On April 10, Guelonhui, Yunnan Baiyao (000538.SZ) announced that the State-owned Assets Supervision and Administration Commission of the Yunnan Provincial People's Government (“Yunnan Provincial State-owned Assets Administration Commission”) plans to transfer the company's holdings of about 3211.6 million shares (25.14% of the company's total shares) free of charge to its wholly-owned company Yunnan State-owned Equity Operation and Management Co., Ltd. (“State-owned Equity Management Company”).

After this free transfer was completed, the state-owned equity management company held about 3211.6 million shares of Yunnan Baiyao, which was tied with Xinhuadu Industrial Group Co., Ltd. and its co-actors as the largest shareholder of the company. The situation where the company had no actual controller remained unchanged.

The equity change has been approved by the Yunnan Provincial State-owned Assets Administration Commission, the transfer parties have signed the “State-owned Equity Transfer Agreement”, and the relevant share transfer registration procedures have not yet been completed.