JiangXi ChangJiu Biochemical Industry Co., Ltd. (SHSE:600228) entered into a preliminary letter of intent to acquire Shanghai Zhong Yan Information Technology Co., Ltd. from a group of shareholders for CNY 4 billion on March 4, 2020. Payment will be carried out either in cash or via issuance of shares. As on March 18, 2020, JiangXi ChangJiu Biochemical mentioned that payment will be paid via issuance of shares and payment in cash. Specifically, the shareholders who are holding 51.27% stake in Shanghai Zhong Yan Information Technology Co will be paid in cash consideration of CNY 445.7 million and all shareholders will receive 581.94 million shares as part of share consideration. JiangXi ChangJiu Biochemical will carry out a private placement of shares to raise supporting funds and expected proceeds will not exceed CNY 330 million. The parties will sign a separate agreement to evaluate the benchmark date, the price of the shares issued, the value of the assets placed, and supporting financing issues. Shanghai Xiangrui Enterprise Management Consulting Firm (Limited Partnership) commits to a lock up period of 18 months since issuance date, Shanghai Gurui Enterprise Management Consulting Firm (Limited Partnership) commits to a lock up period of 36 months since issuance date, NQ3 Ltd., Orchid Asia VI Classic Investment Limited, SIG China Investments Master Fund III, LLLP, QM69 Limited, Yifan Design Limited, Rakuten Europe S.à r.l. and Viber Media S.à r.l. commit to a lock up period of 24 months since issuance date, Shanghai Xigu Enterprise Management Consulting Firm (Limited Partnership) commits to a lock up period of 36 months since issuance date, Shanghai Ruijing Enterprise Management Consulting Firm (Limited Partnership), Shanghai Xicheng Enterprise Management Consulting Firm (Limited Partnership), Shanghai Xuanxi Enterprise Management Consulting Firm (Limited Partnership) and Shanghai Wenzhuan Enterprise Management Consulting Firm (Limited Partnership) commit to a lock up period of 36 months since issuance date for the shares issued as part of consideration. After completion of the transaction, Shanghai Zhong Yan Information Technology Co., Ltd. will be a wholly owned subsidiary of JiangXi ChangJiu Biochemical Industry Co., Ltd. Shanghai Zhong Yan Information Technology reported operating revenue of CNY 610.9 million, net profit of CNY 151.03 million for the year ended 2019. As on December 31, 2019, Shanghai Zhong Yan Information Technology reported total assets of 1.26 billion, and net assets of CNY 970.3 million. This transaction is subject to approval of JiangXi ChangJiu Biochemical Industry shareholders and approval of competent commercial authority and approval of CSRC. As on March 19, 2020, this transaction plan has been considered and approved at the twelfth meeting of the seventh board of directors of JiangXi ChangJiu Biochemical Industry, approved at the 11th meeting of the 7th Board of Supervisors of JiangXi ChangJiu Biochemical Industry, reviewed and approved by the counterparties’ internal decision-making body, and the counterparties have agreed to the transaction-related matters. The transaction still subject to approval of Board of Directors JiangXi ChangJiu Biochemical Industry after the issuance of the audit report and evaluation report of the transaction. On August 21, 2020, JiangXi ChangJiu Biochemical held a staff meeting to deliberate and approve the personnel transfer arrangement plan related to the assets to be sold in this transaction. During the period from March 17, 2020 to March 18, 2020, all of the counterparties of this transaction made resolutions to approve participation in this transaction and agreed to sign relevant agreements. The internal decision-making bodies of Shanghai Xiangrui and Hangzhou Changxin, which are the targets of the transaction's fundraising matching funds, respectively, made resolutions to approve participation in the transaction, and agreed to sign related agreements. On March 18, 2020, the internal decision-making body of ChangJiu Group, the controlling shareholder of the Company, passed a resolution agreeing to the present transactions. Shanghai Xiangrui will use cash of not more than CNY130 million to subscribe to the company’s 28.1 million shares in the raising of supporting funds transaction. On August 17, 2020, the investment decision-making committee of Hangzhou Tongmei Equity Investment Fund Partnership (Limited Partnership) made a resolution, agreeing to its subsidiary (JiangXi ChangJiu Biochemical Industry) and its subsidiaries to purchase through major asset replacement, issuance of shares and payment of cash target assets and issue shares to raise matching funds. On September 16, 2020, JiangXi ChangJiu Biochemical held the eighteenth meeting of the seventh Board of Directors and reviewed and approved the present transaction. The shareholders' meeting of JiangXi ChangJiu Biochemical Industry need to review and approve the transaction plan and reorganization report. The transaction was approved at the general meeting of shareholders of JiangXi ChangJiu Biochemical Industry Co., Ltd. held on October 9, 2020. On December 25, 2020, the transaction was approved by China Securities Regulatory Commission. On February 24, 2021, Jiangxi Changjiu Biochemical Industry stated that on March 18, 2020, , Shanghai Xiangrui’s internal decision-making body made a resolution, approving the participation in the raising of supporting funds transaction. Huatai United Securities Co., Ltd. acted as financial advisor, Fangda Partners acted as legal advisor, Shanghai Certified Public Accountants acted as accountant of swapped-in asset and Zhongxingcai Guanghua Certified Public Accountants acted as accountant of swapped-out asset. Minmetals Securities Co., Ltd. is the financial advisor of Shanghai Xiangrui in this transaction. JiangXi ChangJiu Biochemical Industry Co., Ltd. (SHSE:600228) completed the acquisition of Shanghai Zhong Yan Information Technology Co., Ltd. from a group of shareholders on March 13, 2020. Shanghai Zhong Yan Information Technology Co., Ltd. has changed its name to Shanghai Zhongyan Information Technology Co., Ltd.