Hengkang Medical Group Co., Ltd. entered into a share subscription agreement for private placement of not more than 218,412,698 A shares at the price of CNY 3.14 per share for gross proceeds of not more than CNY 685,815,900 on December 7, 2022. The transaction will include participation from returning investor Beijing New Journey Health Industry Group Co., Ltd. The shares cannot be transferred within 18 months from the issuance closing date. The transaction has been approved in the 4th meeting of the company's 6th directorate, 2022, and is subject to the approvals of the company's shareholders and the China Securities Regulatory Commission.

Post closing, the investor will hold 1,044,340,021 shares, and equity stake of 29.99%.