Shenzhen Salubris Pharmaceuticals Co., Ltd. (SZSE:002294), its management personnel and project managers agreed to acquire 70% stake in Yalun Biotechnology (Beijing) Co., Ltd from Yalun Medical Technology Service (Beijing) Co., Ltd., Tongmei Investment Management (Beijing) Co., Ltd., Hongde Qiyue (Beijing) Investment Management Co., Ltd. and an unknown seller for approximately CNY 130 million on October 21, 2016. Under the terms, the buyer will acquire 24.33% stake from the four sellers for CNY 42.3 million and at a later time, acquire 45.19% stake in five separate phases. The buyer's management personnel and project managers will acquire 0.49% stake from Tongmei Investment Management (Beijing) Co., Ltd. for CNY 0.9 million. The consideration will be paid by self owned funds of approximately CNY 130 million. Concurrently, the buyer will use CNY 30 million to carry out a capital increase in Yalun Biotechnology (Beijing) Co., Ltd. After completion of the transaction and capital increase, the buyer will own 73.75% stake and agreed to acquire the remaining stake for CNY 89.9 million to result in 100% ownership of Yalun Biotechnology (Beijing) Co., Ltd. As of October 25, 2016, Yalun Medical Technology Service (Beijing) Co., Ltd., Tongmei Investment Management (Beijing) Co., Ltd., Hongde Qiyue (Beijing) Investment Management Co., Ltd. and the unknown seller own 40.8%, 10%, 10% and 39.2% stake respectively in Yalun Biotechnology (Beijing) Co., Ltd. As per the announcement dated March 20, 2018, Shenzhen Salubris Pharmaceuticals Co., Ltd. completed the purchase of 50.75% stake in Yalun Biotechnology (Beijing) Co., Ltd. while delivery and payment of management rights is still pending. Shenzhen Salubris Pharmaceuticals Co., Ltd., its management personnel and project managers completed the acquisition of 50.75% stake in Yalun Biotechnology (Beijing) Co., Ltd from Yalun Medical Technology Service (Beijing) Co., Ltd., Tongmei Investment Management (Beijing) Co., Ltd., Hongde Qiyue (Beijing) Investment Management Co., Ltd. and an unknown seller on March 20, 2018. As of December 12, 2020, Biomedical Engineering will pay Yalun Biotechnology the remaining phased payments a total of CNY 9.739 million in accordance with the milestone agreed in the agreement in, and obtained 12.6% of Yalun Biotechnology equity. Yalun Biotechnology (Beijing) Co., Ltd. had total assets of CNY 2.89 million and net assets of CNY 1.91 million as of September 30, 2016. The transaction was approved by the Board of Shenzhen Salubris Pharmaceuticals Co., Ltd. in the 16th session of 3rd directorate.