Xiao Li signed an agreement to acquire 60% stake in Shanghai Xunshan Information Technology Limited from Global Link Communications Holdings Limited (SEHK:8060) for HKD 24.5 million on July 27, 2020. Under the terms of the transaction, Xiao Li will pay HKD 12.548 million by way of cash and HKD 12 million by way of cancellation and offsetting Shanghai Xunshan Information Technology payment obligation under the Promissory Note. On March 31, 2020, Shanghai Xunshan Information Technology reported Turnover of HKD 13.335 million, profit before taxation of HKD 3.261 million and profit after taxation of HKD 2.9 million. The transaction is subject to customary closing conditions, including obtaining written shareholders’ approval in respect of the disposal, approval from board and all the necessary waivers, consents and approvals required to be obtained on the part of the Global Link Communications in respect of the Agreement and the transactions contemplated there under having been obtained. The Directors (including the independent non-executive Directors) have unanimously approved the Disposal Agreement and the transactions contemplated there under. As on August 14, 2020, the board of Global Link Communications recommended the transaction to the shareholders. The long stop date is October 16, 2020. Upon Completion, the net proceeds generated there from will be applied to potential investments and/or general working capital of Global Link Communications Holdings and shall thereby strengthen the cash flow of the Company. Xiao Li completed the acquisition of additional 60% majority stake in Shanghai Xunshan Information Technology Limited from Global Link Communications Holdings Limited (SEHK:8060) on August 18, 2020. All the conditions precedent under the Disposal Agreement have been fulfilled.