Qin Liu and Guirong Fu agreed to acquire Shenyang Takes Precision Machinery Technology Co., Ltd. from TAKES GROUP LTD. (TSE:7719) for approximately ¥110 million on June 13, 2013. Qin Liu will acquire 80% stake in Shenyang Takes Precision for ¥90.06 million and Guirong Fu will acquire 20% stake for ¥22.52 million. As per the terms of the deal, TAKES GROUP will split the business of manufacture and sale of millwork from Shenyang Takes Precision Machinery Technology to a new entity and then sell the 100% stake in Shenyang Takes Precision Machinery Technology.

Qin Liu and Guirong Fu entered into share transfer contract to acquire Shenyang Takes Precision Machinery Technology Co., Ltd. from TAKES GROUP on August 20, 2013. Shenyang Takes Precision Machinery reported sales of ¥13 million, total assets of ¥101 million and operating loss of ¥24 million for the year ended December 31, 2012. The transaction was resolved by the Board of Directors of TAKES GROUP on June 13, 2013.

The transaction contract is expected to be entered on June 13, 2013. The Chinese government authorization date is scheduled in late June, 2013. The transaction is expected to be completed in late June, 2013.

As of July 1, 2013, the transaction completion is expected to be completed in the middle of August 2013. An extraordinary profit due to the sale is expected by TAKES GROUP in the consolidated fiscal year for the period ending February, 2014.