Tianjin Development's subsidiary Lishengpharma plans to invest 174 million yuan to participate in the establishment of a fund

According to the announcement from Tianjin Development (00882), on September 10, 2025, Lishengpharma (an indirect non-wholly-owned subsidiary of the company) entered into a partnership agreement with Jianxin Equity, TEDA Private Equity, Gongqingcheng Jianxing, TEDA International, the State-owned Assets Mother Fund, and the Zhanxin Fund. The fund will be established with a total subscribed capital of RMB 500 million (approximately HKD 547 million), of which Lishengpharma (as a limited partner) has subscribed RMB 174 million (approximately HKD 190 million), accounting for 34.75% of the total subscribed capital of the fund, but is subject to the terms and conditions of the partnership agreement.

The fund will primarily invest in equity of unlisted companies (including their convertible bonds) and/or stocks issued or traded by listed companies in a non-public manner, and such companies must be in the fields of health and biotechnology in China, including innovative drugs, medical devices, in vitro diagnostic devices (IVD), medical services, "CXO" and related pharmaceutical outsourcing services, pharmaceutical-related equipment or consumables, life science instruments and tools, medical technology (medical big data, AI life sciences, internet healthcare, etc.), synthetic biology, bio-agriculture, biomass energy, brain science, medical consumer goods, elderly care, traditional Chinese medicine, cell therapy, gene therapy, and other high-quality projects recognized by the investment decision committee in these fields.

Through investing in the fund, Lishengpharma's cost risk will be limited to the amount of its subscribed capital, and compared to direct investments, Lishengpharma will not have to bear additional expenses and debts. Although investing in the fund may involve several inherent investment risks, such as the investment performance not meeting initial expectations, the investments made by the fund must be approved by the investment decision committee, and such decisions cannot be made without the consent of both Jianxin Equity and TEDA Private Equity. Given that TEDA International (as the holding company of TEDA Private Equity) and the Zhanxin Fund (also managed by Jianxin Equity) have also subscribed significant amounts to the fund, Lishengpharma's interests align with those of the general partners and other limited partners in the fund, and Lishengpharma's risk exposure will be diversified and shared among all fund partners.

TEDA Private Equity, as an experienced private equity investment manager, has a history of good investment returns. It initiated the establishment of the fund and played an important role in facilitating coordination among the contracting parties, including introducing Jianxin Equity as the fund manager and other existing funds as limited partners. The fund will benefit from the experience, professional network, and resources of the fund manager and TEDA Private Equity, enabling it to access investment opportunities that limited partners would find difficult to reach on their own. The fund manager will leverage its own and China Construction Bank Group's upstream and downstream resource advantages to comprehensively enhance the fund's operations and management, achieving dual value in financial returns and strategic synergy.

Participating in the fund will help the group deepen its understanding of the latest industry developments in the pharmaceutical business, diversify its investment risks, and identify potential strategic partners to seize future development opportunities. Given the fund's investment objectives and strategic planning, as well as the fund manager's expertise and experience, the board believes that the group's investment in the fund will not only provide more industry merger and acquisition (M&A) opportunities that align with the company's development strategy but also offer potential returns beyond fixed income, thereby effectively utilizing its existing financial resources and competitive advantages, enhancing capital allocation efficiency, and improving capital returns From a long-term perspective, this investment is beneficial for the gradual optimization and upgrading of the company's business structure, and will enhance its sustainability. Under controllable risks, the company expects to enjoy returns from the fund in the future, which is advantageous for safeguarding shareholders' interests.

Lishengpharma will participate in the establishment of the fund using its own resources, which will not affect the normal business operations of the group, nor will it have any significant adverse impact on the group's existing or future financial condition and operating performance