Pharmaron Beijing Co., Ltd. (Pharmaron) has entered into an investment agreement with Hangzhou Qiantang Investment Service Center to develop a new drug commercialisation production and CDMO R&D facility in Qiantang District, Hangzhou.

The project entails a total investment of approximately RMB2.00 billion, covering land acquisition, construction and ancillary costs. Pharmaron plans to acquire roughly 200 mu of land in the Linjiang Area and targets operational start-up in 2029, subject to construction progress and regulatory approvals.

A wholly owned subsidiary—Pharmaron (Hangzhou) API Manufacturing Co., Ltd.—will be established to finance, build and operate the site. According to the agreement, neither Pharmaron nor the Qiantang Investment Center will make an upfront cash payment, and the project will proceed only if Pharmaron successfully secures the land parcel; otherwise, the agreement terminates automatically without liability.

Management expects the facility to enhance Pharmaron’s small-molecule and new-modality CDMO capabilities, accelerate late-stage clinical and commercial projects, and strengthen the company’s integrated service platform. The board approved the investment on 26 May 2026, judging it within its authority and not constituting a notifiable or connected transaction under Hong Kong Listing Rules.

While the board views the project as a long-term growth driver, it notes potential risks tied to regulatory approvals, market demand, funding conditions and macro-economic factors. The company does not expect a material impact on its 2026 financial results, and future contributions will depend on construction progress and order intake.