Xianyang Zhongdian IRICO Group Holdings Ltd. signed an equity transfer agreement to acquire remaining 49% stake in Zhuhai Caizhu Industry Co., Ltd. (Zhuhai Caizhu) from IRICO Group New Energy Company Limited (SEHK:438) for approximately CNY 130 million on October 30, 2020. Under the terms of the transaction, the cash consideration shall be paid in three instalments. The first instalment is 50% of the total consideration (CNY 64.71 million), which shall be paid within five business days from the effective date of the agreement, the second instalment is 20% of the total consideration (CNY 25.88 million), which shall be paid before June 30, 2021 and the third instalment is the remaining 30% of the total consideration (CNY 38.83 million), which shall be paid before December 31, 2021. The registration of change in equity interests in Zhuhai Caizhu will be completed within fifteen business days after the agreement has become effective. Post-closing, IRICO Group New Energy Company Limited will not hold any stake in Zhuhai Caizhu. In related transactions, IRICO Group Company Limited agreed to acquire Xianyang IRICO Green Energy Co., Ltd, 76.32% stake in Shaanxi IRICO New Material Company Limited, 51% stake in Jiangsu IRICO Yongneng New Energy Company Limited from IRICO Group New Energy Company Limited. As of July 31, 2020, Zhuhai Caizhu had appraised net assets value of CNY 264.1 million. The transaction is subject to Independent Shareholders’ approval of IRICO Group New Energy Company Limited at the extraordinary general meeting. The Board of Directors of IRICO Group New Energy Company Limited is of the view that the terms and conditions of the agreement is fair and reasonable and are in the interests of IRICO Group New Energy Company Limited and its shareholders. An Independent Board Committee comprising the independent non-executive Directors will be formed to advise the independent shareholders in respect of the transactions. The transaction shall be completed on the date when Zhongdian IRICO makes the full payment of the first installment. The proceeds arising from the transaction will be used to supplement working capital of IRICO Group New Energy Company Limited. Octal Capital Limited acted as the financial advisor for the Independent Board Committee of IRICO Group New Energy Company Limited.