Joinn Laboratories (China) Co.,Ltd. (SHSE:603127) agreed to acquire Guangxi Weimei Bio-Tech Co., Ltd from Yunnan Guanfang Construction Group Co., Ltd. and Or Ching Hei for approximately CNY 970 million on April 28, 2022. Upon completion of the Weimei Equity Transfer Agreement, the Company will hold the entire equity interest of Weimei Bio-Tech, and Weimei Bio-Tech will become a subsidiary of Joinn Laboratories, and its financial statements will be consolidated with that of the Group. The first instalment of the consideration is expected to be settled by the internal resources of the Group and/or the Net Proceeds allocated for such purpose.

The second and the third instalments of the consideration are expected to be settled by the Net Proceeds re-allocated for such purpose, details of which are set out in the announcement of the Company dated April 28, 2022 in relation to the Proposed Reallocation. In the event that the Proposed Reallocation is not approved by Shareholders at general meeting, the Company will settle the second and third instalments of the consideration by the internal resources of the Group. Guangxi Weimei Bio-Tech has a revenue of CNY 80.47 million, net profit of CNY 52.249 million, total assets of CNY 218.92 and net assets of CNY 147.12 as of December 31, 2021.

The transaction required all government administrative permits. As of June