Zhongshan Public: Lian'an Life Insurance plans to acquire 5% of the company's shares at 12.19 yuan per share, becoming a shareholder with over 5% ownership through a takeover.

Zhongshan Public Announcement: the company’s controlling shareholder, Zhongshan Investment and Holdings, and Lian’an Life Insurance signed the “Share Transfer Agreement” on April 1. The parties propose to transfer 73.76 million shares ( by agreement at a price of 12.19 yuan per share, representing 5% of the total share capital ). The total consideration for the transfer is approximately 899 million yuan. After this change in equity interests, Zhongshan Investment and Holdings’ shareholding ratio will decrease to 43.73%, and it will remain the controlling shareholder; Lian’an Life Insurance’s shareholding will increase to 8.12%, becoming a shareholder holding more than 5% of the shares. This transaction does not trigger a tender offer, and will not result in a change of the actual controller; however, it still requires approval from the state-owned asset regulatory authority and review by the Shenzhen Stock Exchange before it can be implemented.