On 19 December 2011, Nanjing Sample Technology (01708.HK), Nanjing Pharmaceutical Company Limited and their 50:50 JV company entered into a capital injection agreement, pursuant to which Nanjing Sample and Nanjing Pharmaceutical agreed to inject capital into the JV company.

Under the agreement, each of Nanjing Sample and Nanjing Pharmaceutical will contribute RMB100 million to the registered capital of the JV company to increase the registered capital of the JV company to RMB350 million.

The JV company is mainly engaged in the business of pharmaceutical wholesaling, supply chain management services, technical testing services for health products etc. The capital injection will be used for working capital of the JV company.