Ningbo General Bearing Co., Ltd entered into equity transfer agreement to acquire an additional 40% stake in Shanghai General Bearing Co., Ltd from Shanghai Prime Machinery Company Limited (SEHK:2345) for CNY 75 million on November 27, 2018. The consideration is paid in cash which will be payable in full within five business days from the effective date of the equity transfer agreement. Pre acquisition, Ningbo General Bearing and Shanghai Prime Machinery holds 20% and 40% stake respectively in Shanghai General Bearing. For the year ended December 31, 2017, Shanghai General Bearing reported revenue of CNY 519.8 million and net profit after taxation of CNY 82.5 million. The net proceeds from the transaction intend to apply as general working capital of the Shanghai Prime Machinery and its subsidiaries. Shanghai Cai Rui Assets Evaluation Co., Ltd acted as valuer for Shanghai General Bearing. Ningbo General Bearing Co., Ltd completed the acquisition of an additional 40% stake in Shanghai General Bearing Co., Ltd from Shanghai Prime Machinery Company Limited (SEHK:2345) during the year ended December 31, 2018.