Ming Cheng International Company Limited entered into an agreement to acquire Paul Y. Corporation Limited from PYI Corporation Limited (SEHK:498) for approximately CNY 290 million on December 16, 2019. The consideration will be paid in cash subject to adjustment and will be satisfied in the following manner where 35% of the consideration will be paid within seven days upon fulfillment of the initial conditions, 50% of the consideration will be paid within seven business days after completion date of agreement and remaining 15% of the consideration will be paid within seven business days after the issue of completion account subject to PYI Corporation having paid the PRC enterprise income tax payable. Upon the completion of transaction, Paul Y. Corporation Limited cease to be the subsidiary of PYI Corporation Limited. The transaction will be terminated if the condition in the agreement is not completed. For the financial year March 31, 2019, Paul Y. Corporation Limited reported net income CNY 13 million and net assets of CNY 226 million. The transaction is subject to PYI Corporation Limited shareholder approval and government approval. The transaction will be completed upon the fulfillment of the condition. As of April 16, 2020, the completion period for fulfillment of the conditions has been extended until July 16, 2020. The proceeds of the transaction will be used for repayment of bank loans and other borrowing and also for general working capital of PYI group. Opus Capital Limited acted as financial advisor to PYI Corporation. Ming Cheng International Company Limited completed the acquisition of Paul Y. Corporation Limited from PYI Corporation Limited (SEHK:498) on July 14, 2020. Presently, 35% of the consideration representing CNY 100 million was paid and 50% of the consideration representing CNY 143 million will be paid within seven business days after completion date of agreement and upon receipt of income tax payable evidence. As of July 22, 2020, PYI Corporation Limited received the second instalment of consideration in the sum of approximately CNY 143 million in cash. As of November 20, 2020, PYI Corporation Limited received the final instalment of consideration in the sum of approximately CNY 51 million in cash.