On 12 February 2026, China Medical System Holdings Limited (the “Group”) signed an exclusive distribution agreement with Teikoku Pharma USA, Inc. (a subsidiary of Japan-based Teikoku Seiyaku Co., Ltd.) for the original drug Lidoderm® Lidocaine Cataplasms in the People’s Republic of China, excluding Hong Kong, Macau, and Taiwan. According to the announcement, the agreement’s initial term is ten years from the first commercial sale in the designated region, with renewal options defined under its terms.

Lidocaine cataplasms block voltage-gated sodium channels to reduce ectopic impulses in primary afferent nerves, thereby alleviating pain in patients with postherpetic neuralgia (PHN). U.S. FDA approval for Lidoderm® dates back to 1999, and it was approved in China in 2024. Studies show that about 25% to 33% of patients experience a 50% or greater reduction in pain, and the product has been included in treatment guidelines for various types of peripheral neuropathic pain.

The Group highlights PHN’s growing market demand and sees a broad consumer acceptance of topical patches for localized pain management. The new agreement aims to enhance the Group’s product portfolio, strengthen synergy with existing products, and focus on both hospital and out-of-hospital distribution channels, including new retail approaches. The directors consider the agreement to be on normal commercial terms, believing it will help meet market needs and potentially have a positive impact on the Group’s operating performance.

The transaction is not deemed a connected or notifiable transaction under relevant Listing Rules. The announcement was issued to update potential investors and shareholders on the Group’s latest business developments. Shareholders and investors are advised to exercise caution when dealing in the securities of China Medical System Holdings Limited.