JUNSHI BIO (01877) announced that its controlling subsidiary Shanghai Juntuo Biopharmaceutical Technology Co., Ltd. (hereinafter referred to as "Juntuo Bio") and other investors plan to sign an "Investment Agreement" and other transaction documents with Beijing Sand Biotechnology Co., Ltd. (hereinafter referred to as "Beijing Sand" or "target company"), the target company's founders and related parties. Juntuo Bio intends to subscribe for 1,280,623 shares of Beijing Sand with RMB 80 million. Upon completion of this capital increase, the company and Juntuo Bio will collectively hold 5.1105% equity in Beijing Sand. Additionally, Shanghai Tanying Investment Partnership (Limited Partnership), which directly holds more than 5% of the company's shares, plans to participate in this capital increase by subscribing for 640,311 shares of Beijing Sand with RMB 40 million.

According to reports, the target company is an innovative pharmaceutical company specializing in tumor immune cell therapy, with a research pipeline represented by tumor-infiltrating lymphocyte (TIL) drugs. It possesses internationally leading technical reserves and industrial resources, aiming to create groundbreaking solid tumor cell drugs and bring new hope to cancer patients. The target company's independently developed GT101 injection is China's first TIL drug approved for clinical registration and is currently entering pivotal Phase II clinical trials. The target company's globally first membrane-bound IL-15 complex TIL product, GT201 injection, has completed dual IND filings in China and the United States and has been approved to enter Phase I clinical trials.

The target company's business has synergy with the company's main business. The company is optimistic about the target company's future development. This related transaction involves the company's controlling subsidiary and professional investment institutions such as Shanghai Tanying jointly investing in Beijing Sand at the same price, which will promote cooperation between the company and other companies in the same industry, make full use of high-quality resources within the industry, align with the company's long-term development strategy, and will not affect the company's normal production and business activities. It is expected not to have a significant adverse impact on the company's operating performance and is in line with the interests of the company and all shareholders.