Huarong International Financial Holdings Limited (SEHK:993) entered into an agreement to acquire 49.01% stake in Huarong Investment Stock Corporation Limited (SEHK:2277) from Jia Tianjiang, HKBridge Financial Holdings Limited (SEHK:2323) and other shareholders for approximately HKD 370 million on July 3, 2020. Under the terms, for every one share of Huarong Investment 2.82 shares of Huarong International Financial will be issued. An independent Board committee was formed in respect of the transaction. The transaction is subject to approval by shareholders of Huarong Investment Stock, approval by Court, regulatory approval, approval by relevant authorities, approval by acquirer shareholders, listing of new shares on the stock exchange. As of September 10, 2020, based on the enquiries with the PRC Ministry of Finance, Huarong International Financial understands that the PRC Ministry of Finance has no objection to the Proposal and the Scheme, and no further Approval is required from the PRC Ministry of Finance. As of September 10, 2020, none of the Conditions has been fulfilled or waived. As of September 24, 2020, Board of Huarong International Financial Holdings Limited recommend the independent shareholders to vote in favour of the resolution to be proposed at the special general meeting for approving the acquisition. The special general meeting of Huarong International Financial Holdings Limited will held on October 27, 2020. As on September 29, 2020, the Board of Huarong Investment Stock Corporation Limited recommend the disinterested shareholders to vote in favor of the relevant resolutions to be proposed at the court meeting and the extraordinary general meeting respectively to approve and implement the proposal and the scheme. As of October 27, 2020, the shareholders of Huarong International Financial Holdings Limited and Huarong Investment Stock Corporation Limited approved the transaction. As on November 6, 2020, the scheme was sanctioned without modification by the Court at the petition hearing. The long stop date of the transaction is December 31, 2020. As of November 9, 2020, the scheme is expected to become effective on November 10, 2020 and the withdrawal of listing of the HRIV Shares on the Stock Exchange is expected to made on November 11, 2020. As a result of proposal, the entire issued share capital of Huarong Investment will be owned by Huarong International Financial or its wholly owned subsidiary.

Optima Capital Limited and Huatai Financial Holdings (Hong Kong) Limited acted as financial advisor to Huarong International Financial in the transaction. Joey Chau of Kirkland & Ellis acted as legal advisor to Huatai Financial Holdings (Hong Kong) Limited. Ernst & Young LLP acted as accountant to Huarong International Financial Holdings Limited. Somerley Capital Limited acted as financial advisor to Huarong Investment Stock Corporation Limited.