Shanghai Jiayu Medical Investment Management Co., Ltd. and China Minsheng Jiaye Investment Co., Ltd. agreed to acquire Shandong Ruigao Investment Co., Ltd., Shifang No. 2 Hospital Co., Ltd and 90% stake in Suqian Yanghe People's Hospital Co., Ltd. from Jiangsu Changbao Steeltube Co.,Ltd (SZSE:002478) for approximately CNY 920 million on January 17, 2021. Shandong Ruigao Investment Co., Ltd. is priced at CNY 340 million, Shifang No. 2 Hospital Co., Ltd. at CNY 260 million, and Suqian Yanghe People's Hospital Co., Ltd.’s 90% stake at CNY 320 million. Within 5 working days after Jiangsu Changbao Steeltube's shareholders approve the transaction, the buyers must pay CNY 100 million, before July 31, 2021, the buyers must pay CNY 250 million, before December 31, 2021, the buyers must pay CNY 160 million, and before March 30, 2022, the buyers must pay CNY 160 million. Within 10 days after the issuance of the asset evaluation report the parties will sign the relevant supplementary agreement. As on June 8, 2021, the seller has received CNY 100 million from the purchasers as the second phase of payment. As of June 8, 2021, the seller has received total of CNY 350 million as a part of consideration. On August 19, 2021, Jiangsu Changbao Steeltube Co.,Ltd has received CNY 110 million as third transaction of consideration and the agreed delay in payment of liquidated damages. As of August 19, 2021, Jiangsu Changbao Steeltube Co.,Ltd has received total of CNY 460 million. According to the relevant agreement, after Shanghai Jiayu Medical Investment Management Co., Ltd.'s and China Minsheng Jiaye Investment Co., Ltd.'s transaction price paid reaches 50% of the total equity transaction consideration, the Jiangsu Changbao Steeltube Co.,Ltd shall cooperate with the purchaser to handle the industrial and commercial change of the target equity transfer. As of September 16, 2021, acquisition of Suqian Yanghe People's Hospital Co., has been completed. As on September 30, 2020, Shandong Ruigao Investment Co., Ltd. reported total assets of CNY 611.62 million and net assets of CNY 480.99 million, Shifang No. 2 Hospital Co., Ltd. reported total assets of CNY 238.54 million and net assets of CNY 198.49 million and Shandong Ruigao Investment Co., Ltd. reported total assets of CNY 755.96 million and net assets of CNY 453.78 million. Transaction is subject to the shareholders’ approval and is approved by the Board of Jiangsu Changbao Steeltube Co.,Ltd. As of February 6, 2021, Jiangsu Changbao received CNY 250 million as advance payment. As of September 30, 2021, The original shareholders and promoters of the Shifang No. 2 Hospital Co., Ltd were changed from Jiangsu Changbao Steel Pipe Co., Ltd. to Shanghai Jiayu Medical Investment Management Co., Ltd. As of November 23, 2021, Jiangsu Changbao Steeltube Co.,Ltd received a total of CNY 500 million of consideration. Jiangsu Changbao Steeltube has not received the payment of the third phase of the transaction consideration of CNY 140 million and the deferred payment of liquidated damages. Parties have signed the supplementary agreement (3) under which the buyers shall pay CNY 40 million in the third transaction consideration within three working days from the date of signing of this supplementary agreement, the buyers shall try their best to pay CNY 30 million, the remaining third-phase transaction consideration, before December 31, 2021, if it fails to be paid by then, the parties will negotiate between March and June 2022. The buyers shall pay the consideration of the fourth phase of CNY 160 million on or before June 30, 2022 and shall start from January 1, 2022. The payment of the remaining transaction consideration (including the balance in the third transaction consideration, the fifth transaction consideration and the relevant liquidated damages of the transaction consideration in each period) shall be negotiated and determined by the parties between March and June 2022.