Sinomatech Wind Power Blade Co.,Ltd agreed to acquire Lianyungang Zhongfu Lianzhong Composites Group Co., Ltd. from China Composites Group Corp Ltd., China Jushi Co., Ltd., Ren Guifang, Qiao Guanghui and Nan Yang for CNY 2.8 billion on June 9, 2023. Sinomatech shall make first payment of cash considerations (50% of the cash consideration) to (1) Ren Guifang, (2) Qiao Guanghui, (3) Nan Yang and (4) Zhongneng within 5 days after the agreement takes effect. Sinomatech shall make the second payment of the cash considerations (50% of the cash consideration) to (1) Ren Guifang, (2) Qiao Guanghui, (3) Nan Yang and (4) Zhongneng within 5 days after (1) Ren Guifang, (2) Qiao Guanghui, (3) Nan Yang and (4) Zhongneng have completed the changes in business registration of Zhongfu Lianzhong. For the portion of the acquisition of assets through the issuance of shares, China Composites and Jushi shall receive 162.25 million shares and 132.1 million shares in Sinomatech, respectively. Lianyungang Zhongfu reported revenue of 3.81 billion, total assets of CNY 6.35 billion, net assets of CNY 3.81 billion, net profit of CNY 111.13 million at the end of the year 2022. Sinoma Science & Technology board of directors approved the transaction.