Jiangsu Huadong Medical Device Industrial Co., Ltd. entered into letter of intent to acquire 40% stake in Jiangsu Guomai Medical Technology Co., Ltd. from Liu Fang for CNY 9.2 million on December 19, 2023. Meihua International prepaid $9.2 million in deposits to Ms. Liu Fang and, as a result, a 40% equity interest in Guomai was pledged to Huadong. As of January 8, 2024, Jiangsu Huadong made an advance payment of $9.03 million has been paid for this transaction.

The parties anticipate that the transaction will close on or about December 18, 2024. The transaction is expected to be completed on December 17, 2024 upon the appraisal conditions of both parties have been satisfied.