Guangdong By-health Biotechnology (300146) announced it will inject 156 million yuan into Guangzhou By-health Bioengineering, a wholly-controlled subsidiary, to set up a chain of nutrition outlets, reports Yicai.com, citing a company filing.

It will also spend another 160 million yuan to expand the capacity of its Zhuhai production base.

According to the plan, the subsidiary will increase the number of nutrition outlets to 1,163 in the next two years through cooperation with other parties, set up a nutrition management center and a flagship store.

The company intends to establish a softgel capsule plant for 43.97 million yuan, spend 61 million yuan to expand capacity, construct research and development centers for 18.51 million yuan, and upgrade the engineering capabilities of its Zhuhai production base for  31.37 million yuan.

Shareholders yesterday approved the 2011 profit distribution plan, and this will increase total equity from 109 million shares to 218 million shares. It plans to convert 10 shares and distribute cash dividends of 10 yuan (including tax) for every 10 shares held.

Shares of By-health Biotechnology were suspended from trading due to the shareholders' meeting.