Shanghai Heyu Medical Technology Co., Ltd entered into the sale and purchase agreement to acquire Anhui Province Shuangke Pharmaceutical Company Limited and Nanjing Ruinian Best Pharmaceutical Co., Ltd. and Wuxi Ruinian Pharmaceutical Company Limited from Real Nutriceutical Group Limited (SEHK:2010) for CNY 15 million on December 22, 2017. The total consideration shall be paid in cash upon completion. Upon completion, each of the companies will cease to be an indirect subsidiary of Real Nutriceutical Group Limited. For the year ended December 31, 2016, target companies reported total assets of CNY 1.1 billion, profit before tax of CNY 7.52 million and loss after tax of CNY 2.03 million. The transaction is subject to approvals from the board of directors of Shanghai Heyu Medical Technology Co., Ltd and Real Nutriceutical Group Limited and necessary approvals from relevant government authorities, courts or regulatory authorities or bodies. These conditions are expected to be satisfied on or before February 28, 2018. If any of the conditions has not been satisfied by then, the agreement shall be terminated and no party shall have any claim against any of the others. The transaction is expected to complete on the third business day after all the conditions precedent under the agreement. Shanghai Heyu Medical Technology Co., Ltd completed the acquisition of Anhui Province Shuangke Pharmaceutical Company Limited, Nanjing Ruinian Best Pharmaceutical Co., Ltd. and Wuxi Ruinian Pharmaceutical Company Limited from Real Nutriceutical Group Limited (SEHK:2010) on March 8, 2018.