Zhejiang Xinan Chemical Industrial Group Co.,Ltd (SHSE:600596) entered into an agreement to acquire 12.31% stake in Nutrichem Company Limited from Huapont Life Sciences Co., Ltd. (SZSE:002004) for approximately CNY 800 million on September 3, 2021. Under the terms, Zhejiang Xinan Chemical Industrial Group Co.,Ltd will acquire 150.95 million shares at CNY 5.3 per share. Post completion, Zhejiang Xinan Chemical Industrial Group holds 12.31% of Nutrichem Company Limited's shares and becomes its second largest shareholder. Zhejiang Xinan Chemical Industrial Group funds the consideration with its own funds.

The first installment will be paid within 5 working days after the "Share Transfer Agreement" is signed, 30% of the total transfer amount of the target shares shall be paid, which is CNY 240.0105 million, Second installment will be paid within 5 working days after the transfer of the target shares is reviewed by the National Equities Exchange System Listed Company and a written document agreeing to the transfer of shares is obtained, 30% of the total transfer amount of the target shares shall be paid, which is CNY 240.0105 million and third installment will be paid within 5 working days after CSDC completes the transfer procedures and changes the registration of the target shares, 40% of the total transfer amount of the target shares shall be paid, which is CNY 320.014 million.

As on June 30, 2021, Nutrichem Company Limited reported total assets of CNY 11.3 billion, total owner's equity of CNY 4.6 billion, revenue of CNY 3.2 billion, operational profit of CNY 253.9 million and net profit of CNY 201.4 million. The eighteenth meeting of the tenth Board of Directors of Zhejiang Xinan Chemical Industrial Group was held and unanimously approved the transaction.

Zhejiang Xinan Chemical Industrial Group Co.,Ltd (SHSE:600596) completed the acquisition of 12.31% stake in Nutrichem Company Limited from Huapont Life Sciences Co., Ltd. (SZSE:002004) on October 8, 2021. Post completion, Zhejiang Xinan Chemical Industrial Group Co.,Ltd will hold 12.31% of Nutrichem Company Limited 's shares, becoming its second largest shareholder.