Shanghai Shenyou Bio Technology Co., Ltd. announced that it has entered into a capital increase agreement to receive CNY 85,098,173 in an equity round of funding on June 29, 2015. The transaction will include participation from new investors, Hunan China Sun Pharmaceutical Machinery Co., Ltd., Shanghai Jiazhen Investment Center (limited partnership), and Shenzhen Hengjian Yuanzhi Investment Partnership (Limited Partnership) for CNY 70,098,173, CNY 8,000,000, and CNY 7,000,000 respectively. As part of the transaction, the investors will respectively invest CNY 70,017,305, CNY 7,990,771, and CNY 6,991,924 to the registered capital of the company.

The balance of CNY 80,868, CNY 9,229, and CNY 8,076 will be transferred to the capital reserves respectively. As part of the transaction, the investors will acquire 56.47%, 6.44%, and 5.64% stake in the company. The investors will acquire in total 68.55% stake in the company.

Existing shareholder, Shanghai Human Genome Research Center will dilute its stake from 100% to 31.45% bringing about a change in control in the company. On closing, the registered capital of the company will increase from CNY 39,000,000 to CNY 124,000,000.The transaction was approved at the 7th meeting of 5th board of directors of Hunan China Sun Pharmaceutical Machinery Co., Ltd. The transaction is not subject to approval from the shareholders of Hunan China Sun Pharmaceutical Machinery Co., Ltd. The company reported total assets of CNY 79,362,179.20, total liabilities of CNY 7,522,967.79, net assets of CNY 71,839,211.41, revenues of CNY 5,293,251.99, total profit of CNY -2,086,028.04, and net profit of CNY -2,086,028.04 for the year ended December 31, 2014.