Shanghai Qiangsheng Holding Co., Ltd. (SHSE:600662) signed the letter of intent to acquire Shanghai Foreign Service (Group) Co., Ltd. from Shanghai Donghao Industry (Group) Co., Ltd. on April 26, 2020. Shanghai Qiangsheng Holding Co., Ltd. (SHSE:600662) agreed to acquire Shanghai Foreign Service (Group) Co., Ltd. from Shanghai Donghao Industry (Group) Co., Ltd. on May 13, 2020. As of September 28, 2020, Shanghai Qiangsheng Holding Co., Ltd. entered into Supplement Agreement to acquire Shanghai Foreign Service (Group) Co., Ltd. from Shanghai Donghao Industry (Group) Co., Ltd. for CNY 7.1 billion. Shanghai Qiangsheng will acquire Shanghai Foreign Service by way of asset exchange and share issuance. As of June 1, 2020, Shanghai Qiangsheng Holding Co., Ltd will use all its assets and liabilities to exchange them for a 100% stake in Shanghai Foreign Service as held by Shanghai Donghao Industry (Group) Co., Ltd. On August 26, 2021, Shanghai Qiangsheng Holding Co., Ltd. and Shanghai Donghao Industry (Group) Co., Ltd and Shanghai Foreign Service Co., Ltd. signed the "Confirmation for the Placement of Assets Delivery". The difference in price between the exchanged assets (see above) will be paid by issuing shares with an issuance price of CNY 3.46 each. As of the signing date of this plan, the audit and evaluation of the underlying assets have not been completed, and the audited financial data, evaluation results and related number of shares of the underlying assets have not yet been finalized. The shares will have a lock up period of 36 months since issuance date. As of September 28, 2020, Shanghai Foreign Service (Group) Co., Ltd.’s 100% stake is priced at CNY 6,808,000,000, and the difference between that and the Company’s assets and liabilities is CNY 3,057,167,416.18, which the Company will settle by issuing 893,908,602 shares at CNY 3.46 per share. Shanghai Qiangsheng Holding will raise supporting funds of not more than CNY 960 million by issuing not more than 316,008,657 shares at CNY 3.04 per share to Shanghai Donghao Industry (Group) Co., Ltd. For the year ending December 31, 2019, Shanghai Foreign Service reported, total assets of CNY 10.7 billion, total revenue of CNY 149.4 billion, net profit of CNY 501.33 million and owner’s equity of CNY 1.9 billion. Donghao Lansheng (Group) Co.,Ltd and Shanghai Donghao Industry (Group) Co., Ltd need to perform internal decision review procedures and agree to the formal plan for the reorganization, the results of the state-owned assets assessment involved in this reorganization needs to be approved by the Shanghai SASAC, Shanghai State-owned Assets Supervision and Administration Commission needs to approve the free transfer of shares of listed companies, Shanghai Qiangsheng Holding Co., Ltd. needs to hold a board of directors meeting to review and approve the formal plan for the reorganization and related proposals, Shanghai SASAC needs to officially approve the reorganization plan, Shanghai Qiangsheng Holding Co., Ltd. needs to hold a general meeting of shareholders to review and approve the formal plan and relevant proposals for the reorganization and China Securities Regulatory Commission needs to approve this major asset reorganization. Donghao Lansheng (Group) Co.,Ltd and Shanghai Donghao Industry (Group) Co., Ltd. have performed the internal decision review process and reviewed and passed the restructuring plan and related proposals, the pre-feasibility study report of the reorganization was filed with Shanghai SASAC and Shanghai Qiangsheng Holding Co., Ltd. held the thirty-first meeting of the ninth session of the Board of Directors and reviewed and approved the reorganization plan and related proposals. On September 25, 2020, Shanghai Donghao Industry (Group) Co., Ltd.’s internal decision-making authorities approved the agreement. On September 28, 2020, the Company held the 3rd Meeting of the 10th Directorate, and approved the Supplement Agreement. As of April 27, 2021, transaction is subject to regulatory approval. As of April 28, 2021, transaction is approved by the Securities Regulator's. Guotai Junan Securities Co., Ltd. acted as financial advisor to Shanghai Qiangsheng Holding Co., Ltd. King & Wood Mallesons acted as legal advisor and Baker Tilly China Certified Public Accountants acted as accountant to Shanghai Qiangsheng Holding. Shanghai Qiangsheng Holding Co., Ltd. (SHSE:600662) completed the acquisition of Shanghai Foreign Service (Group) Co., Ltd. from Shanghai Donghao Industry (Group) Co., Ltd. on September 3, 2021. As of September 7, 2021, According to the "Material Asset Reorganization Agreement" and the "Supplementary Agreement to the Major Asset Reorganization Agreement", calculated based on the issue price of CNY 3.42 per share, and the difference between the proposed assets and the proposed assets transaction price of CNY 3,057.1674 million, Shanghai Qiangsheng Holding issued to Shanghai Donghao Industry (Group) Co., Ltd. 893,908,602 shares.