Shandong Xinhua Pharmaceutical (00719) announced the termination of its previously disclosed equity acquisition intention agreement with Nuoya Shengnuo (Europe). The initial agreement represented a preliminary understanding reached through friendly negotiations. However, following further discussions, the parties involved could not reach a consensus on the specific terms and conditions required for a formal contract. As a result, no formal agreement concerning this transaction was executed, and the acquisition project will not proceed. The decision to terminate the intention agreement was made after prudent consideration by the company. This termination is not expected to impact the company's existing production and operational activities, nor will it adversely affect the company's future development. The company confirms that the termination does not harm the interests of the company and its shareholders, including minority shareholders.