Shenzhen Salubris Pharmaceuticals Introduces Strategic Investor Cinda Kunpeng Fund to Subsidiary Salubris Medical Device via Equity Financing

Salubris (002294.SZ) announced that Shenzhen Salubris Medtech Co., Ltd. ("Salubris Medtech"), a holding subsidiary of the company, plans to introduce Shenzhen Xinshi Xinxing Industry M & A Equity Investment Fund Partnership (Limited Partnership) ("Xindakunpeng Fund" or "Lead Investor") as a strategic investor through an equity increase and share expansion. This move is in line with Salubris Medtech's financing development plan to further optimize its capital structure. The lead investor will invest RMB 300 million in cash into Salubris Medtech, acquiring 6.5580% of the company’s equity after the capital increase.

At the same time, the employee co-investment platform of Cinda Kunpeng Fund, Ningbo Meishan Free Trade Port Xinshi Xinjie Investment Partnership (Limited Partnership) (hereinafter referred to as "Xinshi Xinjie", collectively referred to as "Investors" with "Cinda Kunpeng Fund"), will participate in the follow-on investment by contributing RMB 500,000 in cash to Salubris Medtech, obtaining 0.0109% equity interest in Salubris Medtech after the capital increase.

The company has decided to waive its preemptive right to subscribe for this round of capital increase. After the transaction is completed, the registered capital of Salubris Medtech will increase from 1 billion yuan (calculated based on the registered capital after the company’s capital increase in Salubris Medtech, subject to the record filing with the industrial and commercial registration) to 1.07 billion yuan. The company's shareholding ratio in Salubris Medtech will be diluted from 100% to 93.4311%, and Salubris Medtech will remain as a consolidated subsidiary within the company’s consolidated financial statements.

Salubris Medtech Fund has professionalism and influence in the integration of related industries. This transaction will further accelerate the R&D innovation in biomedicine, optimize the capital structure of subsidiaries, align with the overall development plan of the medical device sector, and positively impact the business development of the company's medical device segment.