Liuzhou Industrial Investment Co., Ltd. signed an agreement to acquire 80% stake in Liuzhou Liangmianzhen Real Estate Development Co., Ltd and 84.6% stake in Liuzhou Liangmianzhen Paper Co., Ltd from Liuzhou Liangmianzhen Co., Ltd. (SHSE:600249) for CNY 1.2 billion on November 13, 2019. Since the acquired stakes already had net liabilities of CNY 0.04 million, with the agreement of both companies, the transaction price is based on CNY 0. The creditor's rights were based on the book value of CNY 1.2 billion so the total transaction price is CNY 1,174.4132 million. 50% of the consideration will be paid within 5 working days after the approval of the shareholders’ meeting and balance later. Post completion, Liuzhou Liangmianzhen Real Estate Development Co., Ltd. will not hold stake in the companies. On December 20, 2019, Liuzhou Liangmianzhen received the first transaction payment of CNY 587 million. For the year ended December 31, 2018, Liuzhou Liangmianzhen Paper Co., Ltd. and Liuzhou Liangmianzhen Real Estate Development Co., Ltd. reported total assets of CNY 1.08 billion, revenues of CNY 430.94 million, net loss of CNY 54.4 million and equity of CNY -335 million. The deal requires approval from shareholders of Liuzhou Liangmianzhen Co., Ltd. The deal is approved by the supervisors and Board of Directors of Liuzhou Liangmianzhen Co., Ltd. and the internal decision-making body of the Liuzhou Industrial Investment Co., Ltd. As of December 9, 2019, Liuzhou State-owned Assets Supervision and Administration Commission approved the transaction. Wang Song, Xu Kailai, Li Junyu and Feng Tiancheng of Guotai Junan Securities Co., Ltd. (SHSE:601211) acted as financial advisors, Zhou Yi, Huang Longwei and Zhang Xiaowei of Yingke (Nanning) Law Firm acted as legal advisors, Tang Mengqiang, Dang Tianzhang and Liang Chun of Da Hua Certified Public Accountants Co., Ltd. acted as accountants, Wang Hui, Yu Wei and Niu ZhuQing of Shenzhen Pengxin Assets Evaluation Land Real Estate Appraisal Co., Ltd. acted as appraisers for Liuzhou Liangmianzhen Co., Ltd.