Supplementary explanation of the specific use plan of the headquarters base?Southern Model Bio responding to inquiry letter

On July 25, 2022, Nanying Bio (688265.SH) of Science and Technology Board Company issued a reply announcement on the inquiry letter related to foreign investment.

The announcement disclosed that the company's total price of 100%equity of Zhongying Jian was 396,656,755.58 yuan, which was used to obtain the headquarters of Zhongying's existing housing land construction company.

The Shanghai Stock Exchange requires the company to supplement the instructions: (1) the specific use plan of the headquarters base; (2) the specific connection between the headquarters base and the company's main business, and the impact on the company's main business; The scale of funds and fund use plans.

Southern Model Bio responded that the company takes "editing genes and decoding life" as its own responsibility. It is mainly engaged in gene modification animal models and related technical services. The models involved in business include mice, mice, zebrafish, nematodes, etc. Gene modification animal models mainly refer to gene modification mouse models. The company has created a technical platform that uses model biological genome, gene function podium analysis, pharmaceutical screening and evaluation as its core, to provide customers with genetic modification animal models such as customized models, standardized models Related technical services such as type analysis and breeding services.

After the renovation and renovation of the headquarters base, in addition to meeting the needs of administrative office, it is planned to increase the mouse cage at 80,000 to 120,000 cages, and the experimental area is about 7,000-10,000 square meters. Supply and pharmacological and efficacy research services. The above -mentioned business is the company's existing main business, which aims to expand the company's production and development scale, and provide adequate production capacity transfer response plans for the expiry of the existing base for lease period or lease adjustment.

After the renovation and renovation of the headquarters base, the company will have a stable and long -term production and development base to reduce the risk of adverse impact due to the expiration of other production bases in Shanghai or the adjustment of the lease. Cage guarantee provides important support for the company's long -term sustainable development; provides sufficient experimental venues and facilities for the company's rapidly growing pharmacological pharmacological and efficacy research service business, and improves from genetic modification animal model construction to pharmacological effects evaluation CRO service platform The one -stop service system; it will help the company to expand the scale of internal innovation R & D, further strengthen the R & D and innovation capabilities, and alleviate the constraints of hardware conditions; it will help the company to provide a comfortable centralized office environment for increasing administrative personnel and maintain stability of personnel.

According to the current stage of use of the company's construction headquarters base, the company is still expected to invest in the renovation and decoration of related land and real estate facilities. It is preliminary estimated that the subsequent investment and renovation funds are expected to be about 20,000 to 300 million yuan. The total cycle is about 2-3 years. The company will add investment in capital increase or bank loan, and the specific amount and investment method will subsequently perform the relevant approval and decision -making procedures for subsequent formalities.

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