let'splaybingo| Kanglong Chemical Corporation: US$102 million transfer of equity in joint-stock companies is expected to have a positive impact on performance

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[Kang long Huacheng: 1Let'splaybingoThe transfer of US $02 million in equity of the participating company is expected to have a positive impact on the performance] according to the Securities Times website, after trading on May 17, Kang long Huacheng (300759.SZ/03759.HK) disclosed a piece about the sale of shares in overseas shareholding companies.Let'splaybingoThe announcement. Wholly owned subsidiary Kanglong Hong Kong.

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[300759.SZ/03759.HK Huacheng: 102 million US dollars to transfer shares in participating companies, which is expected to have a positive impact on performance] after trading on May 17, Kang long Huacheng (Kang long Huacheng) disclosed an announcement about the sale of shares in overseas shareholding companies. The 10.21% stake in PROTEOLOGIX,INC. (hereinafter referred to as "Proteologix") held by Kanglong Hong Kong Investment, a wholly-owned subsidiary, will be sold by Proteologix to Johnson&Johnson (hereinafter referred to as "Johnson") in a merger and acquisition at a consideration of about US $102 million (RMB 725 million). It is worth mentioning that the Proteologix stake held by Kanglong Hong Kong Investment is mainly from September 2021 and November 2022, subscribed by the company with its own capital of US $3 million and US $4 million respectively, rough calculation, if the acquisition of Johnson is successfully completed, its value will increase by more than 13 times during the investment period, and the follow-up will also have a greater positive impact on the company's net profit performance in 2024. It is reported that Proteologix was founded in 2021, the main business is the research and development of innovative bio-drug pipelines for the treatment of autoimmune diseases, and did not achieve revenue in the first quarter of 2023 and 2024. From the perspective of R & D pipeline, the existing major pipeline combinations of Proteologix include PX128 and PX130. Among them: PX128 is a bispecific antibody targeting IL-13+TSLP, targeting moderate to severe atopic dermatitis (AD) and moderate to severe asthma, and is about to enter the clinical phase I trial; PX130 is a bispecific antibody targeting IL-13+IL-22, which is currently in the stage of preclinical development for moderate to severe atopic dermatitis (AD). Due to the complex causes of AD and asthma, there are different pathways in different subgroups of patients. Therefore, Proteologix designs therapies that can target different pathways by targeting two different targets, which makes it possible to achieve more efficient efficacy and disease relief. It is understood that the acquisition of Proteologix by Johnson with a down payment of US $850 million may be related to Johnson's layout of double-antibody products around solid tumors, blood tumors and autoimmune diseases. And focus on the transaction itself, this transaction is for all Proteologix shareholders to sell their shares to the buyer, of which Kanglong Hong Kong Investment holds 10.21% of the equity. Of the $102 million (RMB 725 million) consideration, about $87 million (RMB 617 million) will be paid to the seller within 60 days after the merger takes effect. As for the impact of this transaction, the announcement also pointed out that the sale of equity will help the company to increase cash inflows, supplement the company's cash flow, promote the building of the company's R & D service capacity, and further consolidate the company's full-process and integrated pharmaceutical R & D service platform, so as to better meet customer needs, promote sustained and healthy development of the company and maximize shareholder value. (Yanyun) proofread: ran Yanqing