Fujian Raynen Technology Co., Ltd. (SHSE:603933) signed a letter of Intent to acquire 84.04% stake in Shanghai Qirod Electric Science & Technology Co., Ltd (Qirod Electric) from Liu Guoying, Wu Hailong, Zhu Zhiguo, Zhang Bin, Wu Weihua, Cao Kun on November 20, 2020. Under the letter of intent, Liu Guoying, Wu Hailong, Zhu Zhiguo, Zhang Bin, Wu Weihua, Cao Kun will sell 51.19% stake, 10.94% stake, 8.95% stake, 7.21% stake, 4.12% stake, 1.63% stake of Qirod Electric respectively. Fujian Raynen Technology Co., Ltd. signed assets agreement to acquire 100% stake in Shanghai Qirod Electric Science & Technology Co., Ltd from Shanghai Lishan Marketing Planning Partnership (Limited Partnership), Liu Guoying and other 12 natural persons for CNY 150 million on January 27, 2021. Shanghai Lishan Marketing Planning Partnership (Limited Partnership) will sell 99.9996% equity of Qirod Electric for approximately CNY 150 million and Liu Guoying will sell 0.0004% equity of Qirod Electric for CNY 0.06 million. The stake will be purchased in cash. Within 30 working days from the effective date of the agreement, Fujian Raynen shall pay to the account designated by the sellers the total consideration of the first phase of the transaction of CNY 60 million, accounting for 40% of the total transaction consideration. In the first year of the performance commitment period (2021), within 30 working days from the issuance date of the special review report on the realization of the profit commitments or the public disclosure date of Fujian Raynen’s annual report (whichever is later), if Qirod Electric completes the annual profit commitment , Fujian Raynen shall pay to the account designated by the sellers the total consideration of the second phase of the transaction of CNY 27 million, accounting for 18% of the total transaction consideration, the total consideration of the third phase of the transaction of CNY 27 million, accounting for 18% of the total transaction consideration will be paid in the second year of the performance commitment period (2022) and the fourth phase transaction consideration of a total of CNY 36 million, accounting for 24% of the total transaction consideration will be paid in the third year of the performance commitment period (2023). Fujian Raynen will use part of the funds raised for the terminated fundraising project to acquire a 100% stake in Qirod Electric. For the year ended October 31, 2020, Qirod Electric reported total assets of CNY 79.8 million and total owners' equity of CNY 35.1 million. For the year ended December 31, 2019, Qirod Electric reported operating revenue of CNY 50.8 million and net profit of CNY 7 million. The transaction is subject to Board and shareholder’s approval of Fujian Raynen. The transaction has been reviewed and approved at the sixth meeting of the third Board of Directors of Fujian Raynen Technology Co. held on January 27, 2021, and still needs to be submitted to the company’s shareholders meeting for deliberation. Fujian Raynen Technology Co.’s independent directors, Board of supervisors, and sponsors issued clear opinions.