Poly Culture Group Corporation Limited (SEHK:3636) entered into an equity purchase agreement to acquire 15% stake in Zhengzhou Poly Yong He Real Estate Development Co., Ltd. from Poly Culture Industrial Fund for approximately CNY 120 million on June 1, 2018. As of December 31, 2017, Zhengzhou Poly Yong reported total assets of CNY 1.5 billion, net assets of CNY 686.7 million, profit after income tax of CNY 12.3 million. The transaction is subject to approval from the relevant government authorities (if necessary) and all the other shareholders of Zhengzhou Poly Real Estate have waived their pre-emptive rights.