Yunnan Yuntianhua Co., Ltd. (SHSE:600096) signed an agreement to acquire 93.9% in Yunnan Dawei Ammonia Co., Ltd. from Yunnan Coal Chemical Group Co., Ltd. for approximately CNY 940 million on July 15, 2020. The consideration comprises CNY 525.3 million for equity and balance CNY 412.7 million to pay-off the debt of Yunnan Dawei Ammonia Co., Ltd. against Yunnan Coal Chemical Group Co., Ltd. As per terms, 20% if the consideration will be paid within 10 days of the agreement, within 5 working days after the entry into force of this agreement 40% will be paid and balance will be paid within 5 working days after closing. For the year ended December 31, 2019, Yunnan Dawei Ammonia Co., Ltd. reported total assets of CNY 1.9 billion, revenues of CNY 1.9 billion, net income of CNY 61.2 million and net liabilities of CNY 1.3 billion. The transfer of this agreement must be approved by the Yunnan Provincial State-owned Assets Supervision and Administration Commission and the shareholders of Yunnan Yuntianhua Co., Ltd. The Board of Directors of Yunnan Yuntianhua Co., Ltd. approved the transaction.