Chongqing Gangjiu Co., Ltd (SHSE:600279) agreed to acquire 100% stake in SDIC Chongqing Guoyuangang Port, 49.82% stake in Chongqing Luohuang Port and 67.17% stake in Chongqing Yuwu Civil Explosive Equipment from SDIC Communications Holding Co., Ltd. and Chongqing Port Logistics Group Co., Ltd. for CNY 2.2 billion on March 20, 2019. As part of the consideration, Chongqing Gangjiu will issue approximately 494 million shares at the price of CNY 3.76 per share. Of the 494 million shares being issued, approximately 317 million shares will be given to Chongqing Port Logistics and approximately 177 million shares to SDIC Communications. As on December 31, 2018, SDIC Chongqing, Chongqing Luohuang and Chongqing Yuwu had a combined total assets of CNY 4.3 billion and a combined total common equity of CNY 1.9 billion. For the year ended December 31, 2018, the combined total revenues were approximately CNY 586 million and the combined net income was CNY 75.9 million. On March 20, 2019, the shareholders of SDIC Chongqing Guoyuangang, Chongqing Luohuang Port and Chongqing Yuwu Civil Explosive approved the transaction. On March 25, 2019, the 8th session of Chongqing Gangjiu’s 7th directorate approved the transaction. As of July 15, 2019, board of directors of Chongqing Gangjiu Co.,Ltd has approved the issuance of shares. The deal is subject to the approval by another directorate of Chongqing Gangjiu after the completion of the audit and appraisal works, Chongqing Gangjiu’s shareholders, China Securities Regulatory Commission and the management committee of Liangjiang New Area. As of July 26, 2019, the transaction was approved by Chongqing Liangjiang New District Management Committee. On October 25, 2019, the Merger, Acquisition and Reorganization Examination Committee of Listed Companies of the CSRC approved the transaction unconditionally. As on November 27, 2019, the number of shares to be issued by Chongqing Gangjiu Co.,Ltd for the consideration has been revised to approximately 493 million shares from approximately 487 million shares after considering new assessment report. Yang Jiongyang of HUAXI Securities Co., Ltd. acted as the financial advisor to Chongqing Gangjiu. Chongqing Gangjiu Co., Ltd (SHSE:600279) completed the acquisition of 100% stake in SDIC Chongqing Guoyuangang Port, 49.82% stake in Chongqing Luohuang Port and 67.17% stake in Chongqing Yuwu Civil Explosive Equipment from SDIC Communications Holding Co., Ltd. and Chongqing Port Logistics Group Co., Ltd. on December 3, 2019.Chongqing Luohuang Port completed the change of registry procedures on November 29, 2019 while SDIC Chongqing Guoyuangang Port and Chongqing Yuwu Civil Explosive Equipment completed the procedures on December 3, 2019. The issuance of new consideration shares has completed the share registration procedures at China Securities Depository and Clearing Corporation Limited Shanghai Branch on December 11, 2019. Yang Feiyan of Sichuan Lianyi Law Firm acted as legal advisor to Chongqing Gangjiu Co., Ltd. Wu Weixing, Hu Yonghua of Wuyige Certified Public Accountants LLP acted as accountants to Chongqing Gangjiu Co., Ltd., while Yin Xianglong of Chongqing Huakang Asset Appraisal Land Real Estate Appraisal Co., Ltd. acted as asset evaluation agency to Chongqing Gangjiu Co., Ltd.