Yancheng Guozhi Industrial Fund Co., Ltd. and Yancheng Demao Management Consulting Partnership (Limited Partnership) signed a share transfer agreement to acquire 51% stake in Shenzhen Hualin Electric Circuit Technology Co., Ltd. from Shenzhen Deren Electronic Co., Ltd. (SZSE:002055) and Deren Electronic (Hong Kong) Co., Limited for approximately CNY 190 million on December 2, 2020. As per the terms of the agreement, Yancheng Demao Management Consulting Partnership (Limited Partnership) will acquire 3% stake in Shenzhen Hualin Electric Circuit Technology from Shenzhen Deren Electronic for CNY 10.7 million and Yancheng Guozhi Industrial Fund Co., Ltd. will acquire 31.19% stake and 17.81% stake in Shenzhen Hualin Electric Circuit Technology from Shenzhen Deren Electronic and Deren Electronic (Hong Kong) Co., Limited respectively for CNY 175 million. Post deal completion, Shenzhen Deren Electronic Co., Ltd. will retain a 48% stake in Shenzhen Hualin Electric Circuit Technology. In September 30, 2020, Shenzhen Hualin Electric Circuit Technology reported a total assets of CNY 503 million, total common equity of CNY 180 million, total revenues of CNY 237 million and net income of CNY 3.9 million. The transaction was approved by the Board of Directors of Shenzhen Deren Electronic Co., Ltd.