Zhejiang Youpon Integrated Ceiling Co. Ltd. (SZSE:002718) signed the stake transfer agreement to acquire additional 20% stake in Zhejiang Youxuan Electric Appliance Co., Ltd from Li Ruishan for CNY 0 on November 10, 2017. After the completion of transaction, Zhejiang Youpon Integrated Ceiling will fulfill the CNY 2 million contribution obligation and subscribe for Zhejiang Youxuan Electric Appliance Co., Ltd.’s additional share capital of 12.9 million shares for CNY 27.3 million with subscription price per share is CNY 2.1268 and Zhejiang Youpon Integrated Ceiling and Li Ruishan will hold 65% and 35% stake respectively in Zhejiang Youxuan Electric Appliance. After completion, Zhejiang Youxuan Electric Appliance Co., Ltd. will form the board of directors comprising of 3 members, existing shareholder will appoint 1 director and the investor shall appoint 2 directors. For the year ended December 31, 2016, Zhejiang Youxuan Electric Appliance Co., Ltd reported total assets of CNY 5.6 million, net assets of CNY 1.7 million, revenue of CNY 13.5 million, operating profit of CNY 0.43 million and net profit of CNY 0.48 million. The transaction is not subject to the approval of directorate and shareholders’ meeting of Zhejiang Youpon Integrated Ceiling Co. Ltd.