Zhongzhi New Energy Automobile Co., Ltd. agreed to acquire Chengdu Laintem Motors Control Technology Co., Ltd., Hefei Carnot Automotive Air Conditioning Co., Ltd., NEW POWER ELECTRIC (JINGZHOU) CO ., LTD and 51% stake in Zhejiang Yundi Electric Technology Co., Ltd. from Zhe Jiang Kangsheng Co.,Ltd. (SZSE:002418) for approximately CNY 180 million on December 11, 2019. Zhongzhi New Energy or a third party designated by it will pay Zhe Jiang Kangsheng Co.,Ltd. 100% equity consideration of Chengdu Laintem at CNY 20 million, a 100% equity consideration of NEW POWER JINGZHOU at CNY 110 million, a 100% equity consideration of Hefei Carnot at CNY 49 million and CNY 1 for the 51% equity consideration of Zhejiang Yundi. Zhongzhi New Energy shall pay 20% transfer price of Chengdu Laintem, NEW POWER JINGZHOU and Hefei Carnot, i.e. CNY 35.8 million within 15 days after the agreement takes effective; within six months from the date on which the business registration of the equity has changed, Zhongzhi New Energy shall pay the rest of the transfer amount, i.e. CNY 143.2 million. Within 15 days after the agreement takes effective, Zhongzhi New Energy shall pay CNY 1 for the transfer price of Zhejiang Yundi. As of December 31, 2018, the total assets of the four companies to be sold above is CNY 609.16 million, the total revenue is CNY 75.56 million, total net assets is CNY 281.90 million. The proposal has been approved at the 6th meeting of the 5th directorate of the Zhe Jiang Kangsheng Co.,Ltd. on December 11, 2019, and still need the approval of the shareholders’ meeting. Zhongzhi New Energy Automobile Co., Ltd. completed the acquisition of Chengdu Laintem Motors Control Technology Co., Ltd., Hefei Carnot Automotive Air Conditioning Co., Ltd., NEW POWER ELECTRIC (JINGZHOU) CO ., LTD and 51% stake in Zhejiang Yundi Electric Technology Co., Ltd. from Zhe Jiang Kangsheng Co.,Ltd. (SZSE:002418) on June 23, 2020.