Hong Qixu signed a contract to acquire 51% stake in Hainan Jinxiu Industry Co., Ltd. from Guangzhou Pearl River Industrial Development Co., Ltd. for approximately CNY 650 million on November 26, 2019. The transaction was approved by the board of directors and shareholders of Guangzhou Pearl River Industrial Development Co., Ltd. at the 12th meeting of 9th directorate and fourth extraordinary meeting respectively. Hong Qixu cancelled the acquisition of 51% stake in Hainan Jinxiu Industry Co., Ltd. from Guangzhou Pearl River Industrial Development Co., Ltd. on November 26, 2020.