Zhejiang Xinan Chemical Industrial Group Co.,Ltd (SHSE:600596) signed a letter of intent to acquire Zhejiang Transfar Whyyon Chemical Co., Ltd. from Transfar Zhilian Co., Ltd. (SZSE:002010) on April 17, 2020. As on July 8, 2020, the agreement is signed to acquire 100% stake for approximately CNY 822 million. The consideration will be paid in cash of CNY 115.2 million and by issuing 83.2 million stock of Zhejiang Xinan Chemical Industrial Group Co.,Ltd at CNY 7.90 per share. A 70% of the consideration will be paid in shares. Lock up period will be 36 months from issuance date. At the same time, Zhejiang Xinan Chemical Industrial intends to raise supporting funds not more than CNY 320 million from the non-public offering of shares targeting no more than 35 specific investors. For the year ending December 31, 2019, total asset, net asset, revenue, operating profit and net profit of Zhejiang Transfar Whyyon Chemical Co., Ltd. was approximately CNY 522 million, approximately CNY 183.7 million, approximately CNY 1 billion, approximately CNY 91.2 million and approximately CNY 81.4 million respectively. This transaction is subject to approval of Board of Directors of Zhejiang Xinan Chemical Industrial Group after the completion of the audit and evaluation work involved in the transaction, approval of shareholders of Zhejiang Xinan Chemical Industrial Group and approval of The China Securities Regulatory Commission. On April 28, 2020, the 33rd meeting of the 9th Board of Directors of Zhejiang Xinan Chemical Industrial Group reviewed and approved this transaction. The second meeting of the Tenth Supervisory Committee of Zhejiang Xin'an Chemical Group Co., Ltd. was held on July 8, 2020. The meeting approved the proposal on Zhejiang Xinan Chemical Industrial's issuance of shares and payment of cash to purchase assets. As of July 25, 2020 shareholders of Zhejiang Xinan Chemical Industrial Group Co.,Ltd approved the acquisition. As of November 2, 2020, The transaction has been approved by the China Securities Regulatory Commission and by the shareholders of Zhejiang Transfar Whyyon Chemical Co., Ltd. The transaction has also been reviewed and approved by the internal decision-making body of Zhejiang Transfar Chemicals Group Co., Ltd. CITIC Securities Co., Ltd. acted as independent financial advisor, Zhejiang Z&J Law Firm acted as legal advisor and Pan-China Certified Public Accountants acted as accountant to Zhejiang Xinan Chemical Industrial Group Co.,Ltd.

Zhejiang Xinan Chemical Industrial Group Co.,Ltd (SHSE:600596) completed the acquisition of Zhejiang Transfar Whyyon Chemical Co., Ltd. from Transfar Zhilian Co., Ltd. (SZSE:002010) on November 10, 2020.