Yong'an Pharmaceutical (002365.SZ) announced that its investee, Huanggang Yong'an Daily Chemical Co., Ltd. ("Huanggang Daily Chemical"), will be absorbed and merged by its wholly-owned subsidiary, Hubei Tian'an Daily Chemical Co., Ltd. ("Tian'an Daily Chemical"), with the latter as the surviving entity. The merger aims to consolidate resources, enhance efficiency, and reduce costs.

No cash payment will be involved in the transaction. Shareholders of Huanggang Daily Chemical will exchange their equity stakes proportionally for direct holdings in Tian'an Daily Chemical. Upon completion, Huanggang Daily Chemical will be dissolved, with all assets, liabilities, and equity legally transferred to Tian'an Daily Chemical.

Yong'an Pharmaceutical's original investment of RMB 30 million in Huanggang Daily Chemical will convert into a direct 6.5217% stake in Tian'an Daily Chemical, maintaining the same ownership ratio. The merger is expected to streamline management, lower operational costs, improve decision-making efficiency, and maximize synergies, aligning with the company's broader strategic objectives.