Weihai New Beiyang Rongxin Technology Co., Ltd. agreed to acquire Anshan Bozong Science & Technology Co., Ltd from Shandong New Beiyang Information Technology Co., Ltd. (SZSE:002376), Qiu Lin and others or approximately CNY 170 million on August 22, 2017. Under the terms of the transaction, Weihai New Beiyang Rongxin Technology Co., Ltd. will issue 8 million shares at CNY 13.55 per share, of which, 6 million shares shall be issued to Shandong New Beiyang Information Technology Co., Ltd., 2 million shares shall be issued to Qiu Lin and CNY 60.2 million shall be paid in cash, of which CNY 4.686 million shall be paid to Shandong New Beiyang Information Technology Co., Ltd. and CNY 55.514 million shall be paid to other shareholders of Anshan Bozong Science & Technology Co., Ltd. On May 18, 2018, the deal terms were revised. As consideration, 19.2 million shares will issued by Weihai New Beiyang Rongxin Technology Co., Ltd. at CNY 5.6458 per share, where 14.4 million shares will be issued to Shandong New Beiyang Information Technology Co., Ltd. and 4.8 million shares will be issued to Qiu Lin, while CNY 60.2 million was paid in cash to 5 individuals including Qiu Lin and 2 institutional sellers including Shandong New Beiyang Information Technology Co., Ltd. Post-acquisition, Weihai New Beiyang Rongxin Technology Co., Ltd. will continue to operate and exist, Anshan Bozong Science & Technology Co., Ltd shall be deregistered, the entire assets, liabilities and business of Anshan Bozong Science & Technology Co., Ltd shall be absorbed by Weihai New Beiyang Rongxin Technology Co., Ltd. The Board of Shandong New Beiyang Information Technology Co., Ltd. approved the transaction on August 22, 2017. The transaction was approved by shareholders and the Board of Directors of Weihai New Beiyang Rongxin Technology Co., Ltd. in 2018’s 1st extraordinary general meeting and the 10th session of the 2nd directorate meeting respectively. On May 30, 2018, Weihai New Beiyang Rongxin Technology Co., Ltd. completed new shares registration procedures at the China Securities Depository and Clearing Corporation Limited Beijing branch.