Advised Fullshare and China High Speed

on the disposal of 43% equity interest

in Nanjing High Speed at a consideration of RMB 4.3 billion

2021-06-22

Recently, DeHeng's Hong Kong associated law firm (Chungs Lawyers) advised Fullshare Holdings Limited (stock code: 607) ("Fullshare") and China High Speed Transmission Equipment Group Co., Ltd. (stock code: 658) ("China High Speed") on the disposal of 43% of the equity interest in Nanjing High Speed Gear Manufacturing Co., Ltd. (南京高速齒輪製造有限公司) ("Nanjing High Speed") through a subsidiary, Nanjing Gear Enterprise Management Co., Ltd. (南京高齒企業管理有限公司) ("Vendor"), to Shanghai Qiwo Enterprise Management Partnership (Limited Partnership) (上海其沃企業管理合夥企業(有限合夥)) ("Transferee") at a consideration of RMB4.3 billion ("Disposal"). The transaction also involves the grant of a put option, which the Transferee has an option to require the Vendor to repurchase the equity interest acquired pursuant to the Disposal if Nanjing High Speed fails to achieve the guaranteed net profit ("Put Option"). 

Nanjing High Speed was awarded Top Ten Outstanding Enterprise of the Award for the Top 50 of China Wind Power Industry in 2020 (2020中国风电产业50强十佳优秀企业). Fullshare is a conglomerate principally engaged in property development and investment, tourism, investment and financial services and provision of healthcare and education products and services.