Beijing Miteno Communication Technology Co., Ltd. (SZSE:300038) entered into a framework agreement to acquire Zhejiang Worken Daowei Digital Technology Co., Ltd. from Ningbo Yasheng Equity Investment Partnership Enterprise (Limited Partnership), Ningbo Bonded Port Area Zongyou Mengxiang Investment Management Partnership Enterprise (LP), Hangzhou Mengyumeng Investment Management Partnership Enterprise (Limited Partnership), and Hangzhou Mengzi Investment Management Partnership Enterprise (Limited Partnership) for CNY 3.5 billion on March 25, 2018. Parties have signed an agreement on June 22, 2018. Under the terms of the transaction, Beijing Miteno Communication Technology Co., Ltd. will pay CNY 1.38 billion in cash and will issue 52.25 million shares at CNY 39.62 per share as consideration. As on June 25, 2018, the deal terms revised. Beijing Miteno Communication Technology Co., Ltd. will now issue cash of CNY 1.2 billion and 147.5 million new shares. Beijing Miteno Communication Technology Co., Ltd. will raise CNY 1.4 billion in private placement to fund the cash consideration of the transaction. As on June 25, 2018, the private placement amount was also revised to CNY 1.3 billion. For the year ended December 31, 2017, Zhejiang Worken Daowei Digital Technology Co., Ltd. reported total assets of CNY 253.7 million, net assets of CNY 219.4 million, revenue of CNY 222.8 million, and net profit of CNY 111.5 million. The transaction is subject approval from Board of Directors and shareholders of Beijing Miteno Communication Technology Co., Ltd. and approval from the CSRC. The transaction has been approved by the shareholders of Zhejiang Worken Daowei Digital Technology Co., Ltd. on March 25, 2018. The transaction has been approved by the 38th Meeting of the 3rd Directorate of Beijing Miteno Communication Technology Co., Ltd. on March 26, 2018. On June 22, 2018, the revised adjustments were also approved by the Board of Beijing Miteno Communication Technology Co., Ltd. Zheng Yong, Zhang Jianjun, Xu Kainan, Yuan Ye, Xia Xuan and Zhang Wei of Hengtai Changcai Securities Co., Ltd. and Credit Suisse Founder Securities Co., Ltd. acted as financial advisors to Beijing Miteno Communication Technology Co., Ltd. Luo Xiaoyang, Meng Lingqi and Sun Xiaohui of Beijing Times Jiuhe Law Firm acted as legal advisors, Zhu Jinsong, He Hongjun and Hu Yuhua of Wuyige Certified Public Accountants LLP acted as accountants and Fang Wei, Zong Nan and Liu Gongqin of Zhongtongcheng Assets Appraisal Co., Ltd. acted as asset assessment agencies. Beijing Shuzhi Technology Co., Ltd. (SZSE:300038) cancelled the acquisition of Zhejiang Worken Daowei Digital Technology Co., Ltd. from Ningbo Yasheng Equity Investment Partnership Enterprise (Limited Partnership), Ningbo Bonded Port Area Zongyou Mengxiang Investment Management Partnership Enterprise (LP), Hangzhou Mengyumeng Investment Management Partnership Enterprise (Limited Partnership), and Hangzhou Mengzi Investment Management Partnership Enterprise (Limited Partnership) on July 4, 2019. In order to protect the legitimate rights and interests of Beijing Shuzhi Technology Co., Ltd. and all shareholders, especially small and medium shareholders, Beijing Shuzhi Technology Co., Ltd. held its 4th directorate’s 8th meeting and its 4th supervisory board’s 7th meeting on July 4, 2019 and approved to terminate the said acquisition matter.