Shenzhen Kecai Printing Co., Ltd. signed a framework agreement to acquire Shenzhen Jinshengcai Packaging Materials Co., Ltd. from Shanghai Shunho New Materials Technology Co.,Ltd. (SZSE:002565) for CNY 130 million on June 29, 2018. Shenzhen Kecai Printing Co., Ltd. and Shanghai Shunho New Materials Technology Co.,Ltd. agreed that the final payment method and payment terms are to be stipulated when the final formal equity transfer agreement will be signed but, a first payment of 30% of the transaction price is to be paid within 5 working days after the signing of the equity transfer agreement. The payment shall be made in stages according to relevant national regulations and relevant requirements of listed companies. On July 13, 2018, an agreement was signed. Shenzhen Jinshengcai Packaging Materials Co., Ltd. had total assets of CNY 127.59 million and net assets of CNY 65.65 million as at December 31, 2017. For the year ended December 31, 2017, Shenzhen Jinshengcai Packaging Materials Co., Ltd. reported operating revenues of CNY 241.37 million, operating profit of CNY 31.04 million and net profit of CNY 23.18 million. The transaction is subject to due diligence investigation by Shenzhen Kecai Printing Co., Ltd. and the acquisition having been duly registered with the industrial and commercial administration authorities of the PRC. The transaction is subject to approval of shareholders of Shanghai Shunho New Materials Technology Co.,Ltd. The transaction was approved by the Board of Directors of Shanghai Shunho New Materials Technology Co., Ltd. on June 29, 2018 and July 13, 2018. The supervisory board of Shanghai Shunho New Materials Technology Co.,Ltd. approved the transaction on July 13, 2018. Shenzhen Kecai Printing Co., Ltd. completed the acquisition of Shenzhen Jinshengcai Packaging Materials Co., Ltd. from Shanghai Shunho New Materials Technology Co.,Ltd. (SZSE:002565) on July 13, 2018.