Qingdao Fulu Investment Holding Group Co., Ltd. signed a share transfer agreement to acquire 32% stake in Shandong Lichi New Energy Technology Co., Ltd. from Loncin Motor Co., Ltd. (SHSE:603766) for approximately CNY 310 million on December 8, 2020. Within 5 working days from the agreement effective date, Qingdao Fulu Investment Holding Group Co., Ltd. must pay CNY 100 million. Before December 31, 2021, Qingdao Fulu Investment Holding Group Co., Ltd. must pay CNY 120 million. Before December 31, 2022, Qingdao Fulu Investment Holding Group Co., Ltd. must pay CNY 87.45 million. After the transfer, Loncin Motor Co., Ltd. will still hold 19%. As of July 31, 2020, Shandong Lichi New Energy Technology Co., Ltd. reported total assets of CNY 821.97 million and net assets of CNY 439.21 million. For the year ending December 31, 2019, Shandong Lichi New Energy Technology Co., Ltd. reported total assets of CNY 930.83 million, net assets of CNY 467.94 million, revenue of CNY 488.99 million and net loss of CNY 101.53 million. The transaction does not need the shareholders’ approval and has been approved in the 12th Meeting of Loncin Motor Co., Ltd.'s 4th Directorate held on December 8, 2020.