Lu Xinzhong entered into an agreement to acquire Beijing Dilong Culture Co., Ltd. from Zhejiang Juli Culture Development Co.,Ltd. (SZSE:002247) for CNY 1 on May 18, 2020. As on December 31, 2019, Beijing Dilong Culture Co., Ltd. reported total assets of CNY 496.32 million, negative net assets of CNY 457.62 million, revenue of CNY 1.11 billion, operating loss of CNY 1.45 billion and net loss of CNY 1.52 billion. The transaction is subject to approval of Zhejiang Juli Culture Development Co.,Ltd.'s shareholders. The 38th meeting of the 5th Board of Directors of Zhejiang Juli Culture Development Co.,Ltd. held on May 18, 2020 has reviewed and approved the transaction. As on June 17, 2020, Zhejiang Juli Culture Development Co.,Ltd. shareholders gave approval for the transaction. Lu Xinzhong completed the acquisition of Beijing Dilong Culture Co., Ltd. from Zhejiang Juli Culture Development Co.,Ltd. (SZSE:002247) on October 21, 2020.