Zhejiang Tieliu Clutch Co., Ltd. (SHSE:603926) signed an agreement to acquire Hubei Tri-Ring clutch Co., Ltd. from Hangzhou Desa Industrial Group Co., Ltd. and Huangshi Cihai Enterprise Management Consulting Center (Limited Partnership) for approximately CNY 190 million on August 14, 2019. Zhejiang Tieliu Clutch Co., Ltd. (SHSE:603926) entered into an agreement to acquire Hubei Tri-Ring clutch Co., Ltd. from Hangzhou Desa Industrial Group Co., Ltd. and Huangshi Cihai Enterprise Management Consulting Center (Limited Partnership) for CNY 150 million on August 14, 2019. Payment will be done in one single installment within 15 days since signing of the agreement. Payment of CNY 150 million will be made in installments within 15 days from the effective date of transaction and rest 40% fifteen days after the issue of audit reports of 2030, 2020 and 2021. Prior to the transaction, Hangzhou Desa Industrial Group Co., Ltd. held 96.75% stake and Huangshi Cihai Enterprise Management Consulting Center (Limited Partnership) held 3.25% stake in Hubei Tri-Ring clutch Co., Ltd. In a related transaction, Zhejiang Tieliu Clutch Co., Ltd. signed an agreement to acquire Hubei Citian Intelligent Transmission Co., Ltd. from Hangzhou Desa Industrial Group Co., Ltd. for CNY 62 million. Hubei Tri-Ring clutch Co., Ltd. reported total assets of CNY 290.37 million and net liabilities of CNY 1.5 million as at December 31, 2018. Hubei Tri-Ring clutch Co., Ltd. reported operating income of CNY 329.62 million and net profit after deducting non recurrent activities of CNY 20.66 million in 2018. The Board of Directors of Zhejiang Tieliu Clutch Co., Ltd. approved the transaction on August 14, 2019. The transaction does not approval from the shareholders meeting. On August 16, 2019, Zhejiang Tieliu Clutch Co., Ltd. received an enquiry letter from Shanghai Stock Exchange regarding the transaction. Zhejiang Tieliu Clutch Co., Ltd. (SHSE:603926) completed the acquisition of Hubei Tri-Ring clutch Co., Ltd. from Hangzhou Desa Industrial Group Co., Ltd. and Huangshi Cihai Enterprise Management Consulting Center (Limited Partnership) on October 8, 2019.