Guangsha Real Estate Development Group Co., Ltd. agreed to acquire 100% stake in Zhejiang Guangsha Dongjin Investment Co., Ltd. and 51% stake in Zhejiang Yongzhu Industrial Co., Ltd. from Zhejiang Guangsha Co., Ltd. (SHSE:600052) for CNY 1.1 billion on February 26, 2016. Guangsha Real Estate Development Group Co., Ltd. signed an agreement to acquire 100% stake in Zhejiang Guangsha Dongjin Investment Co., Ltd. and 51% stake in Zhejiang Yongzhu Industrial Co., Ltd. from Zhejiang Guangsha Co., Ltd. on February 29, 2016. Zhejiang Guangsha Dongjin Investment reported total assets of CNY 119.91 million, total owner's equity of CNY 80.31 million, revenue of CNY 4.9 million, operating loss of CNY 2.26 million and net loss of CNY 2.31 million as of December 31, 2015. Zhejiang Yongzhu Industrial reported total assets of CNY 1.77 billion, total owner's equity of CNY 1.04 billion, operating loss of CNY 1.71 million and net loss of CNY 1.71 million as of December 31, 2015.

The deal is subject to approval by the shareholder of Zhejiang Guangsha. The Board of Directors of Guangsha Real Estate Development Group approved the transaction on February 26, 2016. The shareholder of Guangsha Real Estate Development Group namely Guangsha Holding Group Co., Ltd. approved the transaction on February 26, 2016. The Board of Directors of Zhejiang Guangsha approved the transaction on February 29, 2016. On April 15, 2016, The transaction has been approved by the Board of Directors of Zhejiang Guangsha Co., Ltd. As of May 4, 2016, the transaction was approved by shareholders of Zhejiang Guangsha. On May 6, 2016, Guangsha Real Estate Development Group Co. paid the first transfer payment of CNY 610.43 million by way of creditor's rights Citi Orient Securities Co., Ltd. acted as financial advisor, Beijing Dacheng (Hangzhou) Law Offices acted as the legal advisor and Pan-China Certified Public Accountants acted as the accountant for Zhejiang Guangsha.