Zhejiang Jolly Pharmaceutical Co.,LTD (SZSE:300181) signed an equity transfer agreement to acquire the remaining 48.99% stake in Zhejiang Jolly Baicao Chinese Medicine Decoction Pieces Co., Ltd. from Chen Huan and Chen Zhaorong for RMB 75 million on August 15, 2022. The consideration is funded by own funds. Post transaction Zhejiang Jolly Baicao Chinese Medicine Decoction Pieces Co., Ltd. will become a wholly owned subsidiary of Zhejiang Jolly Pharmaceutical Co.,LTD (SZSE:300181).

Zhejiang Jolly Pharmaceutical Co.,LTD (SZSE:300181) is acquiring 30.58% from Chen Huan for RMB 46.81 million and 18.41% from Chen Zhaorong for RMB 28.18 million. As of June 30, 2022, Zhejiang Jolly Baicao Chinese Medicine Decoction Pieces Co., Ltd. has a total assets of RMB 256.75 million. The board approved the transaction.

The transaction is subject to shareholder approval. As of September 21, 2022, Zhejiang Jolly Baicao Chinese Medicine Decoction Pieces Co., Ltd. completed the relevant industrial and commercial change registration procedures, and obtained the "Business License" renewed by the Anji County Market Supervision Administration.