Beijing SL Lisheng Pharmaceutical Technology Co., Ltd - a controlling subsidiary of Beijing SL Pharmaceutical Co., Ltd.(SL Pharm)- recently signed a share transfer agreement with Mr. Yukuan Du and Ms. Yueqing Pan, to acquire a 40% stake in Beijing IST Duni Refrigeration Equipment Co., Ltd. (Beijing IST). The acquirer will take a 25% stake and a 15% stake from Mr. Du and Ms. Pan for a combined consideration of RMB4.8M. The acquisition shall not constitute an affiliated transaction.

According to the announcement of SL Pharm, this investment from SL Lisheng is a venture capital deal, which coincides with the investor's development route and expands its profit channel.

The amount invested only accounted for 8.57% of the registration capital of SL Lisheng. So it will not exert negative effects on the normal corporate operation. After the deal, SL Lisheng held a 40% stake in IST while Mr. Du held a 50% stake.