Shanghai Shyndec Pharmaceutical Co., Ltd. signed an asset transfer agreement to acquire 51% in three pharmaceutical companies and Pingshan base from China National Accord Medicines Corporation Ltd. for CNY 2.5 billion on March 9, 2016. Under the terms of the agreement, Shanghai Shyndec Pharmaceutical will issue 86.2 million shares as consideration. Shanghai Shyndec Pharmaceutical will acquire 51% stake in Shenzhen Zhijun Pharmaceutical Co.,Ltd. and issue 53 million shares as consideration, will acquire 51% stake in Shenzhen Zhijun Pharmaceutical Trade Co., Ltd. for 0.28 million shares as consideration, will acquire 51% stake in Sinopharm Zhijun (Shenzhen) Pingshan Pharmaceutical Co., Ltd. for 13.5 million shares as consideration and will acquire Operating assets in Pingshan Base for 19.5 million shares. As of May 30, 2016, the aggregate amount of the appraisal value of the target assets has been adjusted from CNY 2,511.3556 million to CNY 2,511.3225 million (the appraisal value of 51% equity interest in Zhijun Pharmaceutical and 51% equity interest in Pingshan Pharmaceutical have been adjusted from CNY 1,543.2802 million and CNY 392.3286 million to CNY 1,543.2718 million and CNY 392.3039 million, respectively; while the appraisal value of 51% equity interest in Zhijun Pharmaceutical Trade Company remained as CNY 8.1253 million, and the appraisal value of Pingshan Base remained as CNY 567.6215 million. On September 28, 2016, the deal terms revised. As per the new terms, 86.4185 shares will be issued to China National Accord Medicines Corporation Ltd.

In related transactions, Shanghai Shyndec Pharmaceutical agreed to acquire 51% stake in China National Pharmaceutical Group Sanyi Pharmaceutical (Wuhu) Co., Ltd. and 26% stake in Sinopharm A-Think Pharmaceutical Co., Ltd. from Sinopharm Group Co., Ltd., 33% stake in Sinopharm Weiqida Pharmaceutical Co., Ltd. and 33% stake in Sinopharm Datong Weiqida Zhongkang Pharmaceutical Co., Ltd. from Han Yanlin, 20% stake in Sinopharm Shantou Jinshi Pharmaceutical Co., Ltd. from Yang Shihao and 11 other individuals, 55% stake in Sinopharm Xinjiang Pharmaceutical Co., Ltd, 52.92% stake in Qinghai Pharmaceutical (Group) Co., Ltd., 100% stake in China National Pharmaceutical Industry Corporation Ltd. and 67% stake in Sinopharm Weiqida Pharmaceutical Co., Ltd. from China National Pharmaceutical Industry Corporation. Shanghai Shyndec Pharmaceutical Co., Ltd. raised CNY 1.9 billion through private placement and cash will be used for these acquisitions.

The transaction is subject to the execution of asset transfer agreement, the supplemental agreements and related compensation agreements, approval of the assets restructuring by the parties under the asset transfer agreement, approval of the assets restructuring by China Securities Regulatory Commission and State-owned Assets Supervision and Administration Commission, stockholders of Shanghai Shyndec Pharmaceutical and the clearance granted by the Antimonopoly Bureau of the Ministry of Commerce of the People's Republic of China. The transaction is approved by the Board of Shanghai Shyndec Pharmaceutical Co., Ltd. As of June 16, 2016, the State-owned Assets Supervision and Administration Commission approved the transaction. As on June 17, 2016 the shareholders of Shanghai Shyndec Pharmaceutical Co., Ltd. approved the transaction. As of September 28, 2016, the transaction was approved by the China Securities Regulatory Commission. Baker Tilly Hong Kong Limited and PricewaterhouseCoopers acted as accountant to Sinopharm Group Co. Ltd. Citic Securities Co., Ltd. acted as financial advisor for Shanghai Shyndec Pharmaceutical. Grandall Law Firm acted as legal advisor for China National Accord Medicines Corporation Ltd.