ShanXi C&Y Pharmaceutical Group Co., Ltd. (SZSE:300254) and Chen Jinsong entered into an equity transfer agreement to acquire 15.43% stake in Sichuan C&Y Traditional Chinese Medicine Co., Ltd. from Chen Renhu and Tang Wenjing on May 27, 2021. Pursuant to the terms of the transaction, ShanXi C&Y Pharmaceutical Group Co., Ltd., will acquire an additional 8.6429%, whereas Chen Jinsong will acquire an additional 6.7857% stake (4.2143% stake from Chen Renhu and 2.5714% stake from Tang Wenjing) in Sichuan C&Y Traditional Chinese Medicine Co., Ltd., and as a result of the transaction, stakes of ShanXi C&Y Pharmaceutical Group Co., Ltd., and Chen Jinsong, in Sichuan C&Y Traditional Chinese Medicine Co., Ltd., will increase from 42.3571% 51% and from 42.2143% to 49% respectively. The stakes of Chen Renhu and Tang Wenjing will cease to exist. The consideration will be paid in cash. The transaction does not need to be submitted to the company's shareholders meeting for review. The parties agree that the equity transfer price will be paid in two installments: the transferee shall pay the first installment of equity transfer within 15 working days after this agreement becomes effective, the amount being 50% of the respective equity transfer price determined; The transferee of the remaining equity transfer shall be paid within 15 working days after the completion of the industrial and commercial change registration of the target equity. As at March 31, 2021, Sichuan C&Y Traditional Chinese Medicine Co., Ltd., had total assets of CNY 57.04 million and net assets of CNY 7.8 million.