Wang Hujuan entered into a conditional sale and purchase agreement to acquire 59.75% stake in Dayu Water Corporation Limited from Master Glory Group Limited (SEHK:275) for CNY 50 million on October 26, 2018. The consideration shall be paid as to a deposit of CNY 10 million in cash upon signing of the agreement, CNY 10 million upon completion and CNY 30 million on or before the first anniversary of completion. As per terms, Wang Hujuan shall also take over Dayu Water’s loan owed to Master Glory Group, if any. As of the date of agreement, there is no loan owed to Master Glory Group. Upon completion, Dayu Water will cease to be a subsidiary of Master Glory Group and Master Glory Group shall cease to have any interest in Dayu Water. For the year ended March 31, 2018, Dayu Water reported revenue of HKD 46.79 million (CNY 37.4 million), profit before tax of HKD 19.13 million (CNY 15.29 million), profit after tax of HKD 14.17 million (CNY 11.33 million) and net asset value of HKD 103.5 million (CNY 82.72 million). The transaction is subject to approval of shareholders of Master Glory Group and due diligence review. Completion shall take place on the twentieth business day after all conditions are fulfilled. The long stop date for the transaction is March 29, 2019. As on March 29, 2019, the long stop date for the transaction is April 30, 2019. The board of Master Glory Group intends to utilize the proceeds from the disposal for repayment of borrowings. Master Glory Group estimates to record a loss on disposal. INCU Corporate Finance Limited acted as financial advisor to Master Glory Group. Wang Hujuan cancelled the acquisition of 59.75% stake in Dayu Water Corporation Limited from Master Glory Group Limited (SEHK:275) on October 26, 2019.