Jiangsu Nata Opto-electronic Material Co., Ltd. (SZSE:300346) agreed to acquire an additional 14.86% stake in Shandong Feiyuan Gas Co., Ltd., from Zibo Feiyuan Chemical Co., Ltd., and Zibo Huashang Zhiyuan Equity Investment Fund Partnership (Limited Partnership) for approximately CNY 110 million on November 1, 2021. Pursuant to the terms of the transaction, within one month from the effective date of this agreement, Jiangsu Nata Opto-electronic Material Co., Ltd., shall pay to Zibo Huashang Zhiyuan Equity Investment Fund Partnership (Limited Partnership) a 50% equity transfer payment of CNY 29.9 million. Zibo Feiyuan Chemical Co., Ltd., shall complete the procedures for removing the pledge of the target equity within ten days after this agreement becomes effective.

Within one month from the date when Zibo Feiyuan Chemical Co., Ltd., completes the cancellation of the pledge of the underlying equity, Jiangsu Nata Opto-electronic Material Co., Ltd., shall pay to Zibo Feiyuan Chemical Co., Ltd., a 50% equity transfer payment of CNY 26.73 million. Both parties actively cooperate with Shandong Feiyuan Gas Co., Ltd., to complete the industrial and commercial change registration procedures, and within one month after Shandong Feiyuan Gas Co., Ltd., is registered under the name of Jiangsu Nata Opto-electronic Material Co., Ltd., as agreed in this agreement, Jiangsu Nata Opto-electronic Material Co., Ltd., shall pay Zibo Feiyuan Chemical Co., Ltd., and Zibo Huashang Zhiyuan Equity Investment Fund Partnership (Limited Partnership) the remaining 50% equity transfer payment. Jiangsu Nata Opto-electronic Material Co., Ltd., shall acquire 7.01% stake from Zibo Feiyuan Chemical Co., Ltd., for CNY 53.46 million, and 7.85% stake from Zibo Huashang Zhiyuan Equity Investment Fund Partnership (Limited Partnership) for CNY 59.8 million.

As a result of the transaction, stake of Jiangsu Nata Opto-electronic Material Co., Ltd., in Shandong Feiyuan Gas Co., Ltd., shall increase from 57.97% to 72.83%, whereas stakes of Zibo Feiyuan Chemical Co., Ltd., and Zibo Huashang Zhiyuan Equity Investment Fund Partnership (Limited Partnership) shall cease to exist. The consideration shall be settled from own funds of Jiangsu Nata Opto-electronic Material Co., Ltd. As at August 31, 2021, Shandong Feiyuan Gas Co., Ltd., had total assets of CNY 767.97 million and owner's equity of CNY 339.52 million. Jiangsu Nata Opto-electronic Material Co., Ltd., held the eighth meeting of the eighth session of the board of directors on November 1, 2021, and reviewed and approved the "Proposal on Cash Acquisition of Certain Minority Shareholders of Shandong Feiyuan Gas Co., Ltd., a holding subsidiary".

This transaction is within the scope of Jiangsu Nata Opto-electronic Material Co., Ltd.'s board of directors' approval authority and does not need to be submitted to the company's shareholders meeting for deliberation.