Changsha Xinnuo Health Industry Investment Co., Ltd. announced that it will issue common shares for gross proceeds of CNY 496,732,672 on April 6, 2023. The transaction will include participation from existing investor, Sinocare Inc. Out of the total amount received, the company received CNY 33,906,667 in its registered capital and rest in its capital reserve. Post-closing of the transaction, the registered capital of the transaction will increase from CNY 100,000,000 to CNY 133,906,667.

Post-closing of the transaction, Sinocare Inc.’s stake in the company will increase from 39.7420% stake to 55% stake in the company. The transaction has been approved in the 2nd session of the investor’s 5th directorate and the 2nd of the investor’s 5th supervisory board.