Shaoxing Keqiao District Central City Construction Investment Development Co., Ltd, Shaoxing Keqiao District Shaoxing City State-owned Assets Investment Management Co. Ltd. and Shaoxing Keqiao Water Group Co., Ltd. agreed to acquire Zhejiang China Light&Textile Financial Guarantee Co., Ltd from Zhejiang China Light&Textile Industrial City Group Co.,Ltd (SHSE:600790) for approximately CNY 160 million on November 4, 2020. Under the terms of transaction, Central City Construction will acquire 50% stake for CNY 79.9 million whereas Keqiao District State-owned and Shaoxing Keqiao Water Affairs Group will acquire 25% stake in Zhejiang China Light&Textile Financial Guarantee Co., Ltd for CNY 39.9 million each. The transaction price will be paid in installments which is 50% of consideration will be made within 10 days after signing of agreement. Within 10 days after the delivery date of the underlying equity, if Zhejiang China Light&Textile does not violate the statements and guarantees under this agreement, buyer shall pay the remaining transaction price equal to 50% of the transaction price to the bank account designated by Zhejiang China Light&Textile group. As of September 30, 2020, Zhejiang China Light&Textile Financial Guarantee Co., Ltd has total assets and net assets as CNY 168.9 million and CNY 125.4 million. For year ended December 31, 2019, Zhejiang China Light&Textile Financial Guarantee Co., Ltd reported operating income of CNY 2.58 million and net profit of CNY 4.9 million. The transaction must be approved by the State-owned Assets Management Department of Keqiao District. The independent directors of the Zhejiang China Light&Textile Industrial City Group have issued pre-approval opinions for the transaction; the audit committee of the board of directors agreed to submit it to the company’s board of directors for deliberation. Transaction has been approved and filed by the State-owned Assets Office of Keqiao District. The transaction has completed the approval procedures of the relevant state-owned assets. Shaoxing Keqiao Water Group Co., Ltd., Shaoxing Keqiao District Shaoxing City State-owned Assets Investment Management Co. Ltd. and Shaoxing Keqiao District Central City Construction Investment Development Co., Ltd completed the acquisition of Zhejiang China Light&Textile Financial Guarantee Co., Ltd from Zhejiang China Light&Textile Industrial City Group Co.,Ltd (SHSE:600790) on November 10, 2020. Zhejiang China Light&Textile Industrial City Group Co.,Ltd (SHSE:600790) has recently received the first batch of equity transfer payments.