Kangmei Pharmaceutical Co., Ltd. (SHSE:600518) announced a private placement of 60,000,000 preferred shares at CNY 100 per share for gross proceeds of CNY 6,000,000,000 on May 16, 2014. The transaction will include participation from 200 designated shareholders and will not include existing shareholders. The transaction has been approved by the company's 6th Special Meeting of the 6th Directorate of 2014.

On June 3, 2014, the company announced that the transaction was approved at the 2nd special shareholders meeting of 2014.

On September 14, 2014, the company announced that the transaction has been approved at 8th special meeting of the 6th directorate of 2014.

On September 17, 2014, the company amended the terms of the transaction. The company will now issue 30,000,000 shares for gross proceeds of CNY 3,000,000,000. The transaction has been approved by issuance examination committee of China Securities Regulatory Commission.

Between November 27, 2014 and December 11, 2014, the company will receive funding. The preferred shares have a fixed dividend yield of 7.50% per annum.

On December 4, 2014, Kangmei Pharmaceutical Co., Ltd. closed the transaction. The transaction included participation from Bank of Communications Schroder Fund Management Co., Ltd. which invested CNY 600,000,000, Bosera Asset Management Co., Ltd., which invested CNY 1,900,000,000, Jiangsu Sunrain Solar Energy Co.,Ltd. which invested CNY 250,000,000, and Guangdong Finance Trust Co., Ltd. which invested CNY 250,000,000. The company incurred CNY 28,000,000 as underwriting and sponsorship fees, CNY 1,800,000 as audit and capital verification fees, CNY 600,000 as legal fees, CNY 1,600,000 as information disclosure fees, and CNY 300,000 as other fees in the transaction. GF Securities Co., Ltd. acted as lead underwritier to the company for the transaction. Grandall Law Firm (Guangzhou office) acted as legal advisor to the company and GP Certified Public Accountants acted as an audit institution to the company for the transaction.