Kanghong's gene therapy subsidiary boosts capital, expands employee ownership

Chengdu Hongji Biotechnology, a subsidiary of Chengdu Kanghong Pharmaceutical Group, recently increased its capital by 1.54m yuan. This strategic move aims to bolster gene therapy development, align with the company's long-term objectives, and incentivize its management and core employees. Three employee shareholding platforms—Kangji, Kangyin, and Kangzhi—participated in the capital increase, subscribing to 460,000 yuan, 370,000 yuan, and 710,000 yuan, respectively, with Chengdu Kanghong Pharmaceutical Group waiving its preferential subscription rights.

Following the capital increase, Chengdu Kanghong Pharmaceutical Group's equity stake in Hongji Biotechnology adjusted from 86.95% to 86.53%, though Hongji Biotechnology remains a controlled subsidiary. This transaction is classified as a connected transaction due to the involvement of company associates, including a director, vice president, CFO, board secretary, and supervisors, as partners in the employee shareholding platforms.

The capital increase, priced at 1 yuan per registered capital, received approval from the company's chairman. The transaction represents 0.02% of the company's latest audited net assets.