Yu Xiang entered into an agreement to 87% stake in Chaohu Zhongshan Minimally Invasive Hospital from BIMI International Medical, Inc. (NasdaqCM:BIMI) on December 28, 2022. Pursuant to the Zhongshan Agreement, BIMI International will transfer 87% of the equity interests in Zhongshan to Yu Xiang and will continue to own 13% of the equity interests in Chaohu Zhongshan Minimally. As consideration for the Zhongshan Transfer, Yu Xiang will return to BIMI International the 2,000,000 shares of the BIMI International’s common stock, which were previously issued to Yu Xiang when Zhongshan was purchased by BIMI International, which, subsequent to their issuance, such shares were consolidated into 40,037 shares as a result of a 1-for-5 reverse stock split on February 2, 2022 and a 1-for-10 reverse stock split on December 9, 2022.

The closing of the Zhongshan Agreement is expected to take place in the first quarter of 2023, subject to necessary regulatory approvals and other closing conditions. As of May 4, 2023, the transaction is expected to close in the second quarter of 2023.