Foshan Lidu Trading Co., Ltd signed an agreement to acquire 51% stake in Foshan Keda Ceramic Technology Co., Ltd. from Keda Industrial Group Co., Ltd. (SHSE:600499) for approximately CNY 200 million on November 10, 2020. Under the terms, Foshan Lidu will pay CNY 50 million the day of signing of agreement and remaining by December 31, 2020. If Foshan Lidu fails to pay the remaining amount by December 31, 2020, Foshan Lidu will pay a penalty of CNY 20 million and Keda Industrial have right to terminate the agreement. Foshan Lidu will will initiate a bank loan application for the payment of part of the equity transfer payment. As of August 31, 2020, Foshan Keda had total assets of CNY 322.7 million and net assets of CNY 321 million. In 2019, Foshan Keda generated operating revenue of CNY 75.4 million and net losses of CNY 8.23 million. Transaction is subject to Board of Directors and shareholders of Keda Industrial. As of November 30, 2020, the transaction is approved by the shareholders of Keda Industrial Group Co., Ltd.