China Resources Pharmaceutical Co., Ltd. indirectly holds 30% shares of Jiangzhong Pharmaceutical Co., Ltd., which has been approved by the state owned assets supervision and Administration Commission of the State Council

On February 20, Jiangzhong pharmaceutical announced that China Resources Pharmaceutical Co., Ltd plans to acquire 51% equity of Jiangzhong group and become its controlling shareholder China Resources pharmaceutical and Jiangxi SASAC have signed a strategic cooperation agreement China Resources pharmaceutical will take Jiangzhong group as the development platform, build it into a leading comprehensive medical and health group in China, and drive the innovation and upgrading of Jiangxi pharmaceutical industry Jiangzhong group, as the controlling shareholder of Jiangzhong pharmaceutical, holds 43.03% of the issued shares of the listed company After the completion of this transaction, China Resources pharmaceutical holding, through Jiangzhong group, will indirectly own more than 30% of the issued shares of Jiangzhong pharmaceutical, thus triggering the obligation of comprehensive tender offer It is reported that the decision-making (APPROVAL) procedures for this transaction are as follows: China Resources pharmaceutical and Jiangxi SASAC signed the cooperation agreement on strategic restructuring of Jiangzhong group of China Resources Pharmaceutical Group Co., Ltd on May 17, 2018 The state owned assets supervision and Administration Commission of Jiangxi Province has gone through the filing formalities for the audit results of Jiangzhong group and approved the evaluation results China Resources Pharmaceutical Co., Ltd signed the capital increase agreement of Jiangxi Jiangzhong Pharmaceutical (Group) Co., Ltd (hereinafter referred to as the "capital increase agreement") with Jiangxi Provincial State-owned Enterprise Asset Management (holding) Co., Ltd., Jiangxi University of traditional Chinese medicine, 21 natural person shareholders of Jiangzhong group and Jiangzhong group on the capital increase of Jiangzhong group Since China Resources pharmaceutical Holding Co., Ltd and Dalian one party group Co., Ltd did not reach an agreement on the 29.28% equity transfer of Jiangzhong group, the signatories of the capital increase agreement and Dalian one party group Co., Ltd signed the supplementary agreement on the capital increase agreement of jiangxijiang Chinese Pharmaceutical (Group) Co., Ltd on the capital increase of Jiangzhong group in accordance with the agreement on capital increase This transaction has been approved by the board of directors of China Resources Pharmaceutical Co., Ltd and the Executive Committee of the board of directors of China Resources Pharmaceutical Co., Ltd The general plan for strategic restructuring of Jiangzhong group has been deliberated and approved at the 7th Meeting of the leading group for the reform of state owned enterprises in Jiangxi Province and the 9th director's office meeting of the SASAC in 2018, and the supplementary agreement for the capital increase agreement of Jiangxi Jiangzhong Pharmaceutical (Group) Co., Ltd has been deliberated and approved at the 15th director's office meeting of the SASAC in 2018 The general plan for strategic restructuring of Jiangzhong group has been approved by the people's Government of Jiangxi Province This transaction has passed the antimonopoly examination of the antimonopoly Bureau of the State Administration of market supervision on the concentration of operators involved in this transaction This transaction has been approved by SASAC of the State Council The full text of the announcement is as follows: