GUSHENGTANG (02273): Proposes to acquire controlling stakes in Nanjing Shi Jinmo, Nanjing Baihui, Gulou Yirun, and Chengdu Qingyang to expand its offline medical institution network

GUSHENGTANG (02273) announced that its subsidiary GUSHENGTANG (Jiangsu) Traditional Chinese Medicine Health Management Co., Ltd. has recently entered into an equity transfer contract with the shareholders (Seller A) of Nanjing Shi Jinmo Traditional Chinese Medicine Clinic Co., Ltd. (Nanjing Shi Jinmo), pursuant to which GUSHENGTANG Jiangsu agreed to acquire, and Seller A agreed to sell, the controlling stake in Nanjing Shi Jinmo (Acquisition A). A subsidiary of the Company has recently entered into an equity transfer contract with the shareholders (Seller B) and the ultimate beneficial owners of Nanjing Baihui Traditional Chinese Medicine Clinic Co., Ltd. (Nanjing Baihui), pursuant to which the subsidiary agreed to acquire, and Seller B agreed to sell, the controlling stake in Nanjing Baihui (Acquisition B). GUSHENGTANG Jiangsu has recently entered into an equity transfer contract with the shareholders (Seller C) and the ultimate beneficial owners of Nanjing Gulou Yirun Comprehensive Clinic Co., Ltd. (Gulou Yirun), pursuant to which GUSHENGTANG Jiangsu agreed to acquire, and Seller C agreed to sell, the controlling stake in Gulou Yirun (Acquisition C). A subsidiary of the Company, Chongqing GUSHENGTANG Medical Management Co., Ltd., has recently entered into an equity transfer contract with the shareholders (Seller D) of Chengdu Qingyang Bai'an Yisheng Traditional Chinese Medicine Clinic Co., Ltd. (Chengdu Qingyang), pursuant to which GUSHENGTANG Chongqing agreed to acquire, and Seller D agreed to sell, the controlling stake in Chengdu Qingyang (Acquisition D). Upon completion of these acquisitions, Nanjing Shi Jinmo, Nanjing Baihui, Gulou Yirun and Chengdu Qingyang (collectively, the "Target Companies") will become subsidiaries of the Company, and their financial results will therefore be consolidated into the Group's consolidated financial statements. The Target Companies are all medical institutions principally engaged in the provision of comprehensive traditional Chinese medicine services. These acquisitions are in line with the Group's expansion strategy of expanding its offline medical institution network through acquisitions, provided that the Company believes these acquisitions will, among other things, increase the Company's market share in China; and create synergies between the Target Companies and the Group's other offline medical institutions and online medical platform.