On Jun. 21, the 16th meeting of the 5th Board of Directors of DC PHARMA approved the “Proposal on Introducing Investors through Capital Increase and Share Expansion of Wholly-Owned Subsidiaries”. It was agreed that Yantai Lannacheng Biotechnology Co., Ltd., a holding subsidiary of DC PHARMA, will introduce 9 investors, including DC PHARMA, Jinglin Jingying, Xindognneng Fund, Dongneng Jiayuan, Yeda Investment, Boxin Investment, Blue Medicine Valley, Yuanhe Chunxi, and Mouxin Investment, through capital increase and share expansion. A total of RMB 200 million was invested to subscribe for the new registered capital of RMB 9.773908 million at the consideration of RMB 20.4626 per share. 

After completing this capital increase and share expansion, LNC's registered capital has been changed to RMB 73.304307 million, with DC PHARMA holding 54.8695% of the shares.

The investors of this capital increase and share expansion contributed to subscribe to LNC's registered capital, included in the company's capital reserve, and the shareholding ratio is as follows:

The introduction of investors through LNC's capital increase and share expansion this time is beneficial for optimizing LNC's equity structure, enriching LNC's capital reserves, utilizing commercial investor resources, accelerating the company's R&D process, striving for early product listing, improving the company's overall competitiveness, and promoting the company's long-term development.