China Greenland Broad Greenstate Group Company Limited (SEHK:1253) entered into a share purchase agreement to acquire a 60.3% stake in Shenyang Furui Garden Decoration Engineering Company Limited from Yu Huan and Song Li for CNY 70 million on September 21, 2017. The consideration will be satisfied by the allotment and issue of 35.4 million shares and CNY 24 million cash payment. The final consideration is subject to adjustment. The consideration shares will not be transferred within 36 months from the completion date of the transaction. As at May 31, 2017, Shenyang Furui Garden Decoration Engineering Company Limited had unaudited total assets and net assets of CNY 150.99 million and CNY 98.29 million respectively. The transaction is subject to the necessary government approvals, listing of consideration shares on the Stock Exchange of Hong Kong Limited, Yu Huan having waived CNY 0.9 million owed to him by Shenyang Furui Garden Decoration Engineering Company Limited, the Board of Directors of Shenyang Furui Garden Decoration Engineering Company Limited having composed of three Directors (with no Executive Director), among which two Directors being nominated by China Greenland Broad Greenstate Group Company Limited and one by the sellers, the role of Chief Financial Officer being assumed by a Director nominated by China Greenland Broad Greenstate Group Company Limited, and Shenyang Furui Garden Decoration Engineering Company Limited having no Board of Supervisors, but with one Supervisor being nominated by China Greenland Broad Greenstate Group Company Limited and other customary conditions. The transaction is expected to be completed no later than December 31, 2017. China Greenland Broad Greenstate Group Company Limited (SEHK:1253) cancelled the acquisition of 60.3% stake in Shenyang Furui Garden Decoration Engineering Company Limited from Yu Huan and Song Li on October 10, 2018. The termination of the agreement will not have any material adverse impact on the existing business of China Greenland Broad Greenstate Group Company Limited.