China Resources Pharmaceutical Holdings indirectly holds a 30% stake in Jiang Traditional Chinese Medicine

20, Jiang Traditional Chinese Pharmaceuticals announced that China Resources Pharmaceuticals Holdings intends to take a 51% stake in Jiang zhong group and become its controlling shareholder. China Resources Pharmaceuticals and Jiangxi SASAC have signed a strategic cooperation agreement, China Resources Pharmaceuticals will be Jiang zhong group as the development platform to build it into a leading comprehensive pharmaceutical and health group, driving the pharmaceutical industry innovation and upgrading in Jiangxi Province.Group is the controlling shareholder of Jiang traditional Chinese medicine, holding 43.03 percent of the shares issued by listed companies. Upon completion of this transaction, China Resources Pharmaceutical Holdings' indirect ownership of Jiangzhong Pharmaceuticals through Jiangzhong Group will exceed 30% of Jiangzhong Pharmaceutical's already issued shares, triggering a full offer obligation.It is understood that the decision-making (approval) procedures for the transaction have been fulfilled as follows: China Resources Pharmaceuticals and the State-owned Assets Supervision and Administration Commission of Jiangxi Province signed the Agreement on Cooperation in strategic restructuring of Jiangjiang Group on May 17, 2018;China Resources Pharmaceutical Holdings and Jiangxi Province is a state-owned enterprise asset management (holding) Co., Ltd., Jiangxi University of Traditional Chinese Medicine, Jiang zhong group 21 natural person shareholders and Jiang zhong group on the issue of capital increase jiangjiang group signed the "Jiangxi Jiang zhong pharmaceutical (group) limited liability company capital increase agreement" (hereinafter referred to as "the capital increase agreement"). As China Resources Pharmaceutical Holdings and Dalian Group Co., Ltd. did not reach an agreement on the transfer of 29.28% of Jiang zhong group's equity, the signatories of the capital increase agreement and Dalian one party group limited by group co., Ltd. signed a supplementary agreement on the capital increase agreement of Jiangxi Jiangjiang Pharmaceutical (Group) Co., Ltd. in accordance with the agreement of the capital increase agreement.the transaction has been approved by the board of directors of China Resources Pharmaceutical Holdings and approved by the board of directors of China Resources Pharmaceuticals and the executive committee of China Resources Co., Ltd.The General Plan for the Strategic Reorganization of Jiangjiang Group has been considered and adopted by the 7th Meeting of the Leading Group for the Reform of State-owned Enterprises in Jiangxi Province, the 9th Meeting of the Director's Office of the State-owned Assets Supervision and Administration Commission of Jiangxi Province in 2018, and the Supplementary Agreement of the Capital Increase Agreement of Jiangxi Jiangjiang Pharmaceutical (Group) Co., Ltd. has been considered and adopted by the 15th Director's Office of the State-owned Assets Supervision and Administration Commission of Jiangxi Province in 2018."General Plan for strategic restructuring of Jiangjiang Group" has been approved by the Jiangxi Provincial People's Government. The transaction has passed the state market supervision and administration of the Antimonopoly Bureau on the transaction involving the operators centralized anti-monopoly review.the deal has been approved by the State Council's SASAC. (Jiang Tsing Pharmaceutical Industry Announcement)