Ningbo Huaxiang Electronic Co., Ltd. (SZSE:002048) agreed to acquire 93.6% stake in Shanghai Global Precision Mould & Plastics Co., Ltd. from Ningbo Fengmei Industrial Co., Ltd., Shen Zhongxing, Low Tai Huat and Shanghai Fanshi Investment Advisory Enterprise (Limited Partnership) for approximately CNY 610 million on March 19, 2016. In a related transaction, Ningbo Huaxiang agreed to acquire Ningbo Lawrence Automotive Interiors Co., Ltd from Ningbo Fengmei Industrial Co., Ltd for CNY 1.4 billion and will issue 127.43 million shares to raise supporting funds. On March 20, 2016, an agreement was signed. As on June 15, 2016, the terms of consideration were revised. Under the revised terms of consideration, Ningbo Huaxiang Electronic Co., Ltd will issue approximately 147.74 million shares at CNY 13.41 per share as consideration instead of previous issue of approximately 146.64 million shares at CNY 13.51 per share for the acquisition of both 93.6% stake in Shanghai Global Precision Mould & Plastics Co., Ltd. and Ningbo Lawrence Automotive Interiors Co., Ltd. Previously, Ningbo Fengmei Industrial agreed to sell 85.18% stake for CNY 553.97 million and receive 41 million shares as consideration, Shen Zhongxing agreed to sell 3.34% stake for CNY 21.7 million and receive 1.61 million shares as consideration, Low Tai Huat agreed to sell 3.03% stake for CNY 19.71 million and receive 1.46 million shares as consideration and Shanghai Fanshi Investment Advisory Enterprise (Limited Partnership) agreed to sell 2.09% stake for CNY 13.6 million and receive 1 million shares as consideration. Under the new terms, Shen Zhongxing will receive approximately 1.62 million shares, Low Tai Huat will receive approximately 1.47 million shares and Shanghai Fanshi will receive approximately 1.01 million shares. Ningbo Fengmei Industrial Co., Ltd. will receive approximately 143.64 million shares for both the deals. Shanghai Global Precision Mould & Plastics Co., Ltd reported total assets of CNY 292.67 million, total liabilities of CNY 165.3 million, owner’s equity of CNY 127.37 million, revenues of CNY 264.44 million, operating profit of CNY 22.14 million, total profit of CNY 22.06 million and net profit of CNY 19.96 million for the ten months ending October, 2015. The transaction is subject to approval of the shareholders of Ningbo Huaxiang Electronic, approval of China Ministry of Commerce’s Antitrust Bureau and the US Department of Justice and the Federal Trade Commission’s approvals and approval of China Securities Regulatory Commission. The shareholders’ of Fanshi Investment and Global Precision agreed to the transaction on March 19, 2016. The Board of Ningbo Huaxiang Electronic Co., Ltd approved the transaction on March 20, 2016. As of August 24, 2016, China Securities Regulatory Commission rejected the share issuance and acquisition plan. China Securities Co., Ltd. acted as the financial advisor, Allbright Law Firm acted as the legal advisor and Pan-China Certified Public Accountants acted as the accountant to Ningbo Huaxiang Electronic Co., Ltd. Ningbo Huaxiang Electronic Co., Ltd. (SZSE:002048) cancelled the acquisition of 93.6% stake in Shanghai Global Precision Mould & Plastics Co., Ltd. from Ningbo Fengmei Industrial Co., Ltd., Shen Zhongxing, Low Tai Huat and Shanghai Fanshi Investment Advisory Enterprise (Limited Partnership) on September 29, 2016.