Genesis Medtech Investment (HK) Limited entered into an equity transfer agreement to acquire 80% stake in Jiangsu Ni Ke Medical Device Co., Ltd. from Livzon Pharmaceutical Group Inc. (SZSE:000513), Zijin Zhonghao (Zhejiang) Investment Co., Ltd., Yongyi Yu, Wu Guangmin and other shareholders for approximately CNY 520 million on May 23, 2020. Prior to the transaction, Livzon holds 19.9% stake in Jiangsu Ni Ke while Zijin Zhonghao holds 17.73% stake, Yongyi Yu holds 37.6% stake, Wu Guangming holds 8.33% stake and other shareholders hold 16.35% stake. Upon completion, Yongyi Yu will retain a 20% stake in Jingsu Ni Ke while Genesis will hold the remaining 80% stake. Jiangsu Ni Ke reported operating income of CNY 3.8 million, Operating profit of CNY 1.1 million, net profit of CNY 0.84 million, Total assets of CNY 6.6 million and net assets of CNY 6.3 million in the year ending on December 31, 2019. The transaction has no material effect on the financial condition and results of operation of Livzon for the year. The final realizable net profit shall be subject to the audit report of Livzon for the year 2020. As June 30, 2020, Genesis Medtech Investment (HK) Limited completed the acquisition of 19.99% stake in Jiangsu Ni Ke Medical Device Co., Ltd. from Livzon Pharmaceutical Group Inc. for approximately CNY 120 million.