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. On March 2, 2020, the Stake purchase agreement has been signed for CNY 78.8 million. The assets to be sold are expected to be valued between CNY 70.69 million and CNY 79.1066 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, Hainan Yatai Industrial Development Co., Ltd. signed the purchasing equity framework agreement to acquire 51% stake in Cangzhou Lingang Yanuo Chemical Co., Ltd. from Hebei Yanuo Bioscience Co., Ltd. for approximately CNY 310 million on November 1, 2019. For the year ended December 31, 2018, Lanzhou Tongchuang Jiaye Real Estate Development Co., Ltd. reported revenue of CNY 37.7 million and net loss of CNY 1.53 million. As of December 31, 2018, Lanzhou Tongchuang Jiaye Real Estate Development Co., Ltd. reported total assets of CNY 159.1 million and shareholders’ equity of CNY 84.1 million. The transaction is subject to the completion of acquisition of 51% stake in Cangzhou Lingang Yanuo Chemical Co., Ltd., approval of the board of directors and shareholders of Hainan Yatai Industrial Development Co., Ltd. and other possible approvals required by relevant laws and regulations. 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. Transaction is approved by Lanzhou Asia Pacific Real Estate Development Group Co., Ltd.’s executive directors. Reanda Certified Public Accountants acted as accoutant, ZTF Securities Co., Ltd. acted as financial adviser and Gansu Zheng Tian He Law Firm acted as legal adviser for Hainan Yatai Industrial Development Co., Ltd. in the transaction. Lanzhou Asia Pacific Real Estate Development Group Co., Ltd. completed the acquisition of Lanzhou Tongchuang Jiaye Real Estate Development Co., Ltd. from Hainan Yatai Industrial Development Co., Ltd. (SZSE:000691) on July 1, 2020. As on June 10, 2020, Hainan Yatai convened the seventh meeting of the seventh directorate in 2020, and reviewed and approved the relevant proposals for this major asset sale and related party transaction. As on June 29, 2020, Hainan Yatai convened the third interim general meeting of shareholders in 2020, and reviewed and approved the resolution on this major asset sale and related party transaction. As on June 30, 2020, Yongdeng County Market Supervision and Administration Bureau approved the transaction. As on July 1, 2020, Lanzhou Asia Pacific has paid a goodwill of CNY 35 million in accordance with the relevant agreement. The remaining balance will be paid within 5 working days after the completion of the subject asset transfer procedure.