Wuhu Shunrong Sanqi Interactive Entertainment Network Technology Co., Ltd. (SZSE:002555) signed the share acquisition agreement to acquire remaining 20% stake in Jiangsu Jiguang Network Technology Co., Ltd. from Hu Yuhang for CNY 1.4 billion on September 4, 2017. Concurrently, Wuhu Shunrong Sanqi Interactive Entertainment Network Technology Co., Ltd. agreed to issue A-share convertible bonds of up to CNY 2.1 billion to fund the deal. As on February 7, 2018, the mode of funding has been changed and since the public issuance of convertible corporate bonds did not gain the approval of the Issuance Examination Committee of CSRC, thus, Wuhu Shunrong Sanqi Interactive Entertainment Network Technology Co., Ltd. decided to terminate the issuance of convertible corporate bonds, and will now be using its own funds to pay for the acquisition. Post completion, Jiangsu Jiguang Network Technology Co., Ltd. will operate as a subsidiary of Wuhu Shunrong Sanqi Interactive Entertainment Network Technology Co., Ltd. For the year ended December 31, 2016, Jiangsu Jiguang Network Technology Co., Ltd. had total assets of CNY 684.97 million, net assets of CNY 506.68 million, revenue of CNY 713.29 million, operating profit of CNY 404.82 million and net profit of CNY 482.43 million. The transaction is subject to approval of the shareholders of Wuhu Shunrong Sanqi Interactive Entertainment Network Technology Co., Ltd. and approval of China Securities Regulatory Commission. The transaction was approved by the Board of Directors of Wuhu Shunrong Sanqi Interactive Entertainment Network Technology Co., Ltd. in the 9th meeting of 4th directorate on September 4, 2017. On September 20, 2017, the transaction was approved by the shareholders of Wuhu Shunrong Sanqi Interactive Entertainment Network Technology Co., Ltd. The 13th session of Wuhu Shunrong Sanqi Interactive Entertainment Network Technology Co., Ltd.’s 4th directorate approved the transaction on February 7, 2018. Wuhu Shunrong Sanqi Interactive Entertainment Network Technology Co., Ltd. (SZSE:002555) cancelled the acquisition of remaining 20% stake in Jiangsu Jiguang Network Technology Co., Ltd. from Hu Yuhang on September 4, 2018.