Zhejiang Zhengyuan Zhihui Technology Co.,Ltd. (SZSE:300645) agreed to acquire 99.77% stake in Zhejiang Neptune Technology Co., Ltd. from a group of shareholders for approximately CNY 350 million on July 20, 2020. Under the terms, Zhejiang Zhengyuan Zhihui Technology Co.,Ltd. will issue 9,455,078 shares to Jia Limin, 5,661,507 shares to Hu Shunli, 1,405,704 shares to Ru Hangli, 224,074 shares to Xu Lihui, 2,108,557 shares to Hangzhou Zhaosheng Investment Management Partnership Enterprise (Limited Partnreship), 910,806 shares to Hangzhou Xinni Investment Management Partnership Enterprise (Limited Partnership) and 111,231 shares to Hangzhou Zhilan Investment Partnership Enterprise (Limited Partnership). Zhejiang Zhengyuan Zhihui Technology will issue shares to Chen Jian to raise supporting funds to pay for this transaction’s related fees of not more than CNY180 million. The transaction was approved by the 18th session of the Zhejiang Zhengyuan Zhihui Technology's 3rd directorate. The transaction is subject to the approval of Zhejiang Zhengyuan Zhihui Technology's shareholders and approval of Shenzhen Stock Exchange and CSRC. Huaan. On September 21, 2020, the transaction is approved by Board of Directors of Zhejiang Zhengyuan Zhihui Technology Co.,Ltd. The sellers already approved the transaction. Dong Feng, Li Chuang, Wang Yang, Zhang Hongtao and Xuan Rong of Huaan Securities Co., Ltd. (SHSE:600909) acted as financial advisor for Zhejiang Zhengyuan Zhihui Technology Co.,Ltd. Wang Li, Wu Lianming and Liu Xiuhua of Beijing DHH Law Firm acted as legal advisors for Zhejiang Zhengyuan Zhihui Technology Co.,Ltd. Lu Suyang, Pan Jingjing, Luo Heng of Pan-China Certified Public Accountants LLP acted as accountants for Zhejiang Zhengyuan Zhihui Technology Co.,Ltd. Yu Huakai, Wang Chuanjun, Zhou Min and Hu Haiping of Kunyuan Assets Appraisal Co., Ltd. acted as asset evaluation agency for Zhejiang Zhengyuan Zhihui Technology Co.,Ltd. Zhejiang Zhengyuan Zhihui Technology Co.,Ltd. (SZSE:300645) cancelled the acquisition of 99.77% stake in Zhejiang Neptune Technology Co., Ltd. from a group of shareholders on January 4, 2021. The termination was approved at 23rd meeting of the third board of directors of Zhejiang Zhengyuan Zhihui. The transaction has been cancelled as, Zhejiang Zhengyuan Zhihui Technology Co.,Ltd and related parties have actively promoted related work. In view of the changes in the market environment, in order to effectively protect the interests of investors, the listed Zhejiang Zhengyuan Zhihui Technology Co.,Ltd decided to terminate the transaction after careful study and friendly negotiation with all relevant parties. The termination of this transaction will not have a significant adverse impact on the Zhejiang Zhengyuan Zhihui Technology Co.,Ltd. existing production and operation activities and strategic development, and there is no situation that harms the Zhejiang Zhengyuan Zhihui Technology Co.,Ltd. and the interests of small and medium shareholders.