Zhejiang Jingxin Pharmaceutical Co., Ltd. (SZSE:002020) signed an agreement to acquire Guangdong Shaxi Pharmaceutical Co., Ltd. from Jingxin Holding Group Co., Ltd. and Xinchang Yuanjin Health Industry Investment Partnership Enterprise (Limited Partnership) for approximately CNY 210 million on November 8, 2021. Zhejiang Jingxin Pharmaceutical Co., Ltd. will acquire 99% stake from Xinchang Yuanjin Health Industry Investment Partnership Enterprise (Limited Partnership) and 1% stake from Jingxin Holding Group Co., Ltd. After the completion of this acquisition, Shaxi Pharmaceutical will become a wholly-owned subsidiary of Zhejiang Jingxin. Guangdong Shaxi Pharmaceutical Co., Ltd. reported total assets of CNY 74.78 million and shareholders equity of CNY 36.82 million as at September 30, 2021.

The transaction is subject to approval of shareholders of Zhejiang Jingxin Pharmaceutical and the Board of Directors of Zhejiang Jingxin Pharmaceutical approved the transaction on November 8, 2021. On December 14, 2021 shareholders of Zhejiang Jingxin approved the deal.