INSILICO (03696) plans to participate in the establishment of an investment fund.

INSILICO (03696) announced that the company is considering participating in the establishment of an investment fund through a series of transactions. The fund is tentatively named Insilico Value Partners (Shanghai) Private Equity Investment Fund Partnership (Limited Partnership). As part of the implementation framework, the company plans to invest RMB 3 million through its wholly-owned subsidiary INSILICO (Shanghai) Investment Co., Ltd. (INSILICO Shanghai Investment) to jointly establish a joint venture with Shanghai Pudong Construction Co., Ltd. (Shanghai Pudong Construction, a company listed on the Shanghai Stock Exchange, stock code: 600284) and Shanghai Pudong Development (Group) Co., Ltd. (the controlling shareholder of Shanghai Pudong Construction). INSILICO Shanghai Investment's contribution is expected to account for 60% of the registered capital of the joint venture (i.e., RMB 5 million). Upon the establishment of the joint venture, it is expected to become the company's indirect non-wholly owned subsidiary, and its financial performance is expected to be consolidated into the groups accounts. After the establishment of the joint venture, the company intends, through its wholly-owned subsidiary INSILICO Technology (Shanghai) Co., Ltd. and the joint venture, to collectively invest RMB 302.5 million to jointly establish a fund with Huiri Equity Investment Management (Shenzhen) Co., Ltd. (a wholly-owned subsidiary of VALUE PARTNERS (00806)), Shanghai Pudong Construction, and other potential investors. The fund is proposed to be established in China in the form of a limited partnership, tentatively named Insilico Value Partners (Shanghai) Private Equity Investment Fund Partnership (Limited Partnership). The fund is expected to primarily focus on investing in the biopharmaceutical and other related fields. The target size of the fund is expected to be RMB 1.01 billion. The board of directors believes that the potential transactions align with the groups strategic development direction and will help the group seize growth opportunities arising from the continuous development and innovation in the biopharmaceutical and life sciences sectors.