Tianjin Hongjieda Mould Development Co., Ltd. agreed to acquire a 51% stake in Tianjin Jinrong Zhonghe Electromechanical Co., Ltd. from TianJin JinRong TianYu Precision Machinery Inc. (SZSE:300988) for CNY 9.7 million on November 25, 2021. Prior to completion, Tianjin Jinrong Zhonghe Electromechanical is held 49% by Liu Baodong and 51% by TianJin JinRong TianYu Precision Machinery. Upon completion, TianJin JinRong TianYu Precision Machinery will no longer hold the equity of Tianjin Jinrong Zhonghe Electromechanical. The total assets and net assets of Tianjin Jinrong Zhonghe Electromechanical were CNY 16.02 million and CNY 13.81 million, respectively, as of September 30, 2021. The transaction was approved by the board of directors of TianJin JinRong TianYu Precision Machinery and does not need to be submitted to the shareholders meeting for deliberation. The proceeds will be used to supplement the TianJin JinRong TianYu Precision Machinery’s liquidity and support the business development. This transaction will help optimize the TianJin JinRong TianYu Precision Machinery's resource allocation, further development of the main business, in line with the actual operation and future development needs and expected to increase the current profit by approximately CNY 4.73 million. The transfer will not damage the interests of listed companies and shareholders, especially small and medium shareholders.