Huahai Pharmaceutical to Inject 100% Equity of Huahai Bio into Huaota Biopharma as Capital Contribution Ahead of IPO Filing

On July 12, Huahai Pharmaceutical announced that the Company intends to use its 100% equity stake in Huahai Biologics, valued at RMB 1.556 billion, to subscribe to 135 million shares issued through a targeted issuance by its holding subsidiary Huaota.

Upon completion of this transaction, the total number of shares of Huaota will increase from 300 million shares to 435 million shares, and its registered capital will increase from RMB 300 million to RMB 435 million; Huaota will directly hold a 100% equity interest in Huahai Biopharmaceutical, and the Company's shareholding in Huaota will increase from 85% to 89.64%, while the shareholding in Huaota held by Linhai Huahai Investment Management Partnership (Limited Partnership) will decrease from 15% to 10.36%.