Beijing Guanruitong E-Commerce Technology Co., Ltd entered into an Equity Transfer Agreement to acquire Newlink Technology (Beijing) Co., Ltd from Newlink Technology Inc. (SEHK:9600) for CNY 54.4 million on December 14, 2022. The equity transfer consideration payable by Guanruitong or Zhai Shuchun to Newlink Technology shall be CNY 13,840,727.47 to be paid in three installments within three years after the execution of the Equity Transfer Agreement, among which no less than one third of the equity purchase price of CNY 13,840,727.47, i.e. CNY 4,613,575.83, shall be paid to Newlink Technology in each year in 2023 and 2024, and the balance shall be paid in 2025. Guanruitong will succeed Newlink TechnologyÆs payment obligation of the outstanding equity purchase price under the Acquisition Agreement.

Guanruitong shall perform the payment obligation to the Future Jialian in accordance with the Acquisition Agreement in two installments, i.e. upon the fulfillment of the performance commitment in 2022 and 2023, Guanruitong shall pay CNY 10.42 million to the bank account designated by Future Jialian (the Second Installment); upon the fulfillment of the performance commitment in 2022, 2023 and 2024, Guanruitong shall pay RMB25.75 million to the bank account designated by Future Jialian (the Third Installment). As of the date of this announcement, Newlink Technology holds 100% equity interests in Jiafutong, which is the indirect wholly-owned subsidiary of Newlink Technology. On August 26, 2022, Newlink Technology entered into the Acquisition Agreement with Future Jialian, Li Hongtao, Li Ningning and Jiafutong, pursuant to which Newlink Technology has conditionally agreed to purchase and Future Jialian has conditionally agreed to sell, 100% equity interest in Jiafutong, and in this regard, Newlink Technology agreed to pay the Future Jialian the equity transfer consideration of CNY 54.37 million.

After the completion of the transaction contemplated under the Equity Transfer Agreement, Newlink Technology no longer holds any equity interest in Jiafutong, thus Newlink Technology will no longer indirectly hold any equity interest in Jiafutong. Jiafutong will cease to be a subsidiary of Newlink Technology. Jiafutong has net profit after Tax Deduction CNY0.748 million.

Newlink Technology intends to apply the proceeds from the Disposal for general working capital of the Group.