Ningbo Yuyao Huasheng Cloud City Smart City Operation Technology Co., Ltd entered into a framework agreement to acquire a 12.55% stake in Lootom Telcovideo Network (wuxi) Co., Ltd. (SZSE:300555) from Yongxin Zehong Enterprise Management Co., Ltd. and Jia Qing for approximately CNY 430 million on February 8, 2021. Ningbo Yuyao Huasheng Cloud City Smart City Operation Technology Co., Ltd signed share purchase agreement to acquire 12.55% stake in Lootom Telcovideo Network (wuxi) Co., Ltd. (SZSE:300555) from Yongxin Zehong Enterprise Management Co., Ltd. and Jia Qing on May 6, 2021. Under the terms, Ningbo Yuyao Huasheng Cloud City Smart City Operation Technology Co., Ltd will pay CNY 17.26 per share. On February 8, 2021, Ningbo Yuyao Huasheng Cloud City Smart City Operation Technology Co., Ltd paid CNY 20 million as a deposit. Within five working days after all the conditions are fulfilled, Ningbo Yuyao Huasheng Cloud City Smart City Operation Technology Co., Ltd shall make a supplementary payment of CNY 67.7 million. Ningbo Yuyao Huasheng Cloud City Smart City Operation Technology Co., Ltd shall pay the second installment of CNY 146.2 million to the supervised account one day before the transfer of all the Lootom Telcovideo Network (wuxi) Co., Ltd. shares. Ningbo Yuyao Huasheng Cloud City Smart City Operation Technology Co., Ltd shall pay third installment of CNY 58.5 million to the account designated by Party B within three working days after all the following conditions are fulfilled. Yongxin Zehong will transfer 20,917,750 shares and Jia Qing will transfer 4,183,533 shares to Ningbo Yuyao Huasheng. Post completion, the controlling shareholder of Lootom Telcovideo Network (wuxi) Co., Ltd. will be changed to Ningbo Yuyao Huasheng Cloud City Smart City Operation Technology Co., Ltd., Yongxin Zehong will not hold any stake and Jia Qing will hold 6.28% stake in Lootom Telcovideo Network. Ningbo Yuyao Huasheng Cloud City Smart City Operation Technology has paid a deposit of CNY 20 million to the supervisory account. Within five working days after the relevant conditions are fulfilled, the buyer should make a supplementary payment of CNY 67.7 million to the supervisory account, and the originally paid deposit will be automatically converted into a part of the transfer price. The buyer shall pay CNY 146.2 million to the supervisory account one day before the transfer of all the underlying shares; Buyer should pay CNY 5.8 million within three working days after the relevant conditions are fulfilled. The remaining CNY 140.8 million shall be paid in three installments by April 15, 2023. This transaction is subject to signing of formal agreement. The transaction is subjected to approval from Board of Directors and the shareholders of Lootom Telcovideo Network (wuxi) Co., Ltd. Ningbo Yuyao Huasheng Cloud City Smart City Operation Technology Co., Ltd completed the acquisition of 12.55% stake in Lootom Telcovideo Network (wuxi) Co., Ltd. (SZSE:300555) from Yongxin Zehong Enterprise Management Co., Ltd. and Jia Qing on July 21, 2021.