Core Viewpoint - Beijing Hotgen Biotech Co., Ltd. plans to increase capital in its associate company, Beijing Shunjing Biopharmaceutical Technology Co., Ltd., through a cash investment totaling 300 million yuan, which will adjust the company's shareholding percentage in Shunjing from 45.8333% to 45.5833% [2][5][14] Summary by Sections Capital Increase and Related Transactions Overview - The capital increase will be priced at 25 yuan per registered capital, raising the registered capital of Shunjing from 60 million yuan to 72 million yuan [2][5] - The transaction constitutes a related party transaction but does not qualify as a major asset restructuring under relevant regulations [3][6] Approval Process - The proposal for the capital increase was approved in meetings held by the independent directors and the board of directors, with related directors abstaining from voting [3][15][16] - The transaction requires approval from the shareholders' meeting, with related parties waiving their voting rights [3][16] Associate Company Information - Shunjing Biopharmaceutical was established on December 21, 2018, with a registered capital of 60 million yuan, focusing on technology development and consulting [7] - The company is in its early stages, primarily engaged in the research and development of innovative drugs [7][14] Financial Data and Valuation - The capital increase is based on a fair valuation considering Shunjing's R&D capabilities and future profit potential, with a total investment of 300 million yuan [12][14] - As of December 31, 2024, Shunjing reported a net asset of -22.0544 million yuan, indicating ongoing financial challenges [4][18] Strategic Importance - The capital increase aligns with the company's strategy of enhancing its capabilities from diagnosis to treatment, supporting long-term growth and investment returns [14][15]