Hunan Valin Iron & Steel Group Co., Ltd. agreed to acquire entire assets and liabilities from Hunan Valin Steel Co., Ltd. (SZSE:000932) for CNY 6.1 billion on July 13, 2016. On July 15, 2016, Hunan Valin Iron & Steel Group Co. entered into an agreement regarding the acquisition. Under the terms of the transaction, Hunan Valin Steel Co. will swap all of its assets and liabilities except its 100% stake in Xiangtan Valin Energy Saving Power Generation Co., Ltd. in exchange for certain assets of Hunan Valin Iron & Steel Group Co., Ltd. (‘swap-in assets’) and cash. The total price of swap-in assets amounts to CNY 5.4 billion. The swap-in assets include 100% stake in Hunan Valin Energy Saving Power Generation Co., Ltd. held by Hunan Valin Iron & Steel Group Co., Ltd, 37.99% stake in Fortune Securities Co., Ltd. wherein 24.58% stake held by Hunan Valin Iron & Steel Group Co., Ltd and 13.41% stake held by Dice Venture Capital, a wholly owned subsidiary of Hunan Valin Steel Co., Ltd. The transaction price of Hunan Valin Energy Saving Power Generation Co., Ltd's 100% stake is CNY 1.3 billion and transaction price of Fortune Securities’ 37.99% stake is CNY 4.1 billion. The price difference of approximately CNY 640 million between the swap-in and swap-out assets will be paid in cash by Hunan Valin Iron & Steel Group Co. The transaction is subject to approval from China Securities Regulatory Commission and State-owned Assets Supervision and Administration Commission (‘SASAC’) of Hunan Province. On July 13, 2016, Board of Directors of Hunan Valin Iron & Steel Group Co. held the 7th session of the 2nd directorate and approved the transaction. On July 15, 2016, Board of Hunan Valin Steel Co. held the 5th session of the 6th directorate and approved the pre-plan of the transaction. On September 22, 2016, shareholders of Hunan Valin Iron & Steel Group Co. approved the transaction. On September 23, 2016, the Board of Hunan Valin Steel Co. held the 7th session of the 6th directorate and approved the formal plan of this transaction. On July 13, 2016, the transaction plan was approved by Dice Venture Capital’s shareholders. On September 22, 2016, SASAC of Hunan Province approved the transaction. As of January 11, 2017, the Merger, Acquisition and Reorganization Examination Committee of Listed Companies of the CSRC approved the transaction. On February 21, 2017, China Securities Regulatory Commission approved the transaction. CITIC Securities Company Ltd. (SHSE:600030) and Huatai United Securities Co., Ltd. acted as financial advisors, Beijing Jia Yuan Law Firm acted as legal advisor and Pan-China Certified Public Accountants LLP acted as an accountant to Hunan Valin Steel Co. Hunan Valin Iron & Steel Group Co., Ltd. cancelled the acquisition of entire assets and liabilities from Hunan Valin Steel Co., Ltd. (SZSE:000932) on August 2, 2017. Prior to the termination of this transaction, the delivery of the equity-type assets which are part of the swapped-out assets was already completed, the delivery of the swapped-in asset, namely 100% stake in Hunan Valin Energy Saving Power Generation Co., Ltd., was already completed, the delivery of the swapped-in asset, namely, 37.99% stake in Fortune Securities Co., Ltd., has not yet been completed, the cash to be paid by Hunan Valin Iron & Steel Group Co., Ltd. for the difference in value between the swapped-out and swapped-in asset has not yet been paid, the delivery of the targets involved in the acquisition of asset through share issuance transaction, including 100% stake in Hunan Caixin Investment Holding Co., Ltd., 3.51% stake in Fortune Securities Co., Ltd., was not yet completed, Hunan Valin Steel Co., Ltd. has not yet conducted the issuance of shares to Valin Holding Group Co., Ltd. for the raising of supporting funds. State-owned Assets Supervision and Administration Commission approved the termination of the transaction on June 29, 2017. On July 7, 2017, Board of Hunan Valin Steel Co., Ltd. approved the termination of the transaction. On August 2, 2017, shareholders’ of Hunan Valin Steel Co., Ltd. approved the termination of the transaction.