Jiangsu Hengshun Vinegar-Industry Co.,Ltd (SHSE:600305) intends to acquire an additional 8.7% stake in Zhenjiang Hengshun New Condiment Co., Ltd. from Gao Yunhai for CNY 5.4 million on March 4, 2022. Under the terms, within 20 days from the effective date of this agreement, Jiangsu Hengshun shall pay 60% of the consideration equals to CNY 3.24 million, 20% after receiving the payment, and the remaining 20% within 20 days after completion of the industrial and commercial change procedures. Post completion, Jiangsu Hengshun will hold 76.6% stake in Zhenjiang Hengshun and Gao Yunhai will cease to have any stake in Zhenjiang Hengshun.

As of May 31, 2021, Zhenjiang Hengshun reported Total assets of CNY 59.64 million and Net assets of CNY 49.78 million. The transaction is unanimously approved by the board and Supervisory Committee of Jiangsu Hengshun and does not need to be submitted to the general meeting of shareholders for deliberation.