Xi'an Tianhe Defense Technology Co., Ltd. (SZSE:300397) agreed to acquire remaining 40% stake in Hainan Yangpu Huayang Technology Development Co., Ltd. from a group of investors for CNY 1.2 billion on February 2, 2020. Xi'an Tianhe Defense Technology Co., Ltd. signed the acquisition of asset through share issuance agreement to acquire 40% stake in Hainan Yangpu Huayang Technology Development Co., Ltd. from a group of investors on February 3, 2020. On July 9, 2020, the company and the counterparty signed a supplementary agreement for the issuance of shares to purchase assets. In a related deal, Xi'an Tianhe Defense Technology Co., Ltd. agreed to acquire 49.016% stake in Nanjing Bi’ao Electronic Technology Co., Ltd. As on July 10, 2020, Xi'an Tianhe Defense Technology Co., Ltd. intends to raise matching funds from no more than 35 specific investors who meet the conditions stipulated by the China Securities Regulatory Commission. The total amount of matching funds raised shall not exceed CNY 590 million, and the number of shares to be issued shall not exceed 30% of the total share capital before the issuance does not exceed 100% of the transaction price of the assets purchased by issuing shares in this transaction. Lock-up period is 6 months. Hainan Yangpu Huayang Technology Development Co., Ltd. had total assets of CNY 395 million, Owners equity of CNY 135.8 million as on September 30, 2019. The transaction needs to be approved by: (1) Xi'an Tianhe Defense Technology Co., Ltd. would need to hold another directorate to approve this transaction, (2) Xi'an Tianhe Defense Technology Co., Ltd.’s shareholders’ meeting, (3) CSRC State Administration of Science, Technology and Industry for National Defence. On February 2, 2020, Hainan Yangpu Huayang Technology Development Co., Ltd. held its shareholders’ meeting and approved for Xi'an Tianhe Defense to acquire 40% stake. On February 3, 2020, Xi'an Tianhe Defense held the 4th session of its 4th directorate and approved the transaction. The transaction plan passed the military affairs review of the National Defense Science and Industry Bureau on April 14, 2020. On July 10, 2020, Xi'an Tianhe Defense held the seventh meeting of the fourth Board of Directors and passed the proposal. On August 24, 2020, Xi'an Tianhe Defense held its first extraordinary general meeting of shareholders in 2020 and reviewed and approved relevant proposals. On October 18, 2020, Xi'an Tianhe Defense held the tenth meeting of the fourth Board of Directors to review and approve relevant proposals. The Shenzhen Stock Exchange has reviewed and approved this transaction plan on November 4, 2020. This transaction still needs to be approved by CSRC. China Securities Regulatory Commission has approved the transaction on December 31, 2020. Founder Financing Services Co., Ltd acted as financial advisor and Zhong Lun Law Firm acted as legal advisor to Xi'an Tianhe Defense Technology Co., Ltd. Zhang Enxue and Shi LeiPan-China Certified Public Accountants LLP acted as accountant to Xi'an Tianhe Defense Technology Co., Ltd. Xi'an Tianhe Defense Technology Co., Ltd. (SZSE:300397) completed the acquisition of remaining 40% stake in Hainan Yangpu Huayang Technology Development Co., Ltd. from a group of investors on January 5, 2021.