China Railway Group Limited (SHSE:601390) signed an equity transfer agreement to acquire 26.5% stake in Beijing Hengtong Innovation Luxwood Technology Co.,Ltd (SZSE:300374) from Sun Zhiqiang and Zhucheng Chenguang Jingtai Equity Investment Fund Co., Ltd. for approximately CNY 780 million on May 24, 2019. China Railway Group Limited will acquire 25 million shares (10.2% stake) and 40 million shares (16.3% stake ) at CNY 12 per share from from Sun Zhiqiang and Zhucheng Chenguang Jingtai Equity Investment Fund Co., Ltd. Sun Zhiqiang will receive CNY 301.2 million and Zhucheng Chenguang Jingtai Equity Investment Fund Co., Ltd will receive CNY 481 million. Under the terms, 30% of the transactional price will be paid within 10 days since the relevant preconditions in article 3 are completed, 50% of the transactional price will be paid within 5 days since completion of delivery of underlying equity, 18% of the transactional price will be paid within 10 days since completion of delivery of underlying equity, remaining 2% stake will be paid within 10 days since completion of delivery of underlying equity. Post completion, China Railway Group Limited will hold 26.5% stake, Sun Zhiqiang will hold 30.6% stake and Zhucheng Chenguang Jingtai Equity Investment Fund Co., Ltd. will hold no stake in Beijing Hengtong Innovation Luxwood Technology Co.,Ltd.

Transaction is subject to be approved by the State-owned Assets Supervision and Administration Commission. China Railway Group Limited Board approved the transaction on May 24, 2019. On May 24, 2019, Zhucheng Chenguang Jingtai Equity Investment Fund Co., Ltd. convened a shareholders' meeting and made a resolution agreeing to the present equity transfer. Transaction has passed the centralized antitrust review of the State Administration of Market Supervision and Administration and has been approved by the State-owned Assets Supervision and Administration Commission of the State Council.