Guangdong Senssun Weighing Apparatus Group Ltd. (SZSE:002870) agreed to acquire a 51% stake in Ningbo Joyson Qunying Automotive Systems Co., Ltd. from Ningbo Joyson Electronic Corp. (SHSE:600699) for CNY 2 billion on November 24, 2020. The transaction consideration will be paid in cash. As per the supplemental agreement signed on December 15, 2020, Guangdong Senssun shall pay a transaction deposit of CNY 50 million to the transferor within 3 working days after the signing of the agreement, CNY 1.2 billion for the first phase of share transfer shall be paid, within 3 working days after the prerequisites in the agreement are met and the underlying assets are delivered, remaining CNY 840 million shall be paid within 10 days after the annual report announcement of the performance commitment period, depending on the performance of the Ningbo Joyson Qunying Automotive Systems Co., Ltd. as if net profit for the first year of the performance is greater than or equal to CNY 190 million, Guangdong Senssun shall pay CNY 200 million, if accumulated net profit for the second year of the performance is greater than or equal to CNY 510 million, Guangdong Senssun shall pay CNY 300 million and if three-year cumulative net profit is greater than or equal to 100% of the committed net profit, which is CNY 900 million, Guangdong Senssun shall pay remaining all the remaining share transfer payment. Ningbo Joyson Qunying reported total assets of CNY 3.9 billion and net assets of CNY 1.4 billion in the year ending on September 30, 2020.

The deal was approved by the Board of Directors of Ningbo Joyson Electronic Corp but is still subject to the approval of its shareholders. As on November 26, 2020, the Board of Guangdong Senssun Weighing Apparatus approved the transaction and the transaction is still subject to approval from Guangdong Senssun Weighing Apparatus's shareholders. On December 15, 2020, the supplementary agreement has been reviewed and approved at the sixth meeting of Ningbo Joyson Electronic Corp. tenth Board of directors and will take effect after general meeting of shareholders has reviewed and approved it. On December 31, 2020, the transaction was approved by the shareholders of Ningbo Joyson Electronic Corp. at the third extraordinary shareholders meeting. Yongxing Securities Co., Ltd. acted as financial advisor, Grandall Law Firm Shanghai acted as legal advisor and KPMG Huazhen Certified Public Accountants acted as accountant for Guangdong Senssun Weighing Apparatus.