Anhui Huaren Health Pharmaceutical Co., Ltd. signed a letter of intent to acquire 60% stake in Zhoushan Liken Pharmaceutical Chain Co Ltd from Wang Xiangan and Zhejiang Free Trade Zone Xueyuan Project Investment Partnership for approximately CNY 110 million on July 12, 2023. In a related transaction, Anhui Huaren Health Pharmaceutical Co., Ltd intends to acquire 70% stake in Jiaxing ordinary people Pharmaceutical Retail Co., Ltd. As on November 22, 2023, the share transfer agreement was signed. The transaction was financed by Anhui Huaren with CNY 45 million raised from IPO and CNY 67.2 million from its own or self-raised funds.

Zhoushan Liken reported total assets of CNY 84.7 million and owner's equity of CNY 8.1 million as on June 30, 2023. The transaction was approved by the shareholders of Zhoushan Liken Pharmaceutical and the Board of Directors of Anhui Huaren Health Pharmaceutical. The transaction is subject to approval by Anhui Huaren Health Pharmaceutical's shareholders.

As on December 29, 2023 Anhui Huaren Health Pharmaceutical Co., Ltd. shareholders approved the transaction. Fan Jie, Chen Rui, Chen Shu, Zhang Wei of Huatai United Securities Co., Ltd acted as financial advisors, Li Qiang, Chen Yushen, Ge Tao of Grandall Law Firm acted as legal advisors and Tao Jiefei, Cheng Xiaoman of Gongzheng Tianye Certified Public Accountants acted as accountant for Anhui Huaren Health Pharmaceutical.