Zhejiang Int'l Group Co.,Ltd. (SZSE:000411) agreed to acquire remaining 50% stake in Zhejiang Int'l Medicine Co., Ltd. from Zhejiang Huachen Investment Development Co. Ltd. and Zhejiang International Business Group Co.,Ltd. for CNY 2.3 billion on May 25, 2022. The payment will be made through combination of cash and issuance of shares. Prior to transaction, Zhejiang Huachen and Zhejiang International Business hold 24% and 26% stake, respectively and upon completion, Zhejiang Int'l Group will wholly own Zhejiang Int'l Medicine. Zhejiang Int'l Group will raise supporting funds of not more than CNY 450 million from Zhejiang CONBA Pharmaceutical Co., Ltd., the proceeds will be used to fund cash considerations of transaction, taxes, intermediary agency fees, as well as replenish working capital and repayment of debts. The Zhejiang Int'l Medicine had total assets of CNY 13.095 billion and total owner's equity of CNY 2.984 billion, as of March 31, 2022. The transaction has been approved by Zhejiang Int'l Group's 9th board of directors during its 15th session, by board of Zhejiang International Business Group and Internal approval by Zhejiang International Business Group and Zhejiang Huachen Investment. The transaction is still subject to final approval of State-owned Assets Supervision and Administration Commission of Zhejiang Province, second approval of board of directors of Zhejiang Int'l Group, China Securities Regulatory Commission and approvals from all other concerned authorities, if any. The transaction has been approved by the State-owned Assets Supervision and Administration Commission of Zhejiang Province and the shareholders of Zhejiang Int'l Group. Caitong Securities Co.,Ltd. (SHSE:601108) acted as financial advisor, T&C Law Firm acted as legal advisor and Moore Stephens Da Hua acted as accountant to Zhejiang Int'l Group Co.,Ltd. As of February 1, 2023, the Merger, Acquisition and Reorganization Examination Committee of the Listed Company of CSRC held the 2nd working meeting for 2023, reviewed the company's acquisition of asset through share issuance and cash payment and raising of supporting funds transaction. As of February 27, 2023, Zhejiang Int'l Group Co.,Ltd. received from the China Securities Regulatory Commission (hereinafter referred to as the "CSRC") the "About Approval of Zhejiang Int'l Group Co.,Ltd. issuing shares to purchase assets and private placement to Raise Supporting Funds

Zhejiang Int'l Group Co.,Ltd. (SZSE:000411) completed the acquisition of remaining 50% stake in Zhejiang Int'l Medicine Co., Ltd. from Zhejiang Huachen Investment Development Co. Ltd. and Zhejiang International Business Group Co.,Ltd. on February 28, 2023.