Hunan China Sun Pharmaceutical Machinery Co., Ltd (SZSE:300216) signed a conditional entry-into-force agreement to acquire Hunan Novol from 24 individuals and Xinjiang Haijie Kangjian Equity Investment Partnership (LP) for approximately CNY 560 million in cash on January 15, 2015. The 24 individuals are Liu Huashan, Zhou Junli, Tang Chaoyang, Zhang Haiding, Huang Shunzhi, Zhang Cheng, Fu Juan, Zhang Lingling, Tu Wenli, Deng Tieshan, Liu Yan, Wang Guohua, Zhong Bo, Li Sanyuan, Huang Shengqiu, Pan Lin, Peng Xunde , Zheng Guosheng, Wang Min, Liu Fangxi, Wang Yajun, Guan Xinhe, Zhang Xu, Yang Zongyu. Hunan China will pay purchase price with its own capital and bank loans.

Hunan Novol Medicine Packing Material Scientific & Technological reported total assets of CNY 453.47 million, total liabilities of CNY 252.6 million, owners' equity of CNY 200.88 million, revenues of CNY 200.11 million, total profit of CNY 24.22 million and net profit of CNY 20.59 million in 2014. The transaction is subject to approval of shareholders of Hunan China Sun Pharmaceutical Machinery. On January 15, 2015, Xinjiang Haijie Kangjian Equity Investment Partnership (LP) held partnership meeting and agreed to the transaction. The transaction was approved unanimously by Board of Directors of Hunan China Sun Pharmaceutical Machinery on January 20, 2015 and March 24, 2015. Board of Supervisors Meeting of Hunan China Sun Pharmaceutical Machinery approved the transaction on January 20, 2015. On April 15, 2015, the transaction was approved by shareholders of Hunan China Sun Pharmaceutical Machinery. Donghai Securities Co., Ltd. acted as financial advisor, Beijing Jine Law Firm acted as the legal advisor and Ruihua Certified Public Accountants (Special General Partnership) acted as the accountant to Hunan China Sun Pharmaceutical Machinery.

Hunan China Sun Pharmaceutical Machinery Co., Ltd (SZSE:300216) completed the acquisition of Hunan Novol from 24 individuals and Xinjiang Haijie Kangjian Equity Investment Partnership (LP) on June 17, 2015.