INSILICO (03696) has announced that it is evaluating a series of transactions to take part in the establishment of an investment fund, tentatively named Yingxi Pufa Value Partners (Shanghai) Private Equity Investment Fund Partnership (Limited Partnership).

As part of the implementation structure, the company plans to have its wholly-owned subsidiary, INSILICO (Shanghai) Investment Co., Ltd., contribute RMB 3 million to form a joint venture alongside Shanghai Pudong Construction Co., Ltd. (Pudong Construction, listed on the Shanghai Stock Exchange with stock code 600284) and Shanghai Pudong Development (Group) Co., Ltd., which serves as the controlling shareholder of Pudong Construction. The investment from INSILICO's subsidiary is expected to represent 60% of the joint venture's registered capital, which totals RMB 5 million.

Once the joint venture is established, it is anticipated to become an indirect non-wholly-owned subsidiary of the company, with its financial results expected to be consolidated into the group's accounts. Following the formation of the joint venture, the company intends to contribute a combined RMB 302.5 million through its wholly-owned subsidiary, INSILICO Technology (Shanghai) Co., Ltd., and the joint venture itself, to co-establish the fund with Value Partners Equity Investment Management (Shenzhen) Co., Ltd., a wholly-owned subsidiary of Value Partners Group (00806), as well as Pudong Construction and other potential investors.

The fund is slated to be set up as a limited partnership within mainland China, under the proposed name Yingxi Pufa Value Partners (Shanghai) Private Equity Investment Fund Partnership (Limited Partnership). It is expected to focus primarily on investments in the biomedicine and other related sectors, with a target scale of approximately RMB 1.01 billion.

The board believes that the potential transactions align with the group's strategic development direction and will help the company capitalize on growth opportunities arising from the ongoing advancement and innovation in the biopharmaceutical and life sciences fields.