Yantai Redwood Investment Co., Ltd. signed an agreement to acquire Yantai Xinmu Cable Co., Ltd. from Shandong Xinchao Energy Corporation Limited (SHSE:600777) for approximately CNY 420 million on December 14, 2016. As of December 31, 2015, Yantai Xinmu Cable Co., Ltd.’s audited total assets is CNY 915.74 million, net assets is CNY 502.07 million and net loss is CNY 13.42 million. Board of Directors of Shandong Xinchao Energy Corporation Limited approved the transaction on December 14, 2016. The transaction is subject to approval of shareholders of Shandong Xinchao Energy Corporation Limited. As of December 30, 2016, shareholders of Shandong Xinchao Energy Corporation Limited approved the transaction. Yantai Redwood Investment Co., Ltd. completed the acquisition of Yantai Xinmu Cable Co., Ltd. from Shandong Xinchao Energy Corporation Limited (SHSE:600777) on January 4, 2017.