Chen Jiarong entered into a sale and purchase agreement to acquire Huaxiang (China) Premium Fibre Co., Ltd. from China Gaoxian Fibre Fabric Holdings Ltd. (SGX:AZZ) for approximately CNY 200 million on August 21, 2018. Under the terms of the deal, Chen Jiarong will pay cash of CNY 10 million and assume Huaxiang (China) Premium Fibre Co., Ltd.'s loans of CNY 193.95 million. As of December 31, 2017, Huaxiang (China) Premium Fibre Co., Ltd. reported net liability value of CNY 968.97 million and total assets of CNY 2.13 billion. Huaxiang (China) Premium Fibre Co., Ltd. reported net loss of CNY 145.76 million in 2017. The deal is subject to approval of shareholders of China Gaoxian Fibre Fabric Holdings Ltd., intercompany loan waiver within the subsidiaries of China Gaoxian Fibre Fabric Holdings Ltd. and other conditions. As of January 23, 2019, the circular, together with a notice of the extraordinary general meeting to be convened, to seek shareholders’ approval is pending review by SGX-ST, so a supplemental agreement was entered to extend the long stop date for the fulfillment or waiver of the conditions precedent relating to the transaction to April 1, 2019. China Gaoxian Fibre Fabric Holdings Ltd. intends to use the proceeds for expansion and development of its remaining business and general working capital purposes. The disposal will improve the future operational and financial performance of China Gaoxian Fibre Fabric Holdings Ltd. Nexia TS Advisory Pte. Ltd. acted as independent valuer to China Gaoxian Fibre Fabric Holdings Ltd. Chen Jiarong cancelled the acquisition of Huaxiang (China) Premium Fibre Co., Ltd. from China Gaoxian Fibre Fabric Holdings Ltd. (SGX:AZZ) on May 8, 2019. China Gaoxian Fibre Fabric wishes to announce that the conditions precedent, in particular the shareholder approval of China Gaoxian Fibre Fabric Holdings, for the transaction have not been fulfilled or waived being obtained by April 1, 2019 and no further extension of time was agreed to by the parties to the agreement as amended by the supplemental agreement. Accordingly, the agreement as amended by the supplemental agreement has lapsed and will cease to have further effect. The termination of the agreement is expected to have a material impact on China Gaoxian Fibre Fabric Holdings consolidated financial statements for the financial year ended December 31, 2018 and December 31, 2019.