Yu Yao Shi JiaCheng Corporate Management and Consultancy Co., Ltd. entered into an equity transfer agreement to acquire 5% stake in Zhejiang GBS Energy Co., Ltd. from Hybrid Kinetic Group Limited (SEHK:1188) for CNY 17.2 million on July 16, 2018. The consideration will be paid in cash within three months after the date of completion of the agreement. In a related transaction, Xizang HuaGuan Equity Investments Centre (Limited Partnership) entered into an equity transfer agreement to acquire 10% stake in Zhejiang GBS Energy Co., Ltd. from Hybrid Kinetic Group Limited for CNY 35.4 million. In another related transaction, Zhuhai Abax Asset Management Centre (Limited Partnership) entered into an equity transfer agreement to acquire 10% stake in Zhejiang GBS Energy Co., Ltd. from Ningbo Meilide Consulting Co., Ltd for CNY 35.4 million. Zhejiang GBS Energy Co., Ltd. reported total revenue of CNY 128.07 million, profit before taxation of CNY 11.57 million, profit after taxation of CNY 9.04 million and net asset value of CNY 114.05 million for the year ended December 31, 2017. The transaction is subject to approvals required under the agreement having been obtained by each party and Zhejiang GBS and the due compliance by the Hybrid Kinetic Group Limited of all applicable legal and regulatory requirements (including but not limited to those under the listing rules) in respect of the transaction. A special general meeting shall be held on September 13, 2018 for the approval of shareholders of Hybrid Kinetic. As of August 24, 2018, the board of directors of Hybrid Kinetic recommend the shareholders to vote in favor of the transaction. On September 13, 2018, shareholders of Hybrid Kinetic Group Limited approved the transaction. The expected closing date is September 30, 2018. The net proceeds from the transaction is intended to be used for the development and expansion of the Hybrid Kinetic Group Limited's high-tech electric motor vehicles business including but not limited to for promotion of the Hybrid Kinetic Group Limited's new energy vehicles such as participating in major international car shows, for legal and professional fees and related expenses for the development of subsidiaries or branch offices in the PRC upon gaining financial support from the local governments for the construction of clean energy vehicle production bases and the remaining for research and development and related costs for the Hybrid Kinetic Group Limited’s high-tech electric motor vehicles business. Hybrid Kinetic Group expects to recognize a gain from the disposal. ZHONGHUI ANDA CPA LIMITED acted as accountants for Hybrid Kinetic. As of June 30, 2019, a combine consideration of CNY 82.5 million was paid. The remaining balance of CNY 2.1 million was yet to be paid due to pending tax clearance from the local authorities. Yu Yao Shi JiaCheng Corporate Management and Consultancy Co., Ltd. cancelled the acquisition of 5% stake in Zhejiang GBS Energy Co., Ltd. from Hybrid Kinetic Group Limited (SEHK:1188) on February 29, 2020