An undisclosed buyer entered into a sale and purchase agreement to acquire Hui Zhou Pacific Container Co., Ltd. from Singamas Container Holdings Limited (SEHK:716) for approximately CNY 740 million on July 3, 2018. The consideration shall be paid in cash. The consideration shall be paid as to a deposit of CNY 200 million seven days after signing the agreement, second stage payment of CNY 300 million within three days of completion of share transfer, third stage payment of CNY 200 million on completion of tax registration procedures and fourth stage payment of CNY 35 million within three days after the handover request of land pursuant to the agreement. Upon completion, Hui Zhou Pacific will cease to be a subsidiary of Singamas Container. For the year ended December 31, 2017, Hui Zhou Pacific reported revenue of CNY 2.07 billion and net profit after tax of CNY 122.77 million. The transaction is conditional upon Singamas Container having fulfilled the applicable requirements under the listing rules, including the shareholders of Singamas Container having approved the transaction. The board of directors of Singamas Container recommends the shareholders to vote in favor of the transaction at the extraordinary general meeting of the company. In the event that such conditions are not fulfilled within 90 days of the agreement, the agreement shall be terminated and the partial consideration paid by the buyer shall be returned. As on July 27, 2018, extra ordinary general meeting will be held on August 22, 2018. On August 22, 2018, the transaction was approved by the shareholders of Singamas Container Holdings Limited. Singamas Container shall use the transaction proceeds for repaying bank borrowings, building new manufacturing facilities (if any) and for general working capital purposes. Singamas Container expects to realize a gain from disposal pursuant to the transaction. An undisclosed buyer completed the acquisition of Hui Zhou Pacific Container Co., Ltd. from Singamas Container Holdings Limited (SEHK:716) in December 2018.