Shanghai Fudan Zhangjiang Bio Pharmaceutical : UTILISATION OF PART OF THE OVER SUBSCRIPTION PROCEEDS FROM A SHARE OFFERING FOR PERMANENT REPLENISHMENT OF WORKING CAPITAL

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UTILISATION OF PART OF THE OVER SUBSCRIPTION PROCEEDS FROM A SHARE OFFERING FOR PERMANENT

REPLENISHMENT OF WORKING CAPITAL

This announcement is made by Shanghai Fudan-Zhangjiang Bio-Pharmaceutical Co., Ltd.* (the "Company") on a voluntary basis.

On 25 March 2021, the board of directors of the Company (the "Board") resolved to propose to the 2020 annual general meeting of the Company (the "AGM") to consider and approve the utilization of part of the over subscription proceeds from its A share offering for permanent replenishment of working capital. Details of the proposal are set out as follows:

OVERVIEW OF THE PROCEEDS

As approved by the document "Approval in Relation to Registration of the Initial Public Offering of Shanghai Fudan-Zhangjiang Bio-Pharmaceutical Co., Ltd." (Zheng Jian Xu Ke [2020] No.912) granted by China Securities Regulatory Commission, the Company was permitted to issue 120,000,000 ordinary shares in RMB (A Shares) to the public at an issue price of RMB8.95 per Share (the "Issue of A Shares"). The total amount of proceeds from the Issue of A Shares amounted to RMB1,074,000,000. After deducting the issuing expenses, the proceeds amounted to approximately RMB974,324,000. The proceeds have been fully received and verified by PricewaterhouseCooper Zhongtian LLP (Special General Partnership), which has issued the Capital Verification report (PwC Zhong Tian (2020) Yan Zi No. 0502). The proceeds are all held in a specialized accounts of the Company.

USE OF PROCEEDS FROM THE A SHARE OFFERING

Details of the use of proceeds from the Issue of A Shares have been set out in the Company's Chinese version overseas regulatory announcement dated 25 August 2020 and 25 March 2021 and the annual result announcement for the year ended 31 December 2020 of the Company dated 25 March 2021 on the website of the Hong Kong Stock Exchange.

PLAN TO UTILISE PART OF THE OVER SUBSCRIPTION PROCEEDS FROM THE ISSUE OF A SHARES FOR PERMANENT REPLENISHMENT OF WORKING CAPITAL

In order to satisfy the Company's working capital requirements, to utilize the proceeds more effectively, to reduce financial cost, to further enhance the Company's profitability and to safeguard the interest of the Company and its shareholders, pursuant to the "Regulatory Guidance for Listed Companies No. 2 - Regulatory Requirements for the Administration and Use of Proceeds of the Listed Companies", the "Administrative Measures for Proceeds by Companies Listed on the Shanghai Stock Exchange" and relevant regulations, after taking into account the Company's actual operational needs and its financial status, the Company intends to utilize RMB96,000,000 of the over subscription proceeds from the Issue of A Shares for permanent replenishment of working capital, mainly as the operating expenses of the Company's principal business (the "Utilisation Plan"). The amount for replenishment under the Utilisation Plan will not exceed 30% of the over subscription proceeds.

UNDERTAKINGS BY THE COMPANY

The Company undertakes that: the amount under the Utilisation Plan will be utilised for the Company's operating activities relating to the principal business, which does not affect the intended use of proceeds of the Issue of A Shares and shall not affect the capital requirements of the projects in which the proceeds are intended to be used; and it will not carry out any high-risk investment or provide financial assistance for third-party entities, within twelve months following the approval of the Utilisation Plan.

The Utilisation Plan can only be implemented after being reviewed and approved at the AGM.

By order of the Board

Wang Hai Bo

Chairman

As at the date on the publication of this announcement, the Board comprises:

Mr. Wang Hai Bo (Executive Director)

Mr. Su Yong (Executive Director)

Mr. Zhao Da Jun (Executive Director)

Mr. Shen Bo (Non-executive Director)

Ms. Yu Xiao Yang (Non-executive Director)

Mr. Zhou Zhong Hui (Independent Non-executive Director)

Mr. Lam Yiu Kin (Independent Non-executive Director)

Mr. Xu Qing (Independent Non-executive Director)

Mr. Yang Chun Bao (Independent Non-executive Director)

Shanghai, the PRC

25 March 2021

* For identification purpose only