Li Qingli entered into an agreement to acquire Hebei Oude Internet of Things Technology Limited from China U-Ton Holdings Limited (SEHK:6168) for CNY 82 million on November 26, 2017. In a separate transaction, Hebei Oude Internet of Things Technology Limited will acquire Shijiazhuang Qiushi Communication Facilities Co., Ltd from China U-Ton Holdings Limited. Shijiazhuang Qiushi Communication Facilities Co., Ltd will enter into a loan agreement pursuant to which Shijiazhuang Qiushi Communication Facilities Co., Ltd would agree to repay to China U-Ton Holdings Limited, the outstanding sum together with the interests accrued in accordance with the terms thereof. Hebei Oude Internet of Things Technology Limited will execute a share charge. As at June 30, 2017, the outstanding sum due from Shijiazhuang Qiushi Communication Facilities Co., Ltd to China U-Ton Holdings Limited is CNY 77 million. The net amount of the consideration payable by Li Qingli shall be equal to CNY 82 million deducting the restructuring consideration of Shijiazhuang Qiushi Communication Facilities Co., Ltd and any dividends paid to the shareholders of Shijiazhuang Qiushi Communication Facilities Co., Ltd after the date of the agreement and prior to completion in cash. Li Qingli shall arrange or procure to provide the funding to Hebei Oude Internet of Things Technology Limited to pay the amount equivalent to the Shijiazhuang Qiushi Communication Facilities Co., Ltd restructuring after deducting the amount of CNY 20 million to China U-Ton Holdings Limited on or before the completion date. Upon completion, Hebei Oude Internet of Things Technology Limited and Shijiazhuang Qiushi Communication Facilities Co., Ltd will cease to be subsidiaries of China U-Ton Holdings Limited and will be wholly owned by Li Qingli. For the year ended December 31, 2016, Hebei Oude Internet of Things Technology Limited reported net loss of CNY 55.8 million. The transaction is subject to approval of governmental or regulatory authorities or relevant bodies, approval of shareholders of Hebei Oude Internet of Things Technology Limited and China U-Ton Holdings Limited, acquisition of Shijiazhuang Qiushi Communication Facilities Co., Ltd by Hebei Oude Internet of Things Technology Limited, repayment of loan by Shijiazhuang Qiushi Communication Facilities Co., Ltd owed to HSBC, Shijiazhuang Qiushi Communication Facilities Co., Ltd and China U-Ton Holdings Limited entering into the loan agreement, Hebei Oude Internet of Things Technology Limited executing the share charge for the outstanding sum under the loan agreement and Li Qingli executing the personal guarantee for the loan. The Board of Directors of China U-Ton Holdings Limited has approved the transaction. An independent board committee comprising all the independent non-executive directors of China U-Ton Holdings Limited has been formed to consider the terms of the agreement. As of April 24, 2018, China U-Ton Holdings Limited issued circular to its shareholders along with notice of extraordinary general meeting to be held on May 10, 2018. The Board of Directors of China U-Ton Holdings Limited along with independent Baord committee and independent financial advisor recommended its shareholders to vote in favor of the transaction. As of May 10, 2018, shareholders of China U-Ton Holdings Limited has approved the transaction. The transaction is expected to complete within ten business days after the completion of the deal conditions and the long stop date is March 31, 2018. As per an update on April 19, 2018, Long stop date has been changed to September 30, 2018. China U-Ton Holdings Limited expects a gain of CNY 8.7 million from disposal and the proceeds will be used as general working capital and/or repayment of certain debts and/or potential investments and acquisitions as and when opportunities arise. Messis Capital Limited acted as independent financial advisor to independent board committee of China U-Ton Holdings Limited. Li Qingli completed the acquisition of Hebei Oude Internet of Things Technology Limited from China U-Ton Holdings Limited (SEHK:6168) on December 31, 2018. All conditions has been fulfilled.