Li Yugong entered into an agreement to acquire 10.42% stake in Shandong Hongyu Agricultural Machinery Co., Ltd. (SZSE:002890)from Yantai Tongqi Investment Center (Limited Partnership) for approximately CNY 140 million on December 25, 2019. Pursuant to the terms of agreement, Li Yugong will acquire 6.95 million shares at a price of CNY 20.7 per share. Li Yugong will pay 20% consideration within 20 working days after the stock exchange has approved the share transfer and issued a share transfer confirmation letter. Within 20 working days after Yantai Tongqi transferred 6.95 million underlying shares to Li Yugong stock account through the securities registration and settlement company, Li Yugong will pay the remaining 80% of the consideration. Yantai Tongqi Investment Center (Limited Partnership) will retain 0.99% stake in Shandong Hongyu Agricultural Machinery.