Chongqing Pharmaceutical (Group) Co., Ltd. entered into a framework agreement to acquire 99.9% stake in Tianjin Tasly Medicine Distribution Group CO.,LTD. from a group of shareholders for CNY 1.5 billion on December 16, 2019. Under the terms, 158.3 million shares were acquired at a price of CNY 9.41 per share. The consideration is payable in four installments. The first payment of 20% will be done within 5 working days after the contract comes into effect, second payment of 50% will be done within 10 working days after the share delivery date, third payment within 10 working days after the expiration of 6 months after the share delivery date and balance after the expiration of the 12-month period after the share delivery date. Tasly Pharmaceutical Group Co., Ltd will sell 88.5% stake in the transaction. Post the completion of the transaction, Tianjin Tasly will become the wholly owned subsidiary of Chongqing Pharmaceutical. The transaction requires approvals from shareholders of Chongqing Pharmaceutical (Group) Co., Ltd. and the shareholders of C.Q. Pharmaceutical Holding Co., Ltd. which is the parent of Chongqing Pharmaceutical (Group) Co., Ltd, completion of assessment filing according to the relevant requirements of the state-owned assets management to accept the assessment of non-state assets, approval of Chongqing State-owned Assets Supervision and Administration Commission and approval of Chongqing Pharmaceutical (Group) Co., Ltd.'s superior department and relevant regulatory authorities. On June 12, 2020, the Board of Directors of C.Q. Pharmaceutical Holding Co., Ltd., Tasly Pharmaceutical Group Co., Ltd. and Chongqing Pharmaceutical (Group) Co., Ltd. approved the transaction. The Board of Directors of remaining sellers have also approved the transaction. As on June 29, 2020, the deal was approved by the shareholders of Tasly Pharmaceutical Group Co., Ltd. As on July 20, 2020, this deal has been approved by the Chongqing State-owned Assets Supervision and Administration Commission and the higher authorities of Chongqing Pharmaceuticals. On July 27, 2020, Chongqing Pharmaceutical's 2020 8th Extraordinary General Meeting of Shareholders and Heavy Pharmaceutical Holdings' 2020 3rd Extraordinary General Meeting of Shareholders have respectively reviewed and approved the guarantee matters related to this transaction. On July 31, 2020, Chongqing Pharmaceuticals completed the evaluation record in accordance with the relevant requirements of state-owned assets management to accept the evaluation of non-state-owned assets. As of August 7, 2020, Chongqing Pharmaceutical recently received the Concentration of Undertakings Anti-monopoly Review Not Implementing Further Review Decisions issued by the State Administration for Market Regulation. Guosen Securities Co., Ltd. acted as financial advisor, Jianzhong Law Firm acted as legal advisor and Pan-China Certified Public Accountants LLP acted as accountant for Tasly Pharmaceutical Group Co., Ltd. Chongqing Pharmaceutical (Group) Co., Ltd. completed the acquisition of Tianjin Tasly Medicine Distribution Group CO.,LTD. from a group of shareholders on August 17, 2020.