Shanghai Xin Nanyang Co., Ltd. (SHSE:600661) signed an agreement to acquire 10.37% stake in Chungdahm Learning, Inc. (KOSDAQ:A096240) for KRW 12.4 billion on July 24, 2018. The transaction was approved by the board of Shanghai Xin Nanyang Co., Ltd. in the 8th meeting of 9th directorate on July 25, 2018. Pursuant to the agreement, if as of February 29, 2020, for any reason, the investor has not obtained or has previously determined that it cannot obtain the Chinese government's declaration and filing (including but not limited to state-owned assets assessment filing) required to perform this agreement, In the event of recognition, license, consent, and necessary third-party approval / consent (including necessary procedures for the foreign exchange administration and foreign exchange banks required for foreign exchange remittances), the parties may terminate this agreement, but the parties may extend this agreement through negotiation.

On February 28, 2020, Shanghai Xin Nanyang Co., Ltd and CHUNGDAHM Learning, Inc. adjusted the time limit related to the stock sale and purchase agreement again, and signed a new Supplementary Agreement on the Share Sale and Purchase Agreement to which, if as of March 31, 2020, for any reason, the investor has not obtained or has previously determined that it cannot obtain the Chinese government's declaration, filing (including but not limited to state-owned assets assessment filing), recognition, Permission, consent, necessary third-party approval / consent (including the necessary procedures for foreign exchange administration and foreign exchange banks for foreign exchange remittances), the parties may terminate this agreement, but the parties may decide to extend this agreement through negotiation.

On March 31, 2020, Shanghai Xin Nanyang Co., Ltd and CHUNGDAHM Learning, Inc. adjusted the time limit related to the stock sale and purchase agreement again, and signed a new Supplementary Agreement on the Share Sale and Purchase Agreement pursuant to which, if as of April 30, 2020, for any reason, the investor has not obtained or has previously determined that it cannot obtain the Chinese government's declaration, filing (including but not limited to state-owned assets assessment filing), recognition, Permission, consent, necessary third-party approval / consent (including the necessary procedures for foreign exchange administration and foreign exchange banks for foreign exchange remittances), the parties may terminate this agreement, but the parties may decide to extend this agreement through negotiation. As of April 17, 2020, the board of Shanghai Xinnanyang Only Education approved the transaction in the tenth board meeting to acquire partial equity of CDL company and establishing new joint venture company.