Shanghai Wensheng Asset Management Co., Ltd. entered into the Equity Transfer Agreement to acquire Nanjing High Speed Gear Manufacturing Co., Ltd. from China High Speed Transmission Equipment Group Co., Ltd. (SEHK:658) for CNY 4.3 billion on March 30, 2021. The Consideration is in the sum of CNY 4.3 billion payable by the Transferee to China High Speed Transmission by way of cash in the following manner (1) CNY 1 billion to China High Speed Transmissio within 7 days after all the Conditions Precedent are satisfied in the shape of the First Instalment. The Earnest Money can be applied as part of the First Instalment; (2) CNY 2.7 billion to China High Speed Transmission within 1 month after all the Conditions Precedent are satisfied in the shape of Second Instalment; and (3) CNY 0.6 billion to China High Speed Transmission within 3 months after all the Conditions Precedent are satisfied in the shape of the Remaining Instalment. The transaction is subject to China High Speed Transmission and Nanjing High Speed shall assist in the due diligence and third party approval. China High Speed Transmission Shareholders? approval at the shareholders? meeting of Nanjing High Speed for the Equity Transfer Agreement and the transactions contemplated thereunder has been obtained approval from its board of directors and shareholders. As at 30 June 2021, the China High Speed Transmission has received CNY 1 billion as the first instalment of the consideration in accordance with the Equity Transfer Agreement. The expected net proceeds of the Disposal will be approximately CNY 3.5 billion. The Board intends to apply the net proceeds of the Disposal for the following purposes (i) approximately CNY 1.5 billion will be used for part of the costs for the expansion of China High Speed Transmission's production capacities and strengthening of China High Speed Transmission's research and development capabilities (ii) approximately CNY 0.6 billion will be used for the development and expansion of trading business to broaden China High Speed Transmission's revenue stream (iii) approximately CNY 0.9 billion will be used for the partial repayment of short-term bank borrowings (iv) approximately CNY 0.5 billion for general working capital. As of July 15, 2021 the Second Instalment of CNY 2.7 billion shall be paid to China High Speed Transmission Equipment Group Co., Ltd. in cash on or before October 15, 2021 and CNY 0.6 billion shall be paid to China High Speed Transmission Equipment Group Co., Ltd. in cash on or before December 15, 2021.