Jiangsu Hualan New Pharmaceutical Material Co.,Ltd. (ASX: 301093) has announced that its wholly-owned subsidiary, Hainan Lingqing Digital Intelligence Pharmaceutical Technology Co., Ltd., will use its own funds of 205 million yuan to invest in Wuxi Natural Constant Technology Co., Ltd. This capital increase will result in the subsidiary holding a 34.17% stake in Natural Constant on a fully diluted basis post-transaction.

This investment represents a forward-looking strategic move by the company into the AI pharmaceutical sector. The business model, technological pathways, and profit cycles in this field differ from those of the company's traditional core operations.

The company stated that its current operations are orderly and its financial structure remains robust. The investment, made with the company's own capital, is contingent on ensuring the continued development of its primary business and is not expected to impact normal production activities or cash flow.