Shenzhen Maxonic Automation Control Co., Ltd. (SZSE:300112) agreed to acquire Chengdu Action Electronics Joint-Stock Co., Ltd. from a group of shareholders for approximately CNY 220 million on January 21, 2015. The group of shareholders consists of Shanghai Huabao Guiyong Venture Capital Co., Ltd., Sichuan Hongxin Venture Capital Co., Ltd., Xiong Wei, Long Fangyan, Chen Xiaohui, Li Wancai, Yin Lijun, Du Renhui, Wu Xiaodan, Ren Xiaohua, Chen Xiangfeng, Chen Suying, Liu Deyou, Mao Jianping, Mao Pingan, Huang Hui, Liu Zhixiu, Zheng Baohua, Dong Qiuzhang, Ma Ruijie, Feng Mengxiao, Yang Min, She Zhijian, Wu Xiang, Zhang Yonggen, Guo Tao, Huang Xuelian, Li Jun, Wei Jishui, Yu Jianbin, Li Jinlong, Long Tao, Wu Xiaoning, Feng Wensen, Wu Xiaoyan, Zhong Fangjun, Fan Xiaohua, Huang Qin, Chen Liang, Sun Dawei, Chen Bing, Chen Lijun, He Liu, He Yan, Li Xianbing, Liu Shiqiang, Pang Qiang, Xu Bing, Yang Yinhua, Zhang Jianeng and Zou Kaiqin. The consideration includes payment of CNY 72 million in cash and issuance of about 15.1 million shares at CNY 10.01 per share. Shenzhen Maxonic intends to raise about CNY 55.8 million supplementary capital via issuing shares to five special investors to finance the cash consideration. Shanghai Huabao will receive CNY 7.42 million in cash and CNY 1.56 million in stock and Sichuan Hongxin will receive CNY 2.62 million in cash and CNY 0.55 million in stock.

The transaction is subject to approval from the China Securities Regulatory Commission and from the shareholders of Shenzhen Maxonic Automation Control Co., Ltd. As of February 9, 2015, shareholders of Shenzhen Maxonic Automation Control approved the deal. As on May 22, 2015, the Merger, Acquisition and Reorganization Examination Committee of Listed Companies of the China Securities Regulatory Commission approved the deal unconditionally. As on June 18, 2015, CSRC approved the deal. As on November 5, 2015, Shenzhen Maxonic Automation Control Co., Ltd., completed issuance of 15 million shares as part of consideration and fund rising plan. Ruihua Certified Public Accountants, LLP acted as accountant for Shenzhen Maxonic Automation Control Co., Ltd. China Merchants Securities Co. Ltd. acted as financial advisor for Shenzhen Maxonic Automation Control Co., Ltd. Shu Jin Law Firm acted as legal advisor for Shenzhen Maxonic Automation Control Co., Ltd.