Lijiang Shengchuang Pharmaceutical Co., Ltd. entered into a letter of intent to acquire Henan Lihua Pharmaceutical Company Limited from Guangdong VTR Bio-Tech Co., Ltd. (SZSE:300381) for CNY 430 million on January 28, 2022. 20% of the consideration will be paid within 10 days of signing of the contract and the remaining 80% shall be paid to the joint management account. As on September 30, 2021, Henan Lihua Pharmaceutical Company Limited had total assets of approximately CNY 580 million and net assets of approximately CNY 350 million. The transaction has been approved by both shareholders and board of Guangdong VTR Bio-Tech Co., Ltd. DeHeng Law Offices acted as legal advisor to Guangdong VTR Bio-Tech, Grant Thornton China acted as accountant to Guangdong VTR Bio-Tech and Minsheng Securities Co.,Ltd. acted as financial advisor to Guangdong VTR Bio-Tech.

Lijiang Shengchuang Pharmaceutical Co., Ltd. completed the acquisition of Henan Lihua Pharmaceutical Company Limited from Guangdong VTR Bio-Tech Co., Ltd. (SZSE:300381) on April 26, 2022.