Xu Zhiqi agreed to acquire 3.4% stake in Hunan Er-Kang Pharmaceutical Co., Ltd (SZSE:300267) from Hunan Shuaijia Investment Co., Ltd for approximately CNY 200 million on July 2, 2021. Pursuant to the terms of the agreement, Xu Zhiqi will acquire 70.33 million shares in Hunan Er-Kang Pharmaceutical Co., Ltd for CNY 2.78 per share. The consideration will be paid in cash. In view of the fact that before the signing of this agreement, the guarantee fund of CNY 5 million that Xu Zhiqi has paid to Hunan Shuaijia Investment Co., Ltd., is automatically included in the share transfer price that Xu Zhiqi has paid to Hunan Shuaijia Investment Co., Ltd. The parties agree and confirm that within 3 working days after the transaction is confirmed by the Shenzhen Stock Exchange, Xu Zhiqi shall pay the remaining share transfer price to the bank accounts designated by Hunan Shuaijia Investment Co., Ltd., and CITIC Securities Co., Ltd., under this agreement a total of CNY 190.52 million. Xu Zhiqi completed the acquisition of 3.4% stake in Hunan Er-Kang Pharmaceutical Co., Ltd (SZSE:300267) from Hunan Shuaijia Investment Co., Ltd on July 21, 2021. On July 21, 2021, Hunan Shuaijia Investment received the "Securities Transfer Registration Confirmation" issued by the Shenzhen Branch of China Settlement.