An unknown buyer entered into the sale and purchase agreement to acquire Merchant Support Co., Ltd from Hi Sun Technology (China) Limited (SEHK:818) for approximately ¥950 million on May 18, 2017. The consideration is paid in cash. Under the terms, the buyer shall issue an irrevocable payment instruction to its bank to remit 60% of the consideration, being approximately ¥570 million to Hi Sun Technology (China) Limited designated bank account in Hong Kong and the remaining 40% of the consideration, being approximately ¥380 million on the completion date by remittance to the Hi Sun Technology designated bank account in Hong Kong. The buyer shall within five business days from the signing of the sale and purchase agreement, issue an irrevocable payment instruction to its bank to pay a sum of approximately ¥140 million to the Hi Sun Technology as security payment for the agreement. Hi Sun Technology shall be obliged to return the security payment to the security payer within 5 business days on the occurrence of the termination of the agreement and all of the conditions being fully satisfied or waived and the issue of written notice to the Hi Sun Technology by the buyer upon its obtaining of the approval and consent of the transactions contemplated under the agreement from the government authorities. If the agreement is terminated, the defaulting party shall pay an amount of ¥47.5 million as break-up fee being 5% of the aggregate consideration to the non-defaulting party within three business days after a break-up notice is received in such other manner as the parties may agree. For the year ended December 31, 2016, Merchant Support Co., Ltd reported revenue of ¥267.3 million and loss after taxation of ¥66.4 million. As of December 31, 2016, Merchant Support Co., Ltd reported net asset value of ¥5.2 million. The deal is subjected to approval and consent from the buyer’s Board of Directors and Ministry of Commerce, the National Development and Reform Commission and the State Administration of Foreign Exchange of the PRC and shareholders of Hi Sun Technology (China) Limited. The transaction is expected to close on or before June 30, 2017. An unknown buyer completed the acquisition of Merchant Support Co., Ltd from Hi Sun Technology (China) Limited (SEHK:818) on June 27, 2017.