Hunan Huakai Cultural and Creative Co., Ltd. (SZSE:300592) intends to acquire 90% stake in Shenzhen Yibai Network Technology Co., Ltd. from group of sellers on June 10, 2019. The consideration shall be payable through cash and shares. As of October 21, 2019, Hunan Huakai Cultural and Creative Co., Ltd. agreed to acquire 90% stake in Shenzhen Yibai Network Technology Co., Ltd. from group of sellers for CNY 1.5 billion. The consideration shall be payable through cash, shares and convertible corporate bonds. Hunan Huakai Cultural and Creative Co., Ltd. shall issue 125.02 million shares and 0.19 units of convertible bonds. Hunan Huakai Cultural and Creative Co., Ltd. will carry out private placement to raise supporting funds. Hunan Huakai Cultural and Creative Co., Ltd shall use CNY 267.8 million from funds raised for cash portion of consideration. As of March 19, 2020, Hunan Huakai Cultural and Creative Co., Ltd. will pay the cash through issuance of shares and cash only. On June 17, 2020, Hunan Huakai Cultural and Creative Co., Ltd. signed an asset agreement to acquire 90% stake in Shenzhen Yibai Network Technology Co., Ltd. from group of sellers for CNY 1.9 billion. As part of the consideration Hunan Huakai Cultural and Creative will be issuing 144.1 million shares and cash of CNY 244.2 million. Hunan Huakai Cultural and Creative will raise supporting funds of not more than CNY 500 million by issuing not more than 30% of total share capital to not more than 35 investors, including Zhou Xinhua, who will to not less than 10% of the issuance. If the supporting funds fail to generate an issue price through inquiry, Zhou Xinhua will subscribe to 2 million to 3.7 million shares at the minimum price i.e. 80% of the average price in the 20 trading days before the pricing reference date. For the period ended December 31, 2018, Shenzhen Yibai Network Technology Co., Ltd. reported total assets of CNY 640.02 million, total liabilities of CNY 475.93 million, net assets of CNY 164.08 million, revenue of CNY 1.8 billion, operating profit of CNY 128.12 million, total profit of CNY 122.03 million and net profit of CNY 106.86 million. The transaction is subject to approval from Directors and shareholders of Hunan Huakai Cultural and Creative Co., Ltd., Chinese Securities Regulatory Commission and other necessary approvals. The transaction was approved by the meeting of the Directorate of Hunan Huakai Cultural and Creative on June 14, 2019. As of February 25, 2020, the securities regulator rejected the transaction. On June 17, 2020, Hunan Huakai Cultural and Creative held the 30th Meeting of the 2nd Directorate, and approved the revised terms. On August 24, 2020, Hunan Huakai Cultural and Creative’s Directorate approved the acquisition of assets through the issuance of shares and cash and raising of supporting funds. On September 24, 2020, the transaction was approved by the shareholders of Hunan Huakai Cultural and Creative Co., Ltd. On November 9, 2020, Hunan Huakai Cultural and Creative held the 35th Meeting of the 2nd Directorate, and approved the acquisition of assets through the issuance of shares and cash and raising of supporting funds. As of February 22, 2021, the antitrust authorities approved the transaction. As of April 22, 2021, Board of Hunan Huakai Cultural and Creative Co., Ltd. approved the revised draft. On June 9, 2021, Hunan Huakai Cultural and Creative Co., Ltd. received the China Securities Regulatory Commission for the issuance of shares as to 29.9 million shares to Nanping Yanping Mangliduo, 48.7 million shares to Luo Ye, 22.2 million shares to Nanjing Chaoran Mailun, 16.5 million shares to Nanjing Yisheng Huihuang, 9.5 million shares to Jiangsu Zhonghan Chenhui, 6.8 million shares to Ningbo Meishan, 3.8 million shares to Li Xu, 3.6 shares to Huang Lishan, and 3 million shares to Shenzhen HSBC Chase as consideration. Sun Wen and Wang Jiayu of Huajing Securities Co., Ltd. acted as financial advisor, Zou Bang, Mo Biao and Gao Lingling of Huajing Securities Co., Ltd. acted as legal advisor and Qiu Junzhou and Tan Yegui of Moore Stephens Da Hua acted as accountant to Hunan Huakai Cultural and Creative Co., Ltd.