Shenzhen Success Electronics Co., Ltd (SZSE:002289) agreed to acquire Shenzhen Qianhai Shouke Technology Holding Co., Ltd. from Kaixuanmen Holdings Co., Ltd. and Bai Yiping for CNY 1.1 billion on February 3, 2021. Under the terms, Shenzhen Success Electronics intends to pay 40% of the transaction consideration in cash and 60% of the transaction consideration by issuing company stocks. As of October 15, 2021, Shenzhen Success Electronics shall satisfy the consideration through cash payment of CNY 360 million and issuance of 78.7 million shares. As on February 3, 2021, the audit and evaluation of the target of the transaction have not been completed. The final transaction price will be disclosed in the restructuring report. According to the proposed price, Shenzhen Success Electronics intends to issue a total of 82,215,743 company shares. In a related transaction, Shenzhen Success Electronics Co., Ltd (SZSE:002289) intends to raise funds through non-public issuance of shares to Zhongzhi Rongyun (Beijing) Enterprise Management Co., Ltd. The funds raised will be used to pay cash consideration for this transaction, intermediary agency fees, related taxes and supplementary working capital. The company will raise the funds not exceed CNY 512 million, and the total amount of funds raised will not exceed 100% of the transaction price of the purchase of assets through the issuance of shares in this transaction; the raised matching funds will not exceed 83,934,426 shares, and the number of shares issued does not exceed 30% of the company's total equity before the transaction this time. The issue price of this issuance is CNY 6.1 per share. For the year ended December 31, 2020, Shenzhen Qianhai Shouke had total assets of CNY 801 million, owner?s equity of CNY 191 million, revenues of CNY 1.8 billion, and net profit of CNY 70 million. On February 3, 2021, Shenzhen Success Electronics held the third meeting of the fifth Board of Directors and the third meeting of the fifth Board of Supervisors, which reviewed and approved this transaction. The sellers of this transaction have fulfilled the necessary internal decision-making procedures at this stage for their participation in this transaction. This transaction is still subject to approval from Board of Shenzhen Success Electronics after completion of the audit and evaluation of the target company, approval of shareholders of Shenzhen Success Electronics and approval of China Securities Regulatory Commission. On April 28, 2021, the 7th session of the company?s 5th directorate and the 6th session of the company?s 5th supervisory board approved this transaction. On June 18, 2021, the company held the first extraordinary general meeting of shareholders in 2021 to review and approve the relevant proposals of this transaction, and agreed to exempt Zhongzhi Rongyun and its concerted parties from the obligation of tender offer involved in this transaction. On October 14, 2021, the company held the eleventh meeting of the fifth board of directors and the ninth meeting of the fifth board of supervisors to review and approve the relevant proposals for the adjustment of the transaction plan. As of October 14, 2021, This transaction needs to be approved by the China Securities Regulatory Commission. On May 8, 2021, the company received the "Concentration of Undertakings Anti-monopoly Review Not Implementing Further Review Decision" issued by the Anti-monopoly Bureau of the State Administration for Market Regulation (Anti-monopoly Review Decision [2021] No. 242). As of November 23, 2021, The China Securities Regulatory Commission did not approve the issuance of shares. Huatai United Securities Co., Ltd. acted as financial advisor, Zhong Lun Law Firm acted as legal advisor and Reanda Certified Public Accountants Co., Ltd. acted as accountant to Shenzhen Success Electronics Co., Ltd.