Jinling Pharmaceutical Company Limited announced a private placement to issue not more than 153,340,800 shares for an aggregate gross proceeds of not more than CNY 750,000,000 on February 24, 2023. The company shall issue shares at a price not less than 80% of the average price in the 20 trading days before the pricing reference date. The transaction will include participation from no more than 35 investors and returning investor, Nanjing New Industrial Investment (Group) Co., Ltd. for not more than CNY 335,000,000 proceeds.

If in the 12 months prior to the closing of this private placement Nanjing New Industrial Investment (Group) Co., Ltd. increases its holdings by more than 2%, the shares cannot be transferred within 36 months from the issuance closing date; if not more than 2%, the shares cannot be transferred within 18 months from the issuance closing date and the shares to be issued to other investors shall have a hold period of 6 months from closing of the transaction. The transaction has been approved at the 27th meeting of the 8th directorate. The transaction is still subject to approval from shareholders, the state-owned assets supervision and management department, the Shenzhen Stock Exchange, and the China Securities Regulatory Commission.