Yunnan Walvax Biotechnology Co., Ltd.
2026 Annual Plan for Issuing Shares to Specific Targets
Rationale Analysis Report
(Revised Draft)
August 2026
Yunnan Walvax Biotechnology Co., Ltd. (hereinafter referred to as "the Company" or "Walvax Biotechnology") is a company listed on the ChiNext board of the Shenzhen Stock Exchange. To meet the Company's capital needs for business development, enhance its capital strength, and improve its profitability, in accordance with the "Company Law of the People's Republic of China" (hereinafter referred to as the "Company Law"), the "Securities Law of the People's Republic of China" (hereinafter referred to as the "Securities Law"), the "Articles of Association of Yunnan Walvax Biotechnology Co., Ltd." (hereinafter referred to as the "Articles of Association"), and the "Administrative Measures for the Registration of Issuance of Securities by Listed Companies" (hereinafter referred to as the "Administrative Measures") and other relevant laws, regulations, and normative documents, the Company has compiled the "Yunnan Walvax Biotechnology Co., Ltd. 2026 Annual Plan for Issuing Shares to Specific Targets - Rationale Analysis Report (Revised Draft)". The specific content is as follows (unless otherwise specified, terms in this report have the same meaning as defined in the "Yunnan Walvax Biotechnology Co., Ltd. 2026 Annual Plan for Issuing Shares to Specific Targets A-shares (Revised Draft)"):
I. Background and Objectives of the Current Private Placement
(I) Background of the Current Issuance
- Increasingly Perfect Industry Regulation Promotes Enterprise Integration, Innovation, and Industrial Upgrading
The "Vaccine Administration Law of the People's Republic of China" and its series of supporting regulations clearly stipulate strict regulation of vaccines throughout the entire process, all stages, and all aspects to ensure vaccine safety, efficacy, and accessibility, further promoting the improvement of vaccine quality in China and enhancing public confidence in vaccine safety. These laws and regulations also further confirm the innovative development direction of the vaccine industry: First, to support basic and applied research on vaccines, promote vaccine research and development, and innovation, and incorporate the research, production, and storage of vaccines for major diseases into national strategy; Second, to support the development and upgrading of the vaccine industry, encourage the scale and intensive production of vaccines, and continuously improve vaccine production processes and quality; Third, the state formulates research and development plans based on factors such as disease prevalence and population immunity, arranges necessary funding, and supports the research and development of multi-component, multi-valent, and mRNA vaccines and other new vaccines; Fourth, to encourage vaccine marketing authorization holders to increase investment in research and development and innovation funds, and to implement priority review and approval for innovative vaccines, promoting the industry's development towards high-end and intelligent manufacturing.
- Global Vaccine Market Rebounds with Growth, and Innovative Vaccine R&D Accelerates Significantly
Vaccination is the most economical and effective means for human society to prevent and control infectious diseases. The social cost of receiving high-quality vaccines is far lower than that of disease treatment. From the perspective of overall social benefits, the research, development, and industrialization of innovative vaccines have extremely high social and economic value. According to data released by the U.S. CDC, considering the treatment costs and productivity losses caused by diseases, the immunization of 4 million newborns in the U.S. annually can directly save nearly 13.5 billion U.S. dollars in net costs and save 70 billion U.S. dollars in total social costs. If the cost-benefit ratio (CBR) is used to accurately measure the economic value of vaccines, the CBR for the vaccine industry can reach 1:16–44, meaning that for every 1 yuan invested, 16–44 yuan in benefits can be obtained.