Lepu Biopharma Co., Ltd. (2157) announced the signing of a new procurement framework agreement with Lepu Medical (300003), effective from January 1, 2026 to December 31, 2026. This follows the existing 2025 Procurement Framework Agreement, which expires on December 31, 2025, and continues the supply of raw materials, supplementary materials, pharmaceutical products, biological sample test services, and employee welfare products for Lepu Biopharma’s operations.

Under the terms of the new arrangement, Lepu Medical and its subsidiaries and associates will supply products and services to Lepu Biopharma on pricing principles referencing market conditions. The annual cap for the procurement amount is set at RMB12 million for the upcoming term. Reported historical procurement values between the two sides were RMB65,843 in 2022, RMB439,210 in 2023, RMB506,000 in 2024, and RMB1,495,278 in the first ten months of 2025.

As Lepu Medical holds approximately 12.49% of Lepu Biopharma's issued share capital, these transactions constitute a continuing connected transaction under Chapter 14A of the Listing Rules. Since the applicable percentage ratios remain below 5%, the new framework agreement is subject only to reporting, announcement, and annual review requirements, without the need for separate shareholder approval. The company’s internal control procedures, including reviews by the audit committee and comparisons with independent third-party quotations, are intended to ensure that procurement terms remain on normal commercial terms and fair to all shareholders.