Shanxi Xinghuacun Fen Wine Factory Co.,Ltd. (SHSE:600809) agreed to acquire remaining 10% stake in Shanxi Xinghuacun Fen Wine Sales Co., Ltd. for approximately CNY 260 million on November 22, 2019. Shanxi Xinghuacun Fen Wine Factory Co.,Ltd. signed a transfer agreement to acquire remaining 10% stake in Shanxi Xinghuacun Fen Wine Sales Co., Ltd. on November 25, 2019. Under the terms of transaction, Shanxi Xinghuacun Fen Wine Factory Co.,Ltd. will pay first installment of CNY 77.5 million within 5 days since entering into force of the respective agreement and second installment of CNY 180.7 million payable within 6 months since entering into force of the agreement. The company intends to use cash for the acquisition. Upon completion, Shanxi Xinghuacun Fen Wine Factory Co.,Ltd. will own 100% stake in Shanxi Xinghuacun Fen Wine Sales Co., Ltd. For the year ended December 31, 2018, Shanxi Xinghuacun Fen Wine Sales Co., Ltd. had total assets of CNY 3.6 billion, net assets of CNY 1.3 billion, revenue of CNY 7.5 billion, operating profit of CNY 1.1 billion and net profit of CNY 795.5 million. The transaction is subject to approval from shareholders of Shanxi Xinghuacun Fen Wine Factory Co.,Ltd. The transaction has been approved by the Board of Shanxi Xinghuacun Fen Wine Factory Co.,Ltd. and Shanxi Xinghuacun Fenjiu Group Co., Ltd., parent of Shanxi Xinghuacun Fen Wine Factory Co.,Ltd. On December 11, 2019, the shareholders of Shanxi Xinghuacun Fen Wine Factory Co.,Ltd. approved the transaction. Shanxi Xinghuacun Fen Wine Factory Co.,Ltd. cancelled the acquisition of Shanxi Xinghuacun Fen Wine Sales Co., Ltd. on November 25, 2020.