videopokerstrategyguide| Dongguang Changjiang Pharmaceutical (01558.HK) received a premium of approximately 71.71% from Guangdong Dongguang Pharmaceutical, absorbed and merged to resume trading on the 13th

Gelong Hui, May 10, East Sunshine (600673) Yangtze River Pharmaceutical Industry (01558)Videopokerstrategyguide.HK) notice that on 10 May 2024, the Offeror Guangdong East Sunshine Pharmaceutical Co., Ltd. and the Company have entered into a merger agreement, pursuant to which the Offeror and the Company have agreed to implement the merger in accordance with the terms and conditions of the merger agreement. Upon completion of the prerequisites and conditions and the completion of the share exchange, the company will be delisted from the Stock Exchange and the offeror H shares will be listed on the main board of the Stock Exchange by way of introduction. the company will be merged and absorbed by the offeror in accordance with the terms of the merger agreement, the Company Law of the PRC and other applicable Chinese laws.

The conversion shareholders will be entitled to receive 0.263614 new offeror H shares for each cancelled conversion H share from the offeror. Under the merger, the theoretical value of the offeror's H shares is equivalent to approximately HK $19.30 per share for H shares and a premium of about 71.71% over the closing price of HK $11.24 per share as quoted on the Stock Exchange on the last trading day.

When the prerequisites and all effective conditions are met, the company will apply to the Stock Exchange for voluntary cancellation of the listing status of H shares on the Stock Exchange in accordance with Rule 6.15 of the listing rules.

The offeror's board of directors believes that the offeror will become an attractive investment target after the completion of the merger. The benefits for the conversion shareholders include: (I) the theoretical value of the offeror's H-share value will give the conversion shareholders an attractive premium relative to the market value of the company's shares.Videopokerstrategyguide; (ii) the conversion shareholders can directly obtain the immediate cash value through the special dividend of HK $1.50 per share to be distributed by the company, achieve a certain level of capital return from the investment; and (iii) enjoy the improvement of the overall capital market performance and long-term capital appreciation potential of the offeror after the completion of the merger.

Looking to the future, after the completion of the merger, the offeror will continue to optimize its operation and management, maintain sound financial performance and enhance the image of the capital market, so as to bring greater returns to shareholders. The offeror is of the view that the merger can also benefit the conversion shareholders by (a) sharing the offeror's vertically integrated independent R & D system and the R & D platform covering the whole drug R & D cycle to achieve long-term value creation; and (b) improving overall operational efficiency and economic scale after the completion of the merger.

In addition, the company has applied to the Stock Exchange for the resumption of trading in H-shares on the Stock Exchange with effect from 09:00 on 13 May 2024.