Linzhou Heavy Machinery Group Co., Ltd. (SZSE:002535) signed a share transfer agreement to acquire an 40.45% stake in Chengdu Tianke Precision Manufacturing Co. Ltd. from Beijing IRTOUCH Systems Co., Ltd. (SZSE:300282) for CNY 45 million on December 2, 2017. In related transaction, Linzhou Heavy Machinery Group Co., Ltd. signed a share transfer agreement to acquire 5.6% stake in Chengdu Tianke Precision Manufacturing Co. Ltd. from Liu Family (referring to Liu Ya, Liu Chunyan, Liu Lan, Liu Yong, Cao Xia) for CNY 7 million and Linzhou Heavy Machinery Group will carry out a capital increase of CNY25 million in Chengdu Tianke, of which, CNY2.1 million will be added as registered capital, the remaining CNY 22.9 million will be added as capital reserve on December 2, 2017. Post share transfer, Beijing IRTOUCH Systems Co., Ltd. will no longer hold any stake in Chengdu Tianke Precision Manufacturing Co. Ltd and Linzhou Heavy Machinery Group will own 55.04% stake in Chengdu Tianke Precision Manufacturing.

As of December 31, 2016, Chengdu Tianke Precision Manufacturing Co. Ltd. had total assets of CNY 90.4 million, net assets of CNY 56.7 million, revenue of CNY 34.8 million and net profit of CNY 9.1 million. The deal is subject to the approval from Board of Directors and Shareholders of Linzhou Heavy Machinery Group Co., Ltd. This transaction falls within the approval jurisdiction of Beijing IRTOUCH Systems Co., Ltd.'s Chairman of the Board and does not need to be submitted to the Board of Directors and shareholders of Beijing IRTOUCH Systems Co., Ltd. for review and approval. On December 11, 2017, the Board of Directors of Linzhou Heavy Machinery Group Co., Ltd. approved the deal. On December 27, 2017, the shareholders of Linzhou Heavy Machinery Group Co., Ltd. approved the deal.

Linzhou Heavy Machinery Group Co., Ltd. (SZSE:002535) completed the acquisition of 40.45% stake in Chengdu Tianke Precision Manufacturing Co. Ltd. from Beijing IRTOUCH Systems Co., Ltd. (SZSE:300282) on January 20, 2018.