• Hubei Bafeng is one of the national pharmaceutical amino acid industrialization bases in China, with over 20 drug approval numbers;
• After the acquisition is completed, Grand Pharma will become the pharmaceutical company with the most registration numbers of amino acid APIs in China;
• Grand Pharma's amino acid industry has leading technological advantages, and its products are sold to more than 140 countries and regions around the world.

HONG KONG SAR - Media OutReach - 8 August 2022 - Grand Pharmaceutical Group Limited (Grand Pharma, 0512.HK) announced that it has recently entered into an equity acquisition agreement with Hubei Provincial Bafeng Pharmaceuticals and Chemicals Share Co., Ltd., pursuant to which Grand Pharma will acquire 100% equity interests of Hubei Bafeng with RMB 270 million after the relevant conditions as agreed in the Acquisition Agreement are fulfilled. The acquisition of Hubei Bafeng marks another strategic plan of Grand Pharma in the field of amino acid following its acquisition of Cangzhou Huachen BioTech Co., Ltd. in 2021. After the acquisition is completed, Grand Pharma will become the pharmaceutical company with the most registration numbers of amino acid Active Pharmaceutical Ingredients (APIs) in China, which will tremendously expand the Company's high-quality amino acid product portfolio, further enhance and improve the Company's market comprehensive competitiveness in the field of amino acid, and drive the sustained and rapid growth of amino acid business. Founded in 1997, Hubei Bafeng mainly engages in the R&D, production and operation of amino acid APIs and preparations. It is one of the national pharmaceutical amino acid industrialization bases in China. Hubei Bafeng is GMP certificated, with over 20 drug approval numbers, among which, Compound Amino Acid Oral Solution (14AA) and Glutamic Acid, Alanine Acid Glycine Acid Tablets are exclusive preparation products. Hubei Bafeng has an annual production capacity of 3,000 tons of amino acid APIs, 20 million units of amino acid oral solutions and 750 million tablets (granules, bags) of amino acid preparations. It exports API products to over 20 countries and regions. After the transaction is completed, Grand Pharma will have 24 registration numbers of amino acid APIs, accounting for more than 70% of the registration numbers in the same segment, making it the pharmaceutical company with the most registration numbers for amino acid APIs in China. This will further reinforce Grand Pharma's leading position in the high-quality amino acid segment. Grand Pharma has been deeply engaged in amino acid industry for more than 20 years and has been upholding the spirit of technological innovation. With synthetic biology as the core, it first pioneered a world-leading innovative technology in China based on biological method to produce various amino acids, which filled the gap in the industry. The Company's core product cysteine series ranked first in the world in terms of both market share and production capacity, and the production capacity of taurine ranked second in the world. Benefiting from the strategy of further expanding international business and big health business, Grand Pharma achieved sustained rapid growth in the field of amino acid in recent years. In 2021, its annual revenue was around RMB 1.82 billion, representing an increase of approximately 54.5% compared with the same period in 2020. Grand Pharma always adheres to the core business concept of "new technology, high quality, full industry chain, and internationalization", continuously enhancing the expansion in amino acid industry, and taking advantage of its industrial superiority based on pharmaceutical grade amino acids to extend into diversified amino acids. New Technology: With synthetic biology as the core and after years of scientific research, Grand Pharma has established eight technological platforms including enzyme engineering, fermentation engineering, process engineering, quality research and application conversion, etc., forming unique technical advantages in the construction and optimization of strains, regulation of metabolic pathways, control of fermentation, separation and purification as well as product application and development. Some of the its techniques have filled the domestic gap. Through integrated innovation in multiple technological sectors, the Company has established an integrated collaboration system combining new product development, new technology engineering and industrialization as well as application solutions, offering robust support to continuous technological innovation and industrial localization. Among them, the fermentation production process with strain construction and optimization as the core and the enzymatic production process with immobilized enzyme as the core are not only capable of replacing traditional synthetic process, but can also greatly reduce carbon dioxide emission during the production process. It...