Nanjing Pharmaceutical Co., Ltd. (hereinafter referred to as "the company") transferred its 0/00% equity of Fuzhou Rejuvenation Chinese Herbal Pieces Factory (hereinafter referred to as "Fuzhou Rejuvenation") held by Fujian Tongchun Pharmaceutical Co., Ltd., a holding subsidiary of the company, to Nanjing Hu Axiang Investment Management Co., Ltd. (hereinafter referred to as "Hu Axiang Investment") at the transfer price of 86,800 yuan; Transfer 0/00% equity of Hefei Lejialaopu Chinese Herbal Pieces Co., Ltd. (hereinafter referred to as "Hefei Lejialaopu")/kloc held by Beijing Lvjin Chuangxiang E-Commerce Co., Ltd., a holding subsidiary of the company, at a transfer price of 5.297 million yuan.
Nanjing Xingong Investment Group Co., Ltd., the controlling shareholder of the company's controlling shareholder, indirectly holds the equity of Hu Axiang Investment 100%, so Hu Axiang Investment and the company are the same actual controllers. According to the Listing Rules of Shanghai Stock Exchange (10. 1.3 (2)), Hu Axiang Investment is an associated legal person of the Company. The above-mentioned equity transfer behavior constitutes a connected transaction.