Zhejiang Huakang Pharmaceutical Co., Ltd. (SHSE:605077) signed an agreement to acquire Gaomi Tongli Sugar Co., Ltd. from Qiu Fazhong, Ma Yongan, Zhang Xiulan, Peng Jie, Zhang Jie, Sun Yanfa, Shan Yitao, Xue Youhe, Wang Xia, Wang Xia, Sun Tao, Li Yanxi, Song Xiufang, Jiang Faqi, Ren Pingxu, Xue Jikui, Lu Guangzhao, Pang Jiyi, Zhang Zuojiang, Ge Lianzhen, Jiao Yuxia, Du Xiujun, Wang Chuanxiang, Yang Fuhong for approximately CNY 100 million on November 4, 2021. Zhejiang Huakang Pharmaceutical Co., Ltd. (SHSE:605077) agreed to acquire Gaomi Tongli Sugar Co., Ltd. from Qiu Fazhong, Ma Yongan, Zhang Xiulan, Peng Jie, Zhang Jie, Sun Yanfa, Shan Yitao, Xue Youhe, Wang Xia, Wang Xia, Sun Tao, Li Yanxi, Song Xiufang, Jiang Faqi, Ren Pingxu, Xue Jikui, Lu Guangzhao, Pang Jiyi, Zhang Zuojiang, Ge Lianzhen, Jiao Yuxia, Du Xiujun, Wang Chuanxiang, Yang Fuhong for approximately CNY 100 million on December 17, 2021. The payment of transaction will be paid as: within 30 working days from the date of signing this agreement, the Zhejiang Huakang agrees to pay CNY 51 million to the 23 natural persons; within 10 working days after 12 months from the delivery date, the Zhejiang Huakang agrees to pay CNY 21 million to the 23 natural persons; within 10 working days after 24 months from the delivery date, the Zhejiang Huakang agrees to pay CNY 20 million to the 23 natural persons; and within 10 working days after 36 months from the delivery date, the Zhejiang Huakang agrees to pay CNY 8 million to the 23 natural persons. As of December 17, 2021, Zhejiang Huakang Pharmaceutical has paid the first stage payment according to the agreement, and completed the industrial and commercial change registration procedures. Recently, Gaomi Tongli obtained a business license issued by Gaomi City Market Supervision Administration. Gaomi Tongli Sugar reported assets as CNY 62.5 million and shareholder's equity CNY 25.05 million for the period end on June 30, 2021. Gaomi Tongli Sugar reported operating income as CNY 40.8 million, total profit as CNY -5.1 million and net profit as CNY -3.8 million for the period end on December 31, 2020. This transaction has been reviewed and approved at the 14th meeting of the fifth board of directors of the Zhejiang Huakang Pharmaceutical and does not need to be submitted to the company’s shareholders meeting for deliberation.