Core Viewpoint - Shanghai Pharmaceuticals plans to acquire a 10% stake in Shanghai Shihua Group Financial Co., Ltd. for approximately RMB 143 million, increasing its ownership from 30% to 40% without changing the consolidation scope of the financial statements [1][2]. Group 1: Transaction Overview - The acquisition will be funded by the company's own capital and is classified as a related party transaction, but it does not constitute a major asset restructuring [2][6]. - The financial company has shown steady growth since its establishment in 2014, with cumulative cash dividends of approximately RMB 230 million since 2016 [2][16]. - The transaction is expected to enhance the company's control over significant decisions of the financial company and provide stable investment returns [2][16]. Group 2: Financial Information of the Target - The financial company has total assets of approximately RMB 1.17 billion and total liabilities of about RMB 1.03 billion, resulting in net assets of approximately RMB 143 million [8][9]. - The financial company reported operating income of approximately RMB 13 million and net profit of about RMB 6 million [8][9]. Group 3: Valuation and Pricing - The transaction price will be based on an evaluation report from a qualified asset appraisal agency, with the assessed value of the 10% stake being approximately RMB 143 million [9][11]. - The valuation methods used include the asset-based approach and market approach, with the asset-based approach being deemed more reflective of the company's market value [9][10]. Group 4: Approval and Compliance - The transaction requires internal approvals and regulatory filings, including approvals from state-owned asset supervision and financial regulatory authorities [12][15]. - The board of directors has approved the transaction, with related party director Yang Qiuhua abstaining from the vote [16].