Qiu Weimin entered into a tripartite agreement to acquire Chuzhou Chuangce Packaging Materials Company Limited from Teamway International Group Holdings Limited (SEHK:1239) for CNY 54 million on December 9, 2020. The consideration will be settled upon completion by offsetting directly from part of the outstanding loan and accrued interest thereon owed by Peace Bright to the Qiu Weimin under the Loan Agreement. Chuzhou Chuangce reported revenues of CNY 70 million, net loss before taxes of CNY 0.28 million, net loss after taxes of CNY 0.64 million and net asset value of CNY 53.7 million in the year ending on December 31, 2019 while net asset value was reported to be CNY 53.2 million in the year ending on October 31, 2020. The deal is subject to conducting Teamway International having provided Qiu Weimin with all data, documents and information Transferee for the purpose of conducting legal, financial and operational due diligence on Chuzhou Chuangce and Qiu Weimin having in its absolute discretion satisfied with the results of such due diligence and all necessary consent, permit, or approval under the applicable laws and regulations having been obtained in respect of the Tripartite Agreement. Teamway International will use the proceeds from the transaction to repay part of the outstanding loan and interest accrued thereon owed by Peace Bright to Qiu Weimin under the Loan Agreement. Teamway International estimates the gain arising from the transaction to be CNY 0.8 million subject to audit.

Qiu Weimin completed the acquisition of Chuzhou Chuangce Packaging Materials Company Limited from Teamway International Group Holdings Limited (SEHK:1239) on April 29, 2021.