Hunan Fangsheng Ruixin Pharmaceutical Co., Ltd. announced a private placement of common shares for gross proceeds of CNY 160,000,000 on December 30, 2021. The company has signed capital increase agreement. The transaction will involve participation from existing investor, Hunan Fangsheng Pharmaceutical Co., Ltd. for CNY 51,000,000, new investor, Changsha Xingchen Kangrui Venture Capital Partnership Enterprise (Limited Partnership) for CNY 54,480,000, and the small and medium chain pharmacies' Limited Partnership company for CNY 54,520,000.

Post-closing of the transaction, Hunan Fangsheng Pharmaceutical Co., Ltd. will reduce its stake from 100% stake to 39.44% stake, Changsha Xingchen Kangrui Venture Capital Partnership Enterprise (Limited Partnership) will hold 30.27% stake and the small and medium chain pharmacies' Limited Partnership company for 30.29% stake in the company. Post-closing of the transaction, the registered capital of the company will increase from CNY 20,000,000 to CNY 180,000,000. The transaction has been approved in the 14th extraordinary meeting of 2021 of 5th directorate of the parent of the company, Hunan Fangsheng Pharmaceutical Co., Ltd., and does not need its shareholders' approval.