CETC Energy Joint-Stock Co., Ltd. (SHSE:600877) agreed to acquire stakes in Chongqing Southwest Integrated Circuit Design Co., Ltd., Chongqing Zhongke Xinyida Electronics Co., Ltd. and Shenzhen Ruijing Industrial Co., Ltd. from a group of shareholders on December 12, 2020. CETC Energy will acquire 49% stake in Chongqing Zhongke Xinyida Electronics Co., Ltd. from China Micro Semiconductor (Shenzhen) Co., Ltd., 54.61% stake in Chongqing Southwest Integrated Circuit Design Co., Ltd. from a group of shareholders and 51% stake in Shenzhen Ruijing Industrial Co., Ltd. from Qi Ruibin, Chen Zhenqiang, Lin Meng and He Youai. As on May 31, 2021, CETC Energy Joint-Stock Co., Ltd. and the sellers signed Acquisition of Assets through the Issuance of Shares Agreement Supplement Agreement for CNY 1 billion, under which CETC Energy Joint-Stock Co., Ltd. will issue 174,895,239 shares at CNY 5.42 per share, for total transaction amount of CNY 947.9323 million as consideration, of which 119,183,462 shares for Chongqing Southwest Integrated Circuit Design Co., Ltd., price at CNY 645.9745 million; 18,297,024 shares for Chongqing Zhongke Xinyida Electronics Co., Ltd., price at CNY 99.1699 million; and 37,414,753 shares for Shenzhen Ruijing Industrial Co., Ltd., price at CNY 202.7880 million. Chongqing Zhongke Xinyida Electronics had total assets of CNY 130.2 million and net assets of CNY 48.9 million as of September 30, 2020. For the year ended December 31, 2019, Chongqing Zhongke Xinyida Electronics had revenues of CNY 131.4 million, operating profit of CNY 10.7 million and net profit of CNY 10.4 million. Transaction is subject to approval of Board of Directors of CETC Energy, the relevant counterparties completing the necessary internal approval procedures, the competent authority of state-owned assets supervision and management authority?s approval, National Defense Science and Industry Bureau?s approval, CETC Energy?s shareholders approval, CETC Energy?s general meeting of shareholders exempting CETC Chongqing Sound Optoelectronics and its concerted parties from the obligation of tender offer involved in this transaction; and The China Securities Regulatory Commission?s approval. Transaction has been reviewed and approved at the 11th meeting of CETC Energy's 11th Board of Directors. The transaction has also been approved in principle by the competent authority of state-owned assets supervision and management and by the National Defense Science and Industry Bureau. The transaction has been approved by the shareholders in a general meeting held on June 16, 2021. Du Ximing and Kang Pan of China International Capital Corporation Limited (SEHK:3908) acted as financial advisors, Huang Guobao and Huang Nuo of Jiayuan Law acted as legal advisors and Lin Huaiyanga and Hu Xiaoqin of ShineWing Certified Public Accountants Co., Ltd. acted as accountants to CETC Energy Joint-Stock Co., Ltd. CETC Energy Joint-Stock Co., Ltd. (SHSE:600877) completed the acquisition of Chongqing Southwest Integrated Circuit Design Co., Ltd., Chongqing Zhongke Xinyida Electronics Co., Ltd. and Shenzhen Ruijing Industrial Co., Ltd. from a group of shareholders on November 16, 2021.