Shanghai Shiguo Logistics Co., Ltd. agreed to acquire 15% stake in Hangzhou Leyin Warehousing Co., Ltd. from Nanjing Inform Storage Equipment (Group) Co., Ltd. (SHSE:603066) for CNY 40.9 million on December 25, 2020. Under the terms of transaction, Shanghai Shiguo shall deposit CNY 6.27 million in co managed account as deposit for completing the transaction within 20 working days from signing of agreement and within 20 working days after the delivery date, Shanghai Shiguo shall deposit the equity amount into the co managed account. As an incentive measure to prompt Shanghai Shiguo to complete the equity transfer, Nanjing Inform Storage paid CNY 1.9 million as a guarantee of income to deal with the lease incentives and the loss of the property vacant within 12 months from the date of Shanghai Shiguo's performance of the equity agreement. The profit margin paid by Nanjing Inform Storage is offset from the transaction amount as part of the settlement amount calculation. Upon completion, Shanghai Shiguo Logistics will not hold any stake in Hangzhou Leyin. For the year ended December 31, 2019, Hangzhou Leyin Warehousing Co., Ltd. Reported revenue of CNY 0, total assets of CNY 290.8 million, net loss of CNY 0.78 million and net assets of CNY 139.8 million. The transaction matters are within the authority of the Board of Directors, without the approval of Nanjing Inform Storage's shareholders meeting. The transaction has been approved by the Board of Nanjing Inform Storage. After completion of the transaction, Shanghai Shiguo Logistics is expected to increase the total profit before tax by CNY 24.7 million.