Chan King and Wu Jingyi entered into a share transfer agreement to acquire Starlite Printers (Shenzhen) Co., Ltd. from Starlite Holdings Limited (SEHK:403) for approximately CNY 320 million on February 21, 2020. Under the term, Chan King and Wu Jingyi will pay CNY 10 million within five business days of the date of signing of the equity transfer agreement, CNY 63.2 million within five business days of the satisfaction of the initial payment conditions and the remaining balance will be paid within five business days after the completion condition satisfaction date. Post completion, Starlite Printers (Shenzhen) Co., Ltd. will cease to be a subsidiary of Starlite Holdings Limited. In case of termination, Chan King, Wu Jingyi and Starlite Holdings will pay a termination fee of CNY 170 million. As of March 31, 2019, Starlite Printers (Shenzhen) Co., Ltd reported net loss of CNY 29.04 million. The transaction is subject to the entering into of the loan agreement by the parties, obtained the necessary approvals, consents or waivers, shareholder approval of Starlite Holdings Limited and Starlite Printers (Shenzhen) Co., Ltd. As of April 8, 2020, the shareholders of Starlite Holdings Limited have approved the acquisition. The proceed from sale of approximately CNY 100 million will be used for manufacturing plants and factories in Shaoguan and the expansion of those manufacturing plants and factories, an amount of approximately CNY 4.82 million will be used for payment of professional fees, an amount of approximately CNY 45.83 million will be used for payment of tax and related expenses, an amount of approximately CNY 29.27 million will be used for payment of severance and relocation cost and an amount of approximately CNY 139.28 million will be used for working capital. Chan King and Wu Jingyi completed the acquisition of Starlite Printers (Shenzhen) Co., Ltd. from Starlite Holdings Limited (SEHK:403) on June 8, 2021. Following Completion, Starlite Holdings no longer owns any shares of Starlite Printers and the Starlite Printers has ceased to be a subsidiary of Starlite Holdings. All completion conditions have been satisfied. Pursuant to the agreement, on 8 June 2021, Starlite Holdings and Chan King and Wu Jingyi had jointly provided instructions to transfer the balance of the consideration in the amount of CNY256,000,000 from the Escrow Account to the Starlite Holdings.