Yue Yuen Industrial (Holdings) Limited (SEHK:551) entered into the equity transfer agreement to acquire Huaibin Yue-shen Sporting Goods., Ltd and Zhong Xiang Yue-Shen Sporting Goods Co., Ltd. from Pou Sheng International (Holdings) Ltd. (SEHK:3813) for CNY 31.6 million in cash on December 16, 2013. The consideration is subject to adjustments by reference to the net asset value. If such net asset value is larger than the consideration, Yue Yuen Industrial shall pay the amount of such difference to Pou Sheng International, and vice versa. The consideration (as adjusted where applicable) will be paid within five business days after delivery of the completion accounts, which is expected to be delivered around one month from completion of the equity transfer.

Huaibin Yue-shen Sporting Goods reported unaudited net asset value of CNY 14.67 million as at November 30, 2013, audited net profit before taxation of CNY 2.51 million and audited net profit after taxation of CNY 1.88 million for the year ended December 31, 2012. Zhong Xiang Yue-Shen reported unaudited net asset value of CNY 18.73 million as at November 30, 2013, audited net loss before taxation of CNY 2.94 million and audited net loss after taxation of CNY 2.94 million for the year ended December 31, 2012. The transaction is expected to close by January 1, 2014.

Yue Yuen Industrial (Holdings) Limited (SEHK:551) completed the acquisition of Huaibin Yue-shen Sporting Goods., Ltd and Zhong Xiang Yue-Shen Sporting Goods Co., Ltd. from Pou Sheng International (Holdings) Ltd. (SEHK:3813) on January 1, 2014.