Changsha Yihe Axle Co., Ltd. signed an equity transfer agreement to acquire Xi'an Delisi Food Co., Ltd. from Shandong Delisi Food Co., Ltd. (SZSE:002330) for approximately CNY 130 million on August 20, 2020. Changsha Yihe Axle will pay CNY 39.9 million within 10 days after the agreement, CNY 66.4 million within 3 days after completion of the transaction and the remaining balance of CNY 26.6 million will be paid within 120 days after the completion of the transaction. Some of the assets of Xi'an Delisi are not included in the transaction. Xi'an Delisi Food reported total assets of CNY 286.2 million, net assets of CNY 198.5 million, operating income of CNY 104.3 million and net profit of CNY 9.4 million for the year ended December 31, 2019. The transaction has been approved by the Board of Directors of Shandong Delisi Food. On August 25, 2020, Shandong Delisi announced that the transaction needs to be submitted to the general meeting of the shareholders for deliberation.