Zhonghong Medical: Plans to acquire 75% equity of Southeast Asian SEA 3 Company for 697 million yuan and increase capital.

China Red Medical announced that its subsidiary, China Red International Trading Co., Ltd., has signed an agreement with Guilin Hengbao Protection International Co., Ltd. to acquire 75% of the shares of Southeast Asian SEA3 company with a total of 697 million yuan in cash using its own funds. At the same time, China Red Hong Kong and Hengbao International will respectively increase capital by 52.975 million yuan and 22.7038 million yuan to SEA3 company. This acquisition does not constitute a related party transaction or a major asset restructuring and does not require shareholder approval at a general meeting.