Tianjin Hongxiang Yixintang Pharmaceutical Chain Co., Ltd. announced a private placement of common shares for gross proceeds of CNY 10,000,000. The transaction will include participation from existing investor, Yunnan Hongxiang Yixintang Pharmaceutical Co., Ltd. (SZSE:002727) to maintain its 100% stake in the company. Post the capital increase, the registered capital of the company will increase from CNY 3,000,000 to CNY 13,000,000. The transaction has been approved at 5th session of the 4th directorate meeting of the investor. Further the transaction is not subject to the shareholder approval of the investor. The company reported total assets of CNY 9,868,449.32, total liabilities of CNY 22,263,571.4, net assets of CNY -12,395,122.08, operating revenue of CNY 9,130,781.9, and net loss of CNY -3,718,643.67 for the year ended December 31, 2016.