Xianyang Zhongdian IRICO Group Holdings Ltd. entered into the Assets Transfer Agreement to acquire Relevant Assets of the Special Railway Lines of IRICO Group New Energy Company Limited (SEHK:438) for CNY 4.7 million on December 28, 2016. The mode of payment is cash. The consideration was determined based on arm’s length negotiations between the Xianyang Zhongdian and IRICO Group and shall be paid in a lump sum in cash within five business days from the effective date of the Assets Transfer Agreement. The proceeds raised from the transaction under the Assets Transfer Agreement will be used to replenish working capital of IRICO Group. The transaction is subject to approval by IRICO Group Board and assets valuation report approved by the relevant authorities of IRICO Group. As of March 31, 2016, the carrying value of total assets is CNY 0.08 million, total liabilities is CNY 1.1 million and net assets is nil of the Special Railway. The net losses for the December 31, 2015 before and after taxation are CNY 2.3 million of the Special Railway. Xianyang Zhongdian IRICO Group Holdings Ltd. completed the acquisition of Relevant Assets of the Special Railway Lines of IRICO Group New Energy Company Limited (SEHK:438) during the year ended December 31, 2016.