Shanghai Xintonglian Packaging Co.Ltd(603022) planned termination of asset purchase

Shanghai Xintonglian Packaging Co.Ltd(603022) announced that the company originally planned to purchase 70% equity of Zhejiang Huakun Yanqing Data Technology Co., Ltd. (hereinafter referred to as “Huakun Yanqing”) held by Huzhou Yanqing through a wholly-owned subsidiary, and Huakun Yanqing held 51% equity of Zhejiang Huakun Daowei Data Technology Co., Ltd. In this transaction, Shanghai Yantong, a wholly-owned subsidiary of the company, failed to obtain the approval of M & A loans from financial institutions, resulting in Shanghai Yantong’s failure to raise the remaining cash consideration for asset purchase. After friendly negotiation, all parties agree to terminate this transaction, and all parties to the transaction shall not be liable for breach of contract. Shanghai Yantong shall return the equity of the transferred subject company to Huzhou Yanqing (subject to the completion of industrial and commercial transfer registration of the equity of the subject company). Within 10 days after the transfer of the subject equity, Huzhou Yanqing shall return all the transaction consideration paid by Shanghai Yantong.