Tianjin Benefo Tejing Electric Co.,Ltd. (SHSE:600468) signed a conditional transfer agreement and the asset transfer agreement to acquire 86.74% stake in Liaoning Rongxin Xingye Electric Power Technology Co., Ltd. from Montnets Rongxin Technology Group Co.,Ltd (SZSE:002123) for approximately CNY 500 million on November 4, 2019. The consideration will be paid in three periods where the first period will be the next day after Liaoning Rongxin Xingye completes the registration of industrial and commercial changes in this transaction, Tianjin Benefo shall pay in a payment ratio of 51% of the consideration which is approximately CNY 253 million. The second payment will be 24.5% of the consideration which is approximately CNY 121 million to be paid within ten working days after the completion of the 2020 annual audit by Liaoning Rongxin Xingye and the third payment ratio is 24.5% of the consideration which is approximately CNY121 million to be paid within ten working days after the completion of the 2021 annual audit by Liaoning Rongxin Xingye.

For the year ended December 31, 2018, Liaoning Rongxin Xingye had total assets of CNY 520 million, net assets of CNY 202 million, EBIT of CNY 398 million and net income of CNY 592 million. The transaction is subject to the approval of the shareholders of Montnets Rongxin Technology. On November 4, 2019, the twelfth meeting of the seventh Board of Directors and the independent directors of Montnets Rongxin Technology issued independent opinions of consent. As on November 27, 2019, the transaction was approved by the shareholders of Tianjin Benefo Tejing Electric Co.,Ltd. at 2nd extraordinary general shareholder's meeting of 2019.