Beijing Shengyuan Tongchuang Technology Co., Ltd. agreed to acquire Ningbo Rongyu Bosheng Automotive Sales and Service Co., Ltd. for CNY 20 million on June 8, 2020. The transfer price will be CNY 1. Beijing Shengyuan Tongchuang will replace Ningbo Rongyu Bosheng as the party to pay the current debt amount of CNY 20.04 million to the wholly-owned subsidiary of Rongyu Group Co., Ltd., Rongyu Xintong Commercial Factoring Co., Ltd. For the year ending December 31, 2019, Ningbo Rongyu Bosheng Automotive Sales and Service Co., Ltd. had total assets of CNY 17.8 million, net liabilities of CNY 2.2 million, operating revenue of CNY 0, operating loss of CNY 72.1 million, net loss of CNY 72.1 million. On June 8, 2020, Rongyu Group Co., Ltd. convened the thirty-first interim meeting of the fourth session of the Board of Directors, and reviewed and approved the Proposal on the Transfer of 100% Equity Interest of Ningbo Rongyu Bosheng Automotive Sales and Service Co., Ltd. The independent directors of the Company issued an independent opinion agreeing to the transaction.