13D Filing: Sparkle Byte Ltd Discloses Activist Stake in Casi Pharmaceuticals, Inc. (CASI)

(1) These securities include (i) 4,744,910 shares of common
stock issued by the Issuer to the Reporting Person and (ii) 948,982 shares of common stock issuable upon exercise at $1.69 per
share of certain warrant issued by the Issuer to the Reporting Person pursuant to that certain securities purchase agreement dated
as of September 20, 2015 between the Issuer and He Xie Ai Qi Investment Management (Beijing) Co., Ltd. By virtue of holding 100%
of the equity interest of the Reporting Person, Snow Moon Limited may be deemed to have sole voting and dispositive power with
respect to these shares. By virtue of holding 100% of the equity interest of Snow Moon Limited, Tianjin Jingran Management Center
(Limited Partnership) may be deemed to have sole voting and dispositive power with respect to these shares. By virtue of being
the general partner of Tianjin Jingran Management Center (Limited Partnership), He Xie Ai Qi Investment Management (Beijing) Co.,
Ltd. may be deemed to have sole voting and dispositive power with respect to these shares. By virtue of being the shareholders
and/or directors of He Xie Ai Qi Investment Management (Beijing) Co., Ltd., Jianguang Li, Dongliang Lin, Fei Yang, Suyang Zhang
and Hugo Shong may be deemed to have shared voting and dispositive power with respect to these shares.

(2) Percentage calculated based
on 41,843,406 total outstanding shares of the common stock of the Issuer, including 5,693,892 shares issued or issuable pursuant
to the transactions disclosed in this Schedule 13D.

(1) The record owner of these shares is Sparkle Byte Limited. By
virtue of holding 100% of the equity interest of Sparkle Byte Limited, the Reporting Person may be deemed to have sole voting and
dispositive power with respect to these shares. By virtue of holding 100% of the equity interest of the Reporting Person, Tianjin
Jingran Management Center (Limited Partnership) may be deemed to have sole voting and dispositive power with respect to these shares.
By virtue of being the general partner of Tianjin Jingran Management Center (Limited Partnership), He Xie Ai Qi Investment Management
(Beijing) Co., Ltd. may be deemed to have sole voting and dispositive power with respect to these shares. By virtue of being the
shareholders and/or directors of He Xie Ai Qi Investment Management (Beijing) Co., Ltd., Jianguang Li, Dongliang Lin, Fei Yang,
Suyang Zhang and Hugo Shong may be deemed to have shared voting and dispositive power with respect to these shares.

(2) Percentage calculated based on
41,843,406 total outstanding shares of the common stock of the Issuer, including 5,693,892 shares issued or issuable pursuant to
the transactions disclosed in this Schedule 13D.

(1) The record owner of these shares is Sparkle Byte Limited. By
virtue of holding 100% of the equity interest of Snow Moon Limited, which in turn holds 100% of the equity interest of Sparkle
Byte Limited, the Reporting Person may be deemed to have sole voting and dispositive power with respect to these shares. By virtue
of being the general partner of the Reporting Person, He Xie Ai Qi Investment Management (Beijing) Co., Ltd. may be deemed to have
sole voting and dispositive power with respect to these shares. By virtue of being the shareholders and/or directors of He Xie
Ai Qi Investment Management (Beijing) Co., Ltd., Jianguang Li, Dongliang Lin, Fei Yang, Suyang Zhang and Hugo Shong may be deemed
to have shared voting and dispositive power with respect to these shares.

(2) Percentage calculated based on 41,843,406 total outstanding shares of the common stock of the Issuer,
including 5,693,892 shares issued or issuable pursuant to the transactions disclosed in this Schedule 13D.

(1) The record owner of these shares is Sparkle Byte Limited. By
virtue of holding 100% of the equity interest of Snow Moon Limited, which in turn holds 100% of the equity interest of Sparkle
Byte Limited, Tianjin Jingran Management Center (Limited Partnership) may be deemed to have sole voting and dispositive power with
respect to these shares. By virtue of being the general partner of Tianjin Jingran Management Center (Limited Partnership), the
Reporting Person may be deemed to have sole voting and dispositive power with respect to these shares. By virtue of being the shareholders
and/or directors of the Reporting Person, Jianguang Li, Dongliang Lin, Fei Yang, Suyang Zhang and Hugo Shong may be deemed to have
shared voting and dispositive power with respect to these shares..

(2) Percentage calculated based on 41,843,406 total outstanding
shares of the common stock of the Issuer, including 5,693,892 shares issued or issuable pursuant to the transactions disclosed
in this Schedule 13D.

(1) Sparkle Byte Limited is the record owners of these shares. The
Reporting Person is a 25% shareholder and one of the three directors of He Xie Ai Qi Investment Management (Beijing) Co., Ltd,
the general partner of Tianjin Jingran Management Center (Limited Partnership). Tianjin Jingran Management Center (Limited Partnership)
holds 100% equity interest of Snow Moon Limited, which in turn holds 100% equity interest of Sparkle Byte Limited. By virtue of
this affiliation, the Reporting Person may be deemed to share voting and dispositive power with respect to these shares.

(2) Percentage calculated based on 41,843,406 total outstanding
shares of the common stock of the Issuer, including 5,693,892 shares issued or issuable pursuant to the transactions disclosed
in this Schedule 13D.

(1) Sparkle Byte Limited is the record owners of these shares. The
Reporting Person is a 25% shareholder and one of the three directors of He Xie Ai Qi Investment Management (Beijing) Co., Ltd,
the general partner of Tianjin Jingran Management Center (Limited Partnership). Tianjin Jingran Management Center (Limited Partnership)
holds 100% equity interest of Snow Moon Limited, which in turn holds 100% equity interest of Sparkle Byte Limited. By virtue of
this affiliation, the Reporting Person may be deemed to share voting and dispositive power with respect to these shares.

(2) Percentage calculated based on 41,843,406 total outstanding
shares of the common stock of the Issuer, including 5,693,892 shares issued or issuable pursuant to the transactions disclosed
in this Schedule 13D.

(1) Sparkle Byte Limited is the record owners of these shares. The
Reporting Person is a 25% shareholder of He Xie Ai Qi Investment Management (Beijing) Co., Ltd, the general partner of Tianjin
Jingran Management Center (Limited Partnership). Tianjin Jingran Management Center (Limited Partnership) holds 100% equity interest
of Snow Moon Limited, which in turn holds 100% equity interest of Sparkle Byte Limited. By virtue of this affiliation, the Reporting
Person may be deemed to share voting and dispositive power with respect to these shares.

(2) Percentage calculated based on 41,843,406 total outstanding
shares of the common stock of the Issuer, including 5,693,892 shares issued or issuable pursuant to the transactions disclosed
in this Schedule 13D.

(1) Sparkle Byte Limited is the record owners of these shares. The
Reporting Person is a 25% shareholder of He Xie Ai Qi Investment Management (Beijing) Co., Ltd, the general partner of Tianjin
Jingran Management Center (Limited Partnership). Tianjin Jingran Management Center (Limited Partnership) holds 100% equity interest
of Snow Moon Limited, which in turn holds 100% equity interest of Sparkle Byte Limited. By virtue of this affiliation, the Reporting
Person may be deemed to share voting and dispositive power with respect to these shares.

(2) Percentage calculated based on 41,843,406 total outstanding
shares of the common stock of the Issuer, including 5,693,892 shares issued or issuable pursuant to the transactions disclosed
in this Schedule 13D.

(1) Sparkle Byte Limited is the record owners of these shares. The
Reporting Person is one of the three directors of He Xie Ai Qi Investment Management (Beijing) Co., Ltd, the general partner of
Tianjin Jingran Management Center (Limited Partnership). Tianjin Jingran Management Center (Limited Partnership) holds 100% equity
interest of Snow Moon Limited, which in turn holds 100% equity interest of Sparkle Byte Limited. By virtue of this affiliation,
the Reporting Person may be deemed to share voting and dispositive power with respect to these shares.

(2) Percentage calculated based on 41,843,406 total outstanding
shares of the common stock of the Issuer, including 5,693,892 shares issued or issuable pursuant to the transactions disclosed
in this Schedule 13D.

Item 1. Security and Issuer

This Schedule 13D is being filed
to reflect the acquisition by Sparkle Byte (as defined below) of 4,744,910 shares of the Common Stock (as defined below) and the
Warrant (as defined below) to acquire 948,982 shares of the Common Stock pursuant to a securities purchase agreement (the “Securities
Purchase Agreement”) entered into on September 20, 2015 between the Issuer and He Xie Ai Qi (as defined below).

The class of equity securities
to which this Schedule 13D relates is the common stock, par value $0.01 per share (the “Common Stock”) of CASI
Pharmaceuticals, Inc., a Delaware corporation (the “Issuer”). The principal executive office of the Issuer
is located at 9640 Medical Center Drive, Rockville, Maryland, 20850.

Item 2. Identity and Background

This Schedule 13D is being filed jointly
by the following Reporting Persons:

The agreement among the Reporting Persons
relating to the joint filing of this Schedule 13D is attached hereto as Exhibit 99.1.

As of the date hereof, Sparkle Byte is
wholly owned by Snow Moon, which is in turn wholly owned by Tianjin

Jingran. The general partner of Tianjing Jingran is He Xie Ai
Qi, which is owned by Jianguang Li, Dongliang Lin, Fei Yang and Suyang Zhang, with each holding 25% of the equity interest of He
Xie Ai Qi.

The name, business address, present principal
occupation or employment and citizenship of the directors, executive officers and control persons of Sparkle Byte, Snow Moon and
He Xie Ai Qi are set forth on Schedule A.

Sparkle Byte is the record holder of certain
Common Stock as described in Item 5.

None of the Reporting Persons and, to
the best of their knowledge, any of the persons listed on Schedule A hereto, has, during the last five years, been (i) convicted
in a criminal proceeding (excluding traffic violations or similar misdemeanors) or (ii) a party to a civil proceeding of a judicial
or administrative body of competent jurisdiction or subject to any judgment, decree or final order finding any violation of federal
or state securities laws or enjoining future violations of, or prohibiting or mandating activities subject to, such laws.

Item 3. Source and Amount
of Funds or Other Consideration

The information set forth in the cover
pages and Item 1 of this Schedule 13D is incorporated by reference in this Item 3.

On September 20, 2015, the Issuer entered
into the Securities Purchase Agreement with He Xie Ai Qi, pursuant to which He Xie Ai Qi (or an affiliate of He Xie Ai Qi) would
purchase up to 12,839,506 shares of the Common Stock of the Issuer and warrants to purchase up to 2,567,901 shares of the Common
Stock, for an aggregate purchase price of $15,600,000. On January 14, 2016, pursuant to the Securities Purchase Agreement, Sparkle
Byte acquired 4,744,910 shares of the Common Stock and a warrant (the “Warrant”) that entitles Sparkle Byte
to acquire 948,982 shares of the Common Stock, for an aggregate purchase price of $5,765,066. The Warrant is exercisable at $1.69
per share of the Common Stock from the date that is 91 days after the date of its issuance (the “Initial Exercise Date”)
and expires three years after the Initial Exercise Date.

The source of funds used for making the
purchase was from the limited partner of Tianjin Jingran, Zhuhai Harmony Health Investment Fund L.P. (“Zhuhai Harmony”).
One of the five key managing persons of Zhuhai Harmony, Quan Zhou, is a director and shareholder of IDG-Accel China Growth Fund
GP III Associates Ltd., the ultimate general partner of IDG-Accel China Growth Fund III L.P. and IDG-Accel China III Investors
L.P., which are two current shareholders of the Issuer.

Sparkle Byte plans to acquire the remaining
8,094,596 shares of the Common Stock and warrants to acquire 1,618,919 shares of the Common Stock pursuant to the Securities Purchase
Agreement.

Item 4. Purpose of Transaction

The Reporting Persons acquired the securities
reported herein for investment purposes. The Reporting Persons may, from time to time, make additional purchases of Common Stock
either in the open market or in privately-negotiated transactions, depending upon the Reporting Persons’ evaluation of the
Issuer’s business, prospects and financial condition, the market for the Common Stock, other opportunities available to the
Reporting Persons, general economic conditions, stock market conditions and other factors. Depending upon the factors noted above,
the Reporting Persons may also decide to hold or dispose of all or part of their investments in the Common Stock or the Warrant
and/or enter into derivative transactions with institutional counterparties with respect to the Issuer’s securities, including
the Common Stock and debt securities convertible into the Common Stock.

Except as set forth in Item 3 and this
Item 4, the Reporting Persons have no present plans or proposals that relate to or that would result in any of the actions specified
in clauses (a) through (j) of Item 4 of Schedule 13D of the Securities Exchange Act of 1934, as amended.

A copy of the Securities Purchase Agreement
is filed as Exhibit 99.2 hereto, and is incorporated herein by reference.

Item 5. Interest in Securities
of the Issuer

The information set forth in the cover
pages of this Schedule 13D and Items 1, 2, 3 and 4 is incorporated herein by reference.

(a) As of the date hereof, Sparkle Byte
directly beneficially owns 4,744,910 shares of the Common Stock, representing 11.3% of the Issuer’s issued and outstanding
Common Stock. In addition, Sparkle Byte directly

beneficially owns the Warrant that entitles Sparkle Byte to
acquire 948,982 shares of the Common Stock at an exercise price of $1.69 per share of the Common Stock. As of the date hereof,
the Common Stock issuable pursuant to the warrant represents 2.3% of the Issuer’s issued and outstanding Common Stock.

Snow Moon may be deemed to have voting
and dispositive power with respect to and have beneficial ownership of 4,744,910 shares of the Common Stock owned by Sparkle Byte
and 948,982 shares of the Common Stock issuable pursuant to the Warrant, representing 11.3% and 2.3%, respectively, of the Issuer’s
issued and outstanding Common Stock.

Tianjin Jingran may be deemed to have voting
and dispositive power with respect to and have beneficial ownership of 4,744,910 shares of the Common Stock owned by Sparkle Byte
and 948,982 shares of the Common Stock issuable pursuant to the Warrant, representing 11.3% and 2.3%, respectively, of the Issuer’s
issued and outstanding Common Stock.

He Xie Ai Qi may be deemed to have voting
and dispositive power with respect to and have beneficial ownership of 4,744,910 shares of the Common Stock owned by Sparkle Byte
and 948,982 shares of the Common Stock issuable pursuant to the Warrant, representing 11.3% and 2.3%, respectively, of the Issuer’s
issued and outstanding Common Stock.

As a result of the relationships described
in the cover pages of this Schedule 13D, each of Jianguang Li, Dongliang Lin, Fei Yang, Suyang Zhang and Hugo Shong may be deemed
to share beneficial ownership of 5,693,892 shares of the Common Stock, representing 13.6% of the Issuer’s issued and outstanding
Common Stock.

Neither the filing of this Schedule 13D
by the Reporting Persons nor any of its contents shall be deemed to constitute an admission by any of such persons, other than
Sparkle Byte, that it is the beneficial owner of any of the shares of the Common Stock referred to herein for purposes of the Securities
Exchange Act of 1934, or for any other purpose, and such beneficial ownership is expressly disclaimed.

(b) Each of Sparkle Byte, Snow Moon, Tianjin
Jingran and He Xie Ai Qi may be deemed to have the sole power to direct the vote and the disposition of the Common Stock that may
be deemed to be beneficially owned by each of them. Each of Jianguang Li, Dongliang Lin, Fei Yang, Suyang Zhang and Hugo Shong
may be deemed to have the shared power to direct the vote and the disposition of the Common Stock that may be deemed to be beneficially
owned by each of them.

(c) Except as set forth herein, to the
knowledge of the Reporting Persons with respect to the persons named in response to Item 5(a), none of the persons named in response
to Item 5(a) has effected any transactions in the Common Stock during the past 60 days.

(d) No person is known to the Reporting
Persons to have the right to receive or the power to direct the receipt of dividends from, or the proceeds from the sale of, any
securities covered by this Schedule 13D.

(e) Not applicable.

Item 6. Contracts, Arrangements,
Understandings or Relationships with Respect to the Issuer.

The terms of the Securities Purchase Agreement
described in Items 3 and 4 of this Schedule 13D are incorporated by reference in this Item 6.

To the best knowledge of the Reporting
Persons, except as provided herein, there are no other contracts, arrangements, understandings or relationships (legal or otherwise)
among the Reporting Persons and between any of the Reporting Persons and any other person with respect to any securities of the
Issuer, joint ventures, loan or option arrangements, puts or calls, guarantees of profits, division of profits or loss, or the
giving or withholding of proxies, or a pledge or contingency, the occurrence of which would give another person voting power over
the securities of the Issuer.

Item 7. Materials to be Filed as Exhibits.

SIGNATURES

After reasonable inquiry and to the best
of my knowledge and belief, I certify that the information set forth in this statement is true, complete and correct.

SIGNATURES

After reasonable inquiry and to the best
of my knowledge and belief, I certify that the information set forth in this statement is true, complete and correct.

SIGNATURES

After reasonable inquiry and to the best
of my knowledge and belief, I certify that the information set forth in this statement is true, complete and correct.

SIGNATURES

After reasonable inquiry and to the best
of my knowledge and belief, I certify that the information set forth in this statement is true, complete and correct.

SIGNATURES

After reasonable inquiry and to the best
of my knowledge and belief, I certify that the information set forth in this statement is true, complete and correct.

SIGNATURES

After reasonable inquiry and to the best
of my knowledge and belief, I certify that the information set forth in this statement is true, complete and correct.

SIGNATURES

After reasonable inquiry and to the best
of my knowledge and belief, I certify that the information set forth in this statement is true, complete and correct.

SIGNATURES

After reasonable inquiry and to the best
of my knowledge and belief, I certify that the information set forth in this statement is true, complete and correct.

SIGNATURES

After reasonable inquiry and to the best
of my knowledge and belief, I certify that the information set forth in this statement is true, complete and correct.

Schedule A

INDEX
TO EXHIBITS