Beijing Hanjian Heshan Pipeline Co.,Ltd (SHSE:603616) signed a letter of intent to acquire remaining 30% in Hebei Hezhong Building Materials Co., Ltd. from Zhang Chunlin and Qiu Han for CNY 90 million on May 11, 2020. As per terms, 19.8% stake will be acquired from Zhang Chunlin and 10.2% from Qiu Han. Beijing Hanjian Heshan Pipeline Co.,Ltd signed an equity transfer agreement to acquire remaining 30% stake in Hebei Hezhong Building Materials Co., Ltd., from Zhang Chunlin and Qiu Han for CNY 81.6 million on June 10, 2020. The consideration will be paid in cash within fifteen working days after the delivery date. Post completion, Hebei Hezhong Building Materials Co., Ltd. will operate as a wholly owned subsidiary of Beijing Hanjian Heshan Pipeline Co.,Ltd. The consideration is subject to adjustments as per asset evaluation report. The consideration of this transaction will be funded from a non- public offering of CNY 400 million. For the year ended December 31, 2019, Hebei Hezhong Building Materials Co., Ltd. reported total assets of CNY 180.9 million, total liabilities of CNY 87.9 million, net assets of CNY 93 million. operating income of CNY 166.8 million and net profit of CNY 18.7 million. The Board of Directors of Beijing Hanjian Heshan Pipeline Co.,Ltd approved the deal. The transaction also requires approval from shareholders of Beijing Hanjian Heshan Pipeline Co.,Ltd. Beijing Hanjian Heshan Pipeline Co.,Ltd (SHSE:603616) completed the acquisition of the remaining 30% in Hebei Hezhong Building Materials Co., Ltd. from Zhang Chunlin and Qiu Han on August 31, 2021.