Transmit Entertainment Limited (SEHK:1326) entered into the equity transfer agreement to acquire 60% stake in Wenlan (Shanghai) Cultural Communication Co., Ltd. from Chen Jie and Shanghai Aibo Culture Communication Co., Ltd. for CNY 96 million on September 10, 2019. Under the terms of transaction, Transmit Entertainment Limited will pay CNY 23.5 million to Chen Jie within 10 business days of signing the agreement, subject to the fulfillment or the waiver of the conditions precedent and completion, CNY 24.5 million shall be paid to Shanghai Aibo Culture Communication Co., Ltd. on or before March 31, 2020; and subject to the fulfillment or the waiver of the conditions precedent (as the case may be) and completion, CNY 48 million being the balance of the consideration shall be paid to Shanghai Aibo Culture Communication Co., Ltd. on or before December 31, 2020. Transmit Entertainment Limited will acquire 14.7% stake from Chen Jie and 45.3% stake from Shanghai Aibo Culture Communication Co., Ltd. The Consideration will be funded by the internal resources of Transmit Entertainment Limited and/or shareholder’s loan. Upon completion, Wenlan (Shanghai) Cultural Communication Co., Ltd. will become subsidiary of Transmit Entertainment Limited. Pursuant to the agreement, Transmit Entertainment Limited has been granted call option to purchase remaining 40% stake in Wenlan (Shanghai) Cultural Communication Co., Ltd. For the year ended December 31, 2018, Wenlan (Shanghai) Cultural Communication Co., Ltd. had revenue of CNY 6.9 million, net loss of CNY 1.5 million and net assets of CNY 6.3 million. The transaction is subject to approval from shareholders of Shanghai Aibo Culture Communication Co., Ltd., the equity transfer agreement having been duly signed and becoming effective; and other customary conditions. The transaction has been approved by the shareholders of Shanghai Aibo Culture Communication Co., Ltd. D & Partners CPA limited acted as an Certified Public Accountant to Transmit Entertainment Limited in the transaction. China Alliance Appraisal Co., Ltd acted as valuer in transaction. Transmit Entertainment Limited (SEHK:1326) cancelled the acquisition of 60% stake in Wenlan (Shanghai) Cultural Communication Co., Ltd. from Chen Jie and Shanghai Aibo Culture Communication Co., Ltd. on September 10, 2020.