Anhui Xinke New Materials Co., Ltd. (SHSE:600255) entered into an intent agreement on equity purchase to acquire Xi'an Mengzhou Film & TV Culture Communication Co., Ltd from Zhang Jian, Wu Jianlong and Wuhan Xin Buddhist and Equity Investment Fund Center (limited partnership) Co., Ltd on May 5, 2014. Zhang Jian, Wu Jianlong and Wuhan Xin Buddhist and Equity Investment Fund Center (limited partnership) Co., Ltd. separately own 63%, 28.15%, 8.85% stake in Xi'an Mengzhou Film & TV Culture Communication respectively. The deal will be funded by the private placement plan of issuing up to 180 million shares at no less than CNY 7.36 per share. For the year ending December, Xi'an Mengzhou Film & TV Culture Communication reported total assets of CNY 287.82 million, total liabilities of CNY 84.32 million, net assets of CNY 203.51 million, sales of CNY 110.91 million, operating profit of CNY 48.41 million and net profit of CNY 44.36 million.

The conditional share transfer contract will take effect upon the satisfaction of the conditions precedent Anhui Xinke New Materials Co's directorate and shareholders' approval for the private placement, Anhui Xinke New Materials Co's private placement gains the approval of CSRC and Anhui Xinke New Materials Co receives the proceeds raised in the private placement. As of May 27, 2014, Anhui Xinke New Materials Co., Ltd. (SHSE:600255) entered into agreement on equity purchase to acquire Xi'an Mengzhou Film & TV Culture Communication Co., Ltd from Zhang Jian, Wu Jianlong and Wuhan Xin Buddhist and Equity Investment Fund Center (limited partnership) Co., Ltd. As on May 27, 2014, the transaction and the contract have been unanimously approved by Board of Directors of Anhui Xinke New Materials. As of August 18, 2014, the transaction was approved by shareholders of Anhui Xinke New Materials. As on October 25, 2014, the placement plan is amended to generate proceeds of CNY 531 million to fund the acquisition.

Anhui Xinke New Materials Co., Ltd. (SHSE:600255) completed the acquisition of Xi'an Mengzhou Film & TV Culture Communication Co., Ltd from Zhang Jian, Wu Jianlong and Wuhan Xin Buddhist and Equity Investment Fund Center (limited partnership) Co., Ltd on June 5, 2015.