Shangying Global Co., Ltd. (SHSE:600146) signed memorandum of understanding to acquire 50.01% stake in S. Culture International Holdings Limited (SEHK:1255) from Yang Jun on November 7, 2019. The transfer price of the underlying shares will be negotiated on the basis of the closing price of S. Culture International Holdings Limited on the Hong Kong Stock Exchange on November 6, 2019. Under the terms of the transaction, Shangying Global Co., Ltd. will acquire 107.02 million shares of S. Culture International Holdings Limited. Upon completion, Yang Jun will own 20.08% stake in S. Culture International Holdings Limited. Yang Jun shall not actively or passively contact, negotiate and discuss the matters in respect of the transaction with other third parties within a period of three months from the date of memorandum of understanding, unless it has received written termination notice from Shangying Global Co., Ltd. Pursuant to the terms of memorandum of understanding, Shangying Global Co., Ltd. is entitled to conduct a due diligence review on S. Culture International Holdings Limited. If transaction proceeds, Shangying Global Co., Ltd. is required to make mandatory offer for all stake other than those it already owned or agreed to acquire. The transaction was approved the Board of Shangying Global Co., Ltd.

Shangying Global Co., Ltd. (SHSE:600146) cancelled the acquisition of 50.01% stake in S. Culture International Holdings Limited (SEHK:1255) from Yang Jun on December 6, 2019. On December 6, 2019, the 49th extraordinary meeting of the seventh session of the board of directors of Shangying Global reviewed and approved the termination of the transaction.