Chongqing Pharmaceutical (Group) CO., LTD. signed an equity transfer intention agreement to acquire 51% stake in Chongqing Changsheng Medicine Co., Ltd. from Tiansheng Pharmaceutical Group Co., Ltd. (SZSE:002872) for CNY 59.6 million on February 12, 2020. On November 3, 2020, an equity transfer contract was signed. CNY 2 million paid as deposit on February 12, 2020 will automatically transfer to part of the first installment after contract comes into effect. Within 10 working days after the equity transfer contract takes effect and passes the review of the concentration of business operators, the first installment except the deposit, which is CNY 9.91 million, shall be paid. Within 10 working days after Tiansheng Pharmaceutical receives the first phase of equity transfer payment, completes the registration of equity changes, and re-elects directors, supervisors and senior executives, 50% of the equity transfer price equivalent to CNY 29.775 million shall be paid, CNY 11.91 million within 10 working days after the official transition period audit report is issued, 20% of the equity transfer price shall be paid. Within 10 working days after the expiration of the 12 months after the equity delivery date, 10% of the equity transfer price equivalent to CNY 5.955 million shall be paid. Before the transaction, Tiansheng Pharmaceutical held 100% equity in Chongqing Changsheng Medicine Co., Ltd. Chongqing Changsheng Medicine Co., Ltd. reported total assets of CNY 924.46 million and net assets of CNY 88.36 million as at April 30, 2020. The transaction does not need to be submitted to C.Q. Pharmaceutical Holding’s board of directors and shareholders' meeting for review. Approval obtained from C.Q. Pharmaceutical Holding Co., Ltd.’s 21st President's Office Meeting’s and from the 39th Meeting of the Tiansheng Pharmaceutical Group Co., Ltd. 4th Directorate held on November 3, 2020. The transaction is subjected to the second approval of the Tiansheng Pharmaceutical Group Co., Ltd. Directorate after the target assets’ audit and assessment work are completed, the filing and approval of the assessment reports and the relevant regulatory authorities’ concentration review. On December 11, 2020, Tiansheng Pharmaceutical Group Co., Ltd. held the second extraordinary general meeting of shareholders to review and approve the transaction. Within 20 working days after the concentration review of business operators, the transfer will be completed. Chen Guoxing, Li Yukun and Zhang Jianhua of HUAXI Securities Co., Ltd. (SZSE:002926) acted as a independendent financial advisor, Wang Ting, Tan Jun and Nie Dong of Zhong Yin Law Firm acted as a legal advisor, Shang Yingwei and Huang Dongling of Beijing Xinghua Certified Public Accountants acted as an accountant to Tiansheng Pharmaceutical Group Co., Ltd. for the transaction. Chongqing Pharmaceutical (Group) CO., LTD. completed the acquisition of 51% stake in Chongqing Changsheng Medicine Co., Ltd. from Tiansheng Pharmaceutical Group Co., Ltd. (SZSE:002872) on April 29, 2021.