Shenzhen Demu Industrial Co., Ltd. agreed to acquire 67.029% stake in Guangdong Mingyang Gelatin Co., Ltd. from Shenzhou Yiqiao Information Service Co., Ltd. (SZSE:000606) for CNY 48.5 million on September 14, 2017. In September 2017, the deal terms revised. Shenzhen Demu Industrial Co., Ltd. agreed to acquire 67.03% stake for CNY 35.5 million. As per the terms of the transaction, consideration will be paid as follows. Within seven working days after the agreement has been approved by the board of directors of Shenzhou Yiqiao Information Service Co., Ltd., Shenzhen Demu Industrial Co., Ltd shall pay a 60% of the consideration to Shenzhou Yiqiao Information Service Co., Ltd and shall pay a 60% of the arrearage amount to Shenzhen Demu Industrial Co., Ltd which shall be used as a guarantee. After the entry into force of this agreement, the aforesaid guarantee shall be automatically converted into the consideration for the equity transfer and the repayments of the arrears of the corresponding amount paid by Shenzhen Demu Industrial Co., Ltd. After approval from the shareholders' meeting, Shenzhen Demu Industrial Co., Ltd will pay remaining 40% of the transaction before the transfer of Qinghai Mingnuo Capsule Co., Ltd. If the transaction is completed before December 31, 2017, the remaining 40% stake will be paid before December 31, 2017. In case the transaction is not completed by December 31, 2017, Shenzhou Yiqiao Information Service Co., Ltd will receive the "Invest payment application" on the actual delivery date, and pay the remaining 40% of the equity transfer consideration within 5 working days. For the year 2016, Guangdong Mingyang Gelatin reported total assets of CNY 75.8 million, net assets of CNY 51.9 million, revenues of CNY 16.9 million and net loss of CNY 3.7 million. This transaction needs approval from the shareholders’ meeting of Shenzhou Yiqiao. On September 14, 2017, Mingyang Gelatin Shareholders' Meeting resolved to sell a 67.03% of the total amount of Mingyang Gelatin to Shenzhen Demu via Shenzhou Yiqiao Information Service Co., Ltd. Baiyang Investment Group, Inc. (SZSE:002696), the other investor in Guangdong Mingyang Gelatin agreed to unconditionally abandon preemptive rights . On September 27, 2017, Shenzhen Demu Industrial’s shareholders approved the deal. On September 28, 2017, Shenzhou Yiqiao convened the 13th session of the 7th meeting of the board of directors to review and approve the trading plan and the related proposals. On November 6, 2017, the Supplemental Agreement of Equity Transfer Agreement was signed. On November 22, 2017, the shareholders of Shenzhou Yiqiao Information Service Co., Ltd. approved the deal. Feng Henian and Du Cunbing of Minsheng Securities Co.,Ltd. acted as financial advisor, Wang Li , Guo Weifeng and Cao Qi of Beijing DHH Law Firm DeHeng Law Offices acted as legal advisor and Yangjiantao, Gu Renrong,Tong Chenglu, Zhao Xiumei and Yao Jihong of Ruihua Certified Public Accountants, LLP acted as an accountant for Shenzhou Yiqiao Information Service Co., Ltd. in the transaction. Liu Hong, Zheng Ming and Guo Xianyi of Wanlong (Shanghai) Assets Appraisal Co., Ltd. acted as appraiser in the transaction.