Hangzhou Jinjiang Group Co., Ltd. intends to acquire 5.7% stake in Fuda Alloy Materials Co., Ltd. (SHSE:603045) from Wang Dawu and Wang Zhongnan for approximately CNY 190 million on October 16, 2021. Wang Dawu and Wang Zhongnan will transfer 7.25 million and 0.41 million shares respectively at CNY 24.82 per share in cash. An agreement will be signed on October 21, 2021. In related transactions, Fuda Alloy Materials will exchange all assets and liabilities with the equivalent value in shares of Cayman Aluminum (Sanmenxia) Co., Ltd. held by Hangzhou Jinjiang Group Co., Ltd, Fuda Alloy Materials will issue shares to acquire 100% stake in Cayman Aluminum (Sanmenxia) Co., Ltd held by Hangzhou Jinjiang Group Co., Ltd., Hangzhou Zhengcai Holding Group Co., Ltd., Zhejiang Hengjia Holdings Co., Ltd., Hangzhou Yande Industrial Co., Ltd., Manlian (Hangzhou) Enterprise Management Partnership (Limited Partnership) and other minor shareholders. Fuda Alloy Materials will also carry out a capital increase to raise supporting funds through non-public issuance of shares.

The transaction is subject to a second approval of Board of Directors of Fuda Alloy Materials, approval of shareholders of Fuda Alloy Materials, subject to Anti-Monopoly Bureau of the State Administration for Market Regulation if necessary and approval of China Securities Regulatory Commission. After the completion of the audit and evaluation of the transaction, Fuda Alloy Materials will once again convene the board of directors to review and approve the relevant proposals of the transaction. The transaction has been approved by Board of Fuda Alloy Materials. As of May 10, 2022, Anti-Monopoly Bureau of the State Administration for Market Regulation approved the transaction. On September 13, 2022, Fuda Alloy directors approved the transaction. Zhong Lun Law Firm acted as legal advisor to uda Alloy Materials.