Gelonghui 10/13 丨Luo Xin Pharmaceutical (002793.SZ) announced that the company holds 51% of the shares of the holding subsidiary Luo Xin Health Technology Development (Beijing) Co., Ltd. (“Beijing Health” and “target company” for short) (corresponding to the registered capital of the target company of 116.23 million yuan). Another shareholder of Beijing Health, Chengdu Deyi Xinhua Equity Investment Partnership (Limited Partnership) (“Chengdu Deyi” for short) holds 49% of Beijing Health's shares (corresponding to the registered capital of the target company is 111.67 million yuan, the actual payment amount is RMB 67.37 million, and the actual payment ratio is 36.69%). Chengdu Deyi plans to transfer the shares corresponding to its registered capital of 44.3 million yuan, which has not yet been paid, to the company at a consideration of 1 yuan, so that the company will continue to fulfill the target company's investment obligations.

At the same time, according to business development needs, Beijing Health plans to increase its registered capital by RMB 5.7 million, and the company plans to subscribe for Beijing Health's increased registered capital at a price of RMB 5.7 million of its own capital. Chengdu Deyi gave up the right to give priority to pledge funding to Beijing Health in accordance with the actual investment ratio.

After the completion of this capital increase and transfer (collectively, the “Transaction”), the registered capital of Beijing Health was changed to RMB 233.6 million. The company's shareholding ratio in Beijing Health will rise from 51.00% to 71.16%. It is still the controlling shareholder and continues to include it in the scope of the consolidated statement. The scope of the company's consolidated statement has not changed.