NARI Technology Co., Ltd. (SHSE:600406) agreed to acquire Beijing NARI System Control Co., Ltd. from NARI Group Corporation for CNY 45.3 million on May 16, 2017. The consideration will be paid in cash and stock. As of July 31, 2017, the terms of the transaction were amended pursuant to which NARI Technology Co., Ltd. will pay CNY 48.4 million as the consideration. In related transactions, NARI Technology Co., Ltd. agreed to acquire stakes in 13 companies. To fund the cash portion of the considerations, NARI Technology Co., Ltd. agreed to raise not more than CNY 6.1 billion by issuing shares to not more than 10 investors. For the financial year ended December 31, 2016, Beijing NARI System Control Co., Ltd. reported total assets of CNY 32.26 million, net assets of CNY 19.27 million, revenue of CNY 4.28 million, operating profit of CNY 2.26 million and net profit of CNY 1.72 million. The transaction is subject to approval from the Board of NARI Technology Co., Ltd., approval of NARI Group Corporation for the formal transaction plan, State-owned Assets Supervision and Administration Commission's filing and approval of Beijing NARI System Control's assets’ audit and assessment reports, NARI Technology Co., Ltd's shareholders' approval, China Securities Regulatory Commission's approval, Ministry of Commerce’s review on the concentration of business operators and other necessary approvals. As of May 17, 2017, the transaction was approved by NARI Group Corporation, approved in principle by State-owned Assets Supervision and Administration Department and approved by the Board of NARI Technology Co., Ltd. in the 11th meeting of the 6th directorate. The amendment was resolved by the 13th meeting of 6th directorate of NARI Technology Co., Ltd. on July 31, 2017. As of August 17, 2017, the transaction received the approval of State-owned Assets Supervision and Administration Commission of the State Council. On August 21, 2017, the transaction was approved by the shareholders of NARI Technology Co., Ltd. As on October 21, 2017, NARI Technology Co., Ltd. recently received the notice of not implementing further examination issued by the Anti-monopoly Bureau of the Ministry of Commerce of the People’s Republic of China. On October 25, 2017, Merger, Acquisition and Reorganization Examination Committee of Listed Companies of the China Securities Regulatory Commission held the 61st working meeting of 2017 and unconditionally approved the transaction. The China Securities Regulatory Commission approved the transaction on December 8, 2017. CITIC Securities Co., Ltd. acted as financial advisor to NARI Technology.