Shanghai Hongzi Enterprise Development Co., Ltd. signed a share transfer agreement to acquire 28.2% stake in Jiangsu Hongda New Material Co., Ltd. (SZSE:002211) from Jiangsu Weilun Investment Management Co., Ltd. for approximately CNY 980 million on October 31, 2018. As per the terms, Shanghai Hongzi Enterprise will acquire 122.1 million shares at a price of CNY 8 per share. There are still 60 million shares in the present transfer that are under pledge and the parties have already made relevant agreements in regards to that issue. Before acquisition, Shanghai Hongzi Enterprise Development does not hold shares in Jiangsu Hongda and post-acquisition, Shanghai Hongzi Enterprise will hold 122.1 million shares representing 28.2% stake. On October 31, 2018, Shanghai Hongzi Enterprise Development Co., Ltd. convened a shareholders’ meeting and adopted a resolution approving for Shanghai Hongzi Enterprise Development Co., Ltd. to acquire 28.2% stake in Jiangsu Hongda. Shanghai Hongzi Enterprise Development Co., Ltd. completed the acquisition of 28.2% stake in Jiangsu Hongda New Material Co., Ltd. (SZSE:002211) from Jiangsu Weilun Investment Management Co., Ltd. on January 4, 2019.