Yihua Healthcare Co., Ltd. announced a private placement of not more than 263,309,267 A shares at an issue price of CNY 2.52 per share for gross proceeds of not more than CNY 663,539,353 on January 11, 2021. The transaction will include participation from returning investor Beijing New Journey Health Industry Group Co., Ltd, which currently holds 35,107,902 shares, 4.00% stake in the company. The company has signed a share subscription agreement with the investor. The transaction has been approved by the board of directors in its 7th meeting of the 8th directorate and the 3rd meeting of the 8th supervisory board of the company and is subject to the approvals of the its shareholders and the China securities regulatory commission. The shares cannot be transferred within 18 months from the issuance closing date. Post completion of the transaction, the investor holds more than 30% stake, the shares cannot be transferred within 36 months from the issuance closing date.