Jiangsu Gaoke Petrochemical Co., Ltd (SZSE:002778) signed a intention agreement to acquire 70% stake in Suzhou Zhongsheng Environmental Restoration Co., Ltd. from Suzhou Wuzhong Financial Holding Group Co., Ltd. on April 8, 2020. Jiangsu Gaoke Petrochemical Co., Ltd signed asset purchase agreement to acquire 70% stake in Suzhou Zhongsheng Environmental Restoration Co., Ltd. from Suzhou Wuzhong Financial Holding Group Co., Ltd. for approximately CNY 630 million on June 30, 2020. As per terms of transaction, consideration of CNY 63.091 million or 10% of consideration for the first phase of the transaction within 5 working days after the entry into force of this agreement, second stage transaction consideration before December 31, 2020, the Jiangsu Gaoke Petrochemical Co., Ltd will pay 20% of the total transaction consideration or CNY 126.182 million, consideration for the third stage within 5 working days from the day when the accounting firm issues a special audit report on the realization of the promised profit of Zhongsheng Environmental in 2020, the Jiangsu Gaoke Petrochemical Co., Ltd will pay 20% of the consideration or CNY 126.182 million, consideration for the fourth transaction within 5 working days from the day when the accounting firm issues a special audit report on the realization of the promised profit of Zhongsheng Environmental in 2021, the Jiangsu Gaoke Petrochemical Co., Ltd will pay 20% of the consideration or CNY 126.182 million and consideration for the fifth transaction within 5 working days from the date when the accounting firm issues a special audit report on the realization of the promised profit of Zhongsheng Environment in 2022 and issues a special audit opinion on the end-of-period impairment of the target asset, 30% of the consideration of CNY 189.273 million. For the year ended March 31, 2020, total assets of CNY 448.9701 million, operating revenue of CNY 64.1573 million, operating profit of CNY 23.7372 million, owners equity of CNY 310.1974 million and net profit of CNY 18.8759 million. On May 27, 2020, the Wuzhong District Government issued the approval form. On June 4, 2020, transaction is approved by the board of Suzhou Wuzhong Financial Holding Group Co., Ltd. On June 30, 20202, transaction is approved by the board of Jiangsu Gaoke Petrochemical Co., Ltd. As on June 30, 2020, transaction is subject to approval from shareholders of Jiangsu Gaoke Petrochemical Co., Ltd and other approvals that may be required by relevant laws and regulations. Li Fan and Xia Jianyang of Soochow Securities Co., Ltd. acted as financial advisor to Jiangsu Gaoke Petrochemical Co., Ltd. Feng Chuan and Zhou Hao of Beijing King&Wood Law Firm acted as legal advisor to Jiangsu Gaoke Petrochemical Co., Ltd. Xiao Houfa of RSM China acted as accountant to Jiangsu Gaoke Petrochemical Co., Ltd.