Nancal Technology Co.,Ltd (SHSE:603859) signed a framework agreement to acquire Shanghai Lianhong Chuangneng Information Technology Co., Ltd. from Gong Jun, Cao Lili, Xinyu Shenyan Investment Partnership (Limited Partnership) and Yancheng Shenhong Information Technology Partnership (Limited Partnership) on July 11, 2018. Nancal Technology signed an equity transfer agreement to acquire Shanghai Lianhong Chuangneng Information Technology from Gong Jun, Cao Lili, Xinyu Shenyan and Yancheng Shenhong Information for approximately CNY 240 million on August 13, 2018. Nancal Technology signed an acquisition of assets through the issuance of shares supplement agreement to acquire Shanghai Lianhong Chuangneng Information Technology from Gong Jun, Cao Lili, Xinyu Shenyan and Yancheng Shenhong Information on September 28, 2018. The consideration will be paid through issuance of 12.7 million shares of Nancal Technology. Gong Jun, Cao Lili, Xinyu Shenyan and Yancheng Shenhong Information Technology will sell 32.5%, 32.5%, 25% and 10% stake respectively and will receive 4.1 million, 4.1 million, 3.2 million and 1.3 million shares as consideration respectively. Lock up period will be 12 months since issuance date for Gong Jun, Cao Lili and Yancheng Shenhong Information Technology. Lock up period will be 36 months since issuance date for Xinyu Shenyan. As of December 31, 2017, Shanghai Lianhong Chuangneng Information Technology reported net assets of CNY 62.4 million and total assets of CNY 130.09 million. Shanghai Lianhong Chuangneng Information Technology reported revenues of CNY 179.83 million, operating profit of CNY 12.23 million and net profit of CNY 9.7 million in 2017. The transaction is subject to final formal approval from the shareholders and the Board of Directors of Nancal Technology and approval of China Securities Regulatory Commission. Yancheng Shenhong Information Technology Partnership (Limited Partnership), Xinyu Shenyan Investment Partnership (Limited Partnership) and Shanghai Lianhong Chuangneng Information Technology Co., Ltd. approved the transaction on August 10, 2018. On August 13, 2018, the transaction was approved by the Board of Nancal Technology Co.,Ltd. As of August 13, 2018, a second approval from the Board of Nancal Technology Co.,Ltd is required. The transaction is approved at the 15th Meeting of the 3rd Directorate of Nancal Technology. The transaction has been approved by the shareholders of Nancal Technology at the 2nd Extraordinary Shareholders Meeting of 2018 held on October 16, 2018. On December 25, 2018, China Securities Regulatory Commission approved the transaction. Bai Yimin, and Gao Jun of China Great Wall Securities Co., Ltd. (SZSE:002939) acted as financial advisors, Tan Qing, Lei Jun and Zhao Ying of Tian Yuan Law Firm acted as legal advisors and Li Lifang and Wen Haiping of Beijing Tianyuanquan Accounting Firm Co., Ltd acted as accountants for Nancal Technology.