(13 September 2021, Hong Kong) - China Biotech Services Holdings Limited ("CH BIOTECH SER " or the "Company", stock code: 8037.HK) announced that Shanghai Longyao Biotechnology Co., Ltd. (“Shanghai Longyao"), its indirect non-wholly owned subsidiary which engaged in immune cell therapy research & development, entered into a non-binding cooperation MOU (the “MOU”) with the Administrative Committee of Rudong New and Hi-tech Industrial Development Zone of Jiangsu (“Administrative Committee”) and China Highrun Capital Limited (“Highrun”). Based on the MOU, the Administrative Committee-led industrial fund and Highrun are interested to invest in a new subsidiary company to be established by Shanghai Longyao (the “New Subsidiary”) to engage in the research & development of innovative immune cell therapy. In addition, the New Subsidiary is anticipated to set up a new R&D and production base in the Jiangsu Rudong New and Hi-tech Industrial Development Zone.

The Administrative Committee-led industrial fund and Highrun are intended to invest RMB50million respectively in the New Subsidiary that will add up to a total investment of RMB100million. The pre-money valuation of investment is tentatively set at RMB1.2billion. CH BIOTECH SER’s shares were closed at HK$1.44 on 13 September 2021 before the suspension, with a total market capitalization value of HK$1.387 billion.