Hubei Donper Electromechanical Group Co., Ltd. signed a share exchange absorption-type merger agreement to acquire remaining 49.96% stake in Huangshi Dongbei Electrical Appliance Co., Ltd. (SHSE:900956) from a group of sellers for CNY 3.1 billion on May 21, 2020. Under the terms of transaction, the parties agreed to the share exchange price to be CNY 17.59, the exchange ratio to be 1:1.8 and the cash option to be CNY 8.66. After the merger, Hubei Donper Electromechanical Group Co., Ltd. will survive and undertake all of the Company's assets, liabilities, businesses, employees, contracts, rights, and obligations, Huangshi Dongbei Electrical will be cancelled.

This transaction is subject to Hubei Donper Electromechanical Group Co., Ltd.'s shareholders' approval; Huangshi Dongbei's shareholders' approval, the CSRC's approval and the Shanghai Stock Exchange's approval. On May 21, 2020, the transaction was approved at the 2nd Meeting of the 1st Directorate of Hubei Donper Electromechanical Group Co., Ltd. and at the 15th Meeting of the 7th Directorate of Huangshi Dongbei Electrical Appliance. On June 22, 2020, the transaction was approved at the First Extraordinary General Meeting of 2020 of Huangshi Dongbei Electrical Appliance.

As of September 29, 2020 CSRC approved the transaction. Wang Yu, Ceng Wenhui, Song Xiang, Chen Jiebin, Xin Pengfei of China Securities Co., Ltd. acted as financial advisor, Jiao Fugang, Zhang Jingping, Chen Ling of Beijing King & Wood Law Firm acted as legal advisor to Hubei Donper. Cheng Wanli, Zhang Jie of Haitong Securities Co., Ltd. acted as financial advisor and Lian Quanlin, Wang Wei of Beijing Kang Da Law Firm acted as legal advisor to Huangshi Dongbei Electrical.

Suo Baoguo, Zhang Ling of Wuyige Certified Public Accountants LLP acted as accountant to Huangshi Dongbei Electrical Appliance and Hubei Donper Electromechanical.