Beijing E-Town Semiconductor Industry Investment Centre (Limited Partnership) entered into the Equity Transfer Agreement to acquire 90% stake in Caltta Technologies Co., Ltd from ZTE Corporation (SZSE:000063) for CNY 1 billion on January 11, 2021. The equity transfer payment under the Transaction shall be settled by way of cash. The consideration is paid in installments. First instalment of 50% of the transfer payment of CNY 517.5 million will be paid, within 6 business days from the date of signing of the Equity Transfer Agreement and Second instalment of 50% of the transfer payment of CNY 517.5 million will be done on the closing date. Post completion of the Transaction, ZTE Corporation will cease to hold any equity interest in Caltta Technologies Co., Ltd. For the period ended December 2019, Caltta Technologies Co., Ltd reported Total assets of CNY 524.8 million, Net assets of CNY 258.7 million, Revenues of CNY 424.1 million, EBIT of CNY 34.5 million Net profit of CNY 34.4 million. For the period ended June 30, 2020, Caltta Technologies Co., Ltd reported Total assets of CNY 593.4 million, Net assets of CNY 279.4 million, Revenues of CNY 223.2 million, EBIT of CNY 21.1 million Net profit of CNY 20.7 million. Conditions under the Equity Transfer Agreement include, among others, the transaction documents having been duly signed become effective, the relevant statements and warranties being true, accurate and complete and not being misleading, E-Town Semiconductor having settled the first instalment of the transfer payment in accordance with the Equity Transfer Agreement, and the completion of all internal and external decision-making procedures required for the Transaction. ZTE shall procure Caltta to deliver industrial and commercial registration documents for the purposes of industrial and commercial registration no later than within 3 business days after the date on which all conditions precedent to industrial and commercial registration are fulfilled or waived in writing. The Resolution on the transfer of 90% equity interests in Caltta Technologies Co., Ltd. was considered and approved at the Thirtieth Meeting of the Eighth Session of the Board of Directors of the Company held on January 11, 2021, and the Transaction is not subject to approval at the general meeting. The Independent Non-executive Directors of the Company are of the view that the approval procedures for the Transaction have been in compliance with the provisions of laws and regulations, the transaction price is fair and reasonable, and the interests of the Company and its shareholders have not been compromised. Other shareholders of Caltta have agreed to waive their preferential right of purchase in respect of the Transaction. The closing date for the Transaction will be the date on which the second instalment of the transfer payment is made to ZTE in accordance with the agreement within 6 business days from the date on which Caltta obtains the industrial and commercial registration approval.