Anhui Yingliu Electromechanical Co., Ltd. (SHSE:603308) agreed to acquire Zhangjiagang Guangda Special Material Co., Ltd. from a group of sellers for CNY 1.1 billion on January 22, 2017. Anhui Yingliu Electromechanical Co., Ltd. will issue 47.09 million shares and CNY 131.78 million cash. Anhui Yingliu Electromechanical Co., Ltd. signed the agreement to acquire Zhangjiagang City Guangda Machinery Forging Co., Ltd. from a group of sellers on January 23, 2017. Anhui Yingliu Electromechanical Co., Ltd. will raise supporting funds of not more than CNY 746.78 million. Anhui Yingliu Electromechanical Co., Ltd. will operate Zhangjiagang City Guangda Machinery Forging Co., Ltd as wholly owned subsidiary. As of October 31, 2016, Zhangjiagang City Guangda Machinery Forging Co., Ltd. had total assets of CNY 1.6 billion and owner's equity of CNY 340.5 billion.

The transaction needs to be approved by the Anhui Yingliu Electromechanical Co., Ltd's shareholders' meeting, CSRC and to pass the antimonopoly examination of the Ministry of Commerce. Shareholders of Zhangjiagang City Guangda Machinery Forging Co., Ltd. approved the transaction on January 22, 2017. Board of Directors of Anhui Yingliu Electromechanical Co., Ltd. approved the transaction on January 23, 2017. The shareholders of Anhui Yingliu Electromechanical Co., Ltd. approved the transaction on March 10, 2017. On June 20, 2017, Anhui Yingliu Electromechanical Co., Ltd. received proposal to terminate the transaction from the sellers. Guoyuan Securities Company Limited (SZSE:000728) acted as financial advisor, Tianhe Law Firm acted as legal advisor, and Pan-China Certified Public Accountants LLP acted as an accountant to Anhui Yingliu Electromechanical Co., Ltd. The transaction related fees are CNY 35 million.