According to Cailian Press on November 22nd, the first and second largest shareholders of ST Jiuzhi (000989.SZ) changed seats, with Heilongjiang SOE replacing the original controlling shareholder Li Zhenguo as the one with the most decision-making power in the company, leading to the decision of Li Zhenguo to transfer his 5% ST Jiuzhi shares to Yifeng Pharmacy being withdrawn.

A Yifeng Pharmacy spokesperson told Cailian Press that the business cooperation between the two parties would continue. It was also learned from relevant sources that the Jiuzhitang pharmacy purchased by Yifeng Pharmacy two years ago remains unaffected and still an asset under Yifeng Pharmacy. It is worth noting that Yifeng Pharmacy currently holds 4.99% of ST Jiuzhi's shares, ranking third only after Heilongjiang SOE and Li Zhenguo.

Tonight, ST Jiuzhi and Yifeng Pharmacy jointly announced that the major shareholder of ST Jiuzhi, Li Zhenguo, and Yifeng Pharmacy had terminated the stock transfer agreement, and both parties have signed the 'Agreement to Terminate the Stock Transfer of Jiuzhitang Co., Ltd.'.

The stock transfer originated in April 2022 when ST Jiuzhi's controlling shareholder Li Zhenguo planned to transfer his 43.4678 million shares of Jiuzhitang Co., Ltd. to Yifeng Pharmacy through an agreement transfer, accounting for 5% of ST Jiuzhi's total share capital at the time. ST Jiuzhi stated that the strategic cooperation between Yifeng Pharmacy and the company would advance the deep integration of the pharmaceutical production, sales, and retail industry chain, promoting the sales of Jiuzhitang products through Yifeng Pharmacy's advantageous channels.

The announcement stated that as of today, both parties have not yet completed the relevant agreement transfer procedures.

Cailian Press reporters learned from responsible persons at ST Jiuzhi that the termination of this stock transfer is related to changes in the company's controlling shareholder.

On November 10th of this year, Li Zhenguo signed a share transfer agreement with Heilongjiang Chenneng Investment Co., Ltd. (referred to as 'Chenneng Venture Capital'), transferring his 53.5 million shares to Chenneng Venture Capital, accounting for 6.25% of the total share capital. After this equity change, Chenneng Venture Capital's shareholding percentage rose to 24.04%, becoming the controlling shareholder of ST Jiuzhi, with the company's controlling shareholder changing from Li Zhenguo to Heilongjiang Provincial SOE.

Although the cooperation with jiuzhitang co.,ltd. has ended, the industrial collaboration will continue." Tonight, the aforementioned yifeng pharmacy chain representative told Caixin journalist that the purchase made two years ago, the already completed equity transfer of jiuzhitang pharmacy will not undergo any changes, still being an asset under yifeng pharmacy chain.

ST Jiuzhi also stated that the termination of this agreement transfer will not affect the company's current daily operation and financial condition, nor have any adverse impact on the company's governance structure and ongoing operation.