Beijing Zhonghe Hi-tech Information Technology Co., Ltd. and Chen Weiqun made a proposal to acquire additional 14.5% stake in Beijing Watertek Fuxi Technology Co., Ltd. from Beijing Watertek Information Technology Co., Ltd. (SZSE:300324) for CNY 40.5 million on June 30, 2020. Beijing Zhonghe Hi-tech Information Technology Co., Ltd. and Chen Weiqun signed an equity transfer agreement to acquire additional 14.5% stake in Beijing Watertek Fuxi Technology Co., Ltd. from Beijing Watertek Information Technology Co., Ltd. on July 31, 2020. Under the transaction, 8.688% stake is to be transferred to Beijing Zhonghe Hi-tech Information Technology Co., Ltd. for CNY 24.3 million and 5.792% stake is to be transferred to Chen Weiqun for CNY 40.5 million. The equity transfer payment is paid in three installments. Under first installment, Beijing Zhonghe Hi-tech Information Technology Co., Ltd. will pay CNY 2.4 million and Chen Weiqun will pay CNY 1.6 million before July 31, 2020. In the second phase payment, Chen Weiquns shall pay 45% of the total purchase price, CNY 10.9 million before December 20, 2020. After receiving the second installment, Beijing Watertek Information Technology will notify Beijing Watertek Fuxi Technology Co. to make an 8.688% equity change in industry and commerce. Beijing Watertek Fuxi Technology Co must complete the equity change in industry and commerce before December 31, 2020 after receiving Beijing Watertek Information Technology’s notice. Before December 20, 2020, Chen Weiqun will pay Beijing Watertek Information Technology Co CNY 7.3 million which is 45% of the total equity transfer price. After receiving the second installment, Beijing Watertek Information Technology Co will notify Beijing Watertek Fuxi Technology Co to carry out the industrial and commercial change of 5.792% of the equity. Beijing Watertek Fuxi Technology Co. must complete the industrial and commercial change of the equity before December 31, 2020 after receiving the notice from Beijing Watertek Information Technology Co. Under the final payment, Beijing Zhonghe Hi-Tech Information Technology Co shall pay Beijing Watertek Information Technology CNY 10.9 million, which is 45% of the total equity transfer price and Chen Weiqun shall pay Beijing Watertek Information Technology CNY 7.3 million which is 45% of the total equity transfer price before June 30, 2021. Following the sale, Beijing Watertek Information Technology Co will no longer hold equity in Beijing Watertek Fuxi Technology Co., Ltd. Beijing Watertek Fuxi Technology reported total assets of CNY 24.9 million, operating profit of CNY 1.1 million, net loss of CNY 11.9 million and net assets of CNY 23.3 million for the year ending, December 31, 2019. The transaction does not require approval by the relevant departments. This proposal is within the scope of the approval authority of the Board of Directors and does not need to be submitted to the shareholders' general meeting for consideration. The transaction was approved by the Board of Beijing Watertek Information Technology Co., Ltd. on June 30, 2020. Beijing Zhonghe Hi-tech Information Technology Co., Ltd. and Chen Weiqun completed the acquisition of an additional 14.5% stake in Beijing Watertek Fuxi Technology Co., Ltd. from Beijing Watertek Information Technology Co., Ltd. (SZSE:300324) on December 30, 2020.