Sichuan Zhongguang Lightning Protection Technologies Co., Ltd. (SZSE:300414) signs framework agreement to acquire Shaanxi Huatong Electromechanical Manufacturing Co., Ltd. on July 11, 2017. Sichuan Zhongguang Lightning Protection Technologies Co., Ltd. (SZSE:300414) signed an agreement to acquire Shaanxi Huatong Electromechanical Manufacturing Co., Ltd. from Wang Shugang, Wang Jinxia, Gushi Innovation No. 6 Investment (Shenzhen) Partnership Enterprise (Limited Partnership), Xi'an Tongzhou Business Management Advisory Partnership Enterprise (Limited Partnership), and Xi'an Jiuying Business Management Advisory Partnership Enterprise (Limited Partnership) for CNY 550 million on October 26, 2017. Under the terms of the transaction, Sichuan Zhongguang Lightning Protection Technologies Co., Ltd. will pay CNY 165 million in cash and will issue 13.22 million shares as consideration from Wang Shugang, Wang Jinxia, Gushi Innovation No. 6 Investment (Shenzhen) Partnership Enterprise (Limited Partnership), Xi'an Tongzhou Business Management Advisory Partnership Enterprise (Limited Partnership) and Xi'an Jiuying Business Management Advisory Partnership Enterprise (Limited Partnership) will transfer 67%, 13%, 10%, 5%, and 5% stake respectively. For the year ended December 31, 2016, Shaanxi Huatong Electromechanical Manufacturing Co., Ltd. reported total assets of CNY 144.8 million, net assets of CNY 66.99 million, revenue of CNY 50.2 million, operating profit of CNY 19.7 million, and net profit of CNY 17.4 million. The deal is subject to Merger, Acquisition and Reorganization Examination Committee of Listed Companies of the China Securities Regulatory Commission. The transaction has been approved by the board of directors of Sichuan Zhongguang Lightning Protection Technologies Co., Ltd. and has been reviewed by The National Defense Science and Industry Bureau. The transaction is approved by the Merger, Acquisition and Reorganization Examination Committee of Listed Companies of the China Securities Regulatory Commission at its 19th working conference for 2018 on April 17, 2018. Guosen Securities Co., Ltd. acted as financial advisor to Sichuan Zhongguang Lightning Protection Technologies Co., Ltd. Zhang Jun and Guo Yan of Chang An Law Firm acted as legal advisors and Li Min and Qiu Yan of Sichuan Huaxin (Group) CPA Firm acted as accountants to Sichuan Zhongguang Lightning Protection Technologies Co., Ltd. Sichuan Zhongguang Lightning Protection Technologies Co., Ltd. (SZSE:300414) cancelled the acquisition of Shaanxi Huatong Electromechanical Manufacturing Co., Ltd. on October 25, 2018. Sichuan Zhongguang Lightning Protection Technologies Co., Ltd. held its 3rd directorate’s 15th meeting and its 3rd supervisory board’s 10th meeting on October 25, 2018 and approved to terminate the transaction.