Alibaba Health Completes Acquisition of Guangzhou Wunian Medicine Chain Co., Ltd.

By Zhitong Finance Network

Alibaba Health Issued an Announcement Regarding the Acquisition of 100% Equity Interest in Guangzhou Wunianqian Pharmaceutical Chain Co., Ltd. The Acquisition Was Completed on August 16, 2016.

Furthermore, prior to the completion of the acquisition of Guangzhou Wunian Pharmaceutical, on July 12, 2016, Guangzhou Wunian Pharmaceutical entered into a Tmall Service Agreement with the Tmall Entity. Under this agreement, the Tmall Entity will provide such services, and Guangzhou Wunian Pharmaceutical shall pay service fees to the Tmall Entity in accordance with the Annual Technical Service Fee Schedule for Various Tmall Categories published on the Tmall website and generally applicable to Tmall merchants, as well as the standard fees charged to Tmall merchants under the Tmall Points System. Such fees include a standard refundable annual fee of RMB 30,000 and technical service fees.

The Company expects that the total commissions payable by Guangzhou Wunian Medical to Tmall entities under the Tmall Service Agreement during its term will not exceed HK$9 million.