Rosan Resources Holdings Limited (SEHK:578) entered into an agreement to acquire 51% stake in Henan Xingan New Construction Materials Company Limited from Zhang Xinzhi for HKD 19 million on October 13, 2017. The consideration will be paid through issuance of 127.5 million shares. The consideration shares represent 17.89% of the existing issued share capital of Rosan Resources Holdings Limited. As of December 31, 2016, Henan Xingan New Construction Materials Company Limited had turnover of CNY 100.89 million (HKD 112.67 million), profit after tax of CNY 11.93 million (HKD 13.32 million), total assets of CNY 251.53 million (HKD 280.9 million) and net assets of CNY 27.91 million (HKD 31.17 million). As of June 30, 2017, Henan Xingan New Construction Materials Company Limited reported total assets of HKD 289.37 million and net assets of HKD 37.8 million. The transaction is subject to approval of listing of consideration shares, due diligence, and other conditions. If the conditions are not fulfilled on or before February 28, 2018, the transaction will be terminated. The transaction will be completed within three days from fulfillment of conditions. Changjiang Corporate Finance (HK) Limited acted as financial advisor to Rosan Resources Holdings Limited and Octal Capital Limited acted as financial advisor to Independent board committee and independent shareholders.