Delixi Xinjiang Transportation Co.,Ltd. (SHSE:603032) signed a letter of intent to acquire 90% stake in Dongguan Zhihong Precision Mould Co., Ltd from Ganzhou Zhihong Equity Investment Partnership Enterprise (Limited Partnership), Shenzhen Jianhe Yujian Equity Investment Fund Partnership Enterprise (Limited Partnership), Dongguan Zhifu Enterprise Management Advisory Partnership Enterprise (Limited Partnership) and Dongguan Zhihong Equity Investment Partnership Enterprise (Limited Partnership) for approximately CNY 760 million on March 27, 2020. Under the terms, 40% of the consideration will be paid in cash and 60% will be paid in domestic listed A shares of which Ganzhou Zhihong, Shenzhen Jianhe Yujian, Dongguan Zhifu and Dongguan Zhihong will receive approximately CNY 460 million, CNY 49 million, approximately CNY 103 million and approximately CNY 18.7 million respectively. On February 26, 2021, an agreement is signed as per which Delixi Xinjiang Transportation Co.,Ltd. will now acquire 100% stake from same sellers for CNY 650 million. As per the revised terms, the consideration is payable in cash in four installments. The first payment of CNY 260 million is payable within 20 days after the completion of the registration of industrial and commercial changes. The remaining three will be paid upon receipt of performance of the target company in 2020, 2021 and 2022. Ganzhou Zhihong, Shenzhen Jianhe Yujian, Dongguan Zhifu and Dongguan Zhihong currently holds 73.5%, 7%, 16.5% and 3% stake in Dongguan ZhiHong Precision Mold Co., Ltd. respectively. Post transaction, Ganzhou Zhihong, Shenzhen Jianhe Yujian, Dongguan Zhifu and Dongguan Zhihong will hold 7.9%, 0, 1.77% and 0.32% stake in Dongguan ZhiHong Precision Mold Co., Ltd. However as per adjusted plan, all shareholders will exit. The transaction will be funded from through private placement issuance of shares to not more than 35 designated investors. As of July 27, 2020, Delixi Xinjiang Transportation raised CNY 180 million, CNY 67 million of which used to finance the transaction. Dongguan Zhihong Precision Mould generates revenue of CNY 122 million and net profit of CNY 50.4 million in 2019. The transaction is subject to approval from Board of Delixi Xinjiang, shareholders of Delixi Xinjiang and by the China Securities Regulatory Commission. As on April 13, 2020, the transaction was approved by the board of directors at the ninth (provisional) meeting of the third directorate of the Delixi Xinjiang Transportation Co.,Ltd. and on April 9, 2020, the transaction was approved by the shareholders of Dongguan ZhiHong Precision Mold Co., Ltd. The transaction has been approved by the Board of Directors of Delixi Xinjiang Transportation thirteenth (temporary) meeting of the third directorate on July 27, 2020. On August 13, 2020, the transaction has been approved by the shareholders of Delixi Xinjiang Transportation. As of October 21, 2020, the China Securities Regulatory Commission’s Listed Companies Mergers and Acquisitions and Reorganization Review Committee at its 46th meeting rejected the plan for the issuance of shares to purchase assets and private placement to raise supporting funds. The board of directors of Delixi Xinjiang Transportation Co.,Ltd. shall make a resolution on whether to modify or terminate this plan within 10 days. As of November 13, 2020, the 18th session of the Delixi Xinjiang Transportation Co.,Ltd’s 3rd directorate and the 12th session of Delixi Xinjiang Transportation Co.,Ltd’s 3rd supervisory board approved the transaction. On February 26, 2021, the Board of Directors and shareholders of Delixi Xinjiang Transportation Co.,Ltd. unanimously approved the revised deal. Chen Long and Liu Guannan of Changjiang Financing Services Company Limited and Shenwan Hongyuan Securities Underwriting Sponsor Co., Ltd. acted as financial advisors, Xiao Houfa, Yang Yunhui and Tao Liang of RSM International Association acted as an accountant and Liu Guannan, Zhu Guangzhong and Zhu Minghuang of Jin Mao Partners as a legal advisor for Delixi Xinjiang Transportation. Chen Min and Wang Haijun of China Tong Cheng Assets Appraisal Co., Ltd. acted as asset appraisers. Delixi Xinjiang Transportation Co.,Ltd. (SHSE:603032) completed the acquisition of Dongguan Zhihong Precision Mould Co., Ltd from Ganzhou Zhihong Equity Investment Partnership Enterprise (Limited Partnership), Shenzhen Jianhe Yujian Equity Investment Fund Partnership Enterprise (Limited Partnership), Dongguan Zhifu Enterprise Management Advisory Partnership Enterprise (Limited Partnership) and Dongguan Zhihong Equity Investment Partnership Enterprise (Limited Partnership) on March 30, 2021.