Ningbo Meishan Bonded Port Yingmei Investment Management Company Limited entered into a framework agreement to acquire Foshan City Shunde District Baohong Property Management Company Limited from Hisense Kelon Electrical Holdings Company Limited (SZSE:000921) for approximately CNY 890 million on January 11, 2017. An initial deposit of CNY 178.5 million shall be paid within 3 working days upon fulfilment of certain conditions. As per the terms of the agreement, the ownership of the industrial land and buildings (including factories) on the Huabao Factory Area will be transferred from Hisense Kelon Electrical Holdings Company Limited to Foshan City Shunde District Baohong Property Management. Hisense Kelon Electrical Holdings Company Limited and Ningbo Meishan Bonded Port Yingmei Investment Management Company Limited will enter into the formal agreement 6 months after signing the framework agreement. The consideration is subject to adjustment. On April 5, 2017, the parties entered into the agreement pursuant to which Ningbo Meishan Bonded Port Yingmei Investment Management Company Limited agreed to acquire a 20% stake in Foshan City Shunde District Baohong Property Management Company Limited from Hisense Kelon Electrical Holdings Company Limited for approximately CNY 180 million. The consideration has been fully paid. As of August 3, 2017, the relevant share transfer and registration procedures with the administration for industry and commerce are being conducted. On August 2, 2017, the parties entered into the share transfer agreement pursuant to which Ningbo Meishan Bonded Port Yingmei Investment Management Company Limited agreed to acquire a 80% stake in Foshan City Shunde District Baohong Property Management Company Limited from Hisense Kelon Electrical Holdings Company Limited for approximately CNY 680 million. Within 5 working days after signing of the agreement, Ningbo Meishan Bonded Port Yingmei Investment Management Company Limited shall remit the sum of CNY 360 million in a joint escrow account while the remaining amount of CNY 324.05 million shall be remitted into the joint escrow account by September 15, 2017. It was agreed that within 1 working day after the share transfer agreement is approved by the shareholders of Hisense Kelon Electrical Holdings Company Limited, Ningbo Meishan Bonded Port Yingmei Investment Management Company Limited shall release its control over the deposit in the escrow account. If Hisense Kelon Electrical Holdings Company Limited is in breach of the share transfer agreement, the agreement shall be terminated and the money held in the escrow account shall be returned to Ningbo Meishan Bonded Port Yingmei Investment Management Company Limited and Hisense Kelon Electrical Holdings Company Limited shall pay CNY 178.51 million as compensation. However, if Ningbo Meishan Bonded Port Yingmei Investment Management Company Limited is in breach of the share transfer agreement, the agreement shall be terminated and Hisense Kelon Electrical Holdings Company Limited will be entitled to deduct CNY 178.51 million from the money held in escrow account as compensation. The final purchase price is subject to adjustment. The transaction is subject to Hisense Kelon Electrical Holdings Company Limited's shareholders' approval and was approved by its Board of Directors on August 2, 2017. The transaction is expected to generate a net profit of CNY 640 million for Hisense Kelon Electrical Holdings Company Limited. The company intends to use the proceeds as its general working capital. As on September 22, 2017 shareholders of Hisense Kelon Electrical Holdings Company Limited in the Second Extraordinary General Meeting approved the transaction.