Chongqing Holley Pharm Co Ltd<000607> has signed an equity shares transfer contract agreeing to sell an 88.24% stake in its subsidiary to CNTIC Trading Co Ltd<600056>, sources reported.

CNTIC Trading will spend around RMB 70.6 million to complete the acquisition.

Chongqing Holley Pharm said the equity interest sale will impact its operating income this year, but will not greatly influence the company’s profitability or net assets.

The sub unit being sold has net assets worth around RMB 75.8 million as of Mar. 31, 2008. It realized RMB 204 million in operating income and around RMB 2.55 million in net profit during the first quarter of last year.