Shenzhen Yinghe Technology Co., Ltd (SZSE:300457) signed an acquisition agreement to acquire Dongguan Areconn Precision Machine Co., Ltd. from Shenzhen Areconn Precision Machine Co., Ltd., Xu Hongjun and Wang Xiaomei for approximately CNY 470 million in cash and stock on May 16, 2016. Under the terms of the deal, Shenzhen Yinghe Technology will pay CNY 131.4 million in cash and issue 4.8 million shares as consideration. As on May 27, 2016, Shenzhen Yinghe Technology Co., Ltd revised the number of shres to be issued to 4.76 million shares. Shenzhen Areconn Precision Machine Co., Ltd. will sell 50% stake for approximately CNY 220 million comprising 3.1 million shares, Xu Hongjun will sell 30% stake for approximately CNY 130 million comprising 1.7 million shares and Wang Xiaomei will recieve CNY 87.6 million in cash for his 20% stake. Shenzhen Yinghe Technology plans to issue shares to not more than 5 specific investors to raise supporting funds of not more than CNY 438 million. As on May 28, 2016 the net of agency fees of approximately CNY 130 million will be used to pay for the transaction price. As of December 31, 2015, Dongguan Areconn Precision Machine had total assets of CNY 196.32 million, owners’ equity of CNY 74.9 million, revenue of CNY 205.61 million and net profit of CNY 34.64 million. The transaction needs to gain approval of shareholders of Shenzhen Yinghe Technology and CSRC. On May 16, 2016, the transaction was approved by Board of Directors of Shenzhen Yinghe Technology and shareholders of Shenzhen Areconn Precision Machine. On December 2, 2016, this transaction obtained approval in the 92nd working conference for 2016 for the deal. On January 18, 2017, the company received administrative license [2017] no. 76 issued by the China Securities Regulatory Commission, granting approval on the company’s shares issuance. Post-issuance of transaction-related audit and evaluation reports, Shenzhen Yinghe Technology Co., Ltd needs to obtain Directorate approval again. Industrial Securities Co., Ltd. acted as financial advisor for Shenzhen Yinghe Technology. DeHeng Law Offices acted as legal advisor for Shenzhen Yinghe. Zhonghua Certified Public Accountants LLP and Ruihua Certified Public Accountants, LLP acted as accountant for Shenzhen Yinghe.