DaShenLin Pharmaceutical Group Co., Ltd. (SHSE:603233) signed an equity transfer agreement to acquire 51% stake in Nantong Jianghai Pharmacy Chain Co., Ltd. from Zhenjiang New District Dingjun Enterprise Management Center (Limited Partnership) and Zhenjiang New District Dingjun Enterprise Management Center (Limited Partnership) for approximately CNY 130 million on November 6, 2019. Out of total consideration, CNY 101.97 million is for Zhenjiang New District Dingjun Enterprise and CNY 25.49 million is for Zhenjiang New District Huihui Enterprise. As per the terms, consideration payment shall be paid in two installments. In 1st phase, within 10 working days from the effective date of this agreement, DaShenLin Pharmaceutical shall pay 50% of the equity transfer payment and in second phase, 51% of Nantong Jianghai’s equity business registration is changed to the name of DaShenLin. The parties complete the delivery of Nantong Jianghai’s asset inventory, seal, management documents, etc., and DaShenLin Pharmaceutical confirms the Nantong Jianghai’s accounting tax data in writing is completed and compliant, Nantong Jianghai’s net assets target is completed, and DaShenLin Pharmaceutical pays 50% of the equity transfer payment within 10 working days after the lease commitment is met. As of December 31, 2018, Nantong Jianghai Pharmacy reported net assets of CNY 2.3 million and net profit of CNY 4.4 million. The transaction has been approved by the 42nd meeting of the second directorate of DaShenLin Pharmaceutical Group on November 6, 2019 and does not need its shareholders approval. DaShenLin Pharmaceutical Group Co., Ltd. (SHSE:603233) cancelled the acquisition of 51% stake in Nantong Jianghai Pharmacy Chain Co., Ltd. from Zhenjiang New District Dingjun Enterprise Management Center (Limited Partnership) and Zhenjiang New District Dingjun Enterprise Management Center (Limited Partnership) on November 6, 2020.