Beauty Farm Medical and Health Industry Inc. agreed to acquire 70% stake in Business of Naturade Health Technology Co., Ltd. from Naturade Health Technology Company Limited for CNY 350 million on March 26, 2024. The consideration consists of CNY 350 million in cash. The consideration shall be paid in three installments. First payment will be 30% of the total while the second and third will be 45% and 25% of the total consideration respectively which shall be paid after the conditions precedent for payment of each installment are fulfilled. The second and the third installment will be treated as an earnout payment. The transaction is subject to certain other typical conditions. The completion of the acquisition will be deemed to have occurred upon the payment of the second phase of payment. Huatai Financial Holdings (Hong Kong) Limited acted as a financial advisor while PricewaterhouseCoopers China Limited acted as an accountant to Beauty Farm Medical and Health Industry Inc.

As of June 13, 2024, to facilitate this acquisition, the Beauty Farm Medical and Health Industry Inc. will implement new contractual arrangements, allowing the Guangzhou Naturade Health Management Co., Ltd. to control 30% of these institutions through Shanghai Liernuo.

Beauty Farm Medical and Health Industry Inc. completed the acquisition of 70% stake in Business of Naturade Health Technology Co., Ltd. from Naturade Health Technology Company Limited on August 27, 2024.

Upon completion of the acquisition, the Naturade brand and related stores have become part of the Group, expanding Beauty Farm Medical and Health Industry Inc.'s store count to over 550. A Cooperation Framework Agreement was established between Naturade Beauty Technology (Shenzhen) Co., Ltd. and Guangzhou Beiminsheng Enterprise Management Co., Ltd., allowing the latter to operate stores under the Naturade brand. This agreement includes fees for franchising, system usage, and product supply, enhancing the Group's market presence and operational efficiency. Additionally, a Lease Framework Agreement was signed for property leasing, ensuring streamlined processes and compliance with market rates.