Lu Haiyan and Han Lisheng entered into an agreement to acquire 70% stake in Inner Mongolia Shengda Guangcai Metal Material Co., Ltd. from Shengda Resources Co.,Ltd. (SZSE:000603) for CNY 8 million on May 11, 2021. The consideration of CNY 8 million will be paid within five working days from the date of signing of agreement, Lu Haiyan shall pay 60% of the equity transfer payment that is approximately CNY 4.7 million; within three working days after the completion of the industrial and commercial change registration of the equity transfer Inland, Lu Haiyan shall pay the remaining 40% of the equity transfer payment, and Han Lisheng shall pay the entire equity transfer payment of CNY 0.1 million. Through this transaction, Lu Haiyan will increase their shareholding from 30% to 99% and Han Lisheng will hold 1%. As at April 30, 2021, Inner Mongolia Shengda Guangcai Metal Material Co., Ltd. had total assets of approximately CNY 160 million, and net assets of CNY 11.4 million. For the year 2020, Inner Mongolia Shengda Guangcai Metal Material Co., Ltd. had revenues of CNY 560 million and net profit of approximately CNY 0.5 million. The transaction has been approved by the Board of Directors of Shengda Resources Co.,Ltd. on May 11, 2021.