Zhejiang Furun (600070): Progress In Equity Transfer Of Controlling Shareholders

Zhejiang Furun (600070) announced on the evening of July 21 that Furun group, the controlling shareholder of the company, and Guoxin Huaxia signed the framework agreement on share transfer on June 9, 2021. Furun Group intends to transfer 46.98 million shares of the company held by it to Guoxin Huaxia (or its designated subject), accounting for 9.00% of the total share capital of the company, and the proposed transfer price is 8.46 yuan / share. According to the framework agreement, before signing the formal equity transfer agreement, due diligence should be carried out on the company, and the procedures should be approved by the competent authorities of both parties.

On July 21, 2021, the company received a notice from Furun group that Guoxin Huaxia had issued a letter on the due diligence of Zhejiang Furun group. Guoxin Huaxia organized accounting firms, securities companies and law firms to conduct due diligence on the company. At present, due diligence has been completed, and Guoxin Huaxia has received the due diligence report and other relevant documents issued by the three-party intermediary agencies. According to the discussion and study of Guoxin Huaxia, we agree with the results of due diligence and plan to continue to promote equity transfer in accordance with the framework agreement.