Tianneng Battery Group Co., Ltd entered into equity transfer agreement to acquire additional 30.32% stake in Zhejiang Tianneng Energy Technology Co., Ltd from Changxing Tianhao Investment Management Partnership Enterprise for CNY 95.9 million on August 10, 2018. Under the terms, Tianneng Battery Group Co., Ltd will acquire 68.7 million shares of Zhejiang Tianneng Energy Technology Co., Ltd. The consideration is paid in cash which will be settled within three months upon completion of the change of business registration of Zhejiang Tianneng Energy Technology Co., Ltd with relevant PRC administration for industry and commerce. In related transactions, Tianneng Battery Group Co., Ltd entered into equity transfer agreement to acquire additional 5.68% stake in Zhejiang Tianneng Energy Technology Co., Ltd from Changxing Tianze Investment Management Partnership Enterprise for CNY 18 million and entered into equity transfer agreement to acquire additional 4% stake in Zhejiang Tianneng Energy Technology Co., Ltd from Changxing Tianshun Investment Management Partnership Enterprise for CNY 12.6 million respectively on August 10, 2018. The consideration will be funded by internal resources and bank financing of Tianneng Power International Limited. Upon Completion, Zhejiang Tianneng Energy Technology Co., Ltd will become an indirect wholly-owned subsidiary of the Tianneng Power International Limited. For the year ended December 31, 2017, Zhejiang Tianneng Energy Technology Co., Ltd reported net loss after taxation of CNY 54.89 million and net assets of CNY 116.1 million. The transaction is expected to be completed within five business days upon the signing of the equity transfer agreements. The transaction does not have any material impact on the financial and operation of the Tianneng Power International Limited. Tianneng Battery Group Co., Ltd. completed the acquisition of Zhejiang Tianneng Energy Technology Co., Ltd. from Changxing Tianhao Investment Management Partnership Enterprise on December 31, 2018.