Keshun Waterproof Technology Co., Ltd. (SZSE:300737) agreed to acquire Fengze Intelligent Equipment Co.,Ltd. from Sun Cheng, Sun Huijing, Sun Huasong, Song Guang'en, Sun Ying, Li Yanlin, Hengshui Ruishan Commerce and Trade Co., Ltd., Hengshui Shuncheng Runhe Investment Management Center (Limited Partnership), Hengshui Daheng Zhanxin Industry Equity Investment Fund Center (Limited Partnership), Hengshui Gaosheng Kangrui Venture Capital Fund Management Center (Limited Partnership) and 86 Other Shareholders for approximately CNY 500 million on March 17, 2021. As of August 16, 2021, Keshun Waterproof Technology Co., Ltd. singed a supplement agreement to acquire 93.54% stake in Fengze Intelligent Equipment Co.,Ltd. from Sun Cheng, Sun Huijing, Sun Huasong, Song Guang'en, Sun Ying, Li Yanlin, Hengshui Ruishan Commerce and Trade Co., Ltd., Hengshui Shuncheng Runhe Investment Management Center (Limited Partnership), Hengshui Daheng Zhanxin Industry Equity Investment Fund Center (Limited Partnership), Hengshui Gaosheng Kangrui Venture Capital Fund Management Center (Limited Partnership) and 86 Other Shareholders for approximately CNY 560 million. The cash payment for this transaction was CNY 69.94 million. Keshun Waterproof shall make a lump-sum payment within 30 days after the asset delivery date. The source of funds is Keshun Waterproof's own or self-raised funds. The payment will be paid by issuing shares is CNY 393.65 million. The shares issued to purchase assets in this issuance are ordinary RMB shares (A shares), each with a par value of CNY 1. The issuance price of this purchase of assets is CNY 12.97 per share, will issue 30,351,027 shares. The deal is subject to regulatory approval, shareholder approval of Keshun Waterproof and other necessary approvals and have obtained approval from both the boards. On August 16, 2021, the fourth meeting of the third board of directors of Keshun Waterproof Technology Co., Ltd. approved the transaction. As of October 27, 2021, Shenzhen Stock Exchange agreed to resume the review of the transaction application documents. As of December 30, 2021, Shenzhen Stock Exchange approved the acquisition. As of March 9, 2022, the transaction is approved by China Securities Regulatory Commission and Keshun Waterproof completed the acquisition of 66.8% stake in Fengze Intelligent, related industrial and commercial change registration procedures and obtained a business license on the same date.

Guoyuan Securities Company Limited (SZSE:000728) acted as financial advisor, Zhong Lun Law Firm acted as legal and Pan-China Certified Public Accountants LLP acted as accountant to Keshun Waterproof Technology Co., Ltd.