Shanghai Huanguan New Material Technology Co., Ltd. and Hangzhou Sigma Trading Co., Ltd. entered into a letter of intent to acquire 27.3% stake in Shanghai Jielong Industry Group Corporation Limited (SHSE:600836) from Shanghai Jielong Group Co., Ltd. for CNY 1.4 billion on August 16, 2019. Shanghai Huanguan New Material Technology Co., Ltd. and Hangzhou Sigma Trading Co., Ltd. entered into a framework agreement to acquire 27.3% stake in Shanghai Jielong Industry Group Corporation Limited from Shanghai Jielong Group Co., Ltd. on November 15, 2019. Under the transaction, Huanguan New Material Technology Co., Ltd. will acquire 180.5 million shares, representing 27.23% stake in Shanghai Jielong Industry Group Corporation Limited. Shanghai Huanguan New Material Technology Co., Ltd. will adopt the cash acquisition method for the acquisition of the underlying shares. The transfer amount will be paid in installments. A guarantee of CNY 50 million will be paid within 3 days since the signing of the letter of intent. The transaction is subject to approval of the shareholders of Shanghai Jielong Group Co., Ltd. As of the January 17, 2020, Shanghai Jielong has received a total of CNY 256 million in equity transfer payments. Consideration of CNY 1.044 billion is expected to be paid by March 31, 2020. As of April 17, 2020, a payment of CNY 550 million was paid completing the first tranche. On July 1, 2020, the second tranche of CNY 150 million was paid. On July 15, 2020, Jielong group has completed the transfer of 50 million shares (accounting for 7.54% of the total share capital of the company) to Lishui zhefa Yilian. Before the completion of the share transfer, Jielong group held 27.23% equity of the Shanghai Jielong Industry and Zhefa Yilian didn’t hold any Shanghai Jielong Industry shares; After the completion of the share transfer, Jielong group holds 19.69% equity of the Shanghai Jielong Industry, remains the largest shareholder of the Shanghai Jielong Industry and zhefa Yilian holds 7.54% equity of the Shanghai Jielong Industry. As on July 22, 2020, Jielong Group and Zhefa Yilian signed the "Supplementary Agreement", which stipulated that the total amount of the third phase of the share transfer price is CNY 300 million and Zhefa Yilian should make the full payment of the third phase transfer price to the joint management account before July 31, 2020. As of August 3, 2020, Jielong Group has received CNY 250 million in the third phase of share transfer payment paid by Zhefa Yilian. On August 5, 2020, Jielong Group received the remaining CNY 50 million in the third phase of the share transfer payment from Zhefa Yilian. As of the disclosure date of this announcement, Jielong Group has received a total of CNY 1 billion in share transfer payments. As of August 18, 2020, Shanghai Jielong Group Co., Ltd. completed the transfer of 80.47 million shares to Zhefa Yilian representing 12.15% stake. Post completion of this transfer, Zhefa Yilian hold 19.69% while Shanghai Jielong Group Co., Ltd. hold 7.54% stake of Shanghai Jielong Industry Group Corporation Limited. Shanghai Huanguan New Material Technology Co., Ltd. and Hangzhou Sigma Trading Co., Ltd. completed the acquisition of 27.3% stake in Shanghai Jielong Industry Group Corporation Limited (SHSE:600836) from Shanghai Jielong Group Co., Ltd. on May 6, 2021. As of April 23, 2021, Zhefa Yilian has paid a total of CNY 1.4 billion for the share transfer.