Tongfu Microelectronics Co., Ltd. (SZSE:002156) agreed to acquire 49.48% stake in Nantong Furunda Investment Co., Ltd. from National Integrated Circuit Industry Investment Fund Co., Ltd., managed by Huaxin Investment Management Co., Ltd., for approximately CNY 680 million in stock on October 18, 2016. In a related transaction, 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. for approximately CNY 1.2 billion in stock on October 18, 2016. For the financial year ended December 31, 2015, Nantong Furunda 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 transaction is approved by the Board of Directors of Tongfu Microelectronics Co., Ltd. on October 18, 2016. The internal decision-making body of National Integrated Circuit Industry Investment Fund Co., Ltd. has approved the transaction on October 18, 2016. The transaction was also approved by the shareholders of Tongfu Microelectronics Co., Ltd. on November 15, 2016. The transaction was approved by the shareholders of Nantong Furunda Investment Co., Ltd. On January 4, 2017, Tongfu Microelectronics Co., Ltd. received approval from the China Securities Regulatory Commission. On November 10, 2017, transaction received official written approval No.[2017]2008 from China Securities Regulatory Commission. 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 acted as the financial advisors, Mo Haibo and Xu Hui of King & Wood PRC Lawyers acted as the legal advisors and Liang Weili and Liu Yongxue of Grant Thornton China acted as an accountants for Tongfu Microelectronics Co., Ltd. Tongfu Microelectronics Co., Ltd. (SZSE:002156) completed the acquisition of 49.48% stake in Nantong Furunda Investment Co., Ltd. from National Integrated Circuit Industry Investment Fund Co., Ltd., managed by Huaxin Investment Management Co., Ltd., on December 19, 2017.