Poly Plastic Masterbatch (SuZhou) Co.,Ltd (SZSE:300905) agreed to acquire Xiamen Luyi Color Masterbatch Co., Ltd from Chen Jingsong, Li Xinyong, Zhao Shibin and Chen Donghong for CNY 387 million on May 26, 2022. 60% of the transaction price will be paid by share issuance, 40% will be paid by cash. On September 8, 2022, a supplement agreement was signed and the deal value was revised to CNY 393 million.

Poly Plastic will partly fund the transaction through a fund raise of CNY 235.8 million out of which CNY 157.2 million will be used to pay the consideration. The transaction is subject to Poly Plastic Masterbatch (SuZhou) Co.,Ltd (SZSE:300905) shareholder approval, Approval by the Shenzhen Stock Exchange and approved by the China Securities Regulatory Commission for registration and Other necessary prior approvals, approvals or consents required by laws and regulations and regulatory authorities. On November 24, 2022, the deal value was revised to CNY 387 million, 60% of the price will be paid by share issuance, 40% will be paid by cash payment.

The 15th session of the Poly Plastic Masterbatch (Suzhou) Co., Ltd. 2nd directorate approved the revision of this reorganization. As on March 8, 2023, Shenzhen Stock Exchange M&A and Reorganization Review Committee's approved the transaction. For the year ended June 30, 2022, Xiamen Luyi Color Masterbatch Co., Ltd total asset is CNY 164 million and owners equity is CNY 124.32 million.

On January 13, 2023, Poly Plastic Masterbatch (Suzhou) Co., Ltd held the 16th interim meeting of the second session of the board of directors in 2023 to review and approve the revised draft of the reorganization draft and related proposals. The Shenzhen Stock Exchange M&A and Reorganization Review Committee having reviewed and approved the transaction on March 8, 2023.