Zhejiang KAN Special Paper Industry Co., Ltd agreed to acquire 47.11% stake in Suichang County Chengping Secondary Power Station Co., Ltd. from Zhejiang Kan Specialities Material Co., Ltd. (SZSE:002012) on September 14, 2022. Transaction is subject to approval by Zhejiang Kan Specialities Material's board of director. As of December 23, 2022, The shareholders of Suichang County Chengping Secondary has approved the deal on November 23, 2022. The other shareholders of the Suichang County Chengping Secondary Power Station Co., Ltd gave up their preemptive subscription rights for this part of the transferred equity. The transaction plan still needs to be reviewed and approved by the shareholders' meeting of Zhejiang Kan Specialities Material. As per the terms of agreement, The initial deposit of CNY 40 million has been paid when the framework agreement is signed. Zhejiang KAN Special Paper Industry shall pay no less than CNY 200 million for the equity transfer within 3 days after this agreement takes effect. Zhejiang KAN Special Paper Industry shall pay the rest of the equity transfer payment within 2 months from the effective date of this agreement. China Great Wall Securities Co.,Ltd. (SZSE:002939) acted as financial advisor, Beijing DeHeng (Hangzhou) Law Firm acted as legal advisor and v acted as accountant to Zhejiang Kan Specialities Material.

Zhejiang KAN Special Paper Industry Co., Ltd completed the acquisition of 47.11% stake in Suichang County Chengping Secondary Power Station Co., Ltd. from Zhejiang Kan Specialities Material Co., Ltd. (SZSE:002012) on May 9, 2023.