Jiangsu Hospital of Traditional Chinese Medicine Medical Development agreed to acquire additional 16% stake in Guizhou Tongde Pharmaceutical Co., Ltd. from Guizhou Xinbang Pharmaceutical Co., Ltd. (SZSE:002390) for CNY 38.9 million on July 15, 2021. In a related transaction, Guizhou Zhixin Enterprise Management Consulting Partnership Enterprise (Limited Partnership) agreed to acquire 13% stake in Guizhou Tongde Pharmaceutical Co., Ltd. from Guizhou Xinbang Pharmaceutical Co., Ltd. Witihn 30 days after the agreement signing, the buyer will pay the full price to the seller. Post acquisition, Jiangsu Provincial Hospital of Traditional Chinese Medicine Medical Development Medical Relief Foundation will hold 36% stake in Guizhou Tongde Pharmaceutical Co., Ltd. and Guizhou Xinbang Pharmaceutical Co., Ltd. will hold 51% stake in Guizhou Tongde Pharmaceutical Co., Ltd. As of May 31, 2021, total asset and net asset of Guizhou Tongde Pharmaceutical Co., Ltd. was CNY 235 million and CNY 223 million respectively. On July 15, 2021, the 1st session of Guizhou Xinbang Pharmaceutical Co., Ltd. 8th directorate approved the transaction. Jiangsu Hospital of Traditional Chinese Medicine Medical Development completed the acquisition of additional 16% stake in Guizhou Tongde Pharmaceutical Co., Ltd. from Guizhou Xinbang Pharmaceutical Co., Ltd. (SZSE:002390) on July 30, 2021.