ImmuneOnco Biopharmaceuticals (Shanghai) Inc. (“ImmuneOnco”) has issued a supplemental announcement detailing a deemed disposal arising from a capital increase at its non-oncology subsidiary (the “Target Company”). The transaction is structured as an employee share ownership plan (ESOP) intended to deepen staff incentives and support pipeline diversification outside the group’s core oncology focus. ​

The Target Company, established to commercialise ImmuneOnco’s proprietary R&D platforms in metabolic and rare-disease therapeutics, currently holds: 1) pre-clinical R&D programmes for metabolic and rare diseases; 2) research know-how, methodologies and datasets from the parent group; 3) related intellectual property, including patent applications; and 4) intangible assets linked to future drug products. ​

Capital Increase rationale • The new equity will be subscribed at par value through Jiaxing Changxin Enterprise Management L.P., the ESOP platform. • Management states that a par-value subscription is standard practice for employee incentive schemes in China’s biopharma sector, ensures meaningful upside for key staff, and reflects the subsidiary’s unaudited net liability position as at 31 December 2025. • No economic benefit accrues to connected persons; the platform is reserved exclusively for eligible employees under a yet-to-be-adopted incentive scheme. • The board (independent non-executive directors included) reviewed the terms; Chairman Dr. Tian Wenzhi, a connected party through control of the former executive partner, abstained from voting. The board considers the arrangement fair and in shareholders’ interests. ​

Revised equity structure after executive-partner change • To streamline ESOP governance, Jiaxing Hanlan Enterprise Management L.P. has replaced Jiaxing Hanning as executive partner of Jiaxing Changxin. • Post-change, the ESOP platform ownership stands at approximately 69.92% held by Jiaxing Hanlan (general partner), 21.48% by Dr. Tian (limited partner), and 8.60% by Dr. Zheng (limited partner). • The ESOP platform is deemed an independent third party vis-à-vis ImmuneOnco. ​

Management emphasises that the capital increase will not divert resources from ImmuneOnco’s principal oncology programmes while enabling expansion into complementary therapeutic areas. Shareholders and potential investors are advised to exercise caution when dealing in IMMUNEONCO-B shares.