Yu Longsheng and Yu Minbei signed an agreement to acquire Zhejiang Longsheng Auto Parts Technology Co., Ltd. from Kuang-Chi Technologies Co., Ltd. (SZSE:002625) for approximately CNY 640 million on August 24, 2023. Total transfer price is CNY 637.09 million of which Yu Longsheng will pay CNY 331.28 million and Yu Minbei will pay CNY 305.8 million. The buyer must pay the first phase of the equity transfer price CNY 337.09 million within 3 working days after signing the agreement.

The second phase CNY 300 million should be paid within 3 working days after both parties complete the equity delivery. Zhejiang Longsheng Auto Parts Technology Co., Ltd. reported financial as of June 30, 2023, total assets of CNY 753.51 and net assets of CNY 632.99 million.