Chen Qiyuan agreed to acquire 65% stake in Wuhan Huasheng Electronics Co., Ltd. from Shaanxi J&R Fire Fighting Co., Ltd. (SZSE:300116) for CNY 2 million on June 29, 2016. The transaction has been approved by Board of Shaanxi J&R Fire Fighting. The transaction does not need approval from the shareholders’ meeting. As of December 31, 2015, Wuhan Huasheng had total assets of CNY 15.9 million, net assets of CNY 4.1 million, operating revenue of CNY 12.9 million, operating profit of CNY 3.8 millon and net profit of CNY 3.1 million.