Hangzhou Honghua Digital Technology Co.,Ltd. (SHSE:688789) signed an Equity Transfer Agreement to acquire a 67% stake in Tianjin Jingli Digital Technology Co., Ltd. from Yingtan Hualirong Technology Service Center (Limited Partnership for CNY 67 million on March 7, 2022. Under the terms, Hangzhou Honghua Digital shall pay CNY 35 million within 10 working days after this agreement and the remaining consideration shall be subject to the satisfaction of the following matters, including the representations and warranties made by Yingtan Hualirong Technology under this Agreement are true, accurate, complete and non-misleading at the time of making, and are also true, accurate, complete and non-misleading as of the Closing Date, 30 days from the date of the underlying equity is changed to the name of Hangzhou Honghua Digital. Hangzhou Honghua Digital intends to use its own funds or self-raised funds to finance the acquisition.

For the year ended December 31, 2021, Tianjin Jingli Digital reported total assets of CNY 31.4 million, net assets of CNY 17.17 million, operating income of CNY 71.96 million, and net profit of CNY 14.52 million. The transaction has been reviewed and approved at the 19th meeting of the 6th Board of Directors of Hangzhou Honghua Digital, and this matter does not need to be submitted to the general meeting of shareholders for deliberation.