Sanofi-B (02257.HK) announced that it recently subscribed to an independent investment portfolio, TradArt Flagship Investment SPC, for a total of 20 million US dollars. As of yesterday (7th), it has redeemed 0.2 million US dollars.

The board of directors has recently been informed by the fund investment manager that the net asset value of the fund is expected to be significantly adversely affected due to possible defaults by the issuers of privately placed debt in which the fund is invested. The board of directors has been further notified that the investment manager has taken appropriate measures in response to the event, including engaging an auditor to audit the financial information of the issuers of privately placed debt. Sanofi requests that the investment manager provide a detailed report on the latest net asset value of the fund, including the audited financial information of the issuers of privately placed debt.

The board of directors anticipates that the investment manager may report a significant loss incurred by the fund and reserves the right to hold the fund management responsible.

In addition, the board of directors has established an investigation committee to investigate the above-mentioned event, report on the causes and issues that led to the event, promptly report the progress and results of the investigation to the board of directors, and make recommendations to the board of directors on the actions that should be taken with regards to the event.

The directors added that the group's research and development activities are still ongoing, and the management team of the group is also actively promoting business development and financing work to improve its financial situation.