Hubei Klavi Biopharmaceutical Co., Ltd. announced that it has entered into a capital increase agreement of common shares for the gross proceeds of CNY 50,400,000 on July 21, 2020. The transaction will include participation from returning investor Shaanxi Kanghui Pharmaceutical Co., Ltd. (SHSE:603139), subscribing to new registered capital of CNY 4,988,913.53 and other investors. Shaanxi Kanghui Pharmaceutical Co., Ltd. (SHSE:603139) currently holds 18% stake in the company. Post the closing, the registered capital of the company will increase from CNY 22,727,272.73 to CNY 27,716,186.26. The transaction was approved by the board of directors of the investor at the 5th session of the 4th directorate meeting and does not require shareholder approval.