Yihua Real Estate Co., Ltd. (SZSE:000150) agreed to acquire Guangdong Zhongankang from a group of sellers for approximately CNY 720 million on June 26, 2014. The sellers include Lin Zhenggang, Lin Jianxin, Zhu Hua, Peng Jie, Deng Yuguang, Li Hong, Hou Xuying, Huang Wei, Xia Qing, Yang Yang, Sun Yuxiang and Deng Wenfang, Nanhai Growth (Tianjin) Equity Investment Fund Partnership (Limited Partnership), Shanghai Daoji Jinbin Investment Partnership (Limited Partnership) and Shanghai Daoji Chenfu Investment Partnership (LLP). The purchase price includes about CNY 148 million cash and issuance of 87.22 million shares as consideration. Yihua Real Estate will issue 68.3 million shares to Lin Zhenggang, 8 million shares to Lin Jianxin, 3.5 million shares to Nanhai Growth, 2.5 million shares to Daoji Jinbin, 1.48 million shares to Daoji Chenfu, 0.4 million shares to Zhu Hua, 0.4 million shares to Peng Jie, 0.4 million shares to Deng Yuguang, 0.3 million shares to Hou Xuying, 0.3 million shares to Huang Wei, 0.3 million shares to Xia Qing, 0.3 million shares to Yang Yang, 0.3 million shares to Sun Yuxiang, 0.3 million shares to Deng Wenfang and 0.3 million shares to Li Hong. Yihua Real Estate will raise not more than CNY 240 million via non-public share issuance as a cash payment for the stake and supplement of the target company's working capital. Guangdong Zhongankang had total assets of CNY 321.14 million, total shareholders' equity of CNY 177.86 million, operating revenues of CNY 482.16 million, operating profit of CNY 28.26 million, total profit of CNY 29.93 million and net profit of CNY 21.73 million for the year ending December 31, 2013.

The transaction is subject to approval from the shareholders of Yihua Real Estate and China Securities Regulatory Commission. The shareholders of Zhongankang approved the transaction on June 26, 2014. On July 3, 2014, Directors of Yihua Real Estate approved the transaction. The transaction was approved by shareholders of Yihua Real Estate on July 21, 2014. An agreement was signed on December 23, 2014. On January 8, 2015, CSRC approved the transaction. GF Securities Co., Ltd. acted as financial advisor, Grandall Law Firm (Guangzhou) acted as legal advisor and Shinewing Certified Public Accountants (Special General Partnership) acted as accountant for Yihua Real Estate.


Yihua Real Estate Co., Ltd. (SZSE:000150) completed the acquisition of Guangdong from a group of sellers on January 12, 2015.