Zhongsheng Pharmaceutical Co., Ltd (002317.SZ) announced publicly that the company intends to invest RMB5 million in the medical packing material project of Southern Medical Co., Ltd., the wholly owned subsidiary of Zhongsheng, on Oct 10.

The announcement says, the full share of medical packing material project will increase to RMB8 million after the capital increment, and Zhongsheng will hold 11.25% share while Southern hold 88.75% share.

The capital increment can help the medical packing material project of Southern Medical Company become more competitive, also enhance the overall strength of Zhongsheng. The investment corresponds to Zhongsheng’s long-term development plan.