Zhejiang Zhenyuan Share Co.,Ltd. announced a private placement of not more than 83,530,821 A shares at a price of not be less than 85% of the average trading price during the 20 trading days prior to the pricing base date, and not less than the audited net asset per share for the gross proceeds of not exceeding CNY 495,000,000 on April 29, 2024. The transaction will include participation from no more than 35 specific investors including Zhejiang Zhenyuan Biotechnology Co., Ltd for 833,005 shares for 24.93% stake for CNY 300,000,000 and Zhejiang Zhenyuan Pharmaceutical Co., Ltd. for CNY 195,000,000. After the completion of the issuance, Zhenyuan Health Group will still hold 833,005 shares with a shareholding ratio of 19.94%, and will still be the controlling shareholder and Shaoxing State-owned Assets Supervision and Administration Commission will still be the actual controller of the company.

The transaction has been approved in the 4th meeting of company's 11th board of directors, and it is still subject to the approval of the state-owned assets regulatory agency or state-funded enterprises, company's general meeting of shareholders, the Shenzhen Stock Exchange, and the China Securities Regulatory Commission.