Sichuan Tianhua Co., Ltd. agreed to acquire Sichuan Hongxin Technology Co., Ltd. from Sichuan Lutianhua Company Limited (SZSE:000912) for CNY 100 million on December 7, 2020. As per terms of transaction, consideration, deposit that Sichuan Tianhua Co., Ltd.has paid to the Southwest United Assets and Equity Exchange is CNY 3 million, and after this contract takes effect and deducts related fees, namely, the transaction service fee of CNY 0.35 million, the remaining deposit of CNY 2.65 million will directly be converted as partial price of this property rights transaction and the remaining property rights transaction price of CNY 97.35 million in a One-time payment to the bank account designated by the Southwest United Assets and Equity Exchange. Transaction need to be review by the Board of Directors. Transaction is approved by the Board of Sichuan Lutianhua Company Limited. For the year ended December 31, 2019, Sichuan Hongxin reported total assets of CNY 20.4 million, net asset of CNY 19.05 million, Revenues of CNY 2.34 million, net profit of CNY 0.1 million.