Suzhou Chuangyuan Investment & Development (Group) Co., Ltd. signed an Equity Transfer Agreement to acquire a 60% stake in Guangdong Zhongde Cable Co., Ltd. from Jiangsu Zhongli Group Co.,Ltd (SZSE:002309) for approximately CNY 400 million on February 9, 2022. The consideration will be paid in four installments. In a related transaction, Dongguan Hongshun Enterprise Management Development Co., Ltd. will acquire 2% stake in Guangdong Zhongde from Jiangsu Zhongli Group Co.,Ltd (SZSE:002309) for CNY 13.18 million.

Post completion, Jiangsu Zhongli will hold 38% stake, Suzhou Chuangyuan Investment will hold 60% stake and Dongguan Hongshun Enterprise will hold 2% stake in Guangdong Zhongde. As of September 30, 2021, Guangdong Zhongde reported total assets of CNY 1.02 billion and net assets of CNY 0.54 billion. The transaction is approved by the board of directors of Jiangsu Zhongli.