China Crystal New Material Holdings Co.,Ltd. (KOSDAQ:A900250) agreed to acquire 85% of stake in Henan Lingbao New Material Technology Co., Ltd. from Fu Zhonghua and 4 other people for KRW 48.5 billion on March 9, 2022. In return, Fu Zhonghua and 4 other people will acquire 24,060,413 new shares of China Crystal New Material. After the takeover of Henan Lingbao New Material, the ownership structure of LingBao Pearlescent Technology Group Limited is 85% of our company and 15% of Fu Zhonghua.

Henan Lingbao New Material has a total assets of KRW 12320.9 million, net assets of KRW 7176.8 million, sale of KRW of 17749.7 million and net income of KRW 5438.2 million in 2021. The transaction is expected to close on April 8, 2022.