MeiDu Energy Corporation (SHSE:600175) signed a framework agreement to acquire Huzhou Ronghui Jiaheng Financial Leasing Co., Ltd. from (H K) HFYUAN Electronic Technology Co., Limited for approximately CNY 1.9 billion on August 25, 2017. MeiDu Energy Corporation will pay the consideration in cash. As of August 27, 2017, MeiDu Energy Corporation signed a supplementary framework agreement to acquire 75% stake in Huzhou Ronghui Jiaheng Financial Leasing Co., Ltd. from (H K) HFYUAN Electronic Technology Co., Limited for approximately CNY 1.4 billion. The final transaction price will be confirmed based on the assessment results to be issued by the intermediary agent. Prior to the transaction, (H K) HFYUAN Electronic Technology Co., Limited held 100% stake in Huzhou Ronghui Jiaheng Financial Leasing Co., Ltd. Huzhou Ronghui Jiaheng Financial Leasing Co., Ltd. reported total assets of CNY 5.43 billion, net assets of CNY 831.03 million, revenues of CNY 489.51 million and net profit of CNY 144.34 million in 2016. The Board of Directors of MeiDu Energy Corporation approved the transaction on August 25, 2017. The transaction does not require approval from the shareholders' of MeiDu Energy Corporation. MeiDu Energy Corporation (SHSE:600175) cancelled the acquisition of Huzhou Ronghui Jiaheng Financial Leasing Co., Ltd. from (H K) HFYUAN Electronic Technology Co., Limited on May 23, 2018. MeiDu Energy Corporation carried out careful due diligence on the part of the intermediary agency, the intermediary firm believes that the acquisition of Huzhou Ronghui Jiaheng Financial Leasing Co., Ltd. will be greatly affected by the country’s financial policy, and the stability of its performance will be uncertain in the future. In order to safeguard the interests of all shareholders, after careful investigation, MeiDu Energy Corporation decided to terminate the acquisition. The termination of the acquisition will not affect the MeiDu Energy Corporation production and operation.