Hainan Yatai Industrial Development Co., Ltd. (SZSE:000691) signed the purchasing equity framework agreement to acquire 51% stake in Cangzhou Lingang Yanuo Chemical Co., Ltd. from Hebei Yanuo Bioscience Co., Ltd. for CNY 310 million on November 1, 2019. Hainan Yatai Industrial Development Co., Ltd. signed the stake purchase agreement to acquire 51% stake in Cangzhou Lingang Yanuo Chemical Co., Ltd. from Hebei Yanuo Bioscience Co., Ltd. on March 2, 2020. The consideration will be paid in cash. Based on the overall valuation of Cangzhou Lingang estimated to be between CNY 560 million and CNY 600 million, the value of 51% stake is estimated to be between CNY 285.6 million and CNY 306 million. The final transaction price will be determined by the parties based on the asset evaluation report issued by the asset appraisal agency with securities and futures business qualifications. In a related transaction, Lanzhou Asia Pacific Real Estate Development Group Co., Ltd. signed the sale of shares framework agreement to acquire 84.16% stake in Lanzhou Tongchuang Jiaye Real Estate Development Co., Ltd. from Hainan Yatai Industrial Development Co., Ltd. (SZSE:000691) for CNY 79.1 million on November 1, 2019. For the year ended December 31, 2018, Cangzhou Lingang Yanuo Chemical Co., Ltd. reported revenue of CNY 188.4 million, operating profit of CNY 5.11 million and net income of CNY 3.36 million. As of December 31, 2018, Cangzhou Lingang Yanuo Chemical Co., Ltd. reported total assets of CNY 388.8 million and shareholders’ equity of CNY 138.98 million. The transaction is subject to the completion of acquisition of 84.16% stake in Lanzhou Tongchuang Jiaye Real Estate Development Co., Ltd., approval of the board of directors and shareholders of Hainan Yatai Industrial Development Co., Ltd., other possible approvals required by relevant laws and regulations, board of directors of Hebei Yanuo Bioscience Co., Ltd. deliberates and approves the formal plan for this transaction and approval of shareholders of Hebei Yanuo Bioscience Co., Ltd. On November 1, 2019, Hainan Yatai Industrial Development Co., Ltd. held the 5th meeting of the 7th directorate in 2019, reviewed and approved the plan and the relevant proposals for the reorganization, and the independent directors issued independent opinions. On November 1, 2019, Hebei Yanuo Bioscience Co., Ltd. held a board meeting and approved the transaction. On March 2, 2020 formal plan of acquisition is approved by the board of directors of Hainan Yatai Industrial Development Co., Ltd. at 2nd meeting of 7th directorate of 2020 and by the board of directors of Hebei Yanuo Bioscience Co., Ltd. In addition the transaction is approved by Lanzhou Asia Pacific Real Estate Development Group Co., Ltd.’s executive directors. On April 10, 2020, the third interim meeting of the seventh directorate of Hainan Yatai Industrial Development Co., Ltd. in 2020 reviewed and approved the resolution related to the transaction plan. On June 5, 2020, Hainan Yatai Industrial Development held the 2nd Extraordinary Shareholders Meeting of 2020, approved the acquisition of Cangzhou Lingang Yanuo Chemical Co., Ltd.’s 51% stake. On June 9, 2020, Hebei Yanuo Bioscience Co., Ltd. held the 5th Extraordinary Shareholders Meeting of 2020, and approved the transaction. ZTF Securities Co., Ltd., Gansu Zheng Tian He Law Firm and Reanda Certified Public Accountants acted as Independent financial advisor, legal advisor and auditor respectively for the transaction. Hainan Yatai Industrial Development Co., Ltd. (SZSE:000691) completed the acquisition of 51% stake in Cangzhou Lingang Yanuo Chemical Co., Ltd. from Hebei Yanuo Bioscience Co., Ltd. on June 17, 2020.