Shandong Buchang Pharmaceuticals Co., Ltd. (SHSE:603858) agreed to acquire an unknown stake in Jiuzhoutong Pharmaceutical Group Hubei Pharmaceutical Co., Ltd. from Jiuzhoutong Pharmaceutical Group Co., Ltd. for approximately CNY 100 million on June 21, 2017. Under the terms, Shandong Buchang Pharmaceuticals Co., Ltd. will carry out an investment of no more than CNY 100 million in Jiuzhoutong Pharmaceutical Group Hubei Pharmaceutical Co., Ltd. either through acquisition or capital increase. For the year ended December 31, 2016, Jiuzhoutong Pharmaceutical Group Hubei Pharmaceutical Co., Ltd. had total assets of CNY 41.49 million, net assets of CNY 15.64 million, net profit of CNY 2.95 million and revenue of CNY 202.50 million.

The transaction was approved by the Board of Shandong Buchang Pharmaceuticals Co., Ltd. in the 23rd special meeting of 2nd directorate held on June 21, 2017 and does not need shareholders' approval.