Yuyao Traffic Investment Co., Ltd. signed a letter of intent to acquire 11.48% stake in Zhenhai Petrochemical Engineering CO., LTD (SHSE:603637) from 97 shareholders for approximately CNY 410 million on January 23, 2020. Yuyao Traffic Investment Co., Ltd. signed a share transfer agreement to acquire 11.48% stake in Zhenhai Petrochemical Engineering CO., LTD from 97 shareholders on February 10, 2020. As part of the acquisition, Yuyao Traffic Investment Co., Ltd. will acquire 19.99 million shares of Zhenhai Petrochemical Engineering at a price of CNY 20.3873 per share. The transaction is subject to the approval of Ningbo State-owned Assets Supervision and Administration Commission or relevant government departments, compliance confirmation by Shanghai Stock Exchange, and transfer formalities with Shanghai Branch of China Securities Depository and Clearing Corporation. The transaction was approved by State-owned Assets Supervision and Administration Commission of Ningbo and Yuyao City on February 17, 2020. Yuyao Traffic Investment Co., Ltd. completed the acquisition of 11.48% stake in Zhenhai Petrochemical Engineering CO., LTD (SHSE:603637) from 97 shareholders on April 16, 2020. The share transfer registration procedures for the transfer of the agreement had been completed by the relevant shareholders, and the Transfer Registration Confirmation issued by China Securities Depository and Clearing Co., Ltd. Shanghai Branch was obtained.