Zhejiang Sanhua Co.,Ltd (SZSE:002050) agreed to acquire Hangzhou Sanhua Microchannel Heat Exchanger Co., Ltd. from Zhejiang Sanhua Qianjiang Automotive Parts Group Co., Ltd. for CNY 1.3 billion in stock on January 26, 2015. Zhejiang Sanhua will issue 103.6 million shares to Sanhua Qianjiang at CNY 12.36 per share. Sanhua Microchannel had total assets of CNY 638.08 million, owner's equity of CNY 184.64 million, revenue of CNY 764.5 million, operating profit of CNY 84.40 million and net profit of CNY 74.12 million for the year ending December 31, 2014. On January 26, 2015, Sanhua Holding Group issued a written shareholder decision approved for Sanhua Qianjiang to use its 100% stake in Sanhua Microchannel to subscribe to Zhejiang Sanhua shares. The Directorate of Zhejiang Sanhua approved the transaction on January 26, 2015 and March 13, 2015. The shareholders of Zhejiang Sanhua approved the transaction on March 30, 2015. On June 30, 2015, China Securities Regulatory Commission approved the transaction. Chinalin Securities Co., Ltd. acted as financial advisor for Zhejiang Sanhua.

Zhejiang Sanhua Co.,Ltd (SZSE:002050) completed the acquisition of Hangzhou Sanhua Microchannel Heat Exchanger Co., Ltd. from Zhejiang Sanhua Qianjiang Automotive Parts Group Co., Ltd. for CNY 2.1 billion on July 3, 2015. Zhejiang Sanhua issued 208.81 million shares as consideration.