Core Viewpoint - The announcement by Ruizhi Pharmaceutical Technology Co., Ltd. regarding the establishment of an industrial investment fund with a total subscription amount of 200 million RMB, primarily targeting the healthcare industry and focusing on innovative drugs [1][3]. Group 1: Fund Establishment Details - The fund will be established in partnership with Shenzhen Investment Holdings Donghai Investment Co., Ltd. and other limited partners, with a total subscription amount of 200 million RMB [1][3]. - The fund's name is Shenzhen Luohu Donghai Ruizhi Pharmaceutical Industrial Partnership (Limited Partnership), with Ruizhi's subsidiary contributing 58 million RMB, accounting for 29% of the total subscription [3][5]. - The Luohu District-level mother fund will contribute 140 million RMB, representing 70% of the total subscription [3][4]. Group 2: Fund Management and Investment Focus - The fund will focus on equity investments in the healthcare industry, particularly in innovative drugs and medical devices [5][6]. - Shenzhen Investment Holdings Donghai will act as the general partner and fund manager, with a focus on industrial technology, digital intelligence, and life health sectors [5][6]. Group 3: Fund Terms and Conditions - The fund has a duration of 7 years, with a 4-year investment period followed by a 3-year exit period, and can be extended by 2 years with unanimous agreement [6]. - Management fees will be charged at 2% during the investment period and 1.5% during the exit period, with no fees during the extension period [6]. - Strict reinvestment requirements include relocating the headquarters of invested companies to Luohu or establishing subsidiaries there, ensuring that revenues remain in the district [6][7].

Group 1 - The core viewpoint of the article is that Ruizhi Pharmaceutical is planning a private placement of shares to enhance its capital strength and seize opportunities in the CRO/CDMO industry, which is expected to continue growing due to increasing demand for drug development and production services [1][6][19] Group 2 - The background of the issuance is that the company operates in the CRO/CDMO industry, providing drug discovery, development, and production services to global pharmaceutical companies and research institutions [1][2] - The demand for CRO/CDMO services remains strong due to the increasing focus on innovative drug development and the need for cost-effective solutions in the pharmaceutical industry [2][3] - The industry is characterized by a continuous need for outsourcing drug research and production, driven by advancements in technology and the emergence of new drug targets [2][3][4] Group 3 - The company aims to raise up to 316.30 million RMB through this issuance, which will be used to supplement working capital and repay bank loans, thereby optimizing its financial structure and enhancing its competitive edge [6][19] - The issuance will involve the issuance of domestic ordinary shares (A shares) at a price of 5.27 RMB per share, which is not lower than 80% of the average trading price over the previous 20 trading days [8][9] Group 4 - The issuance is deemed necessary and reasonable as it aligns with the company's strategic goals and will enhance its ability to respond to market opportunities [19][24] - The company has committed to measures to mitigate the potential dilution of immediate returns for shareholders resulting from the issuance [19][20][23]