The shares to be sold at the judicial auction are the unlimited shares of Jilin Zixin Pharmaceutical Company Limited (hereinafter referred to as the "Company") held by the Company's shareholder, Dunhua Kangping Investment Limited Liability Company (hereinafter referred to as "Kangping Company"), totaling 41,780,238 shares (accounting for 41% of the total number of shares of Jilin Zixin Pharmaceutical Company Limited (hereinafter referred to as the Company)). (hereinafter referred to as "the Company"): 41,780,238 shares (accounting for 3.26% of the total number of shares of the Company and 19.86% of the total number of shares of the Company held by Kangping Company), the auction will not lead to any change in the controlling shareholders and de facto controllers of the Company.
Jilin Zixin Pharmaceuticals Co., Ltd (hereinafter referred to as: "Zixin Pharmaceuticals") was established in May 1998, is a company with the proprietary Chinese medicine industry, ginseng industry, and gene sequencer industry as its core business, and integrates production, sales, scientific research and development Zixin Pharmaceuticals is a high-tech group of listed companies (listed on Shenzhen Stock Exchange on March 2, 2007, stock abbreviation "Zixin Pharmaceuticals", stock code 002118) with the core business of Chinese patent medicine industry, ginseng industry and gene sequencer industry, integrating production, sales, scientific research and development, and cultivation and breeding of medicinal plants and animals of high value-added as an integral whole. Zixin Pharmaceuticals has been developed for 20 years since its establishment. At present, Zixin Pharmaceuticals has 24 wholly-owned and controlled subsidiaries and grandchildren, and one equity participation in a financial company, which are located in the south, middle and east foothills of the Changbai Mountain Range, and in Hong Kong, the United States, the Netherlands, etc. After more than ten years of rapid development, the scale of the enterprise has been expanding, and the value of profits and taxes have been rising year after year. Zixin Pharmaceuticals has been awarded as the largest taxpayer of non-publicly owned economy in Jilin Province, Small Giant Enterprise, Top 100 Non-publicly Owned Enterprises, Top 100 Traditional Chinese Medicines Enterprises, National High-Tech Enterprises, National Youth Civilization Enterprises, and National Leading Enterprises of Agricultural Industrialization, and it has gradually formed the integrated management mode of the large health industry chain with the characteristics of "Zixin". The company has gradually formed a large health industry chain integrated business model with "Zixin characteristics".
Business Scope: Processing and sales of proprietary Chinese medicines, chemical preparations, traditional Chinese medicine tablets, raw materials of medicinal herbs, agricultural and sideline products, knitted fabrics processing; planting and sales of traditional Chinese medicinal herbs, plantation and aquaculture; designing, producing and acting as an agent for TV, newspaper, light box and street sign advertising; exporting of self-produced products and related technologies of the enterprise (except for commodities that are restricted to be operated by the state or prohibited to be exported); operating the raw and auxiliary materials required for the production and scientific research of the enterprise; and operating the raw and auxiliary materials needed for the production and research of the enterprise. The production of scientific research needs of the raw and auxiliary materials, machinery and equipment, instruments and meters, spare parts and related technology import and export business (except for state-restricted companies or prohibited imports of goods); the enterprise's import processing and "three to one" business; production of cotton wool; local specialty products sales; processing, sales of health food items, acquisitions, processing of Chinese herbal medicine, local specialties processing of Chinese herbs, native products; acquisition, processing, sales of edible agricultural products; processing and sales of food; processing and sales of cosmetics; research and development, production and sales of medical equipment; disposable masks, cotton masks, dust masks, sunscreen masks, protective clothing, goggles production and sales; disinfection products production and sales. (Items subject to approval by law can only be operated after approval by the relevant authorities)