Xinjiang Baihuacun Co., Ltd. announced that it has entered into agreement for a private placement of not more than 112,540,306 A shares at a price of CNY 3.01 per share for gross proceeds of not more than CNY 338,746,321.06 on May 28, 2021. The transaction will include participation from returning investor Xinjiang Hualing International Medical Industry Development Co., Ltd, where its stake increases from 25.21% stake to 42.7% stake. The shares cannot be transferred within 36 months from the issuance closing date.

The transaction has been approved by the board of directors of the company at its 27th meeting of 7th Directorate and 19th meeting of the 7th Supervisory Board and is subject to the approvals of the Shareholders and the China Securities Regulatory Commission. The company's share capital will increases to 487,674,661 shares.