Tuoxin Pharmaceutical Plans RMB10 Million Capital Injection into Jinsan Biotechnology for 1.75% Stake

Stock News07-16

Tuoxin Pharmaceutical Group Co.,Ltd. (301089.SZ) unveiled plans to invest RMB10 million in Jiangsu Jinsan Biotechnology Co., Ltd. (Jinsan Biotechnology) through a capital increase arrangement. The transaction allocates RMB223,377 to registered capital while designating the remaining RMB9,776,623 as capital surplus. Following the formal signing of the equity investment agreement, Tuoxin Pharmaceutical will secure a direct 1.75% ownership stake in the synthetic biology enterprise.

Jinsan Biotechnology specializes in the research, production, and commercial application of ergothioneine, leveraging breakthroughs across its comprehensive technological chain. The company has pioneered high-purity ergothioneine manufacturing through innovations in strain development, fermentation processes, purification techniques, and industrial-scale production systems. Its product portfolio spans skincare formulations, oral capsules, and eyewash solutions featuring ergothioneine compounds.

This strategic investment enables Tuoxin Pharmaceutical to capitalize on its proprietary advantages in chemical synthesis and biological process engineering. Jinsan Biotechnology complements this with upstream technological capabilities and established downstream distribution networks. Currently expanding within the health and wellness sector, Tuoxin has developed core preparation technologies for bioactive compounds including ergothioneine. As market demand potentially outstrips Jinsan Biotechnology's existing production capacity, Tuoxin stands positioned to provide supplementary manufacturing capabilities for seamless operational integration.

The capital infusion represents a deliberate extension of Tuoxin Pharmaceutical's industrial ecosystem across production, distribution, and R&D functions. This horizontal expansion strategy aims to strengthen competitive positioning while enhancing sustainable profitability. The collaboration promises to optimize the company's integrated research-development-commercialization framework through synergistic resource alignment.

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