Shizuishan Zhengxingcheng New Material Technology Partnership Enterprise (Limited Partnership) agreed to acquire 10% stake in Ningxia Hengli Biological New Material Co., Ltd. from Ningxia Xinri Hengli Steel Wire Rope Co.,Ltd (SHSE:600165) on September 24, 2020. The investment obligation for the corresponding stake has not yet been fulfilled, thus the corresponding investment amount to the 10% stake of CNY 100 million will be fulfilled by Shizuishan Zhengxingcheng New Material Technology Partnership Enterprise. For the year ended December 31, 2019, Ningxia Hengli Biological New Material Co., Ltd. reported total assets of CNY 929.8 million, net assets of CNY 895.2 million, revenues of CNY 123.6 million and net loss of CNY 2.2 million. On September 24, 2020, the Board of Directors of Ningxia Xinri Hengli Steel Wire Rope Co., Ltd. approved the deal. The transaction requires further approval from shareholders of Ningxia Xinri Hengli Steel Wire Rope. The transaction was approved by shareholders of Ningxia Xinri Hengli Steel Wire Rope on October 13, 2020.

Shizuishan Zhengxingcheng New Material Technology Partnership Enterprise (Limited Partnership) cancelled the acquisition of 10% stake in Ningxia Hengli Biological New Material Co., Ltd. from Ningxia Xinri Hengli Steel Wire Rope Co.,Ltd (SHSE:600165) on January 17, 2022.