Beijing Hongda Wanji Enterprise Management Co., Ltd. signed an Asset Sale Agreement to acquire 45% stake in BEIJING XINWODA MARINE TECHNOLOGY CO.,LTD from Maoming Petro-Chemical Shihua Co., Ltd (SZSE:000637) for CNY 340 million on June 6, 2023. For the year ended December 2022, Beijing Xinwoda Marine Technology reported total assets of CNY 240 million, net assets of CNY 210 million, operating revenues of CNY 140 million, and a net profit of CNY 10.99 million. The transaction has been approved by the board of Maoming Petro-Chemical Shihua Co., Ltd. and is subject to shareholder approval of Maoming Petro-Chemical Shihua Co., Ltd. As of August 28, 2023, the Maoming Petro-Chemical Shihua shareholder meeting held on June 26, 2023, in which they approved the transaction.

Due to lawsuits against Beijing Xinwoda Marine Technology Co., Ltd, the transaction is impacted and the completion of the transaction is delayed. If the risk is controllable, Beijing Hongda Wanji Enterprise Management Co., Ltd. agreed to pay off all transfer payments before December 31, 2023.