Lanzhou Haimo Technologies Co., Ltd. (SZSE:300084) agreed to acquire Shanghai Qinghe Machinery Co., Ltd. from Li Jianguo and Li Tie for approximately CNY 400 million in cash and stock on May 18, 2014. Under the terms of the deal, 98.16% equity held by Li Jianguo will be acquired through issuance of 13.15 million shares of Lanzhou Haimo Technologies and cash of CNY 150 million and 1.84% equity held by Li Tie will be acquired through issuance of 0.39 million shares of Lanzhou Haimo Technologies. Within 10 working days, Lanzhou Haimo Technologies must deposit 20% of the cash portion of the consideration and within 45 working days upon the settlement day, Lanzhou Haimo Technologies must deposit 80% of the cash consideration. Lanzhou Haimo Technologies intends to raise the matching funds through private placement to not more than 5 specific investors, the total amount of the raised fund will be CNY 140 million, for the payment of the cash consideration of the transaction. The conditional assets acquisition was signed on May 22, 2014.

As of December 31, 2013 Shanghai Qinghe Machinery had total assets of CNY 238.41 million, total liabilities of CNY 114.32 million, total owners' equity of CNY 124.09 million, revenue of CNY 183.7 million, operating profit of CNY 25.64 million, total profit of CNY 28.34 million and net profit of CNY 24.10 million. The transaction is subject to working meeting of the Merger, Acquisition and Reorganization Examination Committee for Listed Companies of China Securities Regulatory Commission and the written approval of the China Securities Regulatory Commission and approval by shareholders of Lanzhou Haimo Technologies Co., Ltd.

On May 18, 2014, the transaction was approved by the shareholders of Shanghai Qinghe Machinery. On May 22, 2104, the Board of Directors of Lanzhou Haimo Technologies approved the deal. On June 23, the transaction was approved by shareholders of Lanzhou Haimo Technologies. On October 16, 2014, China Securities Regulatory Commission approved the transaction. Sinolink Securities Co., Ltd. acted as financial advisor, Llinks Law Offices acted as legal advisor and Ruihua Certified Public Accountants acted as accountant for Lanzhou Haimo Technologies.