Daze Wannian (Shenzhen) Investment Holding Co., Ltd. entered into an agreement to acquire 96.53% stake in Shenzhen Xinhongze Packaging Co., Ltd. from Guangdong New Grand Long Packing Co., Ltd. (SZSE:002836) for approximately CNY 170 million on June 6, 2022. The consideration will be paid in three installments. Within 5 working days after the entry into force of this contract, Daze Wannian will pay 10% of the total transaction consideration, namely CNY 16,892,000, Within 2 months after the contract takes effect, 20% of the total transaction consideration, namely CNY 33.7839 million and Within 12 months after the contract takes effect, 70% of the total transaction consideration, namely CNY 118,243,600.

As of August 16, 2022, second-phase equity transfer payment of CNY 33.7839 million received. For December 31, 2021, Shenzhen Xinhongze Packaging reported total assets of CNY 137.8 million, owner's equity of CNY 128.9 million, operating income of CNY 20.4 million, operating profit of CNY 5.4 million and net profit of CNY 5 million. The transaction has been approved by the twelfth meeting of the fourth board of directors of Guangdong New Grand Long Packing Co., Ltd.