Zhejiang KAN Special Paper Industry Co., Ltd agreed to acquire 60% stake in Zhejiang KAN New Material Co., Ltd. from Zhejiang Kan Specialities Material Co., Ltd. (SZSE:002012) on September 14, 2022. In a related transaction, Zhejiang KAN Special Paper Industry Co., Ltd agreed to acquire Suichang County Chengping Secondary Power Station Co., Ltd 47.11% stake in Suichang County Chengping Secondary Power Station Co., Ltd and 100% stake in Quzhou Bada Paper Industry Co., Ltd. Zhejiang KAN New Material has total assets of CNY 777.8 million and net assets of CNY 641.3 million as of July 31, 2022. On November 23, 2022, The Board of Zhejiang Kan Specialities approved the deal and shareholders of Zhejiang KAN New Material approved the deal. The transaction is subject to the approval of shareholders of Zhejiang Kan Specialities Material and approval from relevant authorities as required by laws, regulations and regulatory documents. Pan-China Certified Public Accountants LLP acted as an accountant, Beijing DeHeng (Hangzhou) Law Firm acted as the legal advisor and China Great Wall Securities Co., Ltd. (SZSE:002939) acted as financial advisor to Zhejiang Kan Specialities Material Co., Ltd.

Zhejiang KAN Special Paper Industry Co., Ltd completed the acquisition of 60% stake in Zhejiang KAN New Material Co., Ltd. from Zhejiang Kan Specialities Material Co., Ltd. (SZSE:002012) on May 9, 2023.