Hainan Huluwa Pharmaceutical Group Co., Ltd. (SHSE:605199) entered into a letter of intent to acquire 51% stake in Jiangxi Rongxing Pharmaceutical Co., Ltd. from Chen Xuerong on February 17, 2023. Hainan Huluwa Pharmaceutical Group Co., Ltd. (SHSE:605199) entered into an agreement to acquire 51% stake in Jiangxi Rongxing Pharmaceutical Co., Ltd. from Chen Xuerong for CNY 44.88 million on March 16, 2023. The board of directors of Hainan Huluwa Pharmaceutical Group approved the transaction.

iangxi Rongxing Pharmaceutical Co., Ltd. recorded total assets of CNY 50.29 million, net assets of CNY 42.40 million, revenue of CNY 59.77 million and net profit of CNY 13.39 million for the year ended December 31, 2022.