Tsaker Chemical Group Limited (SEHK:1986) signed a memorandum of understanding to acquire 75% stake in Ynnovate Sanzheng (Yingkou) Fine Chemicals Co., Ltd. from Liu Zhixun for approximately CNY 570 million on February 10, 2017. The consideration comprises cash of CNY 280 million and CNY 287 million in shares. For the year ended December 31, 2016, Ynnovate Sanzheng (Yingkou) Fine Chemicals Co., Ltd. reported net profit of CNY 80.1 million. The deal is subject to approval from shareholders of Tsaker Chemical Group Limited and the approval of listing committee of stock exchange. Tsaker Chemical Group Limited and its professional advisers will be entitled to conduct due diligence investigation on Ynnovate Sanzheng (Yingkou) Fine Chemicals Co., Ltd. Tsaker Chemical Group Limited (SEHK:1986) cancelled the acquisition of 75% stake in Ynnovate Sanzheng (Yingkou) Fine Chemicals Co., Ltd. from Liu Zhixun on July 21, 2017. The Board considers that the terms of the termination agreement are on normal commercial terms and are fair and reasonable and the agreement is in the interests of Tsaker Chemical and the shareholders as a whole.