Shanghai Pharmaceuticals Holding Co., Ltd announced that it has entered into subscription agreements for a private placement of not more than 852,626,796 A shares of par value CNY 1 per share, at an issue price of CNY 16.87 per share for gross proceeds of not more than CNY 14,383,814,048.52 on May 11, 2021. The transaction will include participation from new investors Shanghai Tandong Enterprise Consulting Services Co., Ltd. for not more than 187,000,000 A shares to acquire 5.06% stake, and Yunnan Baiyao Group Co.,Ltd for not more than 665,626,796 A shares to acquire 18.02% stake in the company. As of the date of this announcement, the total number of issued shares of the company is 2,842,089,322 shares, including 919,072,704 H shares and 1,923,016,618 A shares. Post closing, the total number of issued shares of the company will increase to 3,694,716,118 shares. All shares to be issued in connection with the transaction will be subject to a lock-up period of 36 months from the date of closing. The transaction has been approved by the board of directors of the company, and is subject to the approvals from competent state-owned assets supervision and administration authorities, shareholders of the company at the general meeting, A share class meeting and H share class meeting, respectively, board of directors and shareholders of both the investors, and the China Securities Regulatory Commission. The resolutions in relation to the transaction shall remain valid for 12 months from the date of shareholders' approval. The transaction was approved by the board of directors of Yunnan Baiyao Group Co.,Ltd at its 4th session of 9th directorate and board of directors of the company at its 22nd session of 7th directorate.

On June 10, 2021, the company announced that the transaction has been approved by sixth meeting of the ninth board of directors of Yunnan Baiyao Group Co.,Ltd.