Wuhu Shunrong Sanqi Interactive Entertainment Network Technology Co., Ltd. (SZSE:002555) agreed to acquire the remaining 68.43% stake in Shanghai Mokun Digital Technology Co., Ltd from Zhangshu Wangzhong Investment Management Center (Limited Partnership), Dongmai Yang and Wei Chen for CNY 1.1 billion on July 31, 2016. The consideration will be approximately CNY 390 million in cash and approximately CNY 720 million in stock. Wuhu Shunrong Sanqi Interactive Entertainment Network Technology Co., Ltd. will issue 41.54 million shares. On February 8, 2017, Wuhu Shunrong Sanqi Interactive Entertainment Network Technology Co., Ltd signed a supplement agreement pursuant to which Wuhu Shunrong Sanqi Interactive Entertainment Network Technology Co., Ltd will issue 35.65 million shares and will pay CNY 333.46 million cash as the consideration. Wuhu Shunrong Sanqi Interactive Entertainment Network Technology Co., Ltd will issue 14.69 million shares to Yang Dongmai and 8.82 million shares to Chen Wei while Zhangshu Wangzhong Investment Management Center (Limited Partnership) will be issued 12.15 million shares and paid cash consideration of CNY 333.46 million. In related deals, Wuhu Shunrong Sanqi Interactive Entertainment Network Technology Co., Ltd. agreed to acquire China Wit Media for CNY 1.2 billion and 49% stake in Jiangsu Zhiming Network Technology for approximately CNY 260 million. To fund the cash portion of the consideration, Wuhu Shunrong Sanqi Interactive Entertainment Network Technology Co., Ltd. will issue not more than 29.42 million shares to not more than 10 investors to raise CNY 511 million. As on February 8, 2017, Wuhu Shunrong Sanqi Interactive Entertainment Network Technology Co., Ltd will raise supporting funds of not more than CNY 455.96 million. For the year ended December 31, 2015, Shanghai Mokun Digital reported revenues of CNY 13.08 million, total assets of CNY 13.75 million, net loss of CNY 33.1 million and net liabilities of CNY 67.72 million. The transaction requires the approval from the China Securities Regulatory Commission. The shareholders of Shanghai Mokun Digital Technology Co., Ltd and the Board of Wuhu Shunrong Sanqi Interactive Entertainment Network Technology Co., Ltd approved the transaction on February 8, 2017. As on February 23, 2017, the transaction was approved by the securities regulator. Pursuant to completion of 2016 annual profit distribution, Wuhu Shunrong Sanqi Interactive Entertainment Network Technology adjusted the number of shares to be issued for the transaction; Yang Dongmai will be issued 14.8 million shares, Chen Wei will be issued 8.9 million shares and Zhangshu Wangzhong Investment Management Center will be issued 12.2 million shares as stock consideration. GF Securities Co., Ltd. acted as a financial advisor, An Xin Law Firm acted as a legal advisor and Pan-China Certified Public Accountants LLP acted as an accountant to Wuhu Shunrong Sanqi Interactive Entertainment Network Technology Co., Ltd. Wuhu Shunrong Sanqi Interactive Entertainment Network Technology Co., Ltd. (SZSE:002555) completed the acquisition of the remaining 68.43% stake in Shanghai Mokun Digital Technology Co., Ltd from Zhangshu Wangzhong Investment Management Center (Limited Partnership), Dongmai Yang and Wei Chen on May 19, 2017.