Yongan Pharmaceutical (002365.SZ) intends to merge its joint venture company Huanggang Daily Chemical with its wholly-owned subsidiary Tianan Daily Chemical.

Intelligence Finance News, Yongan Pharmaceutical (002365.SZ) announced that, in order to integrate resources, improve efficiency, and reduce costs, the company's shareholding company Huanggang Yongan Daily Chemical Co., Ltd. (hereinafter referred to as "Huanggang Daily Chemical") is planned to be absorbed and merged by its wholly-owned subsidiary Hubei Tianan Daily Chemical Co., Ltd. (hereinafter referred to as "Tianan Daily Chemical"). In this absorption and merger, there will be no cash payment involved. Shareholders of Huanggang Daily Chemical will convert their original equity in Huanggang Daily Chemical into direct equity in Tianan Daily Chemical through share exchange in proportion to their original holdings. After the merger is completed, Huanggang Daily Chemical will be cancelled, and all of its assets, liabilities, and equity will be legally succeeded by Tianan Daily Chemical. The company's original investment of 30 million yuan in Huanggang Daily Chemical will be converted into an investment in Tianan Daily Chemical, and the shareholding percentage will change from indirectly holding 6.5217% of Tianan Daily Chemical's equity to directly holding 6.5217% of Tianan Daily Chemical's equity.