Luoyang Glass Company Limited (SEHK:1108) entered into a cooperation framework agreement to acquire a majority stake in Qinhuangdao North Glass Co., Ltd. from China Yaohua Glass Group Corporation on December 30, 2020. Luoyang Glass Company Limited (SEHK:1108) entered into share transfer agreement to acquire 60% stake in Qinhuangdao North Glass Co., Ltd. from China Yaohua Glass Group Corporation for approximately CNY 180 million on April 29, 2021. The consideration is paid in cash and it is done installment of CNY 170 million within 15 working days from the effective date of the agreement and a second installment of remaining balance within 15 working days from the date on which the Target Equity Interest is registered under the company’s name (subject to the industrial and commercial registration). The transaction will be funded by the own funds of Luoyang Glass Company Limited. As a part of transaction, Luoyang Glass Company Limited will acquire a stake not lower than 51% and not higher than 80% in Qinhuangdao North Glass Co., Ltd. from China Yaohua Glass Group Corporation. Post completion, North Glass will become a directly controlled subsidiary of Luoyang Glass Company Limited and China Yaohua Glass Group Corporation holds 40% stake in it. In a related transaction, Luoyang Glass Company Limited entered into a cooperation framework agreement to acquire a stake not lower than 51% in Triumph Jinghua Glass Co., Ltd. from Triumph Glass Holding Co., Ltd. on December 30, 2020. North Glass shall be responsible for the deregistration of Qinhuangdao Huazhou Glass Co., Ltd. in accordance with the law, or the transfer of its 75.0109% equity interest in Qinhuangdao Huazhou Glass Co., Ltd. to China Yaohua Glass Group Corporation as well as the completion of industrial and commercial registration and the payment of the consideration for the transfer, north Glass shall continue to procure the transfer of its 32.61% equity interest in Qinhuangdao Great Wall Glass Industry Co., Ltd. to a third party in accordance with the law, and complete the industrial and commercial registration and collect the corresponding consideration for the transfer. When the cooperation framework agreement comes into effect, China Yaohua Glass Group Corporation shall commission an intermediary institution to carry out audit and valuation on North Glass in due course, and Luoyang Glass Company Limited shall commission an intermediary institution and relevant personnel to conduct due diligence on the legal and business issues of North Glass. The transaction is subject to signing of a separate formal equity transfer agreement, approval of the competent authority of China Yaohua Glass Group Corporation and Luoyang Glass Company Limited and the signing of share transfer agreement by the legal representatives of Yaohua Group and Luoyang Glass Company, approval of agreement at the general meeting of Yaohua Group and Luoyang Glass Company. As of July 21, 2021, the transaction was approved by the shareholders of Luoyang Glass Company Limited. Transactions will not have any material impact on the operating results of Luoyang Glass Company Limited for 2020 and will not result in any changes in the principal business and business scope of Luoyang Glass Company Limited. Sun Zhe and Duan Yaofeng of Henan Yaohua Law Firm acted as the legal advisor for Luoyang Glass Company Limited.