Xianyang Zhongdian IRICO Group Holdings Ltd. entered into the equity transfer agreement to acquire 60% stake in Xianyang IRICO Electronics Accessories Co., Ltd. from IRICO Group New Energy Company Limited (SEHK:438) for CNY 45.9 million in cash on May 9, 2016. The consideration shall be paid in a lump sum in cash by Xianyang Zhongdian IRICO Group Holdings Ltd. to the bank account designated by IRICO Group New Energy Company Limited within 90 days from the effective date of the equity transfer agreement. Upon completion of the disposal, IRICO Group New Energy Company Limited will cease to have any interest in Xianyang IRICO Electronics Accessories. As of December 31, 2015, Xianyang IRICO Electronics Accessories had audited net assets value of CNY 45.29 million and audited net profits after taxation of CNY 1.39 million. The equity transfer agreement shall become effective on the following it has been duly signed and executed by both parties; and the aforesaid assets valuation report on Xianyang Zhongdian IRICO Group Holdings Ltd. has been filed with and approved by China Electronics Corporation, a controlling shareholder. The Directors of IRICO Group New Energy consider the transaction to be fair. The proceeds arising from the disposal will be used to supplement working capital. Xianyang Zhongdian IRICO Group Holdings Ltd. completed the acquisition of 60% stake in Xianyang IRICO Electronics Accessories Co., Ltd. from IRICO Group New Energy Company Limited (SEHK:438) on December 28, 2016.