Beijing Wantai Biological Pharmacy Enterprise Co., Ltd. announced that it has entered into share subscription agreement for a private placement of 30,352,000 A shares for gross proceeds of not more than CNY 3,500,000,000 on October 15, 2021. The transaction will include participation from not more than 35 investors, including returning investor, Yangshengtang Co., Ltd., who will subscribe for not more than 10% of the issuance. The company will issue not more than 5% of total share capital (607,040,000 shares), which is 30,352,000 shares at a price of not less than 80% of the average price in the 20 trading days before the pricing reference date.

The shares to be subscribed by Yangshengtang Co., Ltd. and other investors will be subject to a hold period of 18 months and 6 months respectively. The transaction has been approved in the 4th meeting of the company's 5th directorate, and is still subject to the approvals of its shareholders and the China Securities Regulatory Commission.