Kennede Electronics MFG. CO., LTD. (SZSE:002723) signed the equity acquisition contract to acquire an 85% stake in Hangzhou Yuyouxin Consumer Technology Co., Ltd. from Shanghai Heou Enterprise Management Partnership (Limited Partnership) and Handing Yuyou Media Technology Co., Ltd. for approximately CNY 300 million on December 14, 2021. The consideration will be paid in cash CNY 210 million to Shanghai Heou Enterprise and CNY 87.5 million to Handing Yuyou.

Prior to completion, Hangzhou Yuyouxin Consumer is held 60% by Shanghai Heou Enterprise and 40% by Handing Yuyou. Upon completion, Kennede will hold 85% of the equity of Hangzhou Yuyouxin Consumer, which will become the Kennede's holding subsidiary and remaining 15% interest will be held by Handing Yuyou. The Hangzhou Yuyouxin Consumer had total assets and net assets of CNY 65.56 million and CNY 39.84 million, respectively, as of June 30, 2021.

The transaction has been reviewed and approved at twenty-fourth meeting of the fifth board of directors Kennede and still needs to be submitted to the Kennede's general meeting of shareholders.