Zhejiang Shenghua Holdings Company Limited entered into share transfer agreements to acquire an additional 42.86% stake in Zheda Lande Scitech Ltd. (SEHK:8106) from Insigma Technology Co., Ltd. (SHSE:600797), Shanghai Longtail Investment Management Co., Ltd., Guoheng Fashion Media Technology Group Co. Ltd, Hangzhou Gongjia Investment Management Co., Ltd and six individuals for HKD 82.5 million on December 2, 2016. Under the terms, Insigma Technology Co., Ltd. (SHSE:600797), Shanghai Longtail Investment Management Co., Ltd., Guoheng Fashion Media Technology Group Co. Ltd, Hangzhou Gongjia Investment Management Co., Ltd, Chen Ping, Wang Leibo, Chen Guocai, Wang Jincheng, Jin Lianfu and Huo Zhonghui will sell 81.8 million, 34.12 million, 34.12 million, 33.9 million, 9.1 million, 7.5 million, 5.3 million, 5 million, 3.4 million and 2.8 million domestic shares respectively for HKD 31.1 million, HKD 12.9 million, HKD 12.9 million, HKD 12.9 million, HKD 3.5 million, HKD 2.9 million, HKD 2 million, HKD 1.9 million, HKD 1.3 million and HKD 1.1 million respectively. As per the agreement, 10% of the consideration shall be paid to the respective escrow accounts of the sellers within 10 business days of the agreement becoming effective and within 3 business days after completion, 90% of the consideration along with the amount deposited in escrow accounts shall be paid to the sellers. In a related transaction, Zhejiang Shenghua Holdings Company Limited made an unconditional mandatory offer to acquire an additional 42.07% stake in Zheda Lande Scitech Ltd. (SEHK:8106) for HKD 80.9 million on December 7, 2016. The consideration will be financed by the existing internal resources of Zhejiang Shenghua Holdings Company Limited. As of December 7, 2016, Insigma Technology Co., Ltd. (SHSE:600797), Shanghai Longtail Investment Management Co., Ltd., Guoheng Fashion Media Technology Group Co. Ltd, Hangzhou Gongjia Investment Management Co., Ltd, Chen Ping, Wang Leibo, Chen Guocai, Wang Jincheng, Jin Lianfu and Huo Zhonghui hold 81.8 million, 34.12 million, 34.12 million, 33.9 million, 36.4 million, 7.51 million, 5.31 million, 5 million, 3.41 million and 2.8 million domestic shares and Zhejiang Shenghua Holdings Company Limited holds 49 million H shares in Zheda Lande Scitech Ltd. Upon completion, Zhejiang Shenghua Holdings Company Limited will hold 52.54% stake in Zheda Lande Scitech Ltd. (SEHK:8106) and intends to nominate new Directors to the Board of Zheda Lande Scitech Ltd.

The transaction is subject to approval from regulatory authorities, if applicable, the H Shares being listed and traded on the stock exchange on the completion date and other customary conditions. The conditions are expected to be fulfilled by December 31, 2016 or such later date as agreed by the parties. Celestial Capital Limited has been appointed as financial advisor as of December 14, 2016.

Transaction is expected to close on February 16, 2017.

Zhejiang Shenghua Holdings Company Limited completed acquisition of additional 42.86% stake in Zheda Lande Scitech Ltd. (SEHK:8106) from Insigma Technology Co., Ltd. (SHSE:600797), Shanghai Longtail Investment Management Co., Ltd., Guoheng Fashion Media Technology Group Co. Ltd, Hangzhou Gongjia Investment Management Co., Ltd and six individuals on January 20, 2017.