Shenzhen Herunda Investment Co., Ltd agreed to acquire 67% stake in Zhongnan (Shenzhen) Real Estate Development Co., Ltd. from Jiangsu Zhongnan Construction Group Co., Ltd. (SZSE:000961) and Shenzhen Sanrui Real Estate Development Co., Ltd. for approximately CNY 620 million on June 6, 2018. Jiangsu Zhongnan Construction Group Co., Ltd. will transfer 47% stake held in Zhongnan (Shenzhen) Real Estate Development Co., Ltd. to Shenzhen Herunda Investment Co., Ltd. for CNY 411.30 million in cash and Shenzhen Sanrui Real Estate Development Co., Ltd. will transfer 20% stake held in Zhongnan (Shenzhen) Real Estate Development Co., Ltd. to Shenzhen Herunda Investment Co., Ltd. for CNY 207.2 million. Prior to the transaction, Jiangsu Zhongnan Construction Group Co., Ltd and Shenzhen Sanrui Real Estate Development Co., Ltd. held 65% and 35% stake respectively in Zhongnan (Shenzhen) Real Estate Development Co., Ltd. Post transaction, Shenzhen Herunda Investment Co., Ltd, Jiangsu Zhongnan Construction Group Co., Ltd and Shenzhen Sanrui Real Estate Development Co., Ltd will hold 67%, 18% and 15% stake respectively in Zhongnan (Shenzhen) Real Estate Development Co., Ltd. Zhongnan (Shenzhen) Real Estate Development Co., Ltd reported total assets of CNY 151.1 million, net assets of CNY 72.4 million, revenues of CNY 0, operating loss of CNY 9.8 million and net loss of CNY 7.2 million for the year ended December 31, 2017.