Shinva Medical Instrument Co., Ltd. announced that it has entered into Share Subscription Agreement to issue up to 121,928,427 shares for gross proceeds of up to CNY 1,283,564,300 on December 30, 2021. The Issue Price is not less than 80% of the average price in the 20 trading days before the pricing reference date. The transaction will include participation from not more that 35 investors including new investor Shandong Yiyang Health Industry Development Group Co., Ltd to not less than 28.77% stake and other investors.

The transaction has been approved in the 20th Meeting of the Company's 10th Directorate of the company and the 17th meeting of the 10th supervisory board. The transaction is still subject to the approval of the Company's Shareholders, the Shandong SASAC, and the China Securities Regulatory Commission. The shares Shandong Yiyang Health Industry Development Group Co., Ltd. subscribes to cannot be transferred within 18 months from the issuance closing date.

The shares the other investors subscribe to cannot be transferred within 6 months from the issuance closing date.