Zhejiang Zhenyuan (000705.SZ) announced on September 4 that Shaoxing Zhenyuan Pharmaceutical Operation Co., Ltd. (referred to as 'Zhenyuan Pharmaceuticals') is a wholly-owned subsidiary of Zhejiang Zhenyuan Co., Ltd. (referred to as the 'Company'), in order to optimize the company's asset allocation, meet further business development needs, and enhance market competitiveness, the company plans to introduce strategic investors through open listing on the property rights trading institutions to increase capital and expand shares of Zhenyuan Pharmaceuticals. After the capital increase is completed, the proportion of shares held by strategic investors will be 51%.
The auditing and evaluation work of Zhenyuan Pharmaceuticals is currently underway. The specific capital increase, including the capital increase party and the amount of capital increase, has yet to be determined, and it is also unclear whether it constitutes a related transaction. It is estimated that this capital increase will not constitute a significant asset restructuring as defined by the 'Management Measures for the Major Assets Restructuring of Listed Companies'.
