LBX Pharmacy Chain Joint Stock Company (SHSE:603883) singed a Cooperation Intention Agreement to acquire a 46%-72% stake in Hunan Huairen Great Health Industry Development Co., Ltd. from Lin Chengxiong and Chen Yuping on December 10, 2021. LBX Pharmacy Chain Joint Stock Company (SHSE:603883) singed an Asset Purchase Agreement to acquire a 71.9% stake in Hunan Huairen Great Health Industry Development Co., Ltd. from group of sellers for CNY 1.6 billion on March 6, 2022. Under the terms, LBX Pharmacy Chain will pay the consideration in installments as, first installment of CNY up to 30% of the cash consideration within five working days from the date when the shareholders meeting of LBX Pharmacy Chain considers and approves the transaction, second installment of up to 60% of the cash consideration within five working days of from the delivery date (that is, the date when 71.96% equity of the Hunan Huairen Great Health is transferred to the name of LBX Pharmacy Chain and the industrial and commercial change registration is completed), third installment of up to 90% of the cash consideration within five working days after the completion of the special audit of the profit and loss during the transition period of this transaction and the remaining consideration within five working days after the completion of the delivery. As part of the transaction, LBX Pharmacy Chain will acquire a 29.21% stake from Lin Chengxiong, 7.45% stake from Chen Huiping, 6.79% stake from Huaihua Renxin Health Consulting Center (Limited Partnership), 7.09% stake from Nanjing Huatai Great Health No. 1 Equity Investment Partnership (Limited Partnership), 3.28% stake from Huaihua Renshu Health Management Center (Limited Partnership), 4.69% stake from Huaihua Renzhong Health Service Center (Limited Partnership), 4.22% stake each from Huaihua Renlin Health Management Consulting Service Center (Limited Partnership) and Huaihua Renmin Health Consulting Center (Limited Partnership), 1.46% stake from Hunan Kairui Enterprise Management Service Partnership (Limited Partnership), 1% stake from Yiyang Kangxin Pension Service Center (Limited Partnership), 0.97% stake from Huaxi Yinfeng Investment Co., Ltd., 0.49% stake from Nanjing Huatai Great Health No. 2 Equity Investment Partnership (Limited Partnership), 0.12% stake from Nanjing Daoxing Investment Management Center (General Partnership) and 0.97% stake from Zhejiang Wecome Pharmaceutical Company. Post completion, Hunan Huairen Great Health will be held 76.12% by LBX Pharmacy Chain, 12.49% by Lin Chengxiong, 3.19% by Chen Huiping, 2.19% by Huaihua Renxin Health Consulting 1.94% by Huaihua City Assets Management, 1.46% by Hunan Pharmaceutical Group, 1.41% by Huaihua Renshu Health Management, 0.49% by Hunan Light Salt Venture Capital Management. LBX Pharmacy Chain will use own funds to finance the transaction.

As of September 2021, Hunan Huairen Great Health reported total assets of CNY 1.22 billion and Owners' equity of CNY 367.1 million. The transaction is approved by the board of LBX Pharmacy Chain and needs to be submitted to the general meeting of shareholders for deliberation. As of April 22, 2022, shareholders of LBX Pharmacy Chain Joint Stock Company has approved the transaction. The transaction will not affect the normal operation of LBX Pharmacy Chain. The transaction requires the State Administration for Market Regulation to conduct an anti-monopoly review.