Xianyang Zhongdian IRICO Group Holdings Ltd. entered into an equity transfer agreement to acquire 90% stake in Kunshan IRICO Industrial Co., Ltd from Xianyang IRICO Electronics Shadow Mask Co. Ltd. and IRICO Group New Energy Company Limited (SEHK:438) for CNY 71.4 million on February 28, 2017. Under the terms, Xianyang IRICO Electronics Shadow Mask and IRICO Group New Energy will sell 10% and 80% stake respectively. The consideration will be paid in cash within forty-five days from the effective date of the agreement. For the year ended December 31, 2016, Kunshan IRICO Industrial Co., Ltd reported turnover of CNY 1.4 million, operating loss of CNY 3.27 million, total assets of CNY 75.82 million, net assets of CNY 52.88 million and net loss of CNY 2.17 million. The deal is subject to approval from shareholders of IRICO Group New Energy Company Limited. An independent board committee consisting of Feng Bing, Wang Jialu and Wang Zhicheng, who are independent non-executive Directors, will be established. As of April 3, 2017, the deal was approved by the Board of IRICO Group New Energy Company and the shareholders were recommended to vote in favour of the transaction. The independent board committee and Octal Capital Limited recommended the shareholders to vote in favour of the transaction. The shareholders of IRICO Group New Energy Company Limited approved the transaction in the extraordinary general meeting held on April 27, 2017. The deal will terminate if any of the conditions is not fulfilled on or before May 30, 2017. The proceeds will be used to supplement working capital of IRICO Group New Energy Company Limited. Octal Capital Limited acted as financial advisor for IRICO Group New Energy Company Limited. Wang Xingjie and Shi Yingmin from Beijing Pan-China Assets Appraisal Co., Ltd. acted as independent valuers for IRICO Group New Energy Company Limited. Xianyang Zhongdian IRICO Group Holdings Ltd. completed the acquisition of 90% stake in Kunshan IRICO Industrial Co., Ltd from Xianyang IRICO Electronics Shadow Mask Co. Ltd. and IRICO Group New Energy Company Limited (SEHK:438) on September 8, 2017.