Shanghai Weihong Electronic Technology Co., Ltd. (SZSE:300508) agreed to acquire Nanjing Kaitong Automation Technology Co., Ltd. from a group of shareholders for approximately CNY 130 million on November 16, 2020. Under the terms of the transaction, Shanghai Weihong will pay a cash consideration of CNY 50 million and will issue 2.7 million shares at an issue price of CNY 27.45 per share. As of January 29, 2021, the Board of Directors of Shanghai Weihong Electronic Technology Co., Ltd. terminated the issuance of shares and the payment of cash to purchase Nanjing Kaitong Automation Technology Co., Ltd. and change to cash acquisition. Shanghai Weihong Electronic Technology Co., Ltd. will complete the payment of the consideration for this transaction according to the following deadlines: (1) The first sum of CNY 63 million shall be paid within five working days from the signing of this agreement; (2) The second sum total of CNY 16 million shall be made on January 31, 2022; (3) The third sum total of CNY 16 million should be paid on January 31, 2023; (4) The fourth sum of CNY 30 million shall be paid within five working days after Nanjing Kaitong Automation Technology Co., Ltd.’s 2023 annual audit report is issued. Shanghai Weihong Electronic Technology Co., Ltd. will pay the transaction consideration in cash, paying CNY 40.9 million to Gao Maogang, CNY 35.4 million to Zhao Dong, CNY 25.6 million to Bu Feijun, CNY 6.25 million to Wang Jie, and CNY 5 million to Lei Liang , CNY 2.5 million to Li Xinling, CNY 1.25 million to Jiang Yan, CNY 1.25 million to Ma Yun, CNY 1.25 million to Han Minzhen, CNY 1.2 million to Xiao Zhipeng, CNY 1.25 million to Xu Shunjun, CNY 1.25 million to Zhao Li, CNY 0.63 million to Gong Shujuan, CNY 0.63 million to Wang Sujuan, and CNY 0.63 million to Zhu Yulin. Prior to the transaction, Gao Maogang held 32.72% stake while Zhao Dong held 28.31% stake, Infantry held 20.47% stake, Wang Jie held 5%, Lei Liang held 4%, Li XInling held 2% stake in Nanjing Kaitong while Jiang Yan, Ma Yun, Han Minzhen, Xiao Zhipeng, Xu Shunjun and Zhao Li held 1% stake each and Gong Shujuan, Wang Sujuan and Zhu Yulin held 0.5% stake each. Upon completion, Nanjing Kaitong will become a wholly owned subsidiary of Shanghai Weihong. Nanjing Kaitong reported total assets of CNY 33.1 million and owner’s equity of CNY 21.4 million in the year ending on September 30, 2020 as well as a revenue of CNY 40.6 million and net profits of CNY 2.7 million in the year ending on December 31, 2019. The deal is subject to the approval of the Board of Directors and shareholders of Shanghai Weihong, approval of Shenzhen Stock Exchange and registered with the China Securities Regulatory Commission. Shanghai Weihong Electronic Technology Co., Ltd. (SZSE:300508) completed the acquisition of Nanjing Kaitong Automation Technology Co., Ltd. from a group of shareholders on February 8, 2021.