Tianjin Zhangshang Zhihui Technology Co., Ltd agreed to acquire iReader (Tianjin) Intelligent Equipment Co., Ltd. from IReader Technology Co., Ltd. (SHSE:603533) for CNY 10 million on March 5, 2019. Payment will be done in two installments of 50% of the transactional price each. The first installment will be paid within 45 days since signing of the agreement and the second installment will be paid within 90 days since completion of change of registry procedures. In a related transaction, Tianjin Zhangshang Zhihui Technology agreed to acquire 70% stake in Shenzhen iReader Technology Co., Ltd from IReader Technology for CNY 20 million on March 5, 2019. For the year ended December 31, 2018, iReader (Tianjin) Intelligent Equipment reported total assets of CNY 5.65 million, net assets of CNY 2.9 million, revenue of CNY 2.71 million and net loss of CNY 2.1 million. The transaction is subject to approval by the shareholders of IReader Technology. The transaction was approved on March 5, 2019 by the seventh meeting of the second Directorate of IReader Technology. On March 21, 2019, the shareholders of IReader Technology approved the transaction in the 1st extraordinary general shareholders’ meeting of 2019. Tianjin Zhangshang Zhihui Technology Co., Ltd cancelled the acquisition of iReader (Tianjin) Intelligent Equipment Co., Ltd. from IReader Technology Co., Ltd. (SHSE:603533) on March 5, 2020.