China Sports Industry Group Co., Ltd. (SHSE:600158) signed an agreement to acquire 51% stake in China Sports Lottery Technology Group, 62% stake in Beijing National Sports Century Quality Certification Center Co., Ltd, 30% stake in China Sports Lottery Printing Co., Ltd. and 100% stake in Beijing Hua’an United Certification Testing Center Co., Ltd. from a group of sellers for approximately CNY 980 million on June 26, 2018. China Sports Industry Group Co., Ltd. will issue 47.4 million new shares and pay CNY 488.3 million in cash. As of December 12, 2018, the consideration is revised. Under the terms of transaction, China Sports Industry Group Co., Ltd. will acquire 51% stake in China Sports Lottery Technology Group for CNY 660.7 million and 62% stake in Beijing National Sports Century Quality Certification Center Co., Ltd. for CNY 149.1 million by the way of issuance of combination of share and cash; and 30% stake in China Sports Lottery Printing Co., Ltd. for CNY 251.7 million and 100% stake in Beijing Hua’an United Certification Testing Center Co., Ltd. for CNY 21.8 million by way of cash payment. China Sports Industry Group Co., Ltd. will issue 51.8 million new shares and CNY 533.2 million in cash. As of January 23, 2019, the number of shares to be issued as consideration were changed to 71.64 million due to adjustment. As of March 8, 2019, the total number of outstanding shares were increased from 71.6 million to 71.9 million. This change in the number of shares has been approved by the Board and does not require shareholders’ approval. On November 12, 2019, the consideration further revised to CNY 1.2 billion. It comprises of cash of CNY 520.1 million and 70.2 million shares. On June 15, 2020, China Sports Industry adjusted the issue price of the acquisition from CNY 7.65 per share to CNY 7.62 per share and the volume from 70.2 million shares to 70.49 million shares. The transaction will be funded by approximately CNY 540 million raised in a private placement transaction by China Sports Industry Group Co., Ltd. For the year ended December 31, 2017, China Sports Lottery Technology Group had total assets of CNY 872.6 million, net assets of CNY 732.6 million, revenue of CNY 348.7 million and net profit of CNY 60.7 million; China Sports Lottery Printing Co., Ltd. had total assets of CNY 560.4 million, net assets of CNY 470.1 million, revenue of CNY 201.9 million and net profit of CNY 23.7 million; Beijing National Sports Century Quality Certification Center Co., Ltd. had total assets of CNY 65.8 million, net assets of CNY 56.3 million, revenue of CNY 40.7 million and net profits of CNY 23.4 million; Beijing Hua’an United Certification Testing Center Co., Ltd. had total assets of CNY 10.1 million, net assets of CNY 5.6 million, revenue of CNY 8.9 million and net profit of CNY 0.95 million. The transaction is subject to approval from shareholders of target companies, secondary directorate approval of China Sports Industry Group Co., Ltd., State-owned Assets Supervision and Administration Commission, approval from shareholders of China Sports Industry Group Co., Ltd. and China Securities Regulatory Commission. The transaction is approved by General Administration of Sport of China, Ministry of Finance of the People’s Republic of China and Board of China Sports Industry Group Co., Ltd. The Department of Culture of the Ministry of Finance issued the letter on approving the transaction. The counterparties have fulfilled the internal decision-making procedures, shareholders of target companies approved the transaction and the target companies asset assessment reports have been filed by General Administration of Sport. The transaction has been approved by temporary meeting of the seventh Board of Directors of China Sports Industry Group. As of December 24, 2018, the transaction has been approved by the shareholders' meeting of China Sports Industry Group Co., Ltd. On January 23, 2019, China Sports Industry Group’s 1st interim session for 2019 of the 7th directorate meeting approved the adjustment in the shares issuance price of this transaction. On June 26, 2019, the transaction is rejected by The China Securities Regulatory Commission listed company mergers and acquisitions review committee. On July 15, 2019, China Sports Industry Group Co., Ltd. received notice from the China Securities Regulatory Commission on the non-approval of the transaction. On November 12, 2019, the Board of Directors of China Sports Industry Group Co., Ltd. approved the revised consideration plan which further requires approval from state-owned assets supervision department and CSRC. On February 26, 2020, the transaction was approved by the Board of Director of China Sports Industry Group on the third temporary meeting of the seventh directorate of the company. As on March 19, 2020, the transaction approved by China Securities Regulatory Commission. As on April 17, 2020, the China Securities Regulatory Commission approved the transaction plan. As on April 29, 2020, the transaction plan was approved by the China Securities Regulatory Commission regarding China Sports Industry Group Co., Ltd.'s issuance of shares to purchase assets and raise supporting funds. As of May 25, 2020, China Sports Industry Group completed the acquisition of 30% stake in China Sports Lottery Printing Co., Ltd. As of June 4, 2020, China Sports Industry Group completed the acquisition of 62% stake in Beijing National Sports Century Quality Certification Center Co., Ltd. As of June 8, 2020, China Sports Industry Group completed the acquisition of 51% stake in China Sports Lottery Technology Group. As of June 16, 2020, China Sports Industry Group completed the acquisition of 100% stake in Beijing Hua’an United Certification Testing Center Co., Ltd. Wang Changqing, Cheng Nan, Zheng Xin, Yuan Chen, Bai Juyi and Zheng Linze of China Securities Co., Ltd. acted as financial advisors, Liang Chun, Chen Wei and Chi Guodong of Dahua Certified Public Accountants (Special General Partnership) acted as accountants, Wang Ling, Tang Lizi, Han Jie and Gao Zhao of Beijing King & Wood Law Firm acted as legal advisors and Xu Weijian, Yang Dongmei and Li Fengshan of Vocation International (Beijing) Assets Evaluation Co., Ltd. acted as appraisers for China Sports Industry Group Co., Ltd.