Hunan Aihua Group Co., Ltd (SHSE:603989), Nantong Hicon Electronics Co., Ltd., Capxon Electronic (Shenzhen) Co Ltd and Suichang Huiran Investment Management Partnership Enterprise (L.P.) agreed to acquire a 47.20% stake in Zhejiang KAN Special Paper Industry Co., Ltd from Zhejiang Kan Specialities Material Co., Ltd. (SZSE:002012) on September 14, 2022. Zhejiang KAN Special Paper has a total assets of CNY 492.8 million and net assets of CNY 65.7 million as of July 31, 2022. On November 23, 2022, The Board of Zhejiang KAN Special Paper approved the deal and shareholders of Zhejiang KAN Special Paper approved the deal.

The transaction is subject to approval of shareholders of Zhejiang Kan Specialities Material and approval from relevant authorities as required by laws, regulations and regulatory documents. Pan-China Certified Public Accountants LLP acted as accountant, Beijing DeHeng (Hangzhou) Law Firm acted as legal advisor and China Great Wall Securities Co.,Ltd. (SZSE:002939) acted as financial advisor to Zhejiang Kan Specialities Material Co., Ltd.