Livzon Pharma (01513.HK) announced that its wholly-owned subsidiary, LIAN SGP, and PT KALBE FARMA's subsidiary, PT GCM, have signed a shareholder agreement to establish a joint venture in Indonesia through cash capital injection. LIAN SGP subscribed to 261.2 billion Indonesian rupiah of ordinary shares of the joint venture, accounting for 80% of the initial issued shares of the joint venture, while PT GCM subscribed to 65.3 billion Indonesian rupiah, accounting for 20% of the initial issued shares of the joint venture.

The joint venture mainly engages in the operation of active pharmaceutical ingredient production. Livzon Pharma stated that establishing a joint venture in Indonesia is beneficial for expanding overseas business and is in line with its medium and long-term strategic development goals. The external investment will not have a significant impact on the company's future financial situation and business performance. The investment still needs approval from relevant departments in Indonesia, and there is uncertainty as to whether it can be successfully implemented. Indonesia's legal regulations, policy systems, business environment, and cultural characteristics differ greatly from those in China, which means that the joint venture may face certain management, operational, and market risks during its establishment and operation process.