Investment Overview - The company’s wholly-owned subsidiary, Harbin Pharmaceutical Group Sanjing Pharmaceutical Co., Ltd. (Sanjing Pharmaceutical), plans to acquire 42.82% equity of Harbin Pharmaceutical Group Sanjing Qianhe Pharmaceutical Co., Ltd. (Qianhe Pharmaceutical) from three natural persons for a total investment of 23.446 million RMB [1][2] - The funding for this acquisition will come from Sanjing Pharmaceutical's own funds [1] Financial Metrics - The investment amount of 23.446 million RMB represents approximately 0.438% of the company's latest audited net assets of 5,349.7795 million RMB [1] - Qianhe Pharmaceutical's financial indicators for the year ending December 31, 2024, include total assets of 104.2393 million RMB, net assets of 7.9667 million RMB, operating income of 55.0289 million RMB, and net profit of 0.3907 million RMB [2] Shareholding Structure - Prior to the acquisition, Sanjing Pharmaceutical held 57.18% of Qianhe Pharmaceutical, and after the acquisition, it will become the sole owner [1][2] Strategic Importance - The acquisition aligns with national support policies for traditional Chinese medicine and will enhance the company's Chinese medicine segment, providing strategic synergy [5] - Qianhe Pharmaceutical has a product portfolio that includes 15 products, with 10 being traditional Chinese medicines and 3 unique varieties, indicating a strong market potential [5] Valuation and Pricing - The valuation of the minority shareholders' equity is approximately 23.6179 million RMB based on the audit report, and the market value of six pharmaceutical approvals held by Qianhe Pharmaceutical is estimated at 18.8610 million RMB [4][5] Impact on the Company - The acquisition is expected to optimize resource allocation, improve industry layout, and enhance market competitiveness, contributing to the company's long-term development and benefiting all shareholders [5]