Risk Factors Update Summary

• Became a commercial-stage company by commercializing three approved cancer therapies, generating substantial product sales revenue.
• The Implementing Rules for the HGR Regulation and additional issued guidance have clarified many areas of the HGR Regulation.
• Increased investment in employees, with a rise from 9,000 to close to 10,500 employees, a 15% increase.
• The Overseas Listing Trial Measures will take effect on March 31, 2023, impacting Chinese companies.
• Material changes in intellectual property risks, including potential patent challenges and regulatory exclusivities.
• Increased accumulated deficit from $7.8 billion to $8.1 billion, expecting continued losses.
• The Cyberspace Administration of China released the final Measures of Cross-Border Data Transfer Security Assessment, effective as of September 1, 2022, triggering a security assessment for any transfer of important data out of China.
• Strategic collaborations terminated with Amgen and Novartis, regaining full rights to develop and commercialize certain products.
• The Chinese government enhanced the administration of China HGR by amending the Criminal Code in 2021.
• The PRC government may strengthen oversight of capital controls, impacting cross-border transactions.
• The company may need to go through the filing process for follow-on offerings on NASDAQ.
• Operating activities used $1.2 billion, $1.3 billion, and $1.3 billion of net cash during 2023, 2022, and 2021, respectively.
• The company's PFIC status for the taxable year ended December 31, 2023, may impact U.S. shareholders.
• The company's ordinary shares outstanding decreased from 359 million to 312 million as of February 14, 2024.
• The Biosecurity Law became effective in April 2021, establishing an integrated system to regulate biosecurity-related activities.
• The company's restricted assets increased from $3 billion to $4 billion as of December 31, 2023.
• Risks related to manufacturing interruptions or contamination, impacting product availability and regulatory compliance.
• Shareholders beneficially owned approximately 53% of outstanding ordinary shares as of February 14, 2024.
• The Provisions on Thresholds for Prior Notification of Concentrations of Undertakings issued by the State Council require notification for concentrations of business undertakings.
• Potential delays in clinical trials due to regulatory inspections and approvals, affecting drug development timelines.
• The Anti-Monopoly Law of the PRC was amended in June 2022, impacting transactions involving mergers and acquisitions.
• Risks associated with third-party distributors, including potential interruptions impacting sales volumes and business prospects.
• The Overseas Listing Trial Measures and guidelines released by the CSRC will take effect as of March 31, 2023.
• Increased focus on ESG matters, with potential risks related to failure to meet ESG goals and compliance with emerging regulations.