Tongfu Microelectronics Co., Ltd. (SZSE:002156) agreed to acquire 47.63% stake in Nantong Tongrunda Investment Co., Ltd. from National Integrated Circuit Industry Investment Fund Co., Ltd., managed by Huaxin Investment Management Co., Ltd., for CNY 1.2 billion on October 18, 2016. In a related transaction, Tongfu Microelectronics Co., Ltd. agreed to acquire 49.48% stake in Nantong Furunda Investment Co., Ltd. from National Integrated Circuit Industry Investment Fund Co., Ltd. for approximately CNY 680 million in stock on October 18, 2016. Tongfu Microelectronics will issue 181.07 million shares of its common stock as consideration to both the transactions. For the financial year ended December 31, 2015, Nantong Tongrunda Investment Co., Ltd. had total assets of CNY 3.65 billion, total revenues of CNY 1.98 billion, operating income of CNY 19.37 million, net income of CNY 44.52 million and owners' equity of CNY 2.72 billion. The transaction is subject to approvals from China Securities Regulatory Commission. The internal decision-making body of National Integrated Circuit Industry Investment Fund Co., Ltd. have issued approval the transaction on October 18, 2016. The transaction is approved by the Board of Directors of Tongfu Microelectronics Co., Ltd. on October 18, 2016 and shareholders of Tongfu Microelectronics Co., Ltd. on November 15, 2016. On January 4, 2017, Tongfu Microelectronics Co., Ltd. received approval from the China Securities Regulatory Commission. The shareholders of Nantong Tongrunda Investment Co., Ltd. approved the transaction. On November 10, 2017, China Securities Regulatory Commission approved the transaction. Wang Suwang, Han Fenquan, He Miao, Tan Xiao, Wu Yang Jiajun, Wu Baihan, Wang Qichao, Wang Jiacheng and Li Yueyao of China Merchants Securities Co.,Ltd (SHSE:600999) acted as the financial advisor, Mo Haibo and Xu Hui of King & Wood PRC Lawyers acted as the legal advisor and Liang Weili and Liu Yongxue of Grant Thornton China acted as an accountant for Tongfu Microelectronics Co., Ltd.