Aoyuan Group (Guangdong) Co., Ltd. entered into a framework agreement to acquire a 29.99% stake in Kinghand Industrial Investment Group Co.,Ltd. (SZSE:000615) from Kinghand Holding Group Co., Ltd. for CNY 1.2 billion on April 7, 2020. Aoyuan Group (Guangdong) Co., Ltd. entered into a formal share transfer agreement to acquire a 29.3% stake in Kinghand Industrial Investment Group Co.,Ltd. from Kinghand Holding Group Co., Ltd. for CNY 1.1 billion on May 15, 2020. The transaction consideration will be paid in cash. Under the terms of the transaction, the first payment of approximately CNY 820 million shall be paid in cash and approximately CNY 720 million shall be paid through a repayment of loan owed by Kinghand to financial institutions and the remaining consideration of approximately CNY 300 million will be paid in cash within 30 days after completion of the transaction. Prior to the acquisition, Kinghand Holding holds 37.04% stake in Kinghand Industrial. On May 15, 2020, Jianshui Tairong has withdrawn from the transaction and the selling obligation has been assumed by Kinghand Holding. The transaction will be financed through the internal resources of Aoyuan Group. If Jianshui and Kinghand Holding decide not to proceed with the transaction after the due diligence results, Kinghand Industrial will be regarded as in breach of the framework agreement and shall pay CNY 50 million as liquidated damages. The transaction is subject to due diligence on the legal, financial and business aspects and all necessary approvals. The parties shall enter into a formal share transfer agreement within 10 days after the satisfaction of the conditions.