Shanghai New Asiatic Pharmaceutical Company, Shanghai Pioneer Pharmaceutical Company and Shanghai No.4 Pharmaceutical Factory were all the pioneers and cradles of Chinese antibiotic industry, and they boasted brilliant history in the past. However, in the 1990s, they were crippled by losses and even ran up outstanding debts of hundreds of millions, which were attributable to their excessive expansion. Under the approval of the State Council, Shanghai Pioneer Pharmaceutical Company was listed in the plan of debt-equity conversion. For the purpose, Shanghai Pharmaceutical Group with relevant asset management companies star reorganization of Pioneer Pharmaceutical, meanwhile invest the equity of New Asiatic and all assets of No.4 Pharmaceutical Factory in, thus the largest antibiotics production enterprise are established. The case involves debt-equity conversion of state-owned enterprise, merger, asset reorganization, equity investment and some other important legal issues. In this case, Mr. Chambers Yang provides relevant legal services and acts as its legal advisor.