SinoMab BioScience Limited (SinoMab, HKEX: 03681) has agreed to sell its Suzhou Industrial Park land and biopharmaceutical manufacturing facility to Suzhou Yigong Pinyuan Biopharmaceutical, a wholly owned unit of MediLink Therapeutics (Suzhou), for RMB 280.00 million in cash.
The target assets comprise a 43,158.21 sq m industrial parcel and 10 completed buildings plus underground space totaling 71,315.23 sq m, equipped for large-molecule biologics production.
Key terms and valuation • Consideration: RMB 280.00 million, payable in four tranches; an initial RMB2.80 million deposit has already been placed. • Independent valuation: Jones Lang LaSalle valued the assets at RMB 265.00 million as of 30 June 2026, implying a 5.7% premium in the agreed price. • Net book value: RMB 336.34 million (30 June 2026). SinoMab expects to book a non-operating disposal loss of about RMB56.34 million before taxes and expenses. • VAT of c.RMB25.20 million will be borne by the buyer. • Completion is conditional on regulatory and shareholder approvals, including an Extraordinary General Meeting set for 7 September 2026 in Hong Kong.
Financial impact and use of proceeds • Net proceeds will primarily retire c.RMB230 million in outstanding bank loans, of which RMB143 million are secured by mortgages over the Suzhou property. • Remaining funds will be allocated about 80% to pipeline R&D—notably the Phase 2 Australia study of lead asset SM17—and roughly 20% to general working capital. • Post-transaction, total assets are projected to fall by c.RMB56.34 million, while total liabilities should drop by c.RMB230 million. No material impact on operating earnings is expected beyond the one-off disposal loss.
Strategic rationale Management cites a shift toward an asset-light model, leveraging contract development and manufacturing organisations for clinical supply, and notes softer industrial property market conditions in the PRC. Divesting the facility is intended to redeploy capital to core immunology drug development and strengthen liquidity.
Shareholder approval As the disposal exceeds 25% but is below 75% of applicable percentage ratios under Chapter 14 of the Listing Rules, it constitutes a major transaction requiring shareholder approval. No existing shareholder is required to abstain from voting.
If conditions precedent are unmet within 90 days of the agreement date, the deal will lapse and payments received will be refunded to the buyer without interest.