Yunnan Xiyi Industry Co., Ltd. (SZSE:002265) intends to acquire Chongqing Construction Engineering Industry Co., Ltd. from China South Industries Group Co.,Ltd. on December 3, 2021. The consideration will be paid in cash and shares. The final purchase price is to be negotiated between parties based on the evaluation value specified in the evaluation report issued by an asset evaluation agency.

The Chongqing Construction Industry (Group) Co. had total assets and total owner's equity of CNY 5.59 billion and CNY 2.04 billion, respectively, as of September 30, 2021. The company intends to issue shares to raise matching funds to be used for the cash consideration in this transaction.

The transaction is subject to the approval of the state-owned assets supervision and administration department, National Defense Science and Industry Bureau and China Securities Regulatory Commission. This transaction has been reviewed and approved at the first interim board meeting of the listed company in 2021 and the controlling shareholder of the listed company. As of September 16, 2022, the Merger, Acquisition and Reorganization Examination Committee of Listed Companies of the CSRC reviewed the Yunnan Xiyi Industry Co., Ltd.'s acquisition of assets through the issuance of shares and cash and raising of supporting funds in the 15th Work Conference of 2022.

According to the results, the Yunnan Xiyi Industry Co., Ltd.'s acquisition of assets through the issuance of shares and cash and raising of supporting funds was approved unconditionally.