Kangfang Biotech (09926) plans to place a total of 20 million shares to raise approximately HK$1,941 million

According to Zhitong Finance App, Kang Fang Biotech (09926) issued an announcement. On October 14, 2026 (before the trading period), the Company entered into a placement agreement with the placement agent. The Company has already agreed to place a total of 20 million shares to no less than six undertakers through the placement agent at a price of HK$97.76 per share.

The placement price of HK$97.76 per share is approximately 6.90% off of the closing price of HK$105.00 per share reported on the Stock Exchange on October 13, 2026. The placed shares will account for approximately 2.13% of the company's expanded issued share capital (assuming that the maximum number of placed shares have been placed and there is no change in the company's issued share capital between the date of this announcement and the date the placement is completed).

Assuming that all 20 million shares of the placement are fully subscribed, the total proceeds after the placement is completed will be approximately HK$1,955 million, and the net proceeds from the placement (after deducting placement commissions and other related expenses and professional expenses) are estimated to be approximately HK$1,941 million.

The net proceeds from the placement will be used for the following purposes:

(i) 85% will be used for the construction of innovative R&D pipelines, platforms and global and Chinese R&D platforms, including clinical development activities, including clinical trials of Ivoraci and Cardonil in key indications, other global multi-center clinical trials, and clinical research on non-tumor products; and pre-clinical research and development of next-generation therapeutic technologies (such as ADC, TCE, siRNA, mRNA, etc.), as well as the construction and expansion of related infrastructure and equipment and the development of the company's self-built artificial intelligence platform;

(ii) 5% will be used for the commercialization of existing approved products, namely the commercialization of ketanil® (cardonilizumab, PD-1/CTLA-4), edafone® (evosimab, PD-1/VEGF), and our self-immune products to further strengthen their market position and expand hospital and patient coverage; and

(iii) 10% will be used for general business purposes, including payment of supplier payments, employee remuneration and benefits, and other general management and administrative expenses arising from the general business process of the Group.

The board of directors believes that the placement will expand the company's shareholder base and capital base. Furthermore, the net proceeds from the placement will strengthen the Group's financial position for future development. Therefore, the Board of Directors believes that the placement is in the overall interests of the Company and shareholders.

Although the company completed the 2025 distribution in September 2025 and retained some of the proceeds that have not yet been used, the company's accelerated clinical pipeline product development progress and expansion of commercial activities have led to additional capital requirements. As a pioneer and global leader in bispecific antibody and multispecific antibody therapy, the company believes that the proceeds from the placement are critical for the company to seize new business opportunities and maintain its leading position in the future.