Shaoxing Sike Lock Industry Co., Ltd. agreed to acquire Zhejiang Jiayu Industrial Co., Ltd. from ADD Industry (Zhejiang) CO., LTD (SHSE:603089) for CNY 60.6 million on January 12, 2021. In addition to the consideration payment of CNY 51 million, Debt Substitution Agreement was signed stipulating that Zhejiang Jiayu Industrial Co., Ltd and Shaoxing Sike Lock Industry Co., Ltd should repay CNY 9.6 million to ADD. After Shaoxing has paid the equity transfer payment in accordance with the agreement, and has settled the debt of CNY 9.6 million, Shaoxing Sike Lock Industry Co., Ltd. shall pay the equity transfer payment to the bank account designated by ADD before January 31, 2021. In the event of termination, Shaoxing Sike Lock Industry Co., Ltd. shall pay ADD a penalty of 5% of the total price of the equity transfer. If Shaoxing has not paid the equity transfer payment within 15 days, ADD has the right to unilaterally terminate this agreement and require Shaoxing to pay 5% of the total equity transfer price as a liquidated damage. If ADD does not cooperate or fails to complete the industrial and commercial equity change registration procedures within 30 days after Shaoxing has paid the transfer payment due to ADD, Shaoxing has the right to terminate this agreement and return all the equity transfer funds and Shaoxing on behalf of Zhejiang all debts paid to ADD shall be based on the loans announced by the National Interbank Funding Center. For the period ending September 30, 2020, Zhejiang reported CNY 34.2703 million in total assets, CNY 17.1321 million in Net assets. Transaction has been reviewed and approved at the fourth meeting of the ADD`s fourth Board of Directors and does not need to be submitted to the ADD`s shareholders meeting for deliberation.