Zhongnongfa Seed Industry Group Co., Ltd. (SHSE:600313) signed an agreement to acquire 52% stake in Gansu Xingda Seeds Industry Co., Ltd. from group of individual sellers for CNY 15 million on October 18, 2021. Zhongnongfa acquired 52% stake in Gansu Xingda from Chai Hongmei, Chai Yongmei, Yang Bo, Wang Lijuan, Zhao Yonghong, Xiang Jiquan, Li Zhujun, Ren Jinquan, Cao Xianting, Zhang Baobing, Zhang Yongsheng, Zhao Shaomin. Under th terms, within 5 working days from the effective date of this agreement, Zhongnongfa Seed Industry Group shall pay the first equity transfer price, namely CNY 4.2 million, to the joint account jointly opened by Zhongnongfa Seed Industry Group and Chai Hongmei. Within 5 working days after the delivery, Zhongnongfa Seed Industry will transfer the remaining equity, namely CNY 10.9 million shall be paid to a joint account jointly opened by Zhongnongfa Seed Industry and Chai Hongmei. The parties agree that the equity transfer price of this transaction will be released to sellers in three installments from the shared account. The specific arrangements are as follows: the first phase of equity transfer price is CNY 4.2 million, which will be paid by Zhongnongfa Seed Industry Group and Chai Hongmei after the delivery date within 15 days; The second phase of equity transfer price is CNY 3 million, which will be issued by Zhongnongfa Seed Industry and Chai Hongmei in the 2022 audit report, and will be self-managed within 15 days after deducting the corresponding performance compensation (if any) based on the completion of the 2021 and 2022 performance The account is released to the account designated by Chai Hongme. If the cumulative performance compensation to be deducted in 2021 and 2022 is greater than CNY 3 million, the second phase of equity transfer price will no longer be paid; the third phase of equity transfer price is after the end of the performance commitment period at the end of 2023, after deduction of uncollected debt collection and performance commitment safeguard measures (if any), all remaining funds in the joint account (including the purchase of bank funds from the joint account) Part of interest and income generated by short-term liquid products such as financial management) shall be paid by Zhongnongfa Seed Industry Group and sellers. After the completion of the acquisition, the company will hold 52% stake in Gansu Xingda, and Gansu Xingda will be the company's holding subsidiary. Gansu Xingda Seeds reported total assets as CNY 46.6 million and owner's equity as CNY 29.1 million for the period end on May 31, 2021. Gansu Xingda Seeds reported operating income as CNY 47.9 million and net profit as CNY 1.6 million for the period end on 2020. The transaction has been reviewed and approved at the twelfth meeting of the company's seventh board of directors and does not need to be submitted to the company's shareholders meeting for deliberation.