Longshine Technology Co., Ltd. (SZSE:300682) signed an agreement to acquire YSTen Technology Co., Ltd. from a group of sellers for CNY 2.9 billion on October 29, 2018. On December 27, 2018, a supplement agreement was signed. The consideration comprises issuance of 202.4 million shares. In a related deal, Longshine Technology Co., Ltd. signed agreement to acquire 50% in Bang Dao Technology Co., Ltd. from Shanghai Yunju Venture Capital Co., Ltd. and Wuxi Puyuan Investment Partnership Enterprise (Limited Partnership). On February 26, 2019, a supplementary agreement was signed. Under the terms of the new agreement, Wuxi Jintou Linghang Industrial Upgrade M&A Investment Enterprise (Limited Partnership) will not participate in the transaction. Longshine Technology Co., Ltd. will now acquire 96% stake in YSTen Technology Co., Ltd. from a group of sellers. On April 1, 2019, the consideration was revised and 194.27 million shares will be paid as a consideration. On April 25, 2019, the consideration was revised to CNY 2.95 billion. On May 13, 2019, the consideration was revised to 195.3 million shares.

For the year ended December 31, 2017, YSTen Technology Co., Ltd. reported revenues of CNY 1.2 billion, total assets of CNY 1.2 billion, operating profit of CNY 96.8 million, net income of CNY 62.5 million and net assets of CNY 508.9 million. The deal is subject to second approval from Board of Directors and approval from shareholders of Longshine Technology Co., Ltd. and China Securities Regulatory Commission. On October 29, 2018, the Board of Directors of Longshine Technology Co., Ltd. approved the deal. On December 27, 2018, the 23rd meeting of the 2nd directorate of Longshine Technology Co., Ltd. approved the transaction. On January 14, 2019, the transaction was approved by the shareholders of Longshine Technology Co., Ltd. On March 7, 2019, Longshine Technology Co., Ltd held the twenty-fifth meeting of the second Board of Directors, and reviewed and approved the relevant proposals for the adjustment of the restructuring plan. On April 22, 2019, Merger, Acquisition and Reorganization Examination Committee of Listed Companies of the China Securities Regulatory Commission convened its 16th merger, acquisition and reorganization examination committee working conference and conditionally approved the transaction. As of May 27, 2019, China Securities Regulatory Commission approved the transaction. Zhao Liang and Luan Chenghao of CITIC Securities Company Limited (SHSE:600030) acted as financial advisors, Shi Tiejun and Li Zhi of Jun He Law Offices acted as legal advisors, Li Xuemei, Zhao Yupeng and Li Sha of PricewaterhouseCoopers Zhong Tian LLP acted as accountants for Longshine Technology Co., Ltd.

Longshine Technology Co., Ltd. (SZSE:300682) completed the acquisition of YSTen Technology Co., Ltd. from a group of sellers on June 4, 2019.