Kangyue Technology Co., Ltd. (SZSE:300391) intends to acquire 52.8% stake in Hubei Changjiangxing Pharmaceutical Co.,Ltd from Hubei Changjiang Pharmacy Chain Co., Ltd., Zhejiang Caitong Capital Investment Co., Ltd. and Wang Dongxiang for approximately CNY 1.4 billion on September 3, 2020. Under the terms, Kangyue Technology is acquiring 50.18%, 1.18%, and 1.4% stakes respectively from Hubei Changjiang Pharmacy Chain, Shenzhen Shengshi Fenghua Enterprise and Wang Dongxiang of 98.06 million, 2.31 million and 2.73 million shares for CNY 1.34 billion, CNY 3.16 million and CNY 3.12 million. The transaction is agreed to carried out by Shenzhen Shengshi Fenghua Enterprise Management by an investment decision-making committee on September 3, 2020, it is agreed to be carried out by shareholders of Hubei Changjiang Pharmacy Chain and approved by the Board of Directors of Kangyue Technology Co., Ltd. on September 10, 2020.

The transaction needs to be approved by the shareholders of Kangyue Technology and approval document by Anti-monopoly Bureau of the State Administration for Market Regulation on the implementation of the anti-monopoly review. As on September 28, 2020, the transaction has been approved by Anti-monopoly Bureau of the State Administration for Market Regulation. As on November 9, 2020, the transaction has been approved by the Board of Kangyue.

On November 25, 2020, shareholders of Kangyue Technology approved the transaction. On December 1, 2020, 50.1776% stake held by Hubei Changjiang Pharmacy Chain Co., Ltd. was transferred to Kangyue. However, transfer by Caitong Capital and Wang Dongxiang are still in progress.

On October 21, 2021, Zhejiang Caitong Capital Investment Co., Ltd. transferred 1.1809% of Hubei Changjiangxing Pharmaceutical Co., Ltd. and the share transfer from Wang Dongxiang is still in progress. Hongxin Securities Co., Ltd. acted as a independent financial advisor to Kangyue. Gaopeng & Partners acted as legal advisor and China Audit Asia Pacific Certified Public Accountants LLP acted as accountant to Kangyue Technology in the transaction.