Haian Ruihai Urbanization Investment and Construction Co., Ltd., entered into a share purchase agreement to acquire 10.29% stake in Nantong Jinghua Pharmaceutical Co., Ltd. (SZSE:002349) from Zan Shengda for approximately CNY 510 million on August 19, 2021. Pursuant to the terms of the agreement, Haian Ruihai Urbanization Investment and Construction Co., Ltd., will acquire 86 million shares in Nantong Jinghua Pharmaceutical Co., Ltd., at CNY 5.88 per share. Payment of the first transfer payment: within five working days from the date of signing the agreement, 50% of the share transfer price shall be paid, which is CNY 252.8 million. Payment of the second transfer payment: within three working days after the Shenzhen Branch of China Securities Depository and Clearing Corporation Limited completes the transfer and registration of the target shares, the remaining share transfer price shall be paid, which is 252.8 million. As a result of the acquisition, stake of Zan Shengda in Nantong Jinghua Pharmaceutical Co., Ltd., will decrease from 13.21% to around 2.92%. Haian Ruihai Urbanization Investment and Construction Co., Ltd., completed the acquisition of 10.29% stake in Nantong Jinghua Pharmaceutical Co., Ltd. (SZSE:002349) from Zan Shengda on October 19, 2021.