Shanghai Lanhai Investment Co., Ltd. signed an asset transfer agreement to acquire 51% stake in Shanghai Hefeng Hospital Co., Ltd. from Lanhai Medical Investment Co., Ltd. (SHSE:600896) for approximately CNY 590 million on November 7, 2020. After friendly negotiation, Lanhai Medical Investment intends to transfer 51% of the equity of Shanghai Hefeng Hospital as well as creditor's rights of CNY 511.7804 million to Shanghai Lanhai through a cash sale. As on June 30, 2020, Shanghai Hefeng reported total assets of CNY 991.1 million and net liabilities of CNY 17.1 million. For the year ending December 31, 2019, Shanghai Hefeng reported total assets of CNY 995.01 million and net liabilities of CNY 4.4 million. The transaction needs to be approved by the shareholders' meeting of Lanhai Medical Investment. The transaction plan has been approved by the sixth temporary meeting of Lanhai Medical Investment's tenth Board of Directors. The transaction plan has been approved by the fifth meeting of Lanhai Medical Investment's tenth Board of supervisors. As of December 19, 2020, the transaction was approved in the 2nd Extraordinary Shareholders Meeting of 2020 of Lanhai Medical Investment Co., Ltd. (SHSE:600896). Zhang Youjun, Guo Zhuoran, Guo Zhuoran, Wu Shaolei,Yang Zhenrui,Ding Rui,Chen Kejun,Fu Jiaxiang and Li Junlin of CITIC Securities Company Limited (SHSE:600030) acted as financial advisors, Li Qiang, Yue Yongping, Cheng Jingjiao and Yang Jing of Grandall Lawyers (Shanghai) Office acted as legal advisors and Qiu Jingzhi, Zhang Jian and Xue Jianbing of Vocation International Certified Public Accountant Co., Ltd. acted as accountants to Lanhai Medical Investment. Shanghai Lanhai Investment Co., Ltd. completed the acquisition of 51% stake in Shanghai Hefeng Hospital Co., Ltd. from Lanhai Medical Investment Co., Ltd. (SHSE:600896) on January 25, 2021.