Fujian Star-net Communication Co., LTD. (SZSE:002396) signed a transfer agreement to acquire remaining 45% stake in Fujian Star-net Smart Technology Co., Ltd. from Fujian Yuanhetong Investment Partnership (Limited Partnership) for approximately CNY 490 million on July 28, 2020. Within ten working days after the entry into force of this agreement, Fujian Star-net Communication shall pay Fujian Yuanhetong Investment Partnership the first transfer payment of 50% of the total transaction amount, which is CNY 243 million. Within ten working days after Fujian Star-net Smart Technology completes the equity transfer (subject to the completion of the industrial and commercial registration procedures for Fujian Star-net Smart Technology's shareholders and equity changes), Fujian Star-net Communication will pay Fujian Yuanhetong Investment Partnership the second transfer payment equal to 50% of the total transaction amount, which is CNY 243 million. Pre deal, Fujian Star-net Communication held 55% stake and post completion, it will hold 100% stake in Fujian Star-net Smart Technology. For the year ending December 31, 2019, Fujian Star-net Smart Technology reported total assets of CNY 445.4 million, net assets of CNY 144.3 million, operating income of CNY 742.4 million and net profit of CNY 65.9 million. This transaction is within the authority of Fujian Star-net Communication's Board of Directors and does not need to be submitted to its shareholders for review. The transaction has been reviewed and approved at the 24th meeting of the Fujian Star-net Communication's fifth Board of Directors.