Foshan Runqi Investment Co., Ltd. entered into an agreement to acquire Guangdong King-Strong Diamond Tools Co., Ltd. from King-Strong New Material Technology Co., Ltd. (SZSE:300629) for approximately CNY 110 million on October 30, 2020. The first payment of CNY 54.5 million shall be paid within15 working days from the completion, the second instalment payment of CNY 25.6 million shall be paid before the last day of the 12th month from the last payment date of the first instalment and the third installment of CNY 26.7 million shall be paid before the last day of the 24th month from the last payment date of the first installment. Guangdong King-Strong Diamond reported total assets of CNY 211.1 million, net asset of 122.4 million as of December 31, 2019 and revenue of CNY 148.2 million in 2019. On October 30, 2020, King-Strong New Material Technology held the 27th meeting of the third Board of Directors and passed relevant proposals. This transaction has been reviewed and approved by the Foshan Runqi's internal decision-making body. King-Strong New Material Technology will hold a general meeting of shareholders to review the transaction. The Board of King-Strong New Material Technology approved the adjustments to the sale on December 9, 2020. Minsheng Securities Co.,Ltd. acted as financial advisor, Jiayuan Law acted as legal advisor and GP Certified Public Accountants Co., Ltd. acted as accountant to King-Strong New Material Technology.

Foshan Runqi Investment Co., Ltd. completed the acquisition of Guangdong King-Strong Diamond Tools Co., Ltd. from King-Strong New Material Technology Co., Ltd. (SZSE:300629) on December 31, 2020. Foshan Runqi Investment Co., Ltd. completed the first payment as agreed. As of December 29, 2021, Foshan Runqi Investment Co., Ltd. completed the second installment payment.