Addentax Group Corp. (NasdaqCM:ATXG) announced that it is in advanced discussion with its Company's Chairman and Chief Executive Officer, Mr. Hong Zhida, to acquire Mr. Hong's partial stake in Shanghai Bao Pharmaceutical Company Limited ("Bao Pharma"), via Shenzhen Grandway Capital Management Co., Ltd. ("Grandway Capital). Grandway Capital will act as a fund manager.

Mr. Hong invested in Bao Pharma, via Grandway Capital in 2020. On August 25, 2022, Bao Pharma received USD 100 million in a round of funding led by Shenzhen Oriental Fortune Capital Co., Ltd. The transaction included participation from Finnova Capital, Haitong Innovation Private Fund Management Co., Ltd., Shanghai Sun Rock Capital Management Co., Ltd., Center Laboratories Inc. Mr. Zhida Hong, the Chairman and Chief Executive Officer of Addentax, stated, "Our group is now aggressively diversifying its business to other cutting edge areas, including biotech and electric vehicles etc. In addition to our traditional garment and logistics businesses, I believe that our new venture will soon generate extra revenue to this group and maximize the shareholders' interests".