Tonghua Golden-Horse Pharmaceutical Industry Co,Ltd (SZSE:000766) signed a cooperation framework agreement to acquire Qitaihe Qimei Hospital Co., Ltd. from Qitaihe Mining Clean Coal (group) Co., Ltd. and Suzhou Industrial Park Dexin Yili Investment Center (Limited Partnership) on February 1, 2018. As per framework agreement, Qitaihe Mining Clean Coal (group) Co., Ltd. will sell 15% and receive consideration in shares and Suzhou Industrial Park Dexin Yili Investment Center (Limited Partnership) will sell 85% and receive cash and shares. A formal agreement will also be signed. Tonghua Golden-Horse Pharmaceutical Industry Co,Ltd signed an agreement to acquire 84.14% stake in Qitaihe Qimei Hospital Co., Ltd from Suzhou Industrial Park Dexin Yili Investment Center (Limited Partnership), Beijing Shengzezhou Investment Holding Co., Ltd and Qitaihe Mining Clean Coal (group) Co., Ltd on May 22, 2018. Under the terms of the agreement, Suzhou Industrial Park Dexin Yili Investment Center (Limited Partnership) will sell 57.62% stake in Qitaihe Qimei Hospital Co., Ltd and receive consideration in cash. Qitaihe Mining Clean Coal (group) Co., Ltd will sell 15% and Beijing Shengzezhou Investment Holding Co., Ltd will sell 11.52% stake in Qitaihe Qimei Hospital Co., Ltd and will receive 4.94 million shares and 3.8 million shares respectively as consideration. Post transaction, Suzhou Industrial Park Dexin Yili Investment Center (Limited Partnership) will hold 15.86% stake in Qitaihe Qimei Hospital Co., Ltd. In related transactions, Tonghua Golden-Horse Pharmaceutical Industry Co,Ltd agreed to acquire five other hospitals. As on September 28, 2018, the number of shares to be issued for all the transactions were revised to 92.93 million. Tonghua Golden-Horse Pharmaceutical Industry Co,Ltd will raise supporting funds of not more than CNY 690.5 million to fund the cash consideration of the transaction. Shuangyashan Shuangkuang Hospital Co., Ltd will become holding subsidiary of Tonghua Golden-Horse Pharmaceutical Industry Co,Ltd. Qitaihe Qimei Hospital Co., Ltd reported total assets of CNY 340 million and net assets of CNY 79 million as at December 31, 2017. Qitaihe Qimei Hospital Co., Ltd reported revenues of CNY 302.9 million and net profit of CNY 24 million for the year ended December 31, 2017. The transaction is subject to approval by shareholders of Tonghua Golden-Horse Pharmaceutical Industry Co,Ltd and by China Securities Regulatory Commission. The transaction was approved by the internal decision-making bodies of the parties. The Board of Directors of Tonghua Golden-Horse Pharmaceutical Industry Co,Ltd approved the transaction on February 1, 2018. The transaction obtained relevant filing record from the State-owned Assets Supervision and Administration Commission. The transaction obtained approval from shareholders of Tonghua Golden-Horse Pharmaceutical Industry on July 16, 2018. On September 28, 2018, the Board of Tonghua Golden-Horse Pharmaceutical Industry Co,Ltd approved the adjustment in share issuance price to acquire the assets. On January 4, 2019, the transaction was rejected by China Securities Regulatory Commission. Wang Ding, Niu Zhipeng, Yu xinjun, Huang Kai, Wang Lei, Wen Chang, Liu Shuochen, Li Siwei and Song Jiawei of BOC International (China) Limited acted as financial advisors, Zheng Xiaodong, Liu Yinhong, Zheng Huan and Qu Qiongjie of Jincheng Tongda & Neal acted as legal advisors and Li Zhushan, Deng Li, Hu Yan, Chen Kui, Liang Xin and Li Guang of Ruihua Certified Public Accountants, LLP acted as accountants for Tonghua Golden-Horse Pharmaceutical Industry Co,Ltd. Tonghua Golden-Horse Pharmaceutical Industry Co,Ltd cancelled the acquisition of 84.14% stake in Qitaihe Qimei Hospital Co., Ltd from Suzhou Industrial Park Dexin Yili Investment Center (Limited Partnership), Beijing Shengzezhou Investment Holding Co., Ltd and Qitaihe Mining Clean Coal (group) Co., Ltd on July 5, 2019.