Ningxia Xinri Hengli Steel Wire Rope Co., Ltd (SHSE:600165) entered into an agreement to acquire 10% stake in Ningxia Hengli Biological New Material Co., Ltd. from Shizuishan Zhengxingcheng New Material Technology Partnership Enterprise (Limited Partnership) for CNY 106 million on June 16, 2022. As of March 31, 2022, Total Assets were of CNY 2.2 billion and Net Assets were of CNY 76.9 million. This has been approved in the 23rd Meeting of the Company's 8th Directorate held on June 15, 2022, and is subject to the Shareholders' Approval.

On July 1, 2022, shareholders of Ningxia Xinri Hengli Steel Wire Rope Co., Ltd. has approved the transaction. Ningxia Zhongke Biotechnology Co., Ltd. failed to pay the remaining equity transfer to Shizuishan Zhengxingcheng New Material Technology and signed the Supplementary Agreement on September 26, 2022, and agreed to pay the remaining payment before October 31, 2022.