeting to the Board of Directors for Issue of Domestic and Overseas Debt Financing Instruments;
  3. Resolution on the Grant of General Mandate by the General Meeting to the Board of Directors for Additional Issue of A-shares and/or H-shares.

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APPENDIX II

WORK REPORT OF THE SUPERVISORY

COMMITTEE FOR THE YEAR 2020

  1. The 1st Meeting of the Second Session of the Supervisory Committee of the Company was held on July 28, 2020, which considered and approved:

1. Resolution on the Election of Chairman of the Second Session of the Supervisory Committee.

(VI) The 2nd Meeting of the Second Session of Supervisory Committee of the Company was held on August 26, 2020, which considered and approved:

1. Resolution on the Full Text and Summary of the Semi-annual Report for 2020 and Interim Results Announcement for 2020.

(VII) The 3rd Meeting of the Second Session of the Supervisory Committee of the Company was held on October 28, 2020, which considered and approved:

  1. Resolution on the Third Quarterly Report of the Company for 2020;
  2. Resolution on Increase in Expected Quota of Daily Related-Party Transactions with Beijing Anikeeper Biotech Co., Ltd.

(VIII) The 4th Meeting of the Second Session of the Supervisory Committee of the Company was held on November 6, 2020, which considered and approved:

  1. Resolution on 2020 Restricted A-share Incentive Plan (Draft) of Pharmaron Beijing Co., Ltd. and Its Abstract;
  2. Resolution on Measures on Management of Implementation and Assessment of 2020 Restricted A-share Incentive Plan of Pharmaron Beijing Co., Ltd.;
  3. Resolution on Reviewing the List of Qualified Employees of 2020 Restricted A-share Incentive Plan;
  4. Resolution on Initial H-share Incentive Trust Plan (Draft) of Pharmaron Beijing Co., Ltd.;
  5. Resolution on Supplementary Election of Non-employee Representative Supervisors.

(IX) The 5th Meeting of the Second Session of the Supervisory Committee of the Company was held on November 25, 2020, which considered and approved:

1. Resolution on Fulfilment of Conditions for Unlocking within the First Unlocking Period and Temporary Non-listing with Respect to The First Grant under the Restricted Stock and Stock Option Incentive Plan for 2019.

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APPENDIX II

WORK REPORT OF THE SUPERVISORY

COMMITTEE FOR THE YEAR 2020

  1. OPINIONS OF THE SUPERVISORY COMMITTEE ON RELEVANT MATTERS OF THE COMPANY IN 2020
  1. The operation of the Company according to law

During the Reporting Period, the Supervisory Committee has conducted effective supervision over the procedures for convening meetings of board of directors and the general meeting, the resolution matters, the decision-making process of the board of directors and the general meeting, the implementation of the general meeting resolution by the board of directors, the performance of the directors and senior management, the Company's internal control system and its legal compliance, supervised the authenticity, accuracy, completeness and timeliness of relevant announcement information, and continuously supervised the implementation of major decisions of the Company and the daily standard performance and full due diligence of directors and senior management.

In the view of the Supervisory Committee, the Company's works were conducted in strict accordance with the Company Law, the Articles of Association and other relevant laws and regulations, and the business decisions were scientific and reasonable. The Company has improved the internal management and internal control system, and established a good internal control mechanism. When performing their duties, the directors and senior management of the Company were diligent and dutiful, complied with the national laws, regulations, the Articles of Association and systems of the Company, and safeguarded the interests of the Company. No violations of laws, regulations or actions against the interests of the Company were found.

(II) Financial activities of the Company

The Supervisory Committee inspected and supervised the Company's financial affairs in accordance with the law. After inspection and examination, the Supervisory Committee held that: The Company had sound financial system, standard financial operation and good financial condition. The Company's 2020 annual financial report complied with the relevant provisions of the PRC Accounting Standards for Business Enterprises and the Accounting System for Business Enterprises, and was able to objectively, truly and accurately reflect the Company's financial position and business results.

(III) Asset disposal and acquisition of the Company

The Company did not have any major asset disposal during the Reporting Period. The acquisitions by the Company are as follows:

After consideration and approval by Managers Meeting of the Company, the Company acquired 20% equity in Beijing LinkStart Biotechnology Co., Ltd. ("LinkStart") through equity transfer. On June 30, 2020, LinkStart completed the change registration and filing with competent market supervision authority for the above matters and obtained the renewed business license. After completion of the change registration, the Company held 68% equity in

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APPENDIX II

WORK REPORT OF THE SUPERVISORY

COMMITTEE FOR THE YEAR 2020

LinkStart, the Group could exercise control and LinkStart was included in the consolidated financial statements of the Group. The Company further strengthened its service capabilities in clinical research, subject recruitment and medical device compliance and clinical research by the acquisitions of Beijing S&Q Healthcare Co., Ltd. and RAMED (Beijing) Medical Technology Co., Ltd. through LinkStart.

As approved at the Sixth Meeting of the Second Session of the Board of Directors, in November 2020, the Company acquired 100% equity of Absorption Systems LLC ("AS") and its wholly-owned subsidiaries Absorption Systems California LLC ("ASC") and Absorption Systems Boston LLC ("ASB"). Upon completion of this transaction, the Company holds 100% equity of AS through its wholly-owned subsidiary Pharmaron (US) Lab Testing, Inc. and 100% equity of ASC and ASB indirectly through AS.

(IV) Connected transactions of the Company

The Supervisory Committee paid close attention to the Company's dealings with connected parties. It completed the supervision and verification of the daily connected transactions during the Reporting Period in accordance with the Articles of Association and connected transaction management system and concluded that: The decision-making procedures for the daily connected transactions of the Company in 2020 complied with the provisions of the Company Law and other laws, regulations and normative documents as well as the Articles of Association and the connected transaction management system; The connected transactions of the Company followed the fair and reasonable principle, and there was no circumstance that the Company's profit was manipulated through connected transactions, and the interests of the Company and shareholders were prejudiced.

(V) External guarantee of the Company and funds occupied by connected parties

After verification, the Supervisory Committee held that: during the Reporting Period, there was no violation of guarantee and overdue guarantee of the Company, and no connected party occupied its funds.

(VI) Internal control of the Company

The Company has, based on the needs of industry characteristics, company scale and actual production and operation conditions, formulated and effectively implemented its "Internal Control System", improved its internal control organization, ensured the normal operation of its business activities, prevented operational risks, and protected the asset safety and integrity. The internal control system of the Company was robust, and there were no major defects in the overall internal control of the Company. The Self-evaluation Report of Internal Control for 2020 truly and objectively reflected the construction and operation of the Company's internal control system, which conformed to the requirements of relevant national laws and regulations and the Articles of Association.

- 69 -

APPENDIX II

WORK REPORT OF THE SUPERVISORY

COMMITTEE FOR THE YEAR 2020

III. WORK PLAN OF THE SUPERVISORY COMMITTEE FOR THE YEAR 2021

In 2021, the Supervisory Committee will continue to strictly perform the duties assigned to it by the Company Law, other laws and regulations as well as the Articles of Association, and urge the Company to further improve its standard operation level and improve the corporate governance structure, and work hard to protect the legitimate rights and interests of the Company and its shareholders, focusing on the following three aspects:

  1. To strengthen self-study, actively participate in the training organized by regulatory departments, improve professional quality, so as to further enhance the capacity and efficiency of the Supervisory Committee, promote the standardized operation of the Company.
  1. To strengthen supervision and inspection and prevent business risks. The Supervisory Committee will monitor the financial operations of the Company by regularly understanding and reviewing financial reports; continue to strengthen oversight over major issues such as the Company's internal control, connected transactions, and the diligent and responsible performance of directors and senior management, provide warning on the risks found in the supervision in a timely manner, and report to the relevant units and departments.
  1. To cooperate with internal and external audit institutions, timely communicate with them, and fully understand the supervision information. The Supervisory Committee will strengthen the financial accounting audit and management, carefully check the financial statements, carry out special checks on important subjects, strengthen the awareness of risk prevention, and promote the further improvement of the Company's financial management level.

Supervisory Committee of Pharmaron Beijing Co., Ltd.

March 26, 2021

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APPENDIX III FINANCIAL STATEMENTS FOR THE YEAR 2020

FINANCIAL STATEMENTS FOR THE YEAR 2020

The financial and accounting statements prepared by the Company in accordance with the PRC Accounting Standards for Business Enterprises in 2020 have been audited by Ernst & Young Hua Ming LLP, which has issued an unqualified audit report (EYHM (2021) Audit No. 61401351_A01).

The financial and accounting statements prepared by the Company in accordance with International Financial Reporting Standards ("IFRSs") in 2020 have been audited by Ernst & Young, which has issued an unqualified audit report.

Note:

Unless otherwise specified, the following data are financial data prepared by the Company in accordance with the PRC Accounting Standards for Business Enterprises.

The Company's final statements for 2020 is summarized as follows:

I. KEY ACCOUNTING DATA AND FINANCIAL INDEXES

Unit: RMB

During the

The Reporting

corresponding

Item

Period

period last year

Change (%)

Revenue

5,133,596,758.68

3,757,160,086.84

36.64

Operating profit

1,323,834,586.27

631,487,023.57

109.64

Profit before tax

1,319,369,458.92

632,551,810.09

108.58

Net profit attributable to owners of the

parent

1,172,382,387.80

547,191,486.94

114.25

Basic earnings per share

1.4825

0.8284

78.96

Diluted earnings per share

1.4781

0.8282

78.47

Decreased by

Return on net assets on weighted

2.57 percentage

average basis

14.13%

16.70%

points

As at the end of

At the beginning

the reporting

of the Reporting

Item

period

Period

Change (%)

Total assets

11,908,792,687.05

9,935,038,258.59

19.87

Equity attributable to owners of the

parent

8,870,319,872.38

7,767,063,398.51

14.20

Share capital

794,387,462.00

794,387,462.00

-

Net assets per share attributable to

owners of the parent

11.17

9.78

14.21

- 71 -

APPENDIX III FINANCIAL STATEMENTS FOR THE YEAR 2020

  1. ANALYSIS ON FINANCIAL POSITION, BUSINESS RESULTS AND CASH FLOW
  1. Asset composition and change during the Reporting Period

Unit: RMB10,000

31 December 2020

1 January 2020

Proportion

Proportion

of total

of total

Item

Amount

assets

Amount

assets

Change

Cash and bank balances

294,235.27

24.71%

445,985.25

44.89%

-34.03%

Held-for-trading financial

assets

91,001.02

7.64%

18,345.13

1.85%

396.05%

Trade receivables

107,661.38

9.04%

85,706.93

8.63%

25.62%

Prepayments

999.14

0.08%

464.54

0.05%

115.08%

Other receivables

4,312.52

0.36%

8,294.28

0.83%

-48.01%

Inventories

28,161.72

2.36%

15,739.70

1.58%

78.92%

Contract assets

13,376.42

1.12%

8,910.50

0.90%

50.12%

Other current assets

14,290.35

1.20%

10,998.78

1.11%

29.93%

Total current assets

554,037.83

46.52%

594,445.10

59.83%

-6.80%

Long-term equity investments

28,047.41

2.36%

13,124.60

1.32%

113.70%

Other non-current financial

assets

12,122.96

1.02%

5,905.36

0.59%

105.29%

Investment properties

4,388.89

0.37%

4,601.28

0.46%

-4.62%

Fixed assets

272,268.70

22.86%

248,546.82

25.02%

9.54%

Construction in progress

82,057.62

6.89%

21,727.29

2.19%

277.67%

Right-of-use assets

25,543.98

2.14%

17,954.61

1.81%

42.27%

Intangible assets

56,607.64

4.75%

42,057.37

4.23%

34.60%

Goodwill

116,617.22

9.79%

20,328.58

2.05%

473.66%

Long-term deferred expenses

23,427.14

1.97%

20,483.50

2.06%

14.37%

Deferred tax assets

843.60

0.07%

637.16

0.06%

32.40%

Other non-current assets

14,916.28

1.25%

3,692.15

0.37%

304.00%

Total non-current assets

636,841.44

53.48%

399,058.72

40.17%

59.59%

Total assets

1,190,879.27

100.00%

993,503.83

100.00%

19.87%

Key change analysis:

  1. Cash and bank balances: decreased by RMB1,517.50 million or 34.03% compared with the balance at the beginning of the year, mainly due to the net cash outflows from investments in medium-risk and low-risk wealth management products purchased from a number of reputable international banks, cash outflows from purchase or construction of fixed assets, intangible assets and other long-term assets, and cash outflows from acquisition of subsidiaries and other operating units.
  2. Held-for-tradingfinancial assets: increased by RMB726.6 million or 396.05% compared with the balance at the beginning of the year, mainly due to the increase in the ending fair value of medium-risk and low-risk wealth management products and foreign exchange forward contracts and collar contracts with banks invested by the Company with idle funds.
    • 72 -

APPENDIX III FINANCIAL STATEMENTS FOR THE YEAR 2020

  1. Prepayments: increased by RMB5.35 million or by 115.08% compared with the balance at the beginning of the year, mainly due to the increase in prepayments for purchases of raw materials.
  2. Other receivables: decreased by RMB39.82 million or 48.01% compared with the balance at the beginning of the year, mainly due to the recovery of employee borrowings during the Reporting Period.
  3. Inventory: increased by RMB124.22 million or 78.92%, compared with the balance at the beginning of the year, mainly due to the increase in the purchase of required raw material and products under production during the reporting period.
  4. Contract assets: increased by RMB44.66 million or 50.12% compared with the balance at the beginning of the year, mainly due to the increase in business volume of the Company during the Reporting Period.
  5. Long-termequity investments: increased by RMB149.23 million compared with the balance at the beginning of the year, with the main changes below:
    1. During the Reporting Period, the Company increased equity investments of RMB77 million and USD30.39 million in Beijing Kangjun Ningyuan Equity Investment Partnership Enterprise (Limited Partnership) and AccuGen Group, respectively.
    2. During the Reporting Period, the Company acquired an additional 20% equity interest of LinkStart. Therefore, LinkStart became a subsidiary and is no longer an associate of the company.
  7. Other non-current financial assets: increased by RMB62.18 million or 105.29% compared with the balance at the beginning of the year. The increase was mainly due to the listing of our equity investment, Zentalis Pharmaceuticals, Inc. ("Zentalis"), on the Nasdaq Global Market on April 3, 2020 (U.S. local time). After the expiration of the lock-up period, the Group disposed its 50% of equity interests in Zentalis Pharmaceuticals, LLC in December 2020, and the remaining 50% of equity interests at the end of the year was equivalent to approximately RMB96.61 million, representing an increase of approximately RMB46.45 million as compared with the balance at the beginning of the year.
  8. Construction in progress: increased by RMB603.30 million or 277.67% compared with the balance at the beginning of the year, mainly due to the construction of Ningbo Hangzhou Bay R&D service center, phase I of Shaoxing Shangyu manufacturing facility, phase III of Tianjin CMC (small molecule CDMO) facility, and Phase II of Ningbo Hangzhou Bay R&D service center.
  9. Right-of-useassets: increased by RMB75.89 million or 42.27% compared with the
    balance at the beginning of the year. The increase was mainly due to: 1) lease of approximately 22,500 m2 of laboratory space in Beijing during the Reporting Period, which was recognized as right-to-use asset; 2) the Company acquired Absorption Systems LLC and its subsidiaries during the Reporting Period, which added to right-to-use assets through the business combination.

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APPENDIX III FINANCIAL STATEMENTS FOR THE YEAR 2020

    1. Intangible assets: increased by RMB145.50 million or 34.60% compared with the balance at the beginning of the year, mainly due to the addition of customer relationship and other intangible assets through acquisition of Beijing LinkStart, Absorption Systems LLC and its subsidiaries, RAMED (Beijing) Medical Technology Co., Ltd..
    2. Goodwill: increased by RMB962.89 million or 473.66% compared with the balance at the beginning of the year, mainly due to the business combination among Beijing LinkStart, Absorption Systems LLC and its subsidiaries, RAMED (Beijing) Medical Technology Co., Ltd. during the Reporting Period.
    3. Deferred tax assets: increased by RMB2.06 million or 32.40% compared with the balance at the beginning of the year, mainly due to the increase of the deferred tax assets related to the share-based payments.
    4. Other non-current assets: increased by RMB112.24 million or by 304.00% compared with the balance at the beginning of the year, due to the increase in prepayments for purchasing equipment.
  2. Liability composition and change during the Reporting Period

Unit: RMB10,000

31 December 2020

1 January 2020

Proportion

Proportion

of total

of total

Item

Amount

assets

Amount

assets

Change

Short-term borrowings

37,726.54

3.17%

21,395.15

2.15%

76.33%

Trade payable

19,149.72

1.61%

11,797.80

1.19%

62.32%

Contract liabilities

47,328.89

3.97%

27,154.65

2.73%

74.29%

Employee benefits payable

38,744.25

3.25%

23,308.59

2.35%

66.22%

Tax payables

5,183.40

0.44%

4,373.06

0.44%

18.53%

Other payables

40,765.58

3.42%

23,853.60

2.40%

70.90%

Non-current liabilities due

within one year

9,280.51

0.78%

15,085.25

1.52%

-38.48%

Total current liabilities

198,178.89

16.64%

126,968.10

12.78%

56.09%

Long-term borrowings

39,481.09

3.32%

54,202.73

5.46%

-27.16%

Lease Liabilities

18,660.79

1.57%

13,116.04

1.32%

42.27%

Long-term payables

-

0.00%

176.37

0.02%

-100.00%

Deferred income

15,812.83

1.33%

11,160.59

1.12%

41.68%

Deferred tax liabilities

10,690.64

0.90%

4,078.17

0.41%

162.14%

Not

Other non-current liabilities

14,681.03

1.23%

-

0.00%

applicable

Total non-current liabilities

99,326.37

8.34%

82,733.89

8.33%

20.06%

Total liabilities

297,505.26

24.98%

209,701.99

21.11%

41.87%

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APPENDIX III FINANCIAL STATEMENTS FOR THE YEAR 2020

Key change analysis:

  1. Short-termborrowings: Increased by RMB163.31 million or 76.33% compared with the balance at the beginning of the year, mainly due to the increased bank borrowings.
  2. Trade payable: increased by RMB73.52 million or by 62.32% compared with the balance at the beginning of the year, mainly due to the increase in purchase of inventory during the Reporting Period.
  3. Contract liabilities: increased by RMB201.74 million or 74.29% compared with the balance at the beginning of the year, mainly due to the constant expansion of the Company during the Reporting Period.
  4. Employee benefits payable: increased by RMB154.36 million or 66.22% compared with the balance at the beginning of the year, mainly due to the increase of the size of workforce and average salary cost, with the increase of the Company's business expansion.
  5. Other payables: increased by RMB169.12 million or by 70.90% compared with the balance at the beginning of the year, mainly due to the significant increase in equity transfer consideration, equipment purchase price and engineering payments.
  6. Non-currentliabilities due within one year: decreased by RMB58.05 million or 38.48% compared with the balance at the beginning of the year, mainly due to the repayments of borrowings and capital lease during the Reporting Period.
  7. Lease liabilities: increased by RMB55.45 million or 42.27% compared with the
    balance at the beginning of the year. The increase was mainly due to: 1) new lease contracts in Beijing and U.S. during the Reporting Period, which was recognized as lease liabilities; 2) the Company acquired Absorption Systems LLC during the Reporting Period, which added to lease liabilities through business combination.
  8. Long-termpayables: decreased by RMB1.76 million or 100% compared with the balance at the beginning of the year, mainly due to the repayments during the Reporting Period.
  9. Deferred income: increased by RMB46.52 million or 41.68% compared with the balance at the beginning of the year, mainly due to the increase of government subsidies related to assets during the Reporting Period.

- 75 -

APPENDIX III FINANCIAL STATEMENTS FOR THE YEAR 2020

    1. Deferred tax liabilities: increased by RMB66.12 million or 162.14% compared with the balance at the beginning of the year. It was mainly affected by the fair value gain arising from acquisition, one-off accelerated depreciation of fixed assets, and change in fair value of derivative financial instruments on foreign currency forward contracts during the reporting period.
    2. Other non-current liabilities: increased by RMB146.81 million compared with the balance at the beginning of the year, due to the estimated contingent consideration arising from the acquisition of Absorption Systems LLC during the Reporting Period.
  2. Profit and loss and relevant change during the Reporting Period

Unit: RMB10,000

2020

2019

Proportion

Proportion

of

of

operating

operating

Item

Amount

Income

Amount

Income

Change

Revenue

513,359.68

100.00%

375,716.01

100.00%

36.64%

Cost

321,007.52

62.53%

242,278.34

64.48%

32.50%

Taxes and surcharges

3,289.58

0.64%

3,124.27

0.83%

5.29%

Selling expenses

9,264.28

1.80%

7,298.86

1.94%

26.93%

Administrative expenses

65,324.29

12.72%

49,559.33

13.19%

31.81%

Research and development

costs

10,534.52

2.05%

6,287.15

1.67%

67.56%

Financial expenses

8,236.86

1.60%

7,220.59

1.92%

14.07%

Other income

4,518.37

0.88%

3,246.12

0.86%

39.19%

Investment income

15,748.92

3.07%

(1,869.21)

-0.50%

-942.54%

Gains on changes in fair value

19,086.05

3.72%

2,542.59

0.68%

650.65%

Credit impairment losses

(1,505.56)

-0.29%

(549.49)

-0.15%

173.99%

Assets impairment losses

(438.97)

-0.09%

(102.09)

-0.03%

329.98%

Gain on disposal of assets

(727.98)

-0.14%

(66.69)

-0.02%

991.59%

Operating profit

132,383.46

25.79%

63,148.70

16.81%

109.64%

Add: Non-operating revenue

79.69

0.02%

349.56

0.09%

-77.20%

Less: Non-operating expenses

526.20

0.10%

243.08

0.06%

116.47%

Profit before tax

131,936.95

25.70%

63,255.18

16.84%

108.58%

Less: Income tax expenses

17,237.79

3.36%

10,187.80

2.71%

69.20%

Net profit

114,699.15

22.34%

53,067.38

14.12%

116.14%

in which: Net profit

attributable to owners of

parent

117,238.24

22.84%

54,719.15

14.56%

114.25%

Non-controlling interests

(2,539.08)

-0.49%

(1,651.77)

-0.44%

53.72%

- 76 -

APPENDIX III FINANCIAL STATEMENTS FOR THE YEAR 2020

Key change analysis:

In 2020, the Company realized total revenue of RMB5,133.60 million, up 36.64% compared with the same period last year; realized operating profit of RMB1,323.83 million, up 109.64% compared with the same period last year; realized profit before tax of RMB1,319.37 million, up 108.58% from the same period last year; realized net profit attributable to the owner of parent of RMB1,172.38 million, up 114.25% compared with the same period last year. The main reason for the growth of the Company's operating profit, profit before tax and net profit attributable to the owner of parent is that during the Reporting Period, under the full-process and integrated strategy guidance, the Company continued the construction of R&D services platform, committed to improving the integrated research and development services and continuously improved its market shares. While deeply cultivating the international market and strengthening the cooperative relationship with the existing international top pharmaceutical companies and biotech companies, the Company vigorously developed and deeply excavated the domestic market, increased the business volume and developed more new customers. Driven by the growth of the revenue and business volume of each business segment, the Company's operating profit, profit before tax and net profit attributable to the owner of parent were significantly improved due to the effect by the economy of scale. In addition, the Company recognized gains on fair value change from Zentalis Pharmaceuticals, Inc. ("Zentalis") of RMB75.46 million and gains on disposal from Zentalis of RMB78.04 million.

With the substantial increase of revenue and the continuous expansion of operation scale, the cost, selling expenses and administrative expenses increased by 32.50%, 26.93% and 31.81% respectively during the reporting period.

The Research and development costs increased by RMB42.47 million or 67.56% compared with the same period last year, mainly due to the Company's enhanced efforts to improve research and development capabilities technical expertise, and increased research and development spending. In the area of chemical synthesis and manufacturing technology improvement, we focused on the application of the high throughput chemical reaction screening platform, flow chemical technology and biocatalysts technology. In the discovery and bioscience areas, the Company improved Technological platforms, such as Pharmaron's DNA-encoded Library (DEL) screening platform, chemoproteomics platform, in vivo imaging technology platform and a 3D spheroid and organoid screening platform.

The financial expenses increased by RMB10.16 million or 14.07% compared with the same period last year, of which:

  1. the interest expenses was RMB23.85 million during the Reporting Period, decreased by RMB58.62 million from RMB82.48 incurred in the same period last year;
  2. the interest income earned in the Reporting Period was RMB74.06 million, increased by RMB64.45 million from RMB9.61 million incurred in the same period last year;

- 77 -

APPENDIX III FINANCIAL STATEMENTS FOR THE YEAR 2020

  1. the foreign exchange loss incurred in the Reporting Period was RMB131.23 million, increased by RMB133.11 million from the foreign exchange income of RMB1.88 million earned in the same period last year.

Other income earned in the Reporting Period increased by RMB12.72 million or 39.19% compared with the same period last year, mainly due to the increase of government subsidies received by the Company related to daily activities during the Reporting Period.

The investment income earned in the Reporting Period increased by RMB176.18 million or 942.54% compared with the same period last year, of which:

  1. The Company incurred an investment loss of approximately RMB24.57 million arising from the investment in associates of the Company;
  2. The Company recognized one-off fair value gain of approximately RMB23.12 million resulted from re-measurement of our equity interest in LinkStart when it became our subsidiary in June 2020;
  3. The Company recognized investment income of approximately RMB80.89 million which was mainly from the investments in some medium-risk and low-risk wealth management products and foreign exchange forward contracts and collar contracts with banks;
  4. The investment income from disposal of 50% equity in the shareholding company Zentalis Pharmaceuticals, LLC was approximately RMB78.04 million.

The gains on change in fair value in the Reporting Period increased by RMB165.43 million or 650.65% compared with the same period last year, of which:

  1. The gains on change in fair value due to the listing of our equity investment, Zentalis Pharmaceuticals, Inc. ("Zentalis"), on the Nasdaq Global Market on April 3, 2020 (U.S. local time) (stock code: ZNTL). As of December 31, 2020, the Company recognized gains on fair value change from Zentalis of approximately RMB75.46 million.
  2. The gains from change in fair value of foreign exchange forward contracts and collar contracts was approximately RMB71.01 million, and the recognized gains from change in fair value of wealth management products was approximately RMB44.39 million.

Total asset impairment losses and credit impairment losses increased by RMB12.93 million or 198.43% compared with the same period last year, mainly due to the increase in impairment losses on trade receivables and inventories in the Reporting Period compared with the same period of last year.

- 78 -

APPENDIX III FINANCIAL STATEMENTS FOR THE YEAR 2020

The income tax expenses increased by RMB70.50 million or 69.20% compared with the same period last year, mainly due to significant increase of profit before tax during the Reporting Period.

(IV) Cash flow and relevant change during the Reporting Period

Unit: RMB10,000

2020

2019

Item

Amount

Amount

Change

Net cash flows from operating activities

164,861.00

93,858.63

75.65%

Net cash flows from investment

activities

(337,105.09)

(104,520.44)

-222.53%

Net cash flows from financing activities

(28,017.76)

424,587.98

-106.60%

Effect of foreign exchange rate changes

on cash and cash equivalents

(8,566.58)

(427.90)

-1,902.01%

Net increase in cash and cash

equivalents

(208,828.44)

413,498.28

-150.50%

Key change analysis:

  1. Net cash flows from operating activities: The net inflow of cash flows generated from operating activities during the Reporting Period was RMB1,648.61 million, with an increase of RMB710.02 million or 75.65% over the same period last year, mainly due to the increase in our revenue and profit during the Reporting Period.
  2. Net cash flow from investment activities: during the Reporting Period, the net outflow of cash flows used in investing activities of the Company amounted to RMB3,371.05 million, representing an increase of RMB2,325.85 million or 222.53% over the same period last year. The net cash flows used in investing activities during this Reporting Period was mainly from: 1) net cash outflows used in purchase of time deposits over three months and some medium-risk and low-risk wealth management products purchased from a number of reputable international banks of approximately RMB1,145.16 million; 2) Using funds including the proceeds of H shares in the construction of facility and purchases of other property, plant and equipment of approximately RMB1,315.84 million; 3) cash outflows used in acquisition of subsidiaries and other equity investments of approximately RMB1,100.22 million.
  3. Net cash flow from financing activities: The net cash outflow of cash flows from financing activities during the Reporting Period was RMB280.18 million, compared with the net inflow of RMB4,245.88 million during the same period last year, mainly due to the proceeds from issuance of A shares and H shares received during the same period last year.

- 79 -

APPENDIX III FINANCIAL STATEMENTS FOR THE YEAR 2020

    1. Effect of exchange rate changes on cash and cash equivalents: The effect of exchange rate changes on cash and cash equivalents for the Reporting Period was a decrease of RMB85.67 million, compared with a decrease of RMB4.28 million for the same period last year, mainly due to the fluctuations in the exchange rate that was used to convert HKD and USD to RMB.
    2. Net increase in cash and cash equivalents: decreased by 150.50% compared with the same period last year mainly due to the proceeds from issuance of A shares and H shares received in the same period last year and facilitating the use of proceeds from H shares as planned, and investment in the construction of facility and the acquisition of subsidiaries in the Reporting Period.
  2. ACCOUNTING DATA DIFFERENCES UNDER DOMESTIC AND FOREIGN ACCOUNTING STANDARDS
    For the net profit attributable to owners of the parent and the net assets attributable to

owners of the parent, there was no difference between disclosed in accordance with International Financial Reporting Standards ("IFRSs") and in accordance with the PRC Accounting Standards for Business Enterprises.

- 80 -

APPENDIX IV

GUARANTEES QUOTA FOR THE YEAR 2021

GUARANTEES QUOTA FOR THE YEAR 2021

  1. GUARANTEE OVERVIEW

In order to meet the daily operation and business development funding needs of the Company and subsidiaries, secure the applications made by the Company and subsidiaries to business related parties (including but not limited to banks, financial institutions and other business partners) for comprehensive bank credit (including but not limited to the applications for RMB or foreign currency liquidity loans, project loans, trade financing, bank acceptance, the L/C, letter of guarantee, bills discounting, factoring, export bill purchase, forward settlement and sale of foreign exchange, derivatives, etc) and the smooth handling of other business matters, the Company proposed to provide a guarantee of no more than RMB1.8 billion (including equivalent in foreign currency, same below) for the majority-controlled subsidiaries whose asset-liability ratios are less than 70%.

The guarantee items and related amounts that are still in the guarantee period under the Company's 2020 guarantee shall not be included in the estimated amount of guarantee in 2021. The guarantees within the aforesaid limit may include: the guarantees provided by the Company for its subsidiaries at all levels. The guarantee methods include but are not limited to guarantee, mortgage, pledge, etc. Subject to the aforesaid limit and the maximum asset-liability ratio of 70%, the Company may adjust the guarantee quota among eligible guarantee objects (including newly added subsidiaries in the future) according to the actual situation.

The details are as follows:

Percentage of

guarantee

quota over

Asset-liability

Guarantee

Increase in

the net assets

ratio of the

balance up to

guarantee

of the Listed

Whether

Shareholding

secured party

now

quota

Company in

related-party

proportion of

in the latest

(RMB100

(RMB100

the latest

guarantee or

Guarantor

Secured party

guarantor

period

million)

million)

period

not

Pharmaron

Pharmaron (Ningbo)

100%

39.79%

2.78

3

3.38%

No

Technology Development

Co., Ltd. ("Pharmaron

Ningbo Tech")

Pharmaron

Pharmaron (Ningbo)

85%

11.59%

-

7

7.89%

No

Biologics Co., Ltd.

("Pharmaron Ningbo

Biologics")

Pharmaron

Pharmaron (Hong Kong)

100%

36.29%

3.26

3

3.38%

No

International Limited

("Pharmaron Hong Kong

International")

Pharmaron

Pharmaron (US) Lab Testing,

100%

52.54%

-

5

5.64%

No

Inc. ("US Lab")

- 81 -

APPENDIX IV

GUARANTEES QUOTA FOR THE YEAR 2021

The Company follows the principle of prudence and has the corresponding authorization system and system process to support the external guarantee. The resolution on external guarantee limit shall be valid within 12 months from the date of approval by the 2020 annual general meeting. The above guarantee limit is reusable. The resolution shall be submitted to the general meeting for reconsideration. It is expected that the general meeting authorize the chairman of the Company and his authorized representative to sign the contracts related to the aforesaid guarantee matters. This matter does not involve connected transactions. For the guarantee beyond the above mentioned guarantee objects and total amount, the Company shall carry out the corresponding review procedures in accordance with the specific provisions of the Company Law, the Stock Listing Rules of ChiNext of Shenzhen Stock Exchange, the Guidelines on the Standard Operation of Companies Stocks Listed on ChiNext of Shenzhen Stock Exchange and the Articles of Association.

  1. BASIC INFORMATION OF THE SECURED PARTY

Note: All in RMB unless otherwise stated

1. Pharmaron Ningbo Tech

Name:

Pharmaron (Ningbo) Technology Development Co., Ltd.

Unified social credit code:

9133020130890257XK

Date of establishment:

January 12, 2015

Domicile:

No.800, Binhai Fourth Road, Hangzhou Bay New District,

Ningbo, Zhejiang Province

Registered capital (paid-in

RMB1,100,000,000

capital):

Legal representative:

Boliang Lou

Business scope:

Research, development, technology transfer, technical

consultation and technical services for medicinal

compounds, chemical drugs, biological products and

biotechnology; Drug production; Production of

preparations and chemical bulk drugs; Import and export

of all kinds of goods and technologies on its own or as

agent, with the exception of goods and technologies whose

import and export are restricted or prohibited by the state;

property lease (approvals from competent authorities shall

be obtained for the operation of the activities requiring

approval in accordance with the laws.)

Equity Structure:

A subsidiary in which the Company directly and indirectly

holds 100% of the total shares

Connected relationship

Wholly-owned subsidiaries of the Company

with the Company

- 82 -

APPENDIX IV

GUARANTEES QUOTA FOR THE YEAR 2021

Financial data of Pharmaron Ningbo Tech is as follows:

Unit: RMB0'000

For the year 2019/as at

For the year 2020/as at

Accounting Period

31 December 2019

31 December 2020

Total assets

89,962.16

191,709.61

Total liabilities

56,716.89

76,276.22

Net assets

33,245.27

115,433.39

Revenue

37,752.74

51,524.01

Profit before tax

1,636.56

4,721.14

Net profit

1,305.47

4,109.43

2. Pharmaron Ningbo Bio-Medicine

Name:

Pharmaron (Ningbo) Biologics Co., Ltd.

Unified social credit code:

91330201MA2H8JR46W

Date of establishment:

9 October 2020

Domicile:

Rooms 109-3, Building No.3, 290 Xingci First Road,

Hangzhou Bay New District, Ningbo, Zhejiang Province

Registered capital:

RMB700,000,000

Legal representative:

Boliang Lou

Business scope:

General items: medical research, trial and development;

technical services, technical development, technical

consulting, technical exchange, technical transfer,

technical promotion (except for items required to be

approved by law, carrying out business activities

independently according to law against the business

license). Licensed items: pharmaceutical

production;

entrusted production of medicines; technology import and

export; goods import and export (approvals from

competent authorities shall be obtained for the operation of

the activities requiring approval in accordance with the

laws. The specific items shall be subject to the approval).

Equity Structure:

The Company holds 85% of its equity and Ningbo Kangzhi

Zhongsheng

Enterprise

Management

Consulting

Partnership (Limited Partnership) holds 15% of its equity.

Connected relationship

Holding subsidiary of the Company

with the Company

- 83 -

APPENDIX IV

GUARANTEES QUOTA FOR THE YEAR 2021

Financial data of Pharmaron Ningbo Bio-Medicine is as follows:

Unit: RMB0'000

For the year 2020/as at

Accounting Period

31 December 2020

Total assets

1,050.56

Total liabilities

121.76

Net assets

928.80

Revenue

-

Profit before tax

-125.68

Net profit

-71.20

No data of the corresponding period last year as Pharmaron Ningbo Bio-Medicine was newly established this year.

3. Pharmaron Hong Kong International

Name:

Pharmaron (Hong Kong) International Limited (康龍化成

(香港)國際有限公司)

Unified social credit code:

2325640

Date of establishment:

31 December 2015

Domicile:

22nd Floor, Tai Yau Building, 181 Johnston Road,

Wanchai, Hong Kong

Registered capital (paid-in

10,000 ordinary shares, with per value of US$1.00 each

capital):

share

Legal representative:

Boliang Lou

Business scope:

Shareholding by investment

Equity Structure:

The Company holds 100% of its equity

Connected relationship

Wholly-owned subsidiaries of the Company

with the Company

- 84 -

APPENDIX IV

GUARANTEES QUOTA FOR THE YEAR 2021

Financial data of Pharmaron Hong Kong International is as follows:

Unit: USD0'000

For the year 2019/as at

For the year 2020/as at

Accounting Period

31 December 2019

31 December 2020

Total assets

14,802.00

30,493.67

Total liabilities

13,311.38

11,064.73

Net assets

1,490.62

19,428.94

Revenue

-

-

Profit before tax

-8.36

-61.68

Net profit

-8.36

-61.68

4. US Lab

Name:

Pharmaron (US) Lab Testing, Inc.

Unified social credit code:

Not applicable

Date of establishment:

October 2, 2020

Domicile:

The corporation trust company, corporation trust center,

1209 Orange Street, Wilmington, New Castle County,

Delaware 19801.

Registered capital:

10,000 ordinary shares, with per value of US$0.01 each

share

Legal representative:

Boliang Lou

Business scope:

Shareholding by investment

Equity Structure:

The Company holds 100% of its equity

Connected relationship

A tier 3 wholly-owned subsidiaries of the Company

with the Company

- 85 -

APPENDIX IV

GUARANTEES QUOTA FOR THE YEAR 2021

The financial data of US Lab is as follows:

Unit: USD0'000

For the year 2020/as at

Accounting Period

31 December 2020

Total assets

14,750.01

Total liabilities

7,750.00

Net assets

7,000.01

Revenue

-

Profit before tax

-

Net profit

-

No data of the corresponding period last year as US Lab was newly established this year.

The aforesaid guaranteed companies are not dishonest persons subject to enforcement.

III. CONTENTS OF GUARANTEE AGREEMENT

This guarantee project is designed to predetermine the expected guarantee amount in the next 12 months, and the relevant agreement has not been signed. When the actual loan and guarantee occur, the guarantee amount, guarantee period, guarantee rate and other contents shall be determined by the Company and its related subsidiaries through negotiation with the lending bank and other financial institutions within the above limit, and relevant contracts shall be signed. The relevant guarantee matters shall be subject to the duly signed guarantee document, and the above guarantee limit can be reused.

IV. OPINIONS OF THE BOARD OF DIRECTORS

The capital arrangement and actual demand of the subsidiaries in 2021 have been taken into full account for this guarantee project, which is conducive to making full use of and flexibly allocating the Company's resources, solving the capital needs of the subsidiaries and improving the decision-making efficiency of the Company. The guarantee objects hereunder include wholly-owned subsidiaries and partly-owned subsidiaries. The risks in connection with the guarantees provided for the aforesaid wholly-owned subsidiaries are within the scope of control of the Company, which conforms to the overall interests of the Company and does not harm the interests of the Company and the investors. Other shareholders of the controlled subsidiary Pharmaron Ningbo Bio-Medicine have not provided corresponding guarantees in proportion to their shareholdings. Pharmaron Ningbo Bio-Medicine is in a stable financial position, with good credit standing and the ability to discharge its debts, and the financial risk in connection with the guarantees provided by the Company to it is within the control, and there is no situation that damages the interests of the Company and its shareholders. This guarantee project does not involve counter-guarantee. The board of directors made a comprehensive assessment on the asset quality, operating conditions, industry prospects, solvency and credit status of each secured party, and concluded that the secured party is in good operating conditions, has sufficient funds and has the ability to repay debts. Therefore, the board of directors approved the resolution on estimated external guarantee limit in 2021, and it shall be submitted to the general meeting for consideration.

- 86 -

APPENDIX IV

GUARANTEES QUOTA FOR THE YEAR 2021

V. TOTAL NUMBER OF EXTERNAL GUARANTEES AND OVERDUE

GUARANTEES

After provision of the guarantees hereunder, the total amount of guarantee quota for the listed company and its controlled subsidiaries is RMB4.662 billion (including the guarantees hereunder, of which 1.245215 billion is valid until the date the 2020 Annual General Meeting will be held), accounting for 52.56% of the audited net assets attributable to parent company of the Company during the latest period. As of December 31, 2020, the actual external guarantee balance of the Company and its subsidiaries amounted to RMB604.0136 million (all guarantees were provided by the Company for the wholly-owned subsidiaries), accounting for 6.81% of the audited net assets attributable to parent company of the Company in the latest period. The Company and its subsidiaries have no overdue external guarantee, no guarantee in relation to litigation or guarantee for the damages due to a losing judgment, and no guarantee for shareholders, actual controllers and their affiliates.

- 87 -

APPENDIX V FOREIGN EXCHANGE HEDGING QUOTA FOR THE YEAR 2021

FOREIGN EXCHANGE HEDGING QUOTA FOR THE YEAR 2021

The high volatility of the exchange rate of foreign currencies (e.g. the U.S. dollar) against the RMB since 2020 has had an impact on the Company. In order to hedge the risk of the fluctuation in the exchange rates of foreign currencies against RMB, the Company and its subsidiaries planned to carry out hedging product transactions. By carrying out foreign exchange hedging, the Company can, to a certain extent, hedge the risks in the foreign exchange market, prevent the adverse effects of large fluctuations in exchange rates on the Company, improve the efficiency of capital use and enhance financial soundness.

  1. BASIC INFORMATION OF HEDGING BUSINESS

1. Business type and currency

The hedging business includes but not limited to forward foreign exchange business, swap business, foreign exchange options and other financial derivatives trading business, which were mainly denominated in US dollars.

2. Business scale and fund source

Taking into consideration the Company's export revenue, the size of overseas business, overseas financing, and the practices of its peers, it is expected that the total quota for 2021 hedging product transactions of the Company and its subsidiaries is US$700 million or its equivalent amount in other foreign currencies. The fund source is the Company's own funds. There is no direct or indirect use of funds raised to engage in the business.

3. Matters needing authorization

When hedging businesses actually occur, matters such as transaction amount, transaction period and transaction rate, subject to the aforesaid quota, shall be submitted to the general meetings for authorization to be determined jointly by the relevant financial organs of the Company and its subsidiaries, and relevant contracts will be executed. Matters related to the hedging businesses are subject to the official signed documents.

This resolution shall be valid from the date of approval of the 2020 annual general meeting to the date of the 2021 annual general meeting. The above-mentioned quota may be applied on a revolving basis. It is proposed at the general meeting to authorize the chairman of the Company and his authorized representative to execute the relevant contracts on the above transaction matters. This matter does not involve connected transactions.

- 88 -

APPENDIX V FOREIGN EXCHANGE HEDGING QUOTA FOR THE YEAR 2021

  1. RISK ANALYSIS AND RISK CONTROL MEASURES

The Company follows the principle of prudence. All hedging business is based on normal production and operation, relies on specific business operations, with the purpose of hedging and preventing exchange rate risks. However, hedging business has certain risks, mainly including:

  1. Risk of exchange rate fluctuations: in the event that the trend of foreign exchange rates deviates from the Company's judgment, the cost of the Company's foreign exchange hedging business may exceed expectations, resulting in losses to the Company;
  2. Internal control risk: carrying out the foreign exchange hedging requires professional knowledge and is complex, and losses may be caused in conducting foreign exchange hedging due to staff's misoperation, system failures, etc.;
  3. Risk of breach in transaction: if the counterparty to the foreign exchange hedging transaction defaults and fails to pay the Company's hedging profit as agreed, and thus fails to hedge the Company's actual exchange loss, resulting loss to the Company;

Risk control measures:

  1. The Company has formulated the "Financial Derivatives Trading Business Management System", which clearly defines the operational rules, process, confidentiality rules and risk management of foreign exchange hedging business;
  2. In order to control the risk of significant exchange rate fluctuations, the Company will strengthen its research and analysis of exchange rates, pay attention to changes in the international and domestic market environment in real time, adjust its operation and business operation strategies in a timely manner, so as to minimize the exchange losses;
  3. In order to prevent internal control risks, all foreign exchange transactions of the Company are for the purpose of hedging and preventing exchange rate risks, no speculative and arbitrage transactions are allowed, and operations are conducted in strict accordance with the provisions of the Financial Derivatives Trading Business Management System to effectively ensure the implementation of the system. The Company's internal control and internal audit department regularly audits the actual operation, use of funds and profit and loss of foreign exchange hedging business, and verifies whether transactions and information disclosure are performed in accordance with the relevant internal control system;

- 89 -

APPENDIX V FOREIGN EXCHANGE HEDGING QUOTA FOR THE YEAR 2021

  1. 4. In order to control the risk of default in the transactions, the Company only carries out foreign exchange hedging business with banks and other financial institutions with relevant operation qualifications to ensure the legality of the Company's financial derivatives trading management.

  2. ACCOUNTING POLICY AND ACCOUNTING PRINCIPLE
    The Company appropriately accounts for the proposed foreign exchange hedging business

in accordance with the "PRC Accounting Standards for Business Enterprises 22 - Recognition and Measurement of Financial Instruments", "PRC Accounting Standards for Business Enterprises 24 - Hedging Accounting", "PRC Accounting Standards for Business Enterprises 37 - Presentation of Financial Instruments", "PRC Accounting Standards for Business Enterprises 39 - Fair Value Measurement, and other related rules and guidance issued by the Ministry of Finance, reflecting the relevant items in the balance sheet and income statement.

IV. FEASIBILITY ANALYSIS FOR CONDUCTING HEDGING BUSINESS

The hedging business of the Company and its subsidiaries is necessary to make full use of hedging instruments to reduce or hedge exchange rate risks arising from exchange rate fluctuations, reduce exchange losses and control operational risks. The Company has formulated the "Financial Derivatives Trading Business Management System", improved the relevant internal control system and assigned professionals for hedging business. The targeted risk control measures adopted by the Company are practical and feasible, and thus it is feasible to carry out hedging business.

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APPENDIX VI

PROPOSED GRANTING OF GENERAL MANDATE

TO ISSUE A SHARES AND/OR H SHARES

PROPOSED GRANTING OF GENERAL MANDATE TO

ISSUE A SHARES AND/OR H SHARES

In order to meet the need of the Company's business development, consolidate its leading position in the field of pharmaceutical research and development services and further enhance its capital and comprehensive strength, in accordance with the Company Law of the PRC and other relevant laws and regulations, the listing rules of the stock exchanges in the place where the shares of the Company are listed and the Articles of Association, the Board of Directors intends to propose the EGM to generally and unconditionally authorize the Board of Directors to, or to re-delegate to the Chairman and its authorized persons to determine to allot, issue and deal with the A shares and/or H shares of up to 20% of the number of the A shares and/or H shares in issue of the Company, or securities which may be converted into such shares, share options, warrants, or the similar rights to subscribe for the A shares and/or H shares of the Company (hereinafter referred to as the "Similar Rights", and the above-mentioned authorization is hereinafter referred to as the "General Mandate") separately or simultaneously. In accordance with the requirements of the relevant laws and regulations in the PRC, even if the General Mandate is obtained, the Company shall still be approved at the general meeting for the issuance of any A Shares. The specific authorization is as follows:

  1. To generally and unconditionally authorize the Board of Directors to, or to re-delegate to the Chairman and its authorized persons to determine to allot, issue and deal with the A Shares and/or H Shares or similar rights separately or simultaneously, and to determine the terms and conditions for allotment, issuance and disposal of new shares or issue similar rights, including but not limited to:
    1. Class and number of new shares to be issued;
    2. Pricing mechanism and/or issue price of the new shares to be issued (including price range);
    3. The starting and closing dates of such issue;
    4. The class and number of the new shares to be issued to existing shareholders; and/or
    5. To make or authorize the share offer, agreements, share options, conversion rights or other rights that may require the exercise of such rights.
  1. The number of the A Shares and/or H Shares (excluding the shares issued by way of the conversion of public reserve into share capital) to be allotted, issued and dealt with (whether pursuant to an option or otherwise) by the Board of Directors or the Chairman and its authorized persons separately or simultaneously in accordance with the General Mandate referred to in first paragraph above shall not exceed 20% of the number of the A shares and/or H shares of such class in issue of the Company at the time when this resolution is passed at the EGM of the Company.

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APPENDIX VI

PROPOSED GRANTING OF GENERAL MANDATE

TO ISSUE A SHARES AND/OR H SHARES

  1. Where the Board of Directors or the Chairman and its authorized persons have, during the effective period of the General Mandate specified in the fifth paragraph of this resolution, determined to allot, issue and deal with the A shares and/or H shares or similar rights, and the Company also has, during the effective period of the mandate, obtained the relevant approval, permission from, or registration (if applicable) with the regulatory authorities, the Board of Directors of the Company or the Chairman and its authorized persons may, during the effective period of such approval, permission or registration, complete the relevant allotment, issuance and disposal of such shares.

IV. To authorize the Board of Directors or the Chairman and its authorized persons to obtain an approval from all relevant government departments and/or regulatory authorities (if applicable) in accordance with the applicable laws (including but not limited to the Company Law of the PRC, the Listing Rules and the Shenzhen Listing Rules) to exercise the General Mandate.

  1. The effective period of the General Mandate shall be from the passing of this resolution to the following date, whichever is earlier:
    1. from the date when this resolution is passed at the general meeting of the Company until the expiry of 12 months since then;
    2. the date of conclusion of the 2021 annual general meeting of the Company; or
    3. at the time of passing a special resolution by the shareholders of the Company at the general meeting to revoke or vary the General Mandate under this resolution.

VI. To authorize the Board of Directors or the Chairman and its authorized persons to approve, execute and do or procure to be executed and done, all such documents, deeds and things as it may consider necessary in connection with the allotment, issuance and disposal of any new shares under the abovementioned General Mandate, handle the necessary procedures and take other necessary actions.

VII. To authorize the Board of Directors or the Chairman and its authorized persons to increase the registered capital of the Company and make appropriate and necessary amendments to the Articles of Association in accordance with the way, type and number of the allotment and issuance of new shares of the Company and the actual shareholding structure of the Company upon completion of the allotment and issuance of new shares.

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NOTICE OF ANNUAL GENERAL MEETING

Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.

Pharmaron Beijing Co., Ltd.*

康龍化成(北京)新藥技術 股份有限公 司

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

(Stock Code:3759)

NOTICE OF THE ANNUAL GENERAL MEETING OF 2020

NOTICE IS HEREBY GIVEN THAT the Annual General Meeting of 2020 (the "AGM") of Pharmaron Beijing Co., Ltd.* (康龍化成(北京)新藥技術股份有限公司) (the "Company") will be held at 6 Tai-He Road, Economic Technological Development Area, Beijing, the PRC on Friday, May 28, 2021 at 2 p.m. for the following purposes:

ORDINARY RESOLUTIONS

  1. Work Report of the Board of Directors for the year 2020.
  2. Work Report of the Supervisory Committee for the year 2020.
  3. Financial Statements for the year 2020.
  4. 2020 Profit Distribution Plan.
  5. 2020 Annual Report's full text and report summary and 2020 Annual Results Announcement.
  6. Remuneration of the Directors for the year 2021.
  7. Remuneration of the Supervisors for the year 2021.
  8. Engagement of Domestic Auditor for the year 2021.
  9. Engagement of International Auditor for the year 2021.
  10. Guarantees Quota for the year 2021.
  11. Foreign Exchange Hedging Quota for the year 2021.

15. Authorization for Registration of the Reduction in Registered Capital and Amendments to the Articles of Association.

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NOTICE OF ANNUAL GENERAL MEETING

SPECIAL RESOLUTIONS

  1. Repurchase and Cancellation of Part of the Restricted A Shares Granted Under the A Share Incentive Scheme.
  2. Reduction of Registered Capital.
  3. Amendments to the Articles of Association

16. Granting of General Mandate to Issue A Shares and/or H Shares.

By order of the Board

Pharmaron Beijing Co., Ltd.*

康龍化成(北京)新藥技術股份有限公司

Dr. Lou Boliang

Chairman

Beijing, the PRC

April 28, 2021

As at the date of this announcement, the Board of Directors comprises Dr. Lou Boliang, Mr. Lou Xiaoqiang and Ms. Zheng Bei as executive Directors; Mr. Chen Pingjin, Mr. Hu Baifeng, Mr. Li Jiaqing and Mr. Zhou Hongbin as non-executive Directors; Mr. Dai Lixin, Ms. Chen Guoqin, Mr. Tsang Kwan Hung Benson and Mr. Yu Jian as independent non-executive Directors.

Notes:

  1. The register of members of the Company will be closed for the purpose of determining Shareholders' entitlement to attend the AGM from Tuesday, May 25, 2021 to Friday, May 28, 2021 (both days inclusive), during which period no transfer of Shares will be registered. In order to attend the AGM, H Shareholders should ensure that all transfer documents, accompanied by the relevant share certificates, are lodged with the Company's H Share registrar, Computershare Hong Kong Investor Services Limited, at Shops 1712-1716, 17th Floor, Hopewell Centre, 183 Queen's Road East, Wanchai, Hong Kong (for H Shareholders) no later than 4:30 p.m. on Monday, May 24, 2021 to complete registration. The H shareholders listed on the register of the Company on Tuesday, May 25, 2021 shall have the right to attend and vote at the Annual General Meeting.
  2. Subject to the approval of the resolution regarding the declaration of dividends at the AGM for 2020, dividends will be paid to the Shareholders whose names appear on the register of members of the Company after the close of the market on Tuesday, June 8, 2021. The register of members of the Company will be closed from Thursday, June 3, 2021 to Tuesday, June 8, 2021 (both days inclusive), during which period no transfer of shares will be registered. In order for the holders of H Shares of the Company to qualify for receiving the final dividends, but no transfer documents have been registered, all completed share transfer documents accompanied by the relevant share certificates must be lodged with the Company's H Share registrar in Hong Kong, Computershare Hong Kong Investor Services Limited, at Shops 1712-1716, 17th Floor, Hopewell Centre, 183 Queen's Road East, Wanchai, Hong Kong on or before Wednesday, June 2, 2021 at 4:30 p.m.
  3. The Company shall duly dispatch and publish the circular, reply slip and form of proxy of shareholders of the AGM. Any shareholder of the Company ("Shareholder") who intends to appoint a proxy shall refer to the 2020 Annual Report of the Company which were published on the website of The Stock Exchange of Hong Kong Limited ("Hong Kong Stock Exchange") and the Company's website and dispatched to the relevant shareholders. The 2020 Annual Report included Directors' Report for 2020, audited Financial Statements and Auditor's Report for 2020.

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NOTICE OF ANNUAL GENERAL MEETING

  1. All votes of resolutions at the Annual General Meeting will be taken by poll pursuant to the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the "Listing Rules") and the results of the poll will be published on the websites of The Stock Exchange of Hong Kong Limited (www.hkexnews.hk) and the Company (www.pharmaron.com) in accordance with the Listing Rules.
  2. Any shareholders entitled to attend and vote at the AGM can appoint one or more proxies to attend and vote at the AGM on his/her behalf. A proxy need not be a shareholder of the Company. If more than one proxy is so appointed, the appointment shall specify the number and type of shares in respect of which each proxy is so appointed.
  3. Shareholders shall appoint their proxies in writing. The form of proxy shall be signed by the shareholder or his/her/its attorney who has been authorized in writing. If the shareholder is a corporation, the form of proxy shall be affixed with the corporation's seal or signed by its director, or its attorney duly authorized in writing. If the form of proxy is signed by the attorney of the shareholder, the power of attorney or other authorization document shall be notarized. For H Shareholders, the aforementioned documents must be lodged with the H Shares Registrar, Computershare Hong Kong Investor Services Limited, at 17M Floor, Hopewell Centre, 183 Queen's Road East, Wanchai, Hong Kong not less than 24 hours before the time appointed for holding the AGM or any adjournment thereof (i.e. 2 p.m. on Thursday, May 27, 2021 (Hong Kong time)) in order for such documents to be valid. Completion and delivery of the form of proxy shall not preclude a shareholder of the Company from attending and voting in person at the meeting and, in such event, the instrument appointing a proxy shall be deemed to be revoked.
  4. Shareholders who intend to attend the AGM (in person or by proxy) shall deliver the reply slip of AGM to the H Shares Registrar of the Company, Computershare Hong Kong Investor Services Limited, at 17M Floor, Hopewell Centre, 183 Queen's Road East, Wanchai, Hong Kong by hand or by post on or before Monday, May 24, 2021.
  5. Shareholders shall produce their identification documents when attending the AGM.
  6. If a proxy attends the AGM on behalf of a shareholder, he/she should produce his/her identification document and the power of attorney or other documents signed by the appointer or his/her attorney, which specifies the date of its issuance. If a representative of a corporate shareholder attends the AGM, such representative shall produce his/her identification document and the notarized copy of the resolution passed by the board of directors or other authority or notarized copy of any authorization documents issued by such corporate shareholder.
  7. The AGM is expected to last for half a day. Shareholders who attend the AGM (in person or by proxy) shall bear their own traveling, accommodation and other expenses.
  8. The contact of the Company:
    Address: Pharmaron Beijing Co., Ltd.* (康龍化成(北京)新藥技術股份有限公司)
    6 Tai-He Road, Economic Technological Development Area, Beijing, the PRC
    Postal Code: 100176
    Tel: 86 010-57330087
    Contact Person: LI Shing Chung Gilbert
    Fax: 86 010-57330087

* For identification purposes only

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NOTICE OF THE FIRST H SHARES CLASS MEETING OF 2021

Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.

Pharmaron Beijing Co., Ltd.*

康龍化成(北 京) 新 藥技術股 份有限公 司

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

(Stock Code: 3759)

NOTICE OF THE FIRST H SHARES CLASS MEETING OF 2021

NOTICE IS HEREBY GIVEN THAT the first H Shares Class Meeting of 2021 (the "H Shares Class Meeting") of Pharmaron Beijing Co., Ltd.* (康龍化成(北京)新藥技術股份有限 公司) (the "Company") will be held at 6 Tai-He Road, Economic Technological Development Area, Beijing, the PRC after the conclusion of the Annual General Meeting of 2020 to be held on Friday, May 28, 2021 at 2 p.m. for the following purposes:

SPECIAL RESOLUTIONS

  1. Repurchase and Cancellation of Part of the Restricted A Shares Granted Under the A Share Incentive Scheme.
  2. Reduction of Registered Capital.

By order of the Board

Pharmaron Beijing Co., Ltd.*

康龍化成(北京)新藥技術股份有限公司

Dr. Lou Boliang

Chairman

Beijing, the PRC

April 28, 2021

As at the date of this announcement, the Board of Directors comprises Dr. Lou Boliang, Mr. Lou Xiaoqiang and Ms. Zheng Bei as executive Directors; Mr. Chen Pingjin, Mr. Hu Baifeng, Mr. Li Jiaqing and Mr. Zhou Hongbin as non-executive Directors; Mr. Dai Lixin, Ms. Chen Guoqin, Mr. Tsang Kwan Hung Benson and Mr. Yu Jian as independent non-executive Directors.

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NOTICE OF THE FIRST H SHARES CLASS MEETING OF 2021

Notes:

  1. All votes of resolutions at the H Shares Class Meeting will be taken by poll pursuant to the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the "Listing Rules") and the results of the poll will be published on the websites of The Stock Exchange of Hong Kong Limited (www.hkexnews.hk) and the Company (www.pharmaron.com) in accordance with the Listing Rules.
  2. Any shareholders entitled to attend and vote at the H Shares Class Meeting can appoint one or more proxies to attend and vote at the H Shares Class Meeting on his/her behalf. A proxy need not be a shareholder of the Company. If more than one proxy is so appointed, the appointment shall specify the number and type of shares in respect of which each proxy is so appointed.
  3. Shareholders shall appoint their proxies in writing. The form of proxy shall be signed by the shareholder or his/her/its attorney who has been authorized in writing. If the shareholder is a corporation, the form of proxy shall be affixed with the corporation's seal or signed by its director, or its attorney duly authorized in writing. If the form of proxy is signed by the attorney of the shareholder, the power of attorney or other authorization document shall be notarized. For H Shareholders, the aforementioned documents must be lodged with the H Shares Registrar, Computershare Hong Kong Investor Services Limited, at 17M Floor, Hopewell Centre, 183 Queen's Road East, Wanchai, Hong Kong not less than 24 hours before the time appointed for holding the H Shares Class Meeting (i.e. 2 p.m. on Thursday, May 27, 2021 (Hong Kong time)) or any adjournment thereof in order for such documents to be valid. Completion and delivery of the form of proxy shall not preclude a shareholder of the Company from attending and voting in person at the meeting and, in such event, the instrument appointing a proxy shall be deemed to be revoked.
  4. Shareholders who intend to attend the H Shares Class Meeting (in person or by proxy) shall complete and deliver the reply slip of H Shares Class Meeting to the H Shares Registrar of the Company, Computershare Hong Kong Investor Services Limited, at 17M Floor, Hopewell Centre, 183 Queen's Road East, Wanchai, Hong Kong by hand or by post on or before Monday, May 24, 2021.
  5. Shareholders shall produce their identification documents when attending the H Shares Class Meeting.
  6. If a proxy attends the H Shares Class Meeting on behalf of a shareholder, he/she should produce his/her identification document and the power of attorney or other documents signed by the appointer or his/her attorney, which specifies the date of its issuance. If a representative of a corporate shareholder attends the H Shares Class Meeting, such representative shall produce his/her identification document and the notarized copy of the resolution passed by the board of directors or other authority or other notarized copy of any authorization documents issued by such corporate shareholder.
  7. The H Shares Class Meeting is expected to last for half a day. Shareholders who attend the H Shares Class Meeting (in person or by proxy) shall bear their own traveling, accommodation and other expenses.
  8. The contact of the Company:

Address: 6 Tai-He Road, Economic Technological Development Area, Beijing, the PRC Pharmaron Beijing Co., Ltd.* (康龍化成(北京)新藥技術股份有限公司)

Postal Code: 100176

Tel: 86 010-57330087

Contact Person: LI Shing Chung Gilbert

Fax: 86 010-57330087

* For identification purposes only

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Pharmaron Beijing Co. Ltd. published this content on 28 April 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 28 April 2021 09:52:05 UTC.