Guangxi Hechi Chemical Co., Ltd. (SZSE:000953) signed an agreement to acquire 93.4% in Chongqing Nansong Chemi-Tech Co.,Ltd. from a group of shareholders for approximately CNY 290 million on August 28, 2019. As per the agreement, Guangxi Hechi Chemical Co., Ltd. shall acquire 34.40% share of Chongqing Nansong Chemi-Tech Co.,Ltd. from Xu Zhubao for cash amount of approximately CNY 98.1 million, 29.74% share from He Weiguo in exchange of approximately 24.2 million shares of approximately CNY 84.8 million in worth, 26.99% share from He Jianguo in exchange of approximately 21.9 million shares of approximately CNY 76.9 million in worth, 0.82% share from Zhou Yaping for cash amount of approximately CNY 2.32 million, 0.72% share from Zhou Ming for cash amount of approximately CNY 2.04 million, 0.39% share from Huang Zequn for cash amount of approximately CNY 1.1 million, 0.21% share from Xu Meizan for cash amount of approximately CNY 0.58 million, 0.14% share from Xiong for cash amount of approximately CNY 0.38 million. The consideration comprises issuance of cash of CNY 104.5 million to specific sellers and 46.2 million shares of Guangxi Hechi Chemical Co., Ltd. to others. In a related deal, Hechi Xinyuan Investment Co., Ltd. signed an agreement to acquire assets related to urea production, Hechi Chemical Co., Ltd. and Guangxi Hehua Installation Maintenance Co., Ltd. Guangxi Hechi Chemical Co., Ltd. will finance the cash portion of the deal by raising of supporting funds of CNY 120 million from issuance of new shares. Chongqing Nansong Chemi-Tech had total assets of CNY 17.97 million, net assets of CNY 144.82 million, revenue of CNY 89.99 million, operating profit of CNY 69.77 million, EBITDA of CNY 95.64 million, and net income of CNY 87.56 million for the year ended December 31, 2018. The deal is subject to approval from shareholders of Guangxi Hechi Chemical Co., Ltd. and China Securities Regulatory Commission. The Board of Directors of Guangxi Hechi Chemical Co., Ltd. approved the deal. As on November 26, 2019, the transaction was approved by the shareholders of Guangxi Hechi Chemical Co., Ltd at second extraordinary general meeting of 2019. Everbright Securities Company Limited (SHSE:601788) acted as financial advisor, Zhong Lun Law Firm acted as legal advisor and ZhongXingCaiGuangHua CPA Office Co. Ltd acted as accountant for Guangxi Hechi Chemical Co., Ltd. Guangxi Hechi Chemical Co., Ltd (SZSE:000953) completed the acquisition of 93.4% in Chongqing Nansong Chemi-Tech Co.,Ltd. from a group of shareholders on December 26, 2019.