Changchun UP Optotech Co.,Ltd. (SZSE:002338) signed an acquisition of assets agreement to acquire Changchun Guanghua Microelectronics Equipment Engineering Center Co., Ltd. from a group of sellers for approximately CNY 390 million on May 31, 2019. Changchun UP Optotech Co.,Ltd will issue 22.5 million shares and pay CNY 117.3 million in cash as consideration. As of September 25, 2019, Changchun UP Optotech Co.,Ltd. signed an agreement to acquire Changchun Guanghua Microelectronics Equipment Engineering Center Co., Ltd. from a group of sellers. The transaction will be funded by raising CNY 160 million from the issue of not more than 48 million shares to not more than 10 investors.

As of December 31, 2018, Changchun Guanghua Microelectronics Equipment Engineering Center Co., Ltd. reported total assets of CNY 222.7 million and net assets of CNY 136 million. For the year ended December 31, 2018, Changchun Guanghua Microelectronics Equipment Engineering Center Co., Ltd. reported revenues of CNY 129.7 million, operating profit of CNY 26.8 million and net profit of CNY 23.7 million. This transaction is subject to approval of shareholders of Changchun UP Optotech Co.,Ltd., Ministry of Finance, Jilin Province Department of Finance and CSRC. The transaction has obtained approval of the 27th Meeting of 6th Directorate of Changchun UP Optotech Co.,Ltd., sellers' internal decision-making institutions' approvals, Changchun Guanghua Microelectronics Equipment Engineering Center's shareholders approval, approval of The State Administration of Science, Technology and Industry for National Defense, PRC's approval and filing of Changchun Guanghua Microelectronics Equipment Engineering Center's assessment reports.

Xu Peng, Zhang Erjun and Jia Qi of Northeast Securities Co., Ltd. (SZSE:000686) acted as financial advisors, Liu Ruifeng, Zhou Xiujuan, and Lv Yanchang of Zhong Yin Law Firm acted as legal advisors and Zhang Jinghui, Zhu Hongshan, Zhang Yu of BDO China SHU LUN PAN Certified Public Accountants LLP acted as accountants and Xu Xingbin and Zhao Yuling of China Alliance Appraisal Co., Ltd acted as the valuers to Changchun UP Optotech Co.,Ltd.

Changchun UP Optotech Co.,Ltd. (SZSE:002338) cancelled the acquisition of Changchun Guanghua Microelectronics Equipment Engineering Center Co., Ltd. from a group of sellers on March 20, 2020. Changchun UP Optotech held the 34th Meeting of the 6th Directorate, and approved the termination of the transaction.