SinoDaan Co., Ltd. (SZSE:300635) signed an agreement to acquire 67% stake in Guangdong Shunshui Engineering Construction Supervision Co., Ltd from group of sellers for CNY 57.6 million on January 13, 2019. Under the terms, a first guarantee of CNY 10 million will be paid within 10 days since signing of the respective agreement. The first installment will be for 40% of the consideration. The second installment will be payable if the growth rate of the Guangdong Shunshui Engineering Construction Supervision's performance is in line with the agreement on the adjustment of the transaction price, the transaction consideration shall be adjusted according to the performance actually completed in the first fiscal year (2019) of the Guangdong Shunshui Engineering Construction Supervision's performance commitment period, and the adjusted price shall be calculated. The consideration for the transaction determines the consideration for the current period. The specific payment ratio is 20% of the adjusted transaction consideration. Otherwise, the amount of 20% of the transaction consideration before the adjustment is agreed that is, the second consideration = (after audited in 2018) after deducting non-net profit*10 times) *67%*20%. The specific payment time is within 30 days from the date when the SinoDaan hires the audit institution to issue the audit report for the first fiscal year of the Guangdong Shunshui Engineering Construction Supervision's performance commitment period. The third installment will be payable if the growth rate of the Guangdong Shunshui Engineering Construction Supervision's performance is in line with the agreement on the adjustment of the transaction price, the transaction consideration shall be adjusted according to the performance actually completed in the second fiscal year (2020) of the Guangdong Shunshui Engineering Construction Supervision's performance commitment period, and the adjusted price shall be calculated. The consideration for the transaction determines the consideration for the current period. The specific payment ratio is 20% of the adjusted transaction consideration. Otherwise, the amount of 20% of the transaction consideration before the adjustment is agreed that is, the third period of consideration = (2018 audited deduction Non-post-net profit*10 times) *67%*20%. The specific payment time is within 30 days from the date when the SinoDaan hires the audit institution to issue the audit report for the second fiscal year of the Guangdong Shunshui Engineering Construction Supervision's performance commitment period. The fourth installment will be payable if the growth rate of the Guangdong Shunshui Engineering Construction Supervision's performance is in line with the agreement on the adjustment of the transaction price, the transaction consideration shall be adjusted according to the performance actually completed in the second fiscal year (2021) of the Guangdong Shunshui Engineering Construction Supervision's performance commitment period, and the adjusted price shall be calculated. The consideration for the transaction determines the consideration for the current period. The specific payment ratio is 25% of the adjusted transaction consideration. Otherwise, the amount of 25% of the transaction consideration before the adjustment is agreed the fourth period of consideration = (2018 audited deduction) Non-post-net profit*10 times) *67%*25%. The specific payment time is within 30 days from the date when the SinoDaan hires the audit institution to issue the audit report for the third fiscal year of the Guangdong Shunshui Engineering Construction Supervision's performance commitment period. Guangdong Shunshui Engineering Construction Supervision reported total assets of CNY 56.1 million and net assets of CNY 10.99 million as of September 30, 2018. The transaction has been approved by the Board of Directors of SinoDaan Co., Ltd at 4th meeting of the 3rd directorate held on January 13, 2019.