Chiu Ka Leung and Jiao Shaoliang signed an agreement to acquire Yunnan Long Far Pharmaceutical Co, Ltd from Longrun Tea Group Company Limited (SEHK:2898) for HKD 52 million on October 5, 2015. The purchase price will be payable within 90 days after the completion. Yunnan Long Far Pharmaceutical reported revenues of CNY 45.16 million (HKD 56.93 million), profit before taxation of CNY 2.28 million (4.13 million), net profit after tax of CNY 2.34 million (HKD 2.95 million), total assets of CNY 66.03 million (HKD 83.23 million) and net assets of CNY 41.05 million (HKD 51.75 million) for the year ended December 31, 2014.

The transaction is subject to approval of shareholders of Longrun Tea Group Company and regulatory approval, including but not limited to those from the State Administration of Foreign Exchange and Stock Exchange. In the event that any of the conditions precedent is not fulfilled on or before March 31, 2016, the agreement will lapse. The meeting of the shareholders of Longrun Tea Group Company Limited will be held on November 16, 2015. The Board of Directors of Longrun Tea Group Company Limited recommend its shareholders to vote in favor of transaction. An independent Board committee comprising all the independent non-executive Directors, namely Lam Siu Hung, Guo Guoqing, Kwok Hok Lun and Liu Zhonghua have been formed for the transaction. Longrun Tea Group Company will use the proceeds from the disposal for general working capital and future investments. On November 16, 2015 the shareholders of Longrun approved the transaction. Goldin Financial Holdings Limited acted as financial advisor for Longrun Tea Group. Tricor Tengis Limited acted as registrar for Longrun Tea Group Company Limited. The currency conversion was done from www.oanda.com as of December 31, 2014.

Chiu Ka Leung and Jiao Shaoliang completed the acquisition of Yunnan Long Far Pharmaceutical Co, Ltd from Longrun Tea Group Company Limited (SEHK:2898) on November 26, 2015.