Hubei Huarong Holding Co.,Ltd. (SHSE:600421) entered into an agreement to acquire 80% stake in Wuxi Shenrui Bio-Pharmaceuticals Products Co., Ltd. from Sheng Qingsong, Tan Qingzhong, CDH Investment Management Company Limited, Wuxi Shenrui Investment Partnership (Limited Partnership), Shanghai CDH Chuangtai Venture Capital Center (Limited Partnership), Wuxi Ruiyi Enterprise Management Consulting Partnership (Limited Partnership) and Wuxi Ruiyu Enterprise Management Consulting Partnership (Limited Partnership) on July 15, 2021. The consideration shall be paid by issuing shares and paying cash. As per terms, Hubei Huarong Holding Co.,Ltd. shall acquire 30.77% from Sheng Qingsong out of 50.77% held, 6.03% from Tan Qingzhong, 12% from CDH Investment Management Company Limited, 14.2% from Wuxi Shenrui Investment Partnership (Limited Partnership), 12% from Shanghai CDH Chuangtai Venture Capital Center (Limited Partnership), 2.5% from Wuxi Ruiyi Enterprise Management Consulting Partnership (Limited Partnership) and 2.5% from Wuxi Ruiyu Enterprise Management Consulting Partnership (Limited Partnership). Hubei Huarong Holding Co.,Ltd. intends to issue shares to no more than 35 specific investors to raise matching funds, the amount of not exceeding CNY 27 million. On July 16, 2021, the People’s Court of Xinwu District of Wuxi City issued a civil ruling lifting the 50.77% of the equity that was frozen or sealed. As on June 30, 2021, total asset and net asset of Wuxi Shenrui Bio-Pharmaceuticals Products Co., Ltd. was CNY 129 million and CNY 79.1 million respectively. On July 15, 2021, Hubei Huarong Holding Co.,Ltd. held the nineteenth meeting of the seventh board of directors to deliberate and approve the transaction. The transaction still needs to be reviewed by the board of directors and approved by the general meeting of shareholders of Hubei Huarong Holding Co.,Ltd., and can be formally implemented after approval by the regulatory authority. As of August 31, 2021, Hubei Huarong intends to terminate the acquisition. The termination still needs to be reviewed and approved and the company will hold a meeting with board of directors to review matters.