Chen Zhengfang entered into an agreement to acquire 51% stake in Wuxi Denox Environmental & Technology Co., Ltd. from Denox Environmental & Technology Holdings Limited (SEHK:1452) for CNY15 million on March 8, 2021. The consideration for the Disposal shall be paid into the designated bank account of Beijing Denox within 3 days after the completion of the registration of the change of equity interest in Wuxi Denox. Upon completion, Beijing Denox will no longer hold any equity interest in Wuxi Denox and Wuxi Denox will cease to be a subsidiary of the company. Wuxi Denox reported total assets of CNY21.8 million and net income of CNY1.4 million during the year ended December 31, 2020. The completion of the transaction is subject to approvals obtained from all government bodies and third parties, (ii) equity transfer agreement and asset transfer agreement have been properly signed and become effective; and (iii) transactions under asset transfer agreement have been completed. If all conditions above have not been satisfied on or before 15 March 2021, Beijing Denox has the right to postpone such long stop date or to terminate the equity transfer agreement. The Board has approved the equity transfer agreement and the disposal contemplated.

Chen Zhengfang acquired Wuxi Taidi Metal Products Co., Ltd. from Denox Environmental & Technology Holdings Limited (SEHK:1452) for CNY15 million on December 31, 2021.