Chinese Academy of Sciences Holdings Co., Ltd. entered into an agreement to acquire 17.28% stake in Levima Advanced Materials Co., Ltd from Levima Group Co., Ltd for approximately CNY 430 million on May 5, 2017. Chinese Academy of Sciences Holdings Co., Ltd shall pay CNY 425.58 million in cash within ten business days of the execution of the equity transfer and capital increase agreement. In a related transaction, Chinese Academy of Sciences Holdings Co., Ltd will make additional capital injection to Levima Advanced Materials Co., Ltd of CNY 426.89 million in cash. After the transactions, Levima Group Co., Ltd will hold 60.44% stake and Chinese Academy of Sciences Holdings Co., Ltd will hold 29.5% stake in Levima Advanced Materials Co., Ltd. Upon completion of the transaction, Levima Advanced Materials Co., Ltd shall continue to be a subsidiary of Legend Holdings Corporation, parent of Levima Group Co., Ltd. Levima Advanced Materials Co., Ltd reported net asset value of CNY 1.94 billion and profit after tax of CNY 223 million in 2016. After the transaction, the Board of Directors of Levima Advanced Materials Co., Ltd shall comprise of six members, of whom four will be nominated by Levima Group Co., Ltd and two will be nominated by Chinese Academy of Sciences Holdings Co., Ltd. The position of Chairman of Board of Directors shall be held by one of the Directors nominated by Levima Group Co., Ltd. The shareholders' of Levima Advanced Materials Co., Ltd agreed to the transaction. The Board of Chinese Academy of Sciences Holdings Co., Ltd approved the transaction. The transaction is exempt from the independent shareholders’ approval requirement. Within thirty days of the full payment by Chinese Academy of Sciences Holdings Co., Ltd, Levima Advanced Materials Co., Ltd shall complete the procedures for the change of business registration. The transaction is expected to result in a gain of approximately CNY 140 million. The proceeds shall be utilized by Levima Group will be utilized as general working capital. Chinese Academy of Sciences Holdings Co., Ltd. cancelled the acquisition of 17.28% stake in Levima Advanced Materials Co., Ltd from Levima Group Co., Ltd on May 5, 2018.