February 28, 2020
NEWS RELEASE
Name of Listed Company:

TSUMURA & CO.

Exchange:Tokyo Stock Exchange

Code:

4540

URL:https://www.tsumura.co.jp

Representative:

President,Representative Director and CEO

Name: Terukazu Kato

Contact:

Head of Corporate Communications Dept.

Name: Yosuke Tsuchiya

Telephone: 81-3-6361-7100

Tsumura Announces Conclusion of Agreement Regarding Acquisition of Equity
Interest in Tianjin China Medico Technology Co., Ltd. by Ping An Tsumura Inc.
As communicated in the press release titled “Tsumura Announces Establishment ofConclusion of Letter of Intent for Capital Alliance with Tianjin China Medico Technology Co.,Ltd. by Ping An Tsumura Inc.,” on November 6, 2019, Tsumura & Co. (Headquarters: Tokyo,Japan; President Representative Director and CEO: Terukazu Kato; hereafter, “Tsumura”)
has been holding discussions about a capital alliance based on the letter of intent concluded
between Tsumura and Tianjin China Medico Technology Co., Ltd. (hereafter, “China Medico”)
with an eye to acquiring an 80% equity interest in China Medico by Ping An Tsumura Inc.
(hereafter, “Ping An Tsumura”), a group company in China.
Tsumura today announces that at a meeting held on February 28, 2020, the Board ofDirectors passed a resolution to conclude an equity interest transfer agreement withshareholders who own relevant equity interest.

1. Outline of Tianjin China Medico Technology Co., Ltd.
（1）

Name of company

Tianjin China Medico Technology Co., Ltd.

（2）

Location

Room 206, 2nd Floor, No. 18, Gaofu Rd, Binhai
Science Park, Binhai New Coastal Area, Tianjin, China（3）

Representative(4)

Business description（5）

Capital

Li Gang, Chairman
Production, manufacturing, sales of traditional Chinese
medicine and crude drug pieces for decoction
174 million RMB (approximately 2.71 billion yen)1 RMB = 15.62 yen

（6）
（7）
（8）

Date of foundation
Major shareholder andstockholding

July 13, 2011
Li Gang, Chairman of China Medico: 65.82%

Relationship between Tsumura and China Medico
Capital relationship

Capital relationship

Personal relationship

Personal relationshipTransactional

Transactional relationshiprelationship
Status as related party

Status as related party

2. Parties from whom equity interest will be acquired(1) Mr. Gang Li

Part of equity interest owned by Mr. Li Gang
(Chairman of China Medico)(2) Other shareholders

Equity interest owned by other shareholders (15individuals and one company)*The company presented in (2) above is Tianjin Shengshi Houde Technology
Partnership (L.P.).
The names of parties other than Mr. Li Gang and Tianjin Shengshi Houde Technology
Partnership (L.P.) are undisclosed due to a request made by the parties who are individual
shareholders. There is no particular capital, personal or transactional relationship with any ofthe parties presented above.

3. Equity interest acquired by Ping An Tsumura, acquisition price, and status ofequity interest owned by the company before and after the acquisition(1) Equity interest percentage

0.0%

before change(2) Percentage of equity interest

80.0%

to be acquired(3) Acquisition price1,200 million RMB (approximately. 18.74 billion yen)
1 RMB = 15.62 yen(4) Equity interest percentage
after change

80.0%

4. Future schedule(1) Resolution by Board ofFebruary 28, 2020Directors(2) Conclusion of equity

March 2020 (schedule)

interest transfer agreement(3) Implementation of equity

March 2020 (schedule)

interest transfer

5. Impact on business performanceThis matter does not change the forecast on Tsumura's consolidated business results
for the fiscal year ending March 2020. If any revisions need to be made, Tsumura will
make the announcement promptly.