China Resources Pharmaceutical Group Ltd

China Resources Double-Crane, a non-wholly-owned subsidiary of China Resources Pharmaceutical, has signed a share purchase agreement with Jiuyuan Group and Chemical Materials Technology to acquire 188 million shares of Lier Chemical for 5.656 billion yuan, representing approximately 23.50% of Lier Chemical's total share capital. Upon completion of the transaction, China Resources Double-Crane will become the largest shareholder of Lier Chemical, and Lier Chemical will be accounted for as a non-wholly-owned subsidiary of China Resources Pharmaceutical. Lier Chemical is primarily engaged in the research, development, production, and sale of highly effective, low-toxicity, low-residue, and safe active ingredients for pesticides and pesticide formulations. Prior to the acquisition, its de facto controller was the China Academy of Engineering Physics, which controlled approximately 32.20% of the equity interest in Lier Chemical through Jiuyuan Group and Chemical Materials Technology.

China Resources Pharmaceutical has issued an inside information announcement stating that its indirect non-wholly-owned subsidiary, China Resources Double-Crane Pharmaceutical, intends to acquire approximately 23.50% of the shares in Lier Chemical. The transaction involves 188.1027 million shares of Lier Chemical, initiated by Sichuan Jiuyuan Investment Holding Group and Sichuan Huacai Technology through a public solicitation transfer. As of the announcement date, China Resources Double-Crane does not hold any shares in Lier Chemical. The potential acquisition is still subject to the signing of a formal transaction agreement and the satisfaction of relevant conditions, and there are uncertainties.