Simcere boosts promotion service caps for 2025 and 2026

Simcere Pharmaceutical Group Limited has revised the annual caps for its Exclusive Promotion Services Cooperation Agreement for the years ending December 31, 2025, and 2026. The revised annual caps for promotion service fees are now 100,000 yuan for 2025 and 150,000 yuan for 2026, up from the previous caps of 65,000 yuan and 100,000 yuan, respectively.

This revision is prompted by the actual transaction amount for the nine months ended September 30, 2025, reaching approximately 59.71 million yuan, nearing the previous 2025 cap. The company projects the sales amount of the promoted product to grow by approximately 166% in 2025 compared to 2024, and by an additional 52% in 2026 compared to 2025. This growth is attributed to a significant increase in government centralized procurement volume and expanded hospital coverage.

The directors consider these revised annual caps to be fair and reasonable, reflecting the group's operational needs and continued cooperation with Beijing Simcere Sanroad, an associate of Mr. Ren Jinsheng, chairman and chief executive. This transaction constitutes a continuing connected transaction under Chapter 14A of the Listing Rules, subject to reporting, announcement, and annual review requirements.