Huai'an Traffic Holding Co.,Ltd signed a share purchase agreement to acquire 13.3% stake in Zhejiang Xiantong Rubber&Plastic Co.,Ltd (SHSE:603239) from Li Qifu, Jin Guiyun and Shao Xuejun for approximately CNY 610 million on July 23, 2021. Under the terms, Huai'an Traffic Holding will purchase 36 million shares at a purchase price of CNY 17 per share. Within ten (10) working days after this agreement takes effect Huai'an Traffic will pay CNY 612 million to the joint account, and at the same time pay the share transfer price from the joint account to the account designated 40% of the agreement, or CNY 244.8 million.

Within ten (10) working days after the agreement is reviewed and confirmed by the Shanghai Stock Exchange Huai'an Traffic will pay 40% of the share transfer price, which is CNY 244.8 million and within ten (10) working days after all parties complete the registration procedures for the transfer of shares, Huai'an Traffic will pay remaining 20% of the share transfer price, or CNY 122.4 million.