Jinan Hi-tech Holding Group Co., Ltd. signed a letter of intent to acquire a 5% stake in Jiangsu Yulong Steel Pipe Co., Ltd. from Hainan Hou'ai Technology Co., Ltd. on May 7, 2021. Jinan Hi-tech Holding Group Co., Ltd. signed share transfer agreement to acquire a 5% stake in Jiangsu Yulong Steel Pipe Co., Ltd. from Hainan Hou'ai Technology Co., Ltd. for approximately CNY 650 million on July 23, 2021. As per terms, Hainan Hou'ai Technology Co., Ltd. will transfer 39.15 million to Jinan Hi-tech Holding Group Co., Ltd. at CNY 16.7 per share. Jinan Hi-tech Holding Group Co., Ltd. completed the acquisition of 5% stake in Jiangsu Yulong Steel Pipe Co., Ltd. from Hainan Hou'ai Technology Co., Ltd. on October 8, 2021. After the completion of the share transfer and registration, Jinan Hi-tech Holding Group Co., Ltd held a total of 227.07 million shares of the Jiangsu Yulong Steel Pipe Co., Ltd., accounting for 29.00% of the total share capital of the Jiangsu Yulong Steel Pipe Co., Ltd. and became the largest shareholder of the Jiangsu Yulong Steel Pipe Co., Ltd. Hainan Hou'ai Technology Co., Ltd still holds 164.471858 million shares of the Jiangsu Yulong Steel Pipe Co., Ltd., accounting for 21.00% of the total share capital of the Jiangsu Yulong Steel Pipe Co., Ltd., becoming the second largest shareholder of the Jiangsu Yulong Steel Pipe Co., Ltd.