Milkyway Chemical Supply Chain Service Co., Ltd. signed an agreement to acquire Shanghai Scattered Dangerous Goods Chemical Logistics Co., Ltd. from Shanghai Material Trading Co., Ltd. on September 22, 2021. As per the terms of the transaction, Milkyway Chemical Supply Chain Service paid a deposit of CNY 13.8 million which will be converted into part of the transaction price after the signing of this contract and the remaining CNY 185 million to be paid within 5 working days from the date of signing this contract. Total consideration includes, CNY 108.0428 million for the transfer price of 100% equity of Shanghai Scattered Dangerous Goods Chemical Logistics and CNY 90.9572 million for the transfer price of creditor's rights.

If Milkyway Chemical Supply Chain Service Co., Ltd. pays the price overdue, it shall pay Shanghai Material Trading Co., Ltd. a liquidated damages at 0.5% of the part of the overdue payment for every day overdue. Meanwhile, if Shanghai Material Trading Co., Ltd. fails to cooperate with Milkyway Chemical Supply Chain Service Co., Ltd. to complete the registration procedures for the change of ownership of the subject matter transaction within the time limit, Milkyway Chemical Supply Chain Service Co., Ltd. shall pay a liquidated damage at 0.5% of the transaction price for each day overdue. The transaction is subject to the approval of relevant authorities and was also approved by the Board of Directors of Shanghai Material Trading Co., Ltd.