Simcere Pharmaceutical Group Limited announced that on December 23, 2021, the Company (i) entered into the Xianbo Property Lease and Comprehensive Services Framework Agreement with Shanghai Xianbo, pursuant to which the Group agreed to lease certain properties to Shanghai Xianbo for office and laboratory use and provide related property management services, as well as provide Shanghai Xianbo with certain general supporting services which include, among others, network support services, conference supporting services, property maintenance services and other logistics services; (ii) entered into the Diagnostics Property Lease and Comprehensive Services Framework Agreement with Jiangsu Simcere Diagnostics, pursuant to which the Group agreed to lease certain properties to Jiangsu Simcere Diagnostics for office and laboratory use and provide related property management services, as well as provide Jiangsu Simcere Diagnostics with certain general supporting services which include, among others, network support services, conference supporting services, property maintenance services and other logistics services; and (iii) entered into the R&D Project Service Framework Agreement with Jiangsu Simcere Diagnostics, pursuant to which Jiangsu Simcere Diagnostics agreed to provide R&D project services to the Group, including but not limited to CRO services, WES services, CDx service and other R&D project services, each for a term of three years commencing from January 1, 2022 and ending on December 31, 2024 (both days inclusive). The leased properties include certain units of Shanghai Innovation Center, which is located at Lane 118, Furonghua Road, Pudong District, Shanghai, the PRC with a gross floor area of approximately 4,200 sq.m. Pursuant to the Xianbo Property Lease and Comprehensive Services Framework Agreement: (1) with respect to the property lease and property management services, Shanghai Xianbo shall pay the Company rents and property management fees for the underlying leased properties. The rents for properties for office buildings and laboratories use (excluding basements) are RMB 2.9-3.2/sq.m./day and the rents for basements are RMB 1.5-2.0/sq. m./day. The property management fees are RMB0.15-0.3/sq.m./day. The rents and property management fees are determined after arm's length negotiations between the parties thereto and shall be in line with or no more than the prevailing market rates for properties of comparable size, building standards and quality in the vicinity which are available to Independent Third Parties; and (2) with respect to the general supporting services, Shanghai Xianbo shall pay the Company service fees, which are determined based on arm's length negotiations between the parties thereto with reference to (i) historical service fees; (ii) actual cost as to other charges relating to the leased properties, including network expenses and the actual administrative cost incurred by the Group; (iii) the nature, category, gross floor areas and location of the leased properties; and (iv) the comparable service fee rate charged by the Company for such services provided for Independent Third Parties.