Shanghai Huayi Sanaifu New Material Co., Ltd. signed the contract to acquire 65% stake in Changshu Fuzhen New Materials Co., Ltd. from China Reform Culture Holdings Co., Ltd. (SHSE:600636) for approximately CNY 200 million on November 13, 2020. Under the terms of the transaction CNY 59.484 million will be paid converted into performance deposit after the signing of this contract, and will be directly transferred to part of the price of this equity transaction after this contract takes effect and the remaining equity transaction price of CNY 138.796 million within 5 working days from the date of signing this contract. Both parties agree to transfer the transaction price within 2 working days after the Shanghai United Assets and Equity Exchange issues the property rights transaction certificate. Post completion, China Reform Culture Holdings Co., Ltd. hold no stake in Changshu Sanaifu Zhenfu New Materials Co., Ltd. As of May 31, 2020, Changshu Fuzhen New Materials Co., Ltd. has reported total assets of CNY 270.62 million, EBIT of CNY 87.0675 million, Net profit of CNY 4.5468 million and owner's equity of CNY 236.35 million. For the period ending December 31, 2019, Changshu Fuzhen New Materials Co., Ltd. has reported total assets of CNY 317.2363 million, EBIT of CNY 314.5824 million, Net profit of CNY 21.2989 million and owner's equity of CNY 231.7984 million. The transaction is subject to approval from Board of Directors and shareholders of China Reform Culture Holdings Co., Ltd. On November 23, 2020, 23rd meeting of the Ninth Board of Directors of China Reform reviewed and approved the "Proposal on the Transfer of Subsidiary Equity and Related Transactions by Public Listing", and agreed that the company will transfer 65% of the equity of Zhenfu New Materials to Sanaifu New Materials. On December 10, 2020, the transaction was approved by the China Reform Culture Holdings Co., Ltd. second extraordinary general meeting of shareholders in 2020. Shanghai Huayi Sanaifu New Material Co., Ltd. completed the acquisition of 65% stake in Changshu Fuzhen New Materials Co., Ltd. from China Reform Culture Holdings Co., Ltd. (SHSE:600636) on December 23, 2020.