Pharmaron Beijing Co., Ltd. (Pharmaron) has approved a RMB3.00 billion investment to build a new production base in the Hangzhou Bay Shangyu Economic & Technological Development Zone, Shaoxing, Zhejiang Province. The project, to be executed via wholly owned subsidiary Pharmaron (Shaoxing) API Manufacturing Co., Ltd., targets annual output of 200 tonnes of high-end pharmaceutical intermediates and active pharmaceutical ingredients (APIs) for obesity, diabetes and oncology therapies, among others.

The development will cover approximately 253 mu of newly acquired land and proceed in two phases. Phase I is scheduled to commence operations in 2028, while Phase II is slated for 2030, subject to construction progress. Facilities will include new production workshops, warehouses, supporting utilities and analytical laboratories.

Board approval was granted on 26 May 2026. The planned outlay encompasses land, construction and equipment procurement, though definitive contracts have yet to be signed. Management stated that the initiative will enhance green-manufacturing capabilities, broaden Pharmaron’s end-to-end contract development and manufacturing (CDMO) services from pre-clinical research to commercial production, and reinforce its competitive position in the high-value API segment.

The company does not expect the project to materially affect financial results for the year ending 31 December 2026. It also confirmed that the investment does not constitute a connected transaction or major asset restructuring under prevailing regulations.

Key risks highlighted include potential delays or modifications due to regulatory approvals for land, environmental and construction matters, as well as uncertainties related to market demand, funding arrangements and macroeconomic conditions. Pharmaron plans to monitor these factors closely and will provide further disclosures in line with Hong Kong Listing Rules.