Hunan Yifang Technology Development Co., Ltd. agreed to acquire 70.66% stake in Changsha Water Pump Factory Co., Ltd. from Xiangtan Electric Manufacturing Co. Ltd. (SHSE:600416) for CNY 1 on August 23, 2019. Hunan Yifang Technology Development Co., Ltd. signed the agreement to acquire 70.66% stake in Changsha Water Pump Factory Co., Ltd. from Xiangtan Electric Manufacturing Co. Ltd. on August 27, 2019. Hunan Yifang Technology Development Co., Ltd. has paid CNY 0.1 million as guarantee. Xiangtan Electric Manufacturing Co. Ltd. will return remaining guarantee amount after deducting CNY 1 and CNY 2000 of transaction fees. Consideration shall be payable within five business days since signing of the agreement. Hunan Yifang Technology Development Co., Ltd. completed the acquisition of 70.66% stake in Changsha Water Pump Factory Co., Ltd. from Xiangtan Electric Manufacturing Co. Ltd. (SHSE:600416) on September 24, 2019. Changsha Water Pump Factory Co., Ltd. will be no longer included in the scope of Xiangtan Electric Manufacturing Co. Ltd.'s consolidated statements.