Hunan Valin Steel Co., Ltd. (SZSE:000932) signed an agreement to acquire 3.77% stake in Fortune Securities Co., Ltd. from Shenzhen Runze Light and Audio Technology Development Co., Ltd. for approximately CNY 380 million on July 15, 2016. Under the terms of the transaction, Hunan Valin Steel will acquire the stake through share issuance of 104.9 million shares. As of September 26, 2016, Hunan Valin Steel will acquire 3.51% stake for approximately CNY 510 million through share issuance of 100.87 million shares. In a related deal, Hunan Valin Steel Co.,Ltd. will acquire 100% equities in Valin Energy Conservation, Casin Enterprise and plans to sell out steel businesses. For the year ending December 31, 2015, Fortune Securities Co., Ltd. reported total assets of CNY 30.09 billion, total shareholders’ equity of CNY 4.24 billion, revenues of CNY 2.5 billion and net profit of CNY 975.72 million. The transaction is subject to the conditions including filing of Fortune Securities Co., Ltd. assets’ assessment report by the State-owned Assets Supervision and Administration Commission of Hunan Provincial Government, approval from the meeting of employee representatives regarding staff reassignment matters involved in the restructuring, secondary approval of Hunan Valin Steel’s directorate regarding the transaction’s formal proposal, approval of the transaction’s formal proposal by the State-owned Assets Supervision and Administration Commission of Hunan Provincial Government, approval from Hunan Valin Steel’s shareholders, approval from SASAC of Hunan Province, Hunan Securities Regulatory Bureau and China Securities Regulatory Commission. The transaction has obtained approval from Board of Directors of Hunan Valin Steel on July 15, 2016 and approval in principle by the State-owned Assets Supervision and Administration Commission of Hunan Provincial Government. The formal plan was approved by the Board of Directors of Hunan Valin Steel on September 23, 2016. The transaction has been approved by SASAC of Hunan Province in principle. As of January 11, 2017, the deal obtained a conditional approval from the Merger, Acquisition and Reorganization Examination Committee of Listed Companies of the China Securities Regulatory Commission. On February 21, 2017, China Securities Regulatory Commission approved the transaction. On June 29, 2017, the State-owned Assets Supervision and Administration Commission of Hunan issued the reply on the termination of Hunan Valin Steel Co., Ltd.’s major asset reorganization to Hunan Valin Iron & Steel Group Co., Ltd. and Hunan Caixin Financial Holding Group Co., Ltd., approving to terminate this major asset reorganization. On July 7, 2017, Hunan Valin Steel Co., Ltd. held the 12th session of its 6th directorate, approved the proposal on the termination of this major asset reorganization. On August 2, 2017, Hunan Valin Steel Co., Ltd.’s 1st special shareholders’ meeting for 2017 approved the proposal on the termination of the major asset reorganization. CITIC Securities Company Limited and Huatai United Securities Co., Ltd. acted as independent financial advisors, Beijing Jia Yuan Law Firm acted as legal advisor and Pan-China Certified Public Accountants LLP acted as accountant to Hunan Valin Steel Co.,Ltd.