Recently, Biocompounds Pharmaceutical Inc. (hereinafter referred to as BPI) intends to invest 20.62 million yuan to acquire 100% of the shares of Anhui Envii Pharmaceutical Co., Ltd. (hereinafter referred to as Anhui Envii Pharmaceutical), after the completion of the acquisition, Anhui Envii Pharmaceutical will become a wholly-owned subsidiary of BPI.

On August 3, 2018, BPI signed the Equity Transfer Agreement with Anhui Envii Pharmaceutical. The equity acquisition of Anhui Envii Pharmaceutical is an important measure to strengthen the development of the pharmaceutical business sector according to the company's strategic policy of "cooperation and innovation to strengthen the main business, standardized and scientific development". If the acquisition can be successfully completed, Anhui Envii Pharmaceutical will become a wholly-owned subsidiary of BPI. The company plans to use the plant and construction land of Anhui Envii Pharmaceutical to plan the construction of pharmaceutical intermediates and API projects, which is conducive to the overall layout of Jianfeng pharmaceutical and BPI's establishment of chemical API base in Anhui:

（i）Pesticides and primary pharmaceutical intermediates are arranged in the factory area of Anhui Biocompounds Chemicals Co., Ltd. the company was established in July 2007 with a registered capital of 50 million yuan and an area of 78351.51 square meters. Now it has three chemical synthesis workshops and one pesticide preparation compounding workshop.

（ii）The bulk drugs and advanced pharmaceutical intermediates are arranged in the plant area of Anhui Envii Pharmaceutical. the company covers an area of 131915.86 square meters and has two production lines of fluzine carboxylic acid with a total capacity of 1200 tons / year. This acquisition can make full use of the advantages of Anhui Envii Pharmaceutical 's plant area, public engineering facilities, quality management system and so on to accelerate the construction progress of Jianfeng pharmaceutical and BPI chemical API base in Anhui.

The acquisition of Anhui Envii Pharmaceutical will also help to expand the R & D, production and sales of fine chemicals such as intermediates and new materials in BPI, further extend and improve the industrial chain and consolidate its market position.