China Jiuhao Health Industry Corporation Limited entered into a share purchase agreement to acquire 22.2% stake in HB Entertainment Co., Ltd. from Bo Mi Moon and HB Corporation for KRW 28.1 billion on March 23, 2016. The purchase price will be payable as follows: 90% of the purchase price amounting to KRW 25.28 million will be payable by two business days prior to the closing of agreement and in case of any adjustments, the difference will be payable within 15 business days from the receipt of the audit report of HB Entertainment for the fiscal year 2017. China Jiuhao will acquire 0.02 million shares in HB Entertainment from Bo Mi Moon at KRW 14.04 million and 0.2 million shares from HB Corporation at KRW 14.04 million. The consideration price is subject to adjustment if the aggregate audited net profits after tax of HB Entertainment for the fiscal years 2016 and 2017 are more or less than KRW 12.87 billion. In a related transaction, China Jiuhao Health entered into a subscription agreement wherein China Jiuhao will subscribe to 0.02 million shares of HB Entertainment. HB Entertainment reported revenues of KRW 30 billion, profit after tax of KRW 1.43 billion and net assets of KRW 8.56 billion for the year ended December 31, 2015. The Board of Directors of HB Entertainment will have four Directors, one of which shall be nominated, appointed and removed by China Jiuhao. The transaction is subject to regulatory approvals and closing of first tranche of subscription before the close of the share purchase agreement. The Board of China Jiuhao recommended the shareholders to vote in favour of the deal. The transaction can be terminated if it is not closed within six months from the date of signing of subscription agreement. PricewaterhouseCoopers Hong Kong and PricewaterhouseCoopers Korea acted as accountant to Huayi Tencent. China Jiuhao Health Industry Corporation Limited completed the acquisition of 22.2% stake in HB Entertainment Co., Ltd. from Bo Mi Moon and HB Corporation on August 16, 2016.