Wuhan Huashang Shidai Group Co. Ltd entered into a e Equity Transfer Agreement to acquire Zall Development (Tianjin) Co., Ltd from Zall Smart Commerce Group Ltd. (SEHK:2098) for CNY 1 billion on December 30, 2022. Under the terms of transaction, The consideration shall be settled in full by the Purchaser to the bank account designated by the Vendor within 30 days upon execution of the Equity Transfer Agreement.

the Vendor and the Purchaser having completed the handover of the management of Target Company, including the common seal, constitutional documents, assets and financial related document. Should any party be in breach of the Equity Transfer Agreement, the defaulting party shall pay the non-defaulting party a penalty of CNY 50.0 million. Upon Completion, the Group will no longer have any interest in the Disposal Group and the Disposal Group will cease to be subsidiaries of the Group.

The audited consolidated net asset value of the Target Company as at September 30, 2022 was approximately CNY 1,205.0 million. It is expected that the net proceeds from the Disposal will be used in approximately 95% for repayment of debts; and (ii) approximately 5% for general working capital.