Beijing Sinnet Technology Co., Ltd (SZSE:300383) and Jin Fushen signed an equity transfer and capital increase agreement to acquire 42.86% stake in Kunshan Meihongye Metal Products Co., Ltd. from Gongqingcheng Zhongfan Investment Partnership (Limited Partnership) and Huang Deqiang for CNY 90 million on September 26, 2019. Under the term, Gongqingcheng Zhongfan Investment Partnership (Limited Partnership) and Huang Deqiang will transfer 42.85% and 0.01% stake in Kunshan Meihongye Metal Products for CNY 89.98 million and CNY 0.02 million respectively. After the transfer is completed, Beijing Sinnet Technology and Jin Fushen will use CNY 39.73 million and CNY 74.59 million to increase capital in Kunshan Meihongye Metal Products. Post completion of both the transaction, Beijing Sinnet Technology and Jin Fushen will hold 40% and 23% stake in Kunshan Meihongye Metal Products respectively. Gongqingcheng Zhongfan Investment Partnership (Limited Partnership) will retain a 37% stake in Kunshan Meihongye Metal Products. As of December 31, 2018, Kunshan Meihongye Metal Products reported total assets of CNY 127.15 million, total common equity of CNY 118.72 million, revenue of CNY 0, negative EBIT of CNY 1.31 million and net loss of CNY 1.31 million. The transaction was approved by the board of directors of Beijing Sinnet Technology on the 5th meeting of the 4th directorate held on September 26, 2019. There is no need for approval from the shareholders’ meeting.