KTK Group Co., Ltd. (SHSE:603680) agreed to acquire remaining 50% stake in Changzhou KTC Electrical Co., Ltd from Koito Manufacturing Co., Ltd. (TSE:7276) for approximately CNY 220 million on August 6, 2020. Upon the completed of the transaction, KTK Group Co., Ltd. will hold 100% stake in Changzhou KTC Electrical Co., Ltd. For the financial year December 31, 2019, Changzhou KTC Electrical Co., Ltd reported total asset of CNY 645 million, total common equity of CNY 516 million, total revenue of CNY 386 million and net profit of CNY 75 million. As reported on August 13, 2020, Changzhou KTC Electrical Co., Ltd completed the corresponding industrial and commercial registration procedures for equity change, and obtained the business license issued by Changzhou Wujin District market supervision and Administration Bureau.

At present, some procedures have not been completed, KTK Group Co has not paid the purchase price, and the acquisition of equity has not been completed. The transaction is subject to relevant government approval and is approved by the Board of KTK Group Co., Ltd.