Inner Mongolia Huaxi Biotechnology Co., Ltd. announced a private placement of common shares for gross proceeds of CNY 20,000,000 on November 29, 2021. The transaction will involve participation from new investor Jiangsu Nanfang Medical Co., Ltd. Post the closing, the registered capital of the company will be increased by CNY 2,354,671 and the investor will hold 3.52% stake in the company. The transaction has been approved by the board of directors of the investor in its 28th meeting of the third board of directors, and 25th meeting of the third board of supervisors and is not subject to its shareholders approval.