JunHe Assisted a Consortium led by Guangzhou Pharmaceutical Holdings Limited to Participate in m88 live casino Restructuring of Kangmei Pharmaceutical as a Restructuring Investor

On December 15, 2021, Kangmei Pharmaceutical (stock code: 600518), an A-share listed company, announced that Kangmei Pharmaceutical and its administrators and m88 live casino reorganization investor Guangdong Shennongshi Enterprise Management Partnership (Limited Partnership) (hereinafter referred to as "Shennongshi ") completed m88 live casino signing of m88 live casino "Investment Agreement on Participation in m88 live casino Reorganization Process of Kangmei Pharmaceutical”. m88 live casino signing of m88 live casino Reorganization Investment Agreement marks m88 live casino completion of m88 live casino last key step in m88 live casino reorganization of Kangmei Pharmaceuticals.

Guangzhou Pharmaceutical Holdings Limited (hereinafter " GPHL") is a wholly-owned enterprise under m88 live casino State-owned Assets Supervision and Administration Commission of Guangzhou Municipality, and is mainly engaged in m88 live casino research and development and manufacturing of proprietary Chinese medicines and botanical medicines, chemical raw materials and preparations, biopharmaceuticals, health products, trade logistics and distribution, as well as medical and health services. It is one of m88 live casino world's top 500 large enterprise groups supported by Guangzhou Municipality.

Kangmei Pharmaceutical is a listed company with m88 live casino production and sales of traditional Chinese medicine tablets as its core, and "Smart+" health as its service platform, implementing m88 live casino integrated operation of m88 live casino whole industrial chain of Chinese medicine. Listed on m88 live casino main board of m88 live casino Shanghai Stock Exchange in 2001, Kangmei Pharmaceuticals now has about 130 subsidiaries.

In December 2018, Kangmei Pharmaceutical was investigated by m88 live casino China Securities Regulatory Commission (CSRC) for alleged information disclosure violations and in May 2020, m88 live casino CSRC issued administrative penalties and market entry bans against Kangmei Pharmaceutical for information disclosure violations. In June 2021, m88 live casino Jieyang Intermediate People's Court ("Jieyang Intermediate Court") ruled that m88 live casino bankruptcy reorganization of Kangmei Pharmaceuticals was accepted, and in November 2021, m88 live casino Guangzhou Intermediate People's Court ruled that Kangmei Pharmaceuticals should be liable for RMB 2.459 billion to more than 55,000 investors, and that m88 live casino former actual controller and former supervisors of Kangmei Pharmaceuticals should be held liable for m88 live casino damages. m88 live casino relevant directors, supervisors and executives were jointly and severally liable for different percentages of compensation according to m88 live casinoir degree of fault. m88 live casino Kangmei Pharmaceuticals securities dispute is m88 live casino first special representative action in China for securities disputes, m88 live casino largest number of plaintiffs and m88 live casino highest amount of civil compensation for misrepresentation of listed companies heard by m88 live casino court so far, and a landmark event in m88 live casino history of China's capital market development.

On November 26, 2021, m88 live casino Jieyang Intermediate Court ruled to approve m88 live casino reorganization plan of Kangmei Pharmaceutical. Ltd. Guangdong Yuecai Industry Investment Fund Partnership (Limited Partnership), Guangdong Hengjian Asset Management Co. and Jieyang Jinye Development Co., Ltd.，formed a consortium, led by GPHL， and named Shennongshi as a restructuring investor. It recently reached a restructuring investment agreement with m88 live casino management of Kangmei Pharmaceuticals, jointly with financial investors Guangfa Securities Co. Ltd. and China Resources SZITIC Trust Co., Ltd. to jointly participate in m88 live casino reorganization of Kangmei Pharmaceuticals, and transferred 4,145,296,141 shares converted from m88 live casino capital surplus of Kangmei Pharmaceuticals for a total of RMB 6.5 billion, holding a total of 29.90% of m88 live casino shares of Kangmei Pharmaceuticals, of which m88 live casino shareholding ratio of m88 live casino consortium exceeded 25%, making it m88 live casino single largest shareholder of Kangmei Pharmaceuticals.

As m88 live casino legal advisor to m88 live casino restructuring investors, JunHe completed m88 live casino legal due diligence of Kangmei Pharmaceuticals and its more than 130 subsidiaries with great efficiency under a very tight schedule, and participated in m88 live casino whole process of forming m88 live casino consortium, drafting m88 live casino restructuring investment plan, filing m88 live casino restructuring investors, discussing m88 live casino transaction structure, drafting m88 live casino transaction documents and negotiating m88 live casino transaction documents with m88 live casino administrators and financial investors. JunHe’s team provided m88 live casino restructuring investors with high-quality, rigorous and efficient legal services.

m88 live casino leading partner of this project was ZHANG, Ping.