Guangdong Guanhao High-Tech Co., Ltd. (SHSE:600433) signed an agreement of intention to acquire Foshan Huaxin Packaging Co., Ltd. (SZSE:200986) for CNY 2.1 billion on September 8, 2020. As part of the transaction, Guangdong Guanhao High-Tech will issue 565.5 million A shares to all shareholders of Foshan Huaxin Packaging to absorb and merge Foshan Huaxin Packaging. Guangdong Guangdong Guanhao High-Tech Co., Ltd. will be raising supporting funds of not more than CNY 500 million. According to the plan of this merger, Guangdong Guanhao High-Tech Co., Ltd. will issue A shares to all Foshan Huaxin Packaging Co., Ltd. convertible shareholders, and convert to absorb Foshan Huaxin Packaging Co., Ltd. (merged company). Guangdong Guanhao High-Tech Co., Ltd. signed a revised agreement to acquire Foshan Huaxin Packaging Co., Ltd. for CNY 2.7 billion on May 12, 2021. The adjustments will be made in the conversion price and the conversion ratio and Guangdong Guanhao High-Tech will issue 567.5 million shares to all shareholders of Foshan Huaxin Packaging and the conversion ratio is adjusted to 1:1.1229. The transaction is subject to both Guangdong Guanhao High-Tech Co and Foshan Huaxin Packaging Co Board approval as well as shareholders' approval, approval of State-owned Assets Supervision and Administration Commission, China Securities Regulatory Commission & other relevant authorities required by laws and regulations. As on September 22, 2020, transaction is approved by Board of Directors of Guangdong Guanhao High-Tech Co., Lt, Foshan Huaxin Packaging Co., Ltd. and State-owned Assets Supervision and Administration Commission of the State Council. The transaction is still subject to approval of the second Board of Directors of both parties.

As on December 5, 2020, in order to protect the interests of Guangdong Guanhao High-Tech Co., Ltd. shareholders, the merger will give Guangdong Guanhao High-Tech Co., Ltd. dissenting shareholders acquisition request. China Paper Investment Company and its designated unrelated third parties will provide Guangdong Guanhao High-Tech Co., Ltd. dissenting shareholders with acquisition request. China Paper Company will provide Foshan Huaxin Packaging Co., Ltd.'s dissenting shareholders with cash options in this merger. As of March 11, 2021, Foshan Huaxin Packaging Co., Ltd. trading is halted and will resume on March 12, 2021, after regulatory approval. As on April 14, 2021, transaction is approved by the China Securities Regulatory Commission. The deal is expected to be completed by June 10, 2021 and trading will be completed but the same date as well. Guangdong Guanhao High-Tech Co., Ltd. has submitted an application to the Shenzhen Stock Exchange has submitted an application to the Shenzhen Stock Exchange on July 5, 2021.

CITIC Securities Company Limited (SHSE:600030) acted as the financial advisor to Guangdong Guanhao High-Tech Co., Ltd. Wu Dan and Tan Xiao of China International Capital Corporation Limited (SEHK:3908) and Zhang Yan and Wu Danjia of Huarong Securities Co., Ltd. acted as the financial advisors to Foshan Huaxin Packaging Co., Ltd. Gao Pingjun, Liang Feng, Qiu Jialei, Zhang Wenxi of Anli Partners acted as legal advisors and Li Qinglong and Liu Jingya of Pan-China Certified Public Accountants (Special General Partnership) acted as accountant to Foshan Huaxin Packaging Co., Ltd. Ma Hongji, Han Hongjing, Wang Peng, Lu Ting, Yu Meiling, Zhen Zhaoyong and Wang Wenyong of Beijing Jingtian & Gongcheng Law Firm acted as legal advisors and Xu Changying and Zhou Yanqun of Reanda Certified Public Accountants Co., Ltd. acted as accountants to Guangdong Guanhao High-Tech Co.

Guangdong Guanhao High-Tech Co., Ltd. (SHSE:600433) completed the acquisition of Foshan Huaxin Packaging Co., Ltd. (SZSE:200986) on July 20, 2021. The transaction was approved by China Securities Regulatory Commission.