Glory Flame Holdings Limited (SEHK:8059) entered into a non-legally binding memorandum of understanding to acquire 51% stake in Inner Mongolia Xinghui energy-saving integrated housing Manufacturing Co., Ltd. from Erdos City Xinghui Ceramics Co., Ltd on January 15, 2018. Glory Flame Holdings Limited will acquire 51% or above equity interest of Inner Mongolia Xinghui energy-saving integrated housing Manufacturing Co., Ltd. by way of capital increment; equity subscription and/or acquisition of equity interest from Erdos City Xinghui Ceramics Co., Ltd. The total consideration payable for the acquisition will be subject to further negotiation and will be finalized in the formal agreement. Under the agreement, Erdos City Xinghui Ceramics Co., Ltd and Inner Mongolia Xinghui energy-saving integrated housing Manufacturing Co., Ltd. shall not negotiate or agree with any other party relating to the possible acquisition or any possible disposal of any equity interest or assets or do anything which is inconsistent with the possible acquisition for a period of 6 months from the date of the agreement or such later date as agreed. The memorandum of understanding shall be terminated upon 7 days after expiry of the 6 month period, the entering into of the formal agreement or the conditions precedent of the agreement cannot be fulfilled (or be waived) before June 30, 2018 (unless otherwise extended), whichever is earlier. Glory Flame Holdings Limited is entitled to carry out due diligence review of Inner Mongolia Xinghui energy-saving integrated housing Manufacturing Co., Ltd. pursuant to the terms and conditions of the memorandum of understanding. The transaction is subject to subject to negotiation and execution of formal agreement.