Tibet Dechangtai Pharmaceutical Technology Co., Ltd. signed a share transfer agreement to acquire Lhasa Yongkang Medicine Co., Ltd. from Tonghua Golden-Horse Pharmaceutical Industry Co,Ltd (SZSE:000766) for CNY 5.1 million on October 30, 2020. The consideration shal be paid in cash and consist of CNY 1.97 million for the share transfer and CNY 3.13 to undertake its debt. The consideration shall be paid in full within 2 working days after the completion. For the year ending December 31, 2019, total asset, net asset, revenue, operating profit and net profit of Lhasa Yongkang Medicine Co., Ltd. was approximately CNY 5.2 million, approximately CNY 0.5 million, approximately CNY 1.4 million, approximately CNY 0.4 million and approximately CNY 0.4 million respectively. Lhasa Yongkang Medicine had net assets of CNY 0.47 million and total assets of CNY 5.7 million as of September 30, 2020. The transaction has been approved in the third extraordinary meeting of 2020 of 10th Directorate of Tonghua Golden-Horse Pharmaceutical Industry Co,Ltd held on November 5, 2020, and does not need the shareholders approval.