Gelonghui, January 19, 丨 Zhendong Pharmaceutical (300158.SZ) announced that in order to lay out the vaginal probiotics field, enrich the company's product pipeline, and enhance the company's profitability, the company signed an “Investment Agreement on Guangdong Longchuangji Pharmaceutical Co., Ltd.” (hereinafter referred to as the “Investment Agreement”) and “Equity Transfer Agreement for Guangdong Longchuangji Pharmaceutical Co., Ltd.” (hereinafter referred to as the “Equity Transfer Agreement”) with Guangdong Longchuangji Pharmaceutical Co., Ltd. (hereinafter referred to as the “Equity Transfer Agreement”) on January 19, 2024. The main content of the investment agreement is: the company to Longchuangji Pharmaceutical increased its capital by 30 million yuan to purchase its additional registered capital of RMB 3.2 million as investment funds to obtain 6.015% of Longchuangji Pharmaceutical's shares, and 26.8 million yuan, which exceeds the amount of newly subscribed registered capital, was included in Longchuangji Pharmaceutical's capital reserve.

The main content of the equity transfer agreement is that the company has the right to transfer 53.985% of Longchuangji Pharmaceutical's shares (corresponding registered capital of RMB 28.720,000) held by Qiangji Pharmaceutical in accordance with the valuation method listed below after obtaining approval for the production of “Lactobacillus for Vaginal Use”, that is, the transaction amount range is 108 million yuan to 432 million yuan. The company's transaction to transfer 53.985% of the company's shares held by Qiangji Pharmaceutical in accordance with the terms and conditions of this agreement is called “this transfer of old shares”.

In summary, the transaction amount involved in this capital increase and the current transfer of old shares ranged from $138 million to $462 million. After the transaction was completed, the company held a total of 60% of Longchuangji Pharmaceutical's shares.