NT PHARMA (01011.HK): Arbitral Tribunal Orders Company and Jointly Liable Parties to Pay ~RMB75m; Set-Aside Sought

NewTimeSpace News: On 25 September 2026, NT PHARMA (stock code: 01011) published an inside-information announcement stating that on 22 September 2026 it received an award from the China International Economic and Trade Arbitration Commission (CIETAC) in the second arbitration case: for breaching the undertakings and warranties under its 2020 calcitonin (密盖息) asset transaction, the Company and other jointly liable parties are ordered to pay liquidated damages, related costs and arbitration cost contributions of approximately RMB75,000,000 in aggregate.

The arbitration arose from the calcitonin asset transaction entered into in 2020 between the Company and entities related to Beijing Kangchen Pharmaceutical Co., Ltd.; after completion of the transaction, the parties established the joint venture Beijing Kangchen Biotechnology Co., Ltd., in which the Company now holds 25.3%. The Company has serious objections to the award and has appointed a legal team to initiate statutory proceedings to apply for setting aside the arbitral award.

The award is still within the statutory period for applying to set it aside and has not yet taken effect, and the payment obligations have not entered court enforcement. The Group is seeking legal advice on the allocation of liabilities among the jointly liable parties and prudently assessing the potential financial impact. Should the award ultimately become enforceable, the Company has sufficient non-cash assets to settle the related liabilities—its 25.3% stake in Beijing Kangchen Biotechnology had a net book value of approximately RMB300 million as at 31 December 2025, exceeding the total compensation under the award.

The arbitration does not affect the Group's daily operations and cash flow, which remain normal. The Company will continue to monitor developments and make further disclosures under the Listing Rules as appropriate, and shareholders and potential investors are advised to exercise caution when dealing in the Company's shares.

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