Shanghai Junshi Biosciences : VOLUNTARY ANNOUNCEMENT - COLLABORATION TERMINATION AGREEMENT

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SHANGHAI JUNSHI BIOSCIENCES CO., LTD.*

上海君實生物醫藥科技股份有限公司

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

(Stock code: 1877)

VOLUNTARY ANNOUNCEMENT -

COLLABORATION TERMINATION AGREEMENT

This announcement is made by Shanghai Junshi Biosciences Co., Ltd.* (上海君實生物醫藥科 技股份有限公司) (the "Company", together with its subsidiaries, the "Group") on a voluntary

basis. Please also refer to the overseas regulatory announcement published by the Company on 30 December 2019.

In June 2018, the Company entered into a product co-development and strategic collaboration agreement (the "Collaboration Agreement") with CSPC Pharmaceutical Group Limited ("CSPC Group") in relation to the clinical development, registration and commercialization of toripalimab in combination with albumin-bound paclitaxel for the treatment of breast cancer (please also refer to the prospectus of the Company dated 11 December 2018 (the "Prospectus")). On 30 December 2019, the Company entered into a termination agreement (the "Termination Agreement") with CSPC Group.

CSPC Group, a company whose shares are listed on The Stock Exchange of Hong Kong Limited (stock code: 1093), primarily engages in the development, manufacture and sale of pharmaceutical and related products.

CSPC Group is not a connected person (as defined in the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited) of the Company.

RELATED DETAILS OF THE TERMINATION AGREEMENT INVOLVED IN TERMINATION OF THE COLLABORATION AGREEMENT

1. Each of the Company and CSPC Group agreed to terminate the Collaboration Agreement in advance from the date of signing the Termination Agreement.
2. Both the milestone payment of RMB30,000,000 paid by CSPC Group to the Company and the clinical study expenses of RMB3,683,907.87 paid by the Company to CSPC Group will not be recovered.
3. CSPC Group needed to transfer all paper and electronic information generated from the clinical trial to the Company.
4. Following termination of the Collaboration Agreement, the Company, as a sponsor alone, will continue to carry out the clinical trial, and the intellectual property rights arising from the clinical trial will belong to the Company. If the Company obtains a patent for the clinical trial under the Collaboration Agreement, CSPC Group will be entitled to use the patent for free.

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IMPACT OF THE TERMINATION AGREEMENT ON THE COMPANY

Upon friendly negotiations, the Company and CSPC Group decided to enter into the Termination Agreement due to the differences in their product development strategies. It is expected that entering into the Termination Agreement will not materially and adversely affect the Company's operations. The Company, as a sponsor alone, will continue to carry out the clinical trial to further expand the indications for its product, toripalimab, and deepen the clinical layout of the Company, which will have a positive effect on the development of the Company and will not be prejudicial to the interests of the Company and its Shareholders.

By order of the Board of

Shanghai Junshi Biosciences Co., Ltd.*

Mr. Xiong Jun

Chairman

Shanghai, the PRC, 30 December 2019

As at the date of this announcement, the board of directors of the Company comprises Mr. Xiong Jun, Dr. Li Ning, Dr. Feng Hui, Mr. Zhang Zhuobing, Dr. Wu Hai and Dr. Yao Sheng as executive Directors; Mr. Tang Yi, Mr. Li Cong, Mr. Yi Qingqing and Mr. Lin Lijun as non-executive Directors; and Dr. Chen Lieping, Dr. He Jia, Mr. Chen Xinjun, Mr. Qian Zhi and Dr. Roy Steven Herbst as independent non-executive Directors.

• For identification purpose only

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