The Board of China NT Pharma Group Company Limited announced that, on 29 April 2022, the Company entered into a Framework Agreement with the municipal government of a city in Hubei Province (the "Municipal Government"), the People's Republic of China (the "PRC") and a PRC incorporated company (the "Framework Agreement"). The PRC Government has been emphasising the modernisation of the health and welfare system of China and has recently introduced the "14th Five-Year" Development Plan to encourage the development of new technology in the pharmaceutical industry. The Framework Agreement with the Municipal Government is considered as one of the many implementation steps of such policy of the PRC Government. Pursuant to the Framework Agreement, the Municipal Government intends to invest into
various research and development projects of the Company. In particular, (i) the Company intends to set up a joint venture company, an integrated biotechnology and pharmaceutical company specialised in research and development, production, sales and services which will
invest in assets and technologies including (a) global first class biological new drugs; (b) certain drug license rights; and (c) psychiatric artificial intelligence screening technology (the "JV Co"), and is expected to be a subsidiary of the Company, with the Municipal Government
in a high-tech zone in a city in Hubei Province, the PRC (the "High-tech Zone") as its new headquarter and relocate the Company's existing manufacturing capacity to the JV Co; (ii) the Municipal Government intends to provide a parcel of land in the High-tech zone for the
establishment of plants and facilities to be used by the JV Co; (iii) the Municipal Government also intends to provide funds of approximately RMB200 million for the establishment of plants and facilities be used by the JV Co; and (iv) the Municipal Government or its designated platform shall invest approximately RMB 300 million into the JV Co to take up not more than 15% equity interest in the JV Co with exit period of three years. The implementation and materialisation of the Framework Agreement is subject to the terms and conditions of the definitive joint venture agreement and completion of the Potential Acquisition.