Beijing Shengyuan Tongchuang Technology Co., Ltd. intends to acquire Rongyu Xintong Commercial Factoring Co., Ltd. from Rongyu Group Co., Ltd. (SZSE:002622) for approximately CNY 170 million on June 8, 2020. Under the terms, Beijing Shengyuan Tongchuang Technology will pay CNY 75 million as transfer price within 3 working days after the transaction gets approval of shareholders of Rongyu Group and CNY 95 million within 90 days after transaction completion as to replace the company and repay to the Rongyu Group and its subsidiaries. The financials of Rongyu Xintong Commercial Factoring for the year ended December 31, 2019, are total assets of CNY 240 million, net assets of CNY 75 million, operating revenue of CNY 9.14 million, operating profit of CNY 0.31 million and net profit of CNY 0.23 million. The transaction is subject to approval of shareholders of Rongyu Group. The transaction is approved by the Board of Directors of Rongyu Group.