Hunan Fangsheng Pharmaceutical Co., Ltd. (SHSE:603998) agreed to acquire Jiangxi Tengwangge Pharmaceutical Co., Ltd from Hunan Fangsheng Pharmaceutical Co., Ltd. (SHSE:603998), Hunan Yuanhuixuan Management Consulting Co., Ltd and Guangzhou Changyixing Investment Management Co., Ltd for approximately CNY 180 million on May 22, 2021. As of June 21, 2022 Hunan Fangsheng Pharmaceutical Co., Ltd signed supplement agreement to acquire Jiangxi Tengwangge Pharmaceutical Co., Ltd from Boda Development Co., Ltd., Hunan Yuanhuixuan Management Consulting Co., Ltd and Guangzhou Changyixing Investment Management Co., Ltd for adjusted purchase price of CNY 166.4? million.

Boda Development Co., Ltd will receive equity transfer payment of approximately CNY 150 million, equity transfer payment obtained by Hunan Yuanhuixuan Management Consulting Co., Ltd. is CNY 24.6 million and equity transfer payment obtained by Guangzhou Changyixing Investment Management Co., Ltd is CNY 5 million. This equity transfer payment shall be paid in accordance with the following agreement: Within 10 working days after this agreement is signed and becomes effective Hunan Fangsheng Pharmaceutical Co., Ltd. shall pay 30% of the equity transfer amount to the account designated CNY 52.7255 million; Within 10 working days after the transfer of the target equity of this transfer is changed to Hunan Fangsheng Pharmaceutical's name and the delivery is completed, Hunan Fangsheng Pharmaceutical shall pay a 40% equity transfer amount of CNY 70.3 million to the account designated; Within 6 months after the completion of the delivery of this transfer, if the target company or Party does not violate this agreement or the matters agreed in other relevant documents signed in order to perform this agreement, Hunan Fangsheng Pharmaceutical shall complete 6 months after the completion of the delivery Within the next 10 working days, pay 20% of the equity transfer amount to the account designated totaling CNY 35.15 million; Within 12 months after the completion of the delivery of this transfer, if the target company or Party does not violate the agreement or the matters agreed in other relevant documents signed to perform this agreement Hunan Fangsheng Pharmaceutical shall complete 12 transactions after the completion of the delivery. Within 10 working days after the month, a 10% equity transfer amount of CNY 17.75 million shall be paid to the account designated. Jiangxi Tengwangge Pharmaceutical reported total assets of CNY 51.8 million and total common equity of CNY 16.6 million till March 31, 2021. Jiangxi Tengwangge Pharmaceutical reported total assets of CNY 73.7 million, total common equity of CNY 16.6 million, total revenues of CNY 35 million and net profit of CNY 12 million for the year ending December 31, 2021.