Jiangsu Lianhuan Pharmaceutical announced that the company has decided to increase the capital of its wholly-owned subsidiary, Yangzhou Lianhuan Investment Co., Ltd. by 50 million yuan. This capital increase aims to enhance the subsidiary's capital strength and operational capabilities, to strengthen the company's competitiveness in the global pharmaceutical market, and to promote the research and development of Innovative Drugs and expansion into international markets. After the capital increase, the registered capital of Yangzhou Lianhuan Investment will increase from 15 million yuan to 65 million yuan. This capital increase does not involve any related transactions and does not constitute a significant asset restructuring, and there is no need to submit it to the shareholders' meeting for review. After the completion of the capital increase, Yangzhou Lianhuan Investment will still be a wholly-owned subsidiary of Jiangsu Lianhuan Pharmaceutical, and it will not have an adverse impact on the company's financial and operational status.