Zhejiang Jiuzhou Pharmaceutical Co., Ltd (SHSE:603456) signed Investment Agreement to acquire a 25.8% stake in Nan Jing Kang Chuan Ji Pharmatech Co., Ltd. from Yin Laisheng for CNY 40 million on December 31, 2021. Under the terms, Zhejiang Jiuzhou will pay to Yin Laisheng CNY 10 million within 5 working days after the agreement becomes effective, CNY 10 million within 15 days after the completion, and the remaining amount within 6 months after the completion of the transfer and capital increase. Zhejiang Jiuzhou will also carry out its capital increase of CNY 80 million, subscribing to new registered capital of CNY 1.13 million.

Following completion of both the transactions, Zhejiang Jiuzhou will hold 51% stake, Yin Lifang will hold 39% stake, Nanjing Jikang Enterprise Management Partnership Enterprise (Limited Partnership) will hold 10% stake and Yin Laisheng will cease to have any stake in Nan Jing Kang Chuan Ji Pharmatech. As of June 30, 2021, Nan Jing Kang Chuan Ji Pharmatech reported net assets of CNY 17.8 million and Total Assets of CNY 26.6 million. The transaction is approved by the board of directors of Zhejiang Jiuzhou Pharmaceutical and does not need the Shareholders approval.