Shandong Hiking International Co.,Ltd (SHSE:600735), entered into an equity transfer agreement to acquire an additional 50% stake in Shanghai Lizhi Industrial Co., Ltd., from Yongxin County Lichi Consulting Service Center (Limited Partnership) for approximately CNY 250 million on June 2, 2021. Pursuant to the terms of the agreement, Shandong Hiking International Co., Ltd., shall pay the equity transfer price of this transaction to Yongxin County Lichi Consulting Service Center (Limited Partnership) in installments by cash payment: (1) The first phase of equity transfer price: within 20 days after this agreement becomes effective, Shandong Hiking International Co., Ltd., shall pay Yongxin County Lichi Consulting Service Center (Limited Partnership) the first phase of equity transfer price of CNY 50.4 million, (2) The second phase of equity transfer price: within 90 days after this agreement becomes effective, Shandong Hiking International Co., Ltd. shall pay Yongxin County Lichi Consulting Service Center (Limited Partnership) the second phase of equity transfer price of CNY 75.6 million and (3) The third phase of equity transfer price: payment prerequisites: Wang Liyang and Ke Yi have completed the increase in the shares of the listed company as agreed in this agreement and notified Shandong Hiking International Co., Ltd. in writing in accordance with the agreement. Subject to the preconditions for the payment of the third phase of equity transfer price, if the non-public issuance of a listed company is approved or registered by the China Securities Regulatory Commission, Shandong Hiking International Co., Ltd. shall pay the remaining CNY 0.0126 million within 10 working days after the proceeds of the non-public issuance are received. However, 1) regardless of whether Shandong Hiking International Co., Ltd. completes the fundraising or 2) the listed company voluntarily terminates the non-public offering, the payment of the third phase of equity transfer price shall be made no later than April 30, 2022. If the non-public offering of the listed company is not approved or registered by the China Securities Regulatory Commission, Shandong Hiking International Co., Ltd. shall pay CNY 50.4 million within 10 working days from the date of issuance of the 2021 special audit report of the Shanghai Lizhi Industrial Co., Ltd.; and issue the 2022 special audit report of the Shanghai Lizhi Industrial Co., Ltd. CNY 50.4 million will be paid within 10 working days from the date of payment; the remaining CNY 25.2 million will be paid within 10 working days from the date of issuance of the Shanghai Lizhi Industrial Co., Ltd.?s 2023 special audit report and the target asset impairment test special audit report. For the period ended December 30, 2020, Shanghai Lizhi Industrial Co., Ltd., reported total assets of CNY 202 million, net assets of CNY 66.4 million, operating income of CNY 405 million and net profit of CNY 34.4 million. Completion of the transaction is subject to approval from shareholders of Yongxin County Lichi Consulting Service Center (Limited Partnership), Shanghai Lizhi Industrial Co., Ltd., and waiver of the right of first refusal by the other shareholders of Shanghai Lizhi Industrial Co., Ltd., approval from the Board of Directors of Shanghai Lizhi Industrial Co., Ltd., and Shandong Hiking International Co., Ltd., and approval from the shareholders of Shandong Hiking International Co., Ltd. The transaction has been unanimously approved in the eighteenth meeting of the twelfth session of the board of directors of Shandong Hiking International Co.,Ltd, on June 2, 2021.