Beijing Meihao Investment Management Co., Ltd. signed a framework agreement to acquire Zhejiang Techain Electronics Technology Co., Ltd. from Gome Telecom Equipment Co., Ltd. (SHSE:600898) for CNY 500 million on April 22, 2020. Under the terms, Beijing Meihao Investment Management will acquire 100% stake in Zhejiang Techain in cash. Beijing Meihao Investment Management Co., Ltd. signed a Share Transfer Agreement to acquire Zhejiang Techain Electronics Technology Co., Ltd. from Gome Telecom Equipment Co., Ltd. on June 17, 2020. Before the closing of this transaction, the target company shall divest 100% of Jiaxing Jingmei Electronic Technology Co., Ltd. and Huizhou Deken Electronic Technology Co., Ltd. The specific method is that Gome Telecom Equipment acquires 100% equity of Jiaxing Jingmei Electronic Technology Co., Ltd. and 100% equity of Huizhou Deken Electronic Technology Co., Ltd. held by the target company. For the year ended December 31, 20219, Zhejiang Techain Electronics Technology Co., Ltd. reported total assets of CNY 1.3 billion, total common equity of CNY 55.1 million, total revenues of CNY 624.5 million and negative net income of CNY 313.7 million. The specific transaction plan and related transaction terms are signed by the parties are subject to the formal agreement. The transaction still needs to be approved by the shareholders' meeting of the listed company. The transaction plan has been reviewed and approved by the 29th meeting of the 10th Board of Directors of the company. As of August 10, 2020, the transaction was approved by the shareholders' meeting of Gome Telecom Equipment Co., Ltd. All the necessary approvals and authorizations have been obtained for the transaction. Zhang Youjun of CITIC Securities Company Limited acted as financial advisor while Zhao Yang of Jingtian & Gongcheng acted as legal advisor to Gome Telecom Equipment Co., Ltd. Liang Chun of Wuyige Certified Public Accountants LLP acted as accountant to Gome Telecom Equipment Co., Ltd. Beijing Meihao Investment Management Co., Ltd. completed the acquisition of Zhejiang Techain Electronics Technology Co., Ltd. from Gome Telecom Equipment Co., Ltd. (SHSE:600898) on August 10, 2020. As of August 10, 2020, Beijing Meihao Investment Management Co., Ltd. has paid Gome Telecom Equipment Co., Ltd the first equity transfer installment of CNY 255 million for 51% stake in Zhejiang Techain Electronics Technology. Beijing Meihao Investment Management Co., Ltd. will pay for the remaining 49% of the equity transfer price to Gome Telecom Equipment Co., Ltd. within three months from the settlement date of the transaction.