NEWS – Microbio

SEQ_NO	1	Date of announcement	2024/08/28	Time of announcement	16:32:44
Subject	Microbio (Shanghai) confirmed the receiving of the first upfront payment, US$ 20.4 million, from CR Double Crane according to the agreement of Fespixon.
Date of events	2024/08/28	To which item it meets	paragraph 53
Statement	1.Date of occurrence of the event:2024/08/28 2.Company name:Microbio (Shanghai) Co., Ltd. 3.Relationship to the Company (please enter ”head office” or ”subsidiaries”):subsidiary 4.Reciprocal shareholding ratios:NA 5.Cause of occurrence: (1)Subsidiary Microbio (Shanghai) Co., Ltd. (hereinafter referred to as MBS) and Oneness Biotech Co., Ltd. jointly entered into an exclusive agreement of commercial license in China (hereinafter referred to as the Agreement) of Fespixon with China Resources Double Crane Pharmaceutical Company Limited (hereinafter referred to as CR Double-Crane) on July 19th, 2024. CR Double-Crane have the exclusive right of sales and marketing of Fespixon in the licensed territory. (2)According to the agreement, CR Double-Crane made the first upfront payment for US$ 20.4 million (RMB 0.15 billion, including VAT 6%) today. 6.Countermeasures:None 7.Any other matters that need to be specified(the information disclosure also meets the requirements of Article 7, subparagraph 9 of the Securities and Exchange Act Enforcement Rules, which brings forth a significant impact on shareholders rights or the price of the securities on public companies.): According to IFRS15 “Revenue from Contracts with Customers”, the upfront payment is accounted as a contract liability and is recognized as operating income based on even amortization during the license period.