Asymchem (06821) opened more than 5% higher on the Hong Kong Stock Exchange on Monday, with shares trading up 5.5% to HK$115 as of press time, on a turnover of HK$3.197 million.

The company, known as 凯莱英 in Chinese, recently announced that it, along with the target company Shanghai Asymchem Biotechnology Development Co., Ltd., Asymchem Biotechnology, Hillhouse Qirui, Zhuhai Daiheng, Dr. Hao Hong, Asymchem Tongxin, and Haihe Asymchem Fund, have entered into a capital increase agreement. Under the terms, the company and investors agreed to inject a total of RMB 1.2397 billion into the target company's equity. Asymchem will contribute RMB 1.05 billion, Hillhouse Qirui will contribute RMB 177 million, and Dr. Hao Hong will contribute RMB 12.7 million.

Through this capital increase agreement, the target company will be able to introduce external investment by increasing its capital and expanding its shares, which aligns with the group's future development strategy. This capital injection is expected to strengthen the target company's financial position, meet its future capital expenditure and operational expense needs, enhance its overall competitiveness, and promote the development of its CDMO business, which includes large molecule drugs, antibody-drug conjugates, mRNA drugs, and other advanced therapies.