Guangdong Sky Dragon Printing Ink Group Co., Ltd. (SZSE:300063) agreed to acquire Beijing RiddleMedia Technology Co., Ltd. from Zhenjiang Ruilan Enterprise Management Advisory Center (Limited Partnership), Pingtan Liyong Equity Investment Partnership Enterprise (Limited Partnership), Zhenjiang Ruiwo Enterprise Management Advisory Center (Limited Partnership), Zhenjiang Ruizi Enterprise Management Advisory Center (Limited Partnership) and Zhang Yaohong on December 10, 2019. Guangdong Sky Dragon signed an agreement to acquire Beijing RiddleMedia from the sellers for approximately CNY 410 million on March 31, 2020. The consideration will be paid through issuance of shares and cash payment. Zhang Yaohong will receive 41.5 million shares and CNY 32 million cash for its 36.7% stake, Zhenjiang Ruilan will receive 28.04 million shares and CNY 21.7 million for its 24.8% stake, Pingtan Liyong will receive 22.6 million shares and CNY 17.4 million for its 20% stake, Zhenjiang Ruiwo will receive 16.3 million shares and CNY 12.59 million and Zhenjiang Ruizi will receive 4.5 million shares and CNY 3.5 million. In total Guangdong Sky Dragon will issue 112,880,257 shares and pay CNY 87.2 million in cash to shareholders of Beijing RiddleMedia. Not more than 20% of the transaction price will be paid in cash using funds to be raised in the raising of supporting funds portion. Post transaction, Beijing RiddleMedia will become the wholly-owned subsidiary of Guangdong Sky Dragon. In related transaction, Guangdong Sky Dragon is to issue shares to not more than 5 designated investors in a private placement to raise supporting funds of not more than 100% of the transaction price in the asset acquisition. The lock up period for raising supporting funds is 6 months. As of December 31, 2018, Beijing RiddleMedia has total assets of CNY 547.3 million, shareholders’ equity of 93.8 million, revenue of CNY 2.63 billion, Operating profit of CNY 45.5 million, and net profit of CNY 36.7 million. The transaction is subject to a secondary directorate approval by Guangdong Sky Dragon. Board of Directors and shareholders approval and approval from China Securities Regulatory Commission. The transaction has obtained approval in principle of the pre-plan by Guangdong Sky Dragon Printing Ink Group Co., Ltd. controlling shareholder, Approval by Guangdong Sky Dragon Printing Ink Group Co., Ltd. 5th directorate in its 8th meeting on December 10, 2019, Approval from the internal decision-making bodies of the transaction counterparties and approval from the shareholders of Beijing RiddleMedia on December 10, 2019. On March 31, 2020, Guangdong Sky Dragon held the 12th Meeting of the 5th Directorate, and approved the transaction. Zhenjiang Ruilan, Pingtan Liyong, Zhenjiang Ruiwo and Zhenjiang Ruizi held their respective partners meetings and approved the transaction. Beijing RiddleMedia held a shareholders meeting and approved the transaction. On April 22, 2020, the shareholders of Guangdong Sky Dragon convened the second extraordinary general meeting of shareholders in 2020 where they reviewed and approved the transaction. On June 23, 2020, Guangdong Sky Dragon convened the 17th meeting of the fifth session of the directorate where they reviewed and approved the transaction. Zou Xiaoping and Hou Sixian of DONGXING SECURITIES Company Limited acted as financial advisor, Deng Wei and Miao Baowen of Jun Yue Law Firm acted as legal advisors along with Chen Changchun and Hu Xufeng of Moore Stephens Da Hua acted as accountants to Guangdong Sky Dragon. Guangdong Sky Dragon Printing Ink Group Co., Ltd. (SZSE:300063) cancelled the acquisition of Beijing RiddleMedia Technology Co., Ltd. from Zhenjiang Ruilan Enterprise Management Advisory Center (Limited Partnership), Pingtan Liyong Equity Investment Partnership Enterprise (Limited Partnership), Zhenjiang Ruiwo Enterprise Management Advisory Center (Limited Partnership), Zhenjiang Ruizi Enterprise Management Advisory Center (Limited Partnership) and Zhang Yaohong on September 30, 2020. The parties in the transaction entered into a termination agreement. The board of directors of Guangdong Sky Dragon Printing Ink Group Co., Ltd approved the proposal of terminating the issuance of shares to purchase assets and signing related termination agreements. In view of the relatively long duration of this transaction, the domestic securities market environment and policies have undergone major changes from the beginning of the transaction planning. The company and its controlling shareholders have fully demonstrated the reorganization and future capital market operations in order to maintain For the benefit of the listed company and all shareholders, all parties to the transaction unanimously agreed to terminate the transaction.