Zhejiang Meili High Technology Co., Ltd. (SZSE:300611) signed a letter of intent agreement to acquire 70% stake in Beijing Daewon Asia Automobile Science & Technology Co., Ltd. and Jiangsu Daewon Asia Automobile Spring Co., Ltd. from Daewon Kang Up Co., Ltd. (KOSE:A000430) on April 2, 2021. The consideration will be paid in cash and stock. On July 13, 2021, Zhejiang Meili High Technology Co., Ltd signed an agreement to acquire minority stake in Beijing Daewon Asia Automobile Science & Technology Co., Ltd. and Jiangsu Daewon Asia Automobile Spring Co., Ltd. from Daewon Kang Up Co., Ltd for CNY 92 million in cash.

Zhejiang Meili High Technology Co., Ltd will acquire 36.85% stake in Beijing Daewon Asia Automobile Science & Technology for CNY 81.46 million and 36.68% stake in Jiangsu Daewon Asia Automobile Spring for CNY 10.5 million. In related transactions, Zhejiang Meili High Technology Co., Ltd. will also carry out a capital increase in Beijing Daewon Asia Automobile Science & Technology Co., Ltd. and Jiangsu Daewon Asia Automobile Spring Co., Ltd. After the transactions, Zhejiang Meili High Technology Co., Ltd. will hold 70% stake in Beijing Daewon Asia Automobile Science & Technology Co., Ltd. and Jiangsu Daewon Asia Automobile Spring Co., Ltd. Beijing Daewon Asia Automobile Science & Technology and Jiangsu Daewon Asia Automobile Spring had total assets of CNY 363.59 million on April 30, 2021. The transaction is subject to obtaining approval from shareholders of Zhejiang Meili High Technology Co., Ltd. On July 13, 2021, the Board of Directors of Zhejiang Meili High Technology Co., Ltd. has approved the payment of consideration.

On September 24, 2021, the shareholders of Zhejiang Meili High Technology Co., Ltd. approved the transaction. China Industrial Securities Co.,Ltd. acted as financial advisor, DeHeng Law Offices acted as legal advisor and Pan-China Certified Public Accountants LLP acted as accountant to Zhejiang Meili.