Apeloa Company Limited (SZSE:000739) agreed to acquire Zhejiang Apeloa Kangyu Pharmaceuticals Medicinal Materials Co., Ltd. and Zhejiang Apeloa Kangyu Bio-Pharmaceutical Co., Ltd. from Hengdian Group Holdings Ltd. and Hengdian Group Kangyu Pharmaceutical Co., Ltd. in stock on February 8, 2012. In related transactions, Apeloa Company Limited also agreed to acquire Zhejiang Apeloa Debang Pharmaceutical Co., Ltd. from Hengdian Group Holdings Ltd. and Zhejiang Hengdian Imp. & Exp. Co., Ltd., 96% stake in Shandong Hanxing Pharmaceutical Technology Co., Ltd. from Hengdian Group Jiayuan Chemical Co., Ltd. and medicine import and export business related assets from Zhejiang Hengdian Imp. & Exp. Co., Ltd. on February 8, 2012. Apeloa will issue 116.85 million shares amounting to CNY 950 million as consideration for all the transactions. The shares subscribed from Apeloa Company in this transaction will have a lock-up period of 36 months upon listing. The transaction was resolved by the Directorate of Apeloa Company. Beijing Kang Da Law Firm acted as legal advisor and Southwest Securities Co., Ltd. acted as financial advisor for Apeloa Company Limited.

Apeloa Company Limited (SZSE:000739) completed the acquisition of Zhejiang Apeloa Kangyu Pharmaceuticals Medicinal Materials Co., Ltd. and Zhejiang Apeloa Kangyu Bio-Pharmaceutical Co., Ltd. from Hengdian Group Holdings Ltd. and Hengdian Group Kangyu Pharmaceutical Co., Ltd. on January 7, 2013. The transaction was approved by China Securities Regulatory Commission.