Modern Land (China) Co., Limited (SEHK:1107) and Xi’an De’ou Development Co., Ltd. (buyers) signed an agreement to acquire 90% stake in Xi’an Junhua Development Co., Ltd. from Guangzhou Haoning Trading Co., Ltd. for approximately CNY 510 million on December 27, 2019. Within 3 business days after the execution of the agreement, the buyers shall pay CNY 40 million to Guangzhou Haoning Trading Co., Ltd. as the deposit. Within 3 business days upon the repayment of the loan owed by Guangzhou Haoning Trading Co., Ltd., the cancellation of mortgage registration of the land parcels owned by in Xi’an Junhua Development Co., Ltd. and the discharge of the pledge of 90% equity interest of in Xi’an Junhua Development Co., Ltd., a lump sum of CNY 472.75 million shall be paid by the buyers into the bank account jointly set up by the buyers and Guangzhou Haoning Trading Co., Ltd., in the name of buyers. This amount will be settled in 3 installments. Upon fulfillment of certain conditions, CNY 386.75 million will be released as the first installment to the bank account jointly set up by the buyers and Guangzhou Haoning Trading Co., Ltd. in the name of Guangzhou Haoning Trading Co., Ltd., CNY 76 million shall be released within 2 days upon 2 months after the execution of the agreement, or approval obtained from the relevant authorities in relation to the site planning, whichever is earlier and CNY 10 million as the third installment after the fulfillment of certain conditions. In a related transaction, the buyers signed an agreement to acquire 10% stake in Xi’an Junhua Development Co., Ltd. from Cedar Industrial Group Co., Ltd. for CNY 73.25 million. The consideration for the acquisition will be funded partly by internal resources of Modern Land (China) Co., Limited and partly by financing from bank(s) and/or financial institution(s). Upon completion, Xi’an Junhua Development Co., Ltd. will become a subsidiary of Xi’an Modern Green Joy Development Co., Ltd. For the year ended December 31, 2018, Guangzhou Haoning Trading Co., Ltd. reported loss after tax of CNY 1.3 million. Modern Land (China) Co., Limited (SEHK:1107) and Xi’an De’ou Development Co., Ltd. (buyers) cancelled the acquisition of 90% stake in Xi’an Junhua Development Co., Ltd. from Guangzhou Haoning Trading Co., Ltd. on December 27, 2020.