Zhejiang East Crystal Electronic Co.,Ltd. (SZSE:002199) signed the agreement to acquire Hero Entertainment Co., Ltd. from the shareholders on May 23, 2019. Zhejiang East Crystal Electronic Co.,Ltd. will use all its assets and business in exchange for the stake and will issue shares for the difference in the amount between the price of the 100% stake in Hero Entertainment Co., Ltd. and the value of the exchanged assets. Zhejiang East Crystal Electronic Co.,Ltd. will be the absorbing party while Hero Entertainment Co., Ltd. will be the absorbed entity. After the transaction, Hero Entertainment Co., Ltd. will be dissolved. Zhejiang East Crystal Electronic Co.,Ltd. (or its wholly-owned subsidiary) will take over Hero Entertainment Co., Ltd.’s all assets, liabilities, businesses, personnel, contracts, qualifications, and all other rights and obligations. All shareholders of Hero Entertainment Co., Ltd. will become the shareholders of Zhejiang East Crystal Electronic Co.,Ltd. The transaction is subject to secondary directorate approval by the Board of Directors of Zhejiang East Crystal Electronic Co.,Ltd. and Hero Entertainment Co., Ltd., approval of shareholders of Zhejiang East Crystal Electronic Co.,Ltd. and Hero Entertainment Co., Ltd., approval from China Securities Regulatory Commission and other necessary approvals/filing record procedures as mandated by relevant laws and regulations. The transaction has been approved by the Directorate of Zhejiang East Crystal Electronic Co.,Ltd. and Hero Entertainment Co., Ltd. and supervisory directorate of Zhejiang East Crystal Electronic Co.,Ltd. on May 23, 2019. Zhejiang East Crystal Electronic Co.,Ltd. (SZSE:002199) cancelled the acquisition of Hero Entertainment Co., Ltd. from the shareholders on May 23, 2020.