Sinowin Holding (H.K.) Limited entered into a memorandum of understanding to acquire Great Triumph Investments Limited from Texhong Textile Group Limited (SEHK:2678) for CNY 810 million on September 27, 2021. Sinowin Holding (H.K.) Limited entered into framework agreement to acquire Great Triumph Investments Limited from Texhong Textile Group Limited (SEHK:2678) for CNY 810 million on November 5, 2021. As per the transaction, Sinowin Holding (H.K.) Limited will pay CNY 130 million for equity interest, CNY 68.6 million as dividend payable and CNY 610 million for assignment of the loan. The transaction includes the acquisition of subsidiaries of the target and the loan due by the Target Group to the Group. As per the financials reported for the profit after tax of the Target Group attributable to the Group for the year ended 31 December 2020 was around CNY 73 million respectively. As on September 30, 2021, Great Triumph Investments Limited generated net assets of CNY 101 million. It was agreed under the MOU that the total consideration for the Sale Shares and 40% of the consideration for the Sale Loan shall be payable upon completion of the Proposed Disposal and the remaining consideration for the Sale Loan shall be payable by instalments with accrued interest of 5% per annum, and the last instalment shall fall on the third anniversary of the completion of the Proposed Disposal. The sale proceeds of the Disposal will be used for the expansion of production capacity of the Group in areas close to customers so as to respond to customers? needs in a more effective and prompt manner.