Star Lake Bioscience Co., Inc.Zhaoqing Guangdong (SHSE:600866), FSPG Hi-Tech CO., Ltd. (SZSE:000973) and Xingfa Aluminium Holdings Limited (SEHK:98) (buyers) signed an agreement to acquire 10% stake in Guangdong Guangxin Innovation Research Institute Co., Ltd. from Guangdong Guangxin Holdings Group Ltd. for CNY 33.5 million on November 16, 2021. Under the terms of the transaction, buyers will acquire 3.33% stake each in Guangdong Guangxin Innovation Research Institute for CNY 11.2 million each. Within 5 working days after the agreement comes into effect, the buyers shall pay the equity transfer consideration in one lump sum to Guangdong Guangxin Holdings. 15 days after the agreement takes effect and the buyers pays the full transaction price, Guangdong Guangxin Innovation Research Institute Co., Ltd. will handle the delivery procedures of the underlying assets within the day. After the completion of the transaction, Star Lake Bioscience Co., Inc.Zhaoqing Guangdong will hold 3.33% stake each of Guangxin Research Institute. Star Lake Bioscience Co., Inc.Zhaoqing Guangdong will fund the transaction through its own funds.

Guangdong Guangxin Innovation Research Institute Co., Ltd. reported total assets of CNY 334. 8 million and owner's equity of CNY 326.7 million as at July 31, 2021. The agreement shall take effect once agreement is established and it is approved by the decision-making authority of the parties. On November 16, 2021, the audit committee and Board of Directors of Star Lake Bioscience Co., Inc.Zhaoqing Guangdong unanimously approved the transaction. The transaction will have a positive effect on Star Lake Bioscience Co., Inc.Zhaoqing Guangdong. Guangdong Caixing Asset Appraisal Land and Real Estate Appraisal Co., Ltd acted as the appraiser.