Alphamab Oncology announced that Reference is made to the prospectus of the Company dated December 2, 2019 in relation to the existing property and equipment lease agreement entered into by Jiangsu Alphamab Biopharmaceuticals Co. Ltd. (Jiangsu Alphamab), a wholly-owned subsidiary of the Company (as lessee), and Suzhou Alphamab Co. Ltd. ("Suzhou Alphamab") (as lessor) for a term commencing from June 1, 2019 to December 31, 2021 (the "Existing Lease Agreement").

As the Existing Lease Agreement will expire on December 31, 2021, Jiangsu Alphamab (as lessee) has entered into a renewed lease agreement in relation to the leased premises with Suzhou Alphamab (as lessor) for a term commencing from January 1, 2022 to March 31, 2024 (the "Renewed Lease Agreement"). Details of the Renewed Lease Agreement are as follows: Date of Agreement is January 1, 2022; Parties: Jiangsu Alphamab (as lessee) and Suzhou Alphamab (as lessor); Premises: The premises with a total gross area of approximately 2,235 sq.m. located at 4th floor and 5th floor of Building C23, SIP BioBay, No. 218 Xinghu Street, Suzhou, Jiangsu Province, the PRC (the Leased Premises), which is rented from an Independent Third Party, Suzhou Industrial Park bioBAY Assets Operation Management Co.

Ltd. (previously known as Suzhou Industrial Park Biotech Development Co. Ltd. Term of Agreement: The term shall commence on January 1, 2022 and will expire on March 31, 2024. Principal Terms: Suzhou Alphamab agreed to lease the Leased Premises, together with relevant workshops and warehouses that are located in the Leased Premises, to Jiangsu Alphamab, for the purpose of biologics manufacturing and storage of relevant materials.

Rental Fee: RMB 838,900 per month (inclusive of decoration and maintenance fee) to be paid quarterly. Other Fees: The utilities fees (including water and electricity expenses), with reference to the local government-prescribed unit price, shall be borne by Jiangsu Alphamab on a monthly basis at its own cost and expenses. Pricing Policy: The Renewed Lease Agreement was entered into (i) in the ordinary and usual course of business of Group, (ii) on arm's length basis, and (iii) on normal commercial terms with the rent being determined with reference to the prevailing market rates for similar properties in the same area and the corresponding property management costs for the Leased Premises.

The Company has been using the Leased Premises for biologics manufacturing for a long period. Any relocation of manufacturing facilities may cause material disruption to business operations and incur additional costs. The continuation of such leases is cost efficient and is beneficial to operations.

As (i) the equipment therein is located at and customized for the Leased Premises, and (ii) the lease of the Leased Premises between Suzhou Alphamab and bioBAY will expire on March 31, 2024 and Suzhou Alphamab shall have the priority right to renew the lease for a further term of five years, the company lease the Leased Premises from Suzhou Alphamab rather than directly from bioBAY. In light of the above, the directors of the Company (the "Directors") are of the view that such arrangement is in the best interest of the Group and the shareholders of the Company (the "Shareholders") as a whole. Notwithstanding the above, the Directors (including the independent non-executive Directors) are of the view that the terms of the Renewed Lease Agreement are no less favorable than the terms available from independent third parties and will save the unnecessary relocation and administration costs, which is beneficial to the Group.

The Directors (including the independent non-executive Directors) are of the view that, as far as the Shareholders are concerned, the Renewed Lease Agreement is entered into in the ordinary course of business of the Company, on normal commercial terms, fair and reasonable and in the interest of the Company and the Shareholders as a whole.