Jiangsu Hengshun Group Company Ltd. intends to acquire 51% of stake in Zhenjiang Hengshun Mall Co., Ltd. from Jiangsu Hengshun Vinegar-Industry Co.,Ltd (SHSE:600305) for CNY 84.1 million on December 15, 2021. Jiangsu Hengshun Group Company Ltd. entered into an agreement to acquire Zhenjiang Hengshun Mall Co., Ltd. from Jiangsu Hengshun Vinegar-Industry Co.,Ltd (SHSE:600305) on March 18, 2022. Jiangsu Hengshun Group intends to use cash to pay the equity consideration.

After the completion of this transaction, Jiangsu Hengshun Vinegar-Industry will no longer hold the equity of Zhenjiang Hengshun Mall, and the scope of the Jiangsu Hengshun Vinegar-Industry consolidated statements will change. The transaction got approved by Board of Jiangsu Hengshun Vinegar and subject to shareholders of it. The transaction is still subject to the approval of the state-owned capital authority.

As of September 30, 2021, the total assets of Hengshun Mall are CNY 470 million, and the net assets are CNY 160 million, the operating income from January to September 2021 is CNY 20.8 million, and the net profit is CNY 0.65 million.