China Resources Pharmaceutical Group Limited (CR Pharma, Stock Code: 3320) and its subsidiary China Resources Double-Crane (Stock Code: 600062) have entered into a Limited Partnership Agreement with several other parties to establish a fund focused on high-growth enterprises in synthetic biology, innovative drugs, and biotechnology. According to the announcement, the total size of the fund is set at RMB500 million, with CR Pharma and its subsidiaries committing RMB123 million, equivalent to about 24.6% of the total capital.

The fund will have a planned duration of eight years, split into a four-year investment period and a four-year management exit period. Shenzhen CR Capital, a subsidiary of China Resources (Holdings) Company Limited (CRH), will manage the fund, while CR Pharm (Shantou) and another entity under CRH will act as its executive general partners. The investment committee structure will include five members, with approval of investment resolutions requiring unanimous consent.

One committed partner, Hanwei Huayou Shantou, is wholly owned by a CRH subsidiary and is thus considered a connected person to CR Pharma. Consequently, the transaction is classified as a connected transaction under Chapter 14A of the Listing Rules. As certain percentage ratios exceed 0.1% but remain below 5%, it is subject to reporting and announcement requirements only, exempting it from independent shareholder approval.

CR Pharma’s stated aim is to enhance its strategic position in synthetic biology and expand investment channels through the fund’s operations. Upon formation, the fund will be accounted for as an equity investment in CR Pharma’s consolidated financial statements, and the board views the arrangement as being on normal commercial terms and in the overall interest of shareholders.