China Reform Health Management and Services Group Co., Ltd. announced that it has entered into share subscription agreement to issue not more than 272,164,561 A shares for an aggregate gross proceeds of not more than CNY 794,483,100 on September 23, 2022. The transaction shall issue shares at a price not less than 80% of the average price in the 20 trading days before the pricing reference date. The transaction will include no more than 35 investors including China Reform Development Investment Management Co., Ltd., who will subscribe to 25.98-40% of the issuance, and hold not more than 30% stake directly and indirectly after the issuance.

The shares to be issued to China Reform Development Investment Management Co., Ltd. shall have a hold period of 18 months and to other investors shall have a hold period of 6 months from the issuance closing date. The transaction has been approved at the 5th Meeting of the Company?s 11th Directorate and is subject to the approvals of the Company?s Shareholders, the Authorized State-owned Assets Supervision and Administration Department, and the China Securities Regulatory Commission.