Shanghai Kingstar Winning Software Co. Ltd (SZSE:300253) agreed to acquire 60% stake in Beijing Yuxin NetFuture IT Co., Ltd. from Sun Yiping, Su Yong, Zhang Ning, Pu Shi, Tong Linyan, Ma Yi, Peng Fei, Hao Zhonghua and Li Xiaohua for CNY 36 million on January 2, 2014. Shanghai Kingstar Winning Software Co. Ltd is to invest CNY 36 million to acquire the 60% stake in Yuxin NetFuture from the sellers and to carry out a capital increase in Yuxin NetFuture. The capital increase amount will be CNY 6 million. Shanghai Kingstar Winning Software will acquire the remaining stake in Beijing Yuxin NetFuture IT step by step after certain conditions have been met. Shanghai Kingstar Winning Software Co. Ltd will use its excess proceeds to finance the transaction.

The deal is subject to the net asset of the Beijing Yuxin NetFuture as audited by the accountant as of December 31, 2013 being not less than CNY 18 million, and the company already received the audit report issued by the accountant, the net profit after deducting nonrecurring profit and loss of the target company in 2013 as audited by the accountant is not less than CNY 2 million, Shanghai Kingstar Winning Software completing a satisfactory due diligence on Beijing Yuxin NetFuture within 45 days after signing the acquisition intent, signing of final transaction document, execution of non competition agreement, completing all internal approval procedures (including but not limited to shareholders' meeting and/or directorate approval), and having gained the approval from the Chinese government (if applicable). Within 10 days after the above conditions have been met or have been waived, the 100% of the transfer price must be paid. If the audited net asset of Beijing Yuxin NetFuture IT as of December 31, 2013 is less than CNY 18 million or if the audited net profit after deducting nonrecurring profit and loss in 2013 is less than CNY 2 million, Shanghai Kingstar Winning Software Co. Ltd has the right to terminate the share transfer. Post transaction, Beijing Yuxin NetFuture IT Co., Ltd. must change its name to Beijing Winning NetFuture IT Co., Ltd. or other names agreed upon by all parties not later than December 31, 2014. As on June 25, 2014, the transaction was Board of Directors of Shanghai Kingstar Winning Software.