Hainan Kunning Biological Technology Co., Ltd. announced a private placement of common shares for at a price not more than CNY 1.5 per share for a gross proceeds of CNY 26,390,000 from new investor Nanjing Red Sun Co., Ltd. on March 23, 2020. The registered capital of the company will increase from CNY 10,000,000 to CNY 30,300,000 and remaining CNY 6,090,000 will be added as capital reserve. The investor will hold 67% stake in the company after the completion of the transaction. The transaction has received the approval of shareholders of the company.