Simcere provides more details on Sanroad Shanghai and Xianwei acquisitions

Simcere Pharmaceutical Group has issued a supplemental announcement detailing the valuation models and input parameters for its acquisitions of Sanroad Shanghai's assets and the entire equity interest in Xianwei. For Sanroad Shanghai's assets, the valuation adopted a cost approach. The appraised value of the appraised equipment was 17,522,600.00 yuan as of December 31, 2024, calculated from a total replacement cost of 23,198,160.00 yuan multiplied by newness ranging from 15% to 94%, including a 13% value-added tax.

For Xianwei, the valuation adopted an asset-based approach, with the valuation benchmark date also set at December 31, 2024. Xianwei's cash and cash equivalents totaled 9,518,262.93 yuan, prepayments were 82,368.71 yuan, and inventory (raw materials) amounted to 120,802.57 yuan. Fixed assets, comprising machines, equipment, and electronic devices, had a net carrying amount of 753,988.91 yuan, with an appraised value for all equipment of 994,410.00 yuan.

Additionally, construction in progress for equipment installation works, primarily related to the mRNA workshop construction project, had an aggregate carrying amount of 59,404,692.79 yuan and an appraised value of 61,246,238.27 yuan, representing an increase of 1,841,545.48 yuan and a value-added rate of 3.10%. The board confirms that the valuation results remain fair and reasonable.