(A joint stock company incorporated in the People’s Republic of China with limited liability) Stock Code: 6185 2020 ANNUAL REPORT Contents Corporate Information 2 Financial Summary 4 Chairman’s Statement 5 Management Discussion and Analysis 6 Directors, Supervisors and Senior Management 20 Corporate Governance Report 27 Environmental, Social and Governance Report 40 Report of the Directors 66 Report of the Supervisors 80 Independent Auditor’s Report 82 Consolidated Statement of Comprehensive Income 87 Consolidated Balance Sheet 88 Consolidated Statement of Changes in Equity 89 Consolidated Statement of Cash Flows 90 Notes to the Consolidated Financial Statements 91 Definitions 144 Corporate Information BOARD OF DIRECTORS NOMINATION COMMITTEE Executive Directors Mr. Jianzhong LIU (Chairman) Dr. Xuefeng YU Dr. Xuefeng YU Mr. Shiu Kwan Danny WAI (Chairman, chief executive officer and general manager) Mr. Shuifa GUI Dr. Shou Bai CHAO Ms. Nisa Bernice Wing-Yu LEUNG (Chief operating officer and deputy general manager) Dr. Tao ZHU SUPERVISORS (Chief scientific officer and deputy general manager) Dr. Dongxu QIU Ms. Jiangfeng LI (Chairwoman) (Executive vice president and deputy general manager) Ms. Jieyu ZOU Ms. Zhengfang LIAO Non-executive Directors AUTHORISED REPRESENTATIVES Mr. Qiang XU Mr. Liang LIN Dr. Xuefeng YU Ms. Nisa Bernice Wing-Yu LEUNG Mr. Ming King CHIU Mr. Zhi XIAO JOINT COMPANY SECRETARIES Independent Non-executive Directors Mr. Jin CUI Mr. Shiu Kwan Danny WAI Mr. Ming King CHIU (FCG FCS (PE)) Ms. Zhu XIN Mr. Shuifa GUI HEADQUARTERS AND REGISTERED Mr. Jianzhong LIU OFFICE IN THE PRC AUDIT COMMITTEE 401-420, 4th Floor Biomedical Park Ms. Zhu XIN (Chairwoman) 185 South Avenue Mr. Shiu Kwan Danny WAI TEDA West District Mr. Shuifa GUI (appointed on May 15, 2020) Tianjin Mr. Zhi XIAO (ceased on May 15, 2020) PRC REMUNERATION AND ASSESSMENT PRINCIPAL PLACE OF BUSINESS IN COMMITTEE HONG KONG Mr. Shuifa GUI (Chairman) Room 1901, 19/F, Lee Garden One Ms. Zhu XIN 33 Hysan Avenue Mr. Jianzhong LIU Causeway Bay Dr. Shou Bai CHAO Hong Kong Mr. Liang LIN 02 CanSino Biologics Inc. Corporate Information HONG KONG H SHARE REGISTRAR Computershare Hong Kong Investor Services Limited Shops 1712-1716 17th Floor Hopewell Centre 183 Queen’s Road East, Wanchai Hong Kong HONG KONG LEGAL ADVISER Kirkland & Ellis 26th Floor, Gloucester Tower The Landmark 15 Queen’s Road Central Hong Kong PRC LEGAL ADVISER Tian Yuan Law Firm 10/F, CPIC Plaza B 28 Fengsheng Lane Xicheng District, Beijing PRC AUDITOR PricewaterhouseCoopers Certified Public Accountants and Registered PIE Auditor 22/F, Prince’s Building Central Hong Kong COMPLIANCE ADVISER Somerley Capital Limited 20/F, China Building 29 Queen’s Road Central Hong Kong STOCK CODE Hong Kong Stock Exchange: 6185 Shanghai Stock Exchange: 688185 COMPANY WEBSITE www.cansinotech.com Annual Report 2020 03 Financial Summary In this report, “we”, “us” and “our” refer to the Company and where the context otherwise requires, the Group. Certain amounts and percentage figures included in this report have been subject to rounding adjustments, or have been rounded to one or two decimal places. Any discrepancies in any table, chart or elsewhere between totals and sums of amounts listed therein are due to rounding. A summary of the operating results and of the assets and liabilities of the Group for the last five financial years is set out below: For the Year ended December 31, 2020 2019 2018 2017 2016 (Audited) (Audited) (Audited) (Audited) (Audited) RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 Operating Results Revenue 18,544 – 1,132 – – Operating loss (400,859) (200,245) (138,578) (63,796) (52,686) Loss before income tax (396,638) (156,766) (138,281) (64,450) (49,851) Loss for the year and total comprehensive loss (396,638) (156,766) (138,281) (64,450) (49,851) Loss per Share Basic and diluted loss per share (1.72) (0.77) (0.90) (0.45) (0.41) As of December 31, 2020 2019 2018 2017 2016 (Audited) (Audited) (Audited) (Audited) (Audited) RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 Financial Position Non-current assets 1,327,430 990,253 574,871 439,446 179,368 Current assets 5,420,643 794,245 221,004 426,918 146,805 Total assets 6,748,073 1,784,498 795,875 866,364 326,173 Total equity 6,070,854 1,470,516 502,317 607,332 214,473 Non-current liabilities 264,366 189,687 186,873 146,105 84,344 Current liabilities 412,853 124,295 106,685 112,927 27,356 Total liabilities 677,219 313,982 293,558 259,032 111,700 Total equity and liabilities 6,748,073 1,784,498 795,875 866,364 326,173 04 CanSino Biologics Inc. Chairman’s Statement Dear Shareholders and stakeholders, I couldn’t be more grateful and excited to still have this moment to tell a story of us, a company that has been working hard in vaccine area for over 10 years and was positioned under the spotlight of pandemic fight. Flashback to early 2020 when the outbreak was reported days before the Spring Festival. That’s the beginning of our journey. From the day we officially launched the COVID-19 vaccine project to the debut of the Recombinant Novel Coronavirus Vaccine (Adenovirus Type 5 Vector), or the Ad5-nCoV, we created a 55-day miracle with no compromise to the safety and quality. It was the first of its kind made it to the clinical trial stage worldwide as well as the first candidate that published its phase I and II clinical trial results on Lancet. With the support of those positive data, we move forward to the multi-center phase III clinical trial in five countries. It is the first large-scale clinical study we’ve ever done. Confronted with numerous unpredictable challenges, we never backed down. We kept the study going while strictly followed the scientific rules to ensure the integrity and objectiveness of the data. Of course, the interim data of Ad5-nCoV was absolutely a huge reward to our efforts. It is demonstrated that our one- shot COVID-19 vaccine could be the ideal option to achieve mass immune protection in a timely manner by significantly shortening the vaccination cycle and facilitate the work of healthcare workers. We always have faith in our product, so does the authorities in many countries. Currently, we obtained the emergency use authorization for Ad5-nCoV in Mexico, Pakistan, Hungary and Chile. And it was conditionally approved in China. Meanwhile, we are in ongoing discussions with other potential collaborators worldwide. Mexico is the first country that placed the order of the Ad5-nCoV vaccine. Living in a year of pandemic, COVID-19 vaccine is not our only achievement. We have successfully partnered with Pfizer to promote our MCV4. We continuously make progress in the NDA review for our MCV4 and MCV2 candidates, and clinical study of our PCV13i, PBPV and DTcP vaccine candidates. Last but not the least, we have successfully listed on the Sci-Tech Innovation Board (STAR Market) of the Shanghai Stock Exchange, making CanSinoBIO the first “A+H” dual listing vaccine company. As we are striding forward to the year of 2021, a year full of challenges and opportunities, we are committed to continuously investing and expanding our capacity to fulfill the manufacturing needs and ensure the equal access to our quality vaccine products and contribute to the development of public health. With an aim to build our brands and reputation in the domestic and overseas market, we will continue to focus on R&D, manufacture and commercialization for our vaccine candidates, and promote collaboration with world-class business partners. I would like to take this chance to thank our Shareholders and other stakeholders for your continuous support. We look forward to grow and to share with all of you in the upcoming adventure. Together, we can confront the public health challenge posed by the pandemic and help people pursue a better life. Dr. Xuefeng YU Chairman and Chief Executive Officer Annual Report 2020 05 Management Discussion and Analysis OVERVIEW CanSinoBIO’s mission is to develop, manufacture and commercialize high quality, innovative and affordable vaccines. Our mission is being fulfilled by an accomplished team of founders and senior management – world-class scientists with a record of leading the development of innovative international vaccines at global pharmaceutical companies. Other management members are also vaccine industry veterans from leading multi-national and domestic biologics companies. Our vaccine pipeline, which is strategically designed to address the vast and underserved market worldwide, can be summarized into three categories: (i) globally innovative vaccines to serve the unmet medical needs worldwide (such as our Ad5-nCoV, Ad5-EBOV, our TB Booster candidate and our PBPV candidate); (ii) potential first-in-class vaccines in China developed to replace the current primary vaccines with higher-quality world-class vaccines (such as our MCV4 candidate and DTcP vaccine candidates); and (iii) potential best-in-class vaccines in China developed to compete with the imported products in the PRC market (such as our PCV13i candidate). We are developing 16 vaccine candidates for 13 disease areas. In February 2021, our Ad5-nCoV has been granted emergency use authorization by the Federal Commission for Protection against Sanitary Risks of Mexico and the Drug Regulatory Authority of Pakistan, and has been granted the conditional marketing authorization by the NMPA in mainland China. In March 2021, our Ad5-nCoV has been granted emergency use authorization by the Hungarian National Institute of Pharmacy and Nutrition (OGYÉI). In April 2021, our Ad5-nCoV has been granted emergency use authorization by the Instituto de Salud Pública de Chile (ISP).