Jiangsu Skyray Instrument Co., Ltd. (SZSE:300165) agreed to acquire additional 37.03% stake in IMPACT Scientific Instrument Co., Ltd. from a group of sellers for approximately CNY 140 million on October 14, 2019. Under the terms, Jiangsu Skyray Instrument Co., Ltd. will acquire 28 million shares of IMPACT Scientific Instrument Co., Ltd. at CNY 5.1 per share. For the year ending December 31, 2018 IMPACT reported total revenues of approximately CNY 280 million, total assets of approximately CNY 200 million, total owner's equity of approximately CNY 120 million, operating profit of CNY 32.5 million and a net profit of CNY 31.8 million.

The transaction is subject to shareholder approval and by China Securities Regulatory Commission. The 13th meeting of the 4th directorate of Jiangsu Skyray Instrument Co., Ltd. has approved this transaction. As of December 11, 2019, CSRC approved the transaction. As of April 30, 2020, the transaction is not yet completed as the target assets still needs to complete the relevant industrial and commercial registration change procedures, Jiangsu Skyray still needs to issue shares to the counterparty for the reorganization, and apply to the Shenzhen branch of China Securities Depository and Clearing for relevant registration procedures, and apply for the listing of new shares to the Shenzhen Stock Exchange and needs to complete the fundraising of the non-public issuance of shares within the time limit approved by the China Securities Regulatory Commission.

China Galaxy Securities Co., Ltd. acted as the financial advisor, Zhang Dongxiao, Zhu Yanping and Wang Ting of AllBright Law Offices acted as the legal advisors, Zhang Caibin, Liu Yong and Sun Yinjun of Jiangsu Gongzheng Tianye Certified Public Accountants Co Ltd acted as the accountants, Quan Zhongguang, Li Weijian, Dai Binghui and Liang Xinxin of China Enterprise Appraisals Real Estate Appraisal Co., Ltd. acted as the asset assessment agency in the transaction.

Jiangsu Skyray Instrument Co., Ltd. (SZSE:300165) completed the acquisition of 37.03% stake in IMPACT Scientific Instrument Co., Ltd. from a group of sellers on September 21, 2020. Jiangsu Skyray nows holds 99.45% stake in IMPACT.