Hefei Power Food Co., Ltd signed an equity transfer agreement to acquire 75% stake in Hefei Huali Food Co., Ltd. from Chacha Food Company, Limited (SZSE:002557) on April 9, 2015. As of December 31, 2014, Hefei Huali Food Co., Ltd. has total assets of CNY 105.99 million; net assets of CNY 51.21 million, revenues of CNY 9 million; operating loss of CNY 14.19 million; and net loss of CNY 14.39 million. Board of Directors of Chacha Food Company, Limited approved the transaction on April 9, 2015.

The transaction is subject to approval of shareholders of Chacha Food Company.