Zhongji Innolight Co., Ltd. (SZSE:300308) signed a share transfer framework agreement to acquire 56.0044% stake in CHENGDU TSUHAN SCIENCE&TECHNOLOGY CO.,LTD from 29 sellers for an enterprise value of approximately CNY 570 million on February 14, 2020. Zhongji Innolight Co., Ltd. signed a share transfer agreement to acquire 67.19% stake in CHENGDU TSUHAN SCIENCE&TECHNOLOGY CO.,LTD from Wang Yong, Wang Yatao and 81 other shareholders for approximately CNY 380 million on April 24, 2020. The pricing of the acquisition is tentatively set based on the overall valuation of the entire equity of CHENGDU TSUHAN SCIENCE&TECHNOLOGY CO.,LTD of CNY 571.5 million (specific details will be based on the formal transaction document agreement). The consideration shall all be paid in cash. Under the new terms, the sellers will first transfer 8,041,875 shares of CHENGDU TSUHAN and the second delivery constitute on the transfer 24,125,625 shares of CHENGDU TSUHAN. Within 3 months after the framework agreement takes effect, if the parties fail to sign a formal transaction document for said acquisition, unless the parties agree otherwise to extend the framework agreement’s validity, the framework agreement shall be deemed automatically terminated from the expiration of the aforementioned period; in the event of termination, the parties shall not bear any obligation of compensation or liability for breach of contract.