Hainan Jingliang Holdings Co., Ltd. (SZSE:000505) and Beijing Jingliang Food Co., Ltd. agreed to acquire 25.1% in Zhejiang Xiaowangzi Food Co., Ltd. from a group of sellers for approximately CNY 360 million on July 19, 2019. As per terms, Hainan Jingliang Holdings Co., Ltd. will acquire 17.7% stake from Wang Yuecheng and issue its 41.2 million shares while Beijing Jingliang Food Co., Ltd. will acquire 7.4% stake from all the individual sellers including Wang Yuecheng and pay cash of CNY 104.8 million. As of November 26, 2019, Hainan Jingliang Holdings Co., Ltd. will issue 41.2 million shares and Beijing Jingliang Food Co., Ltd. will pay CNY 104 million to Wang Yuecheng and group of sellers for a total consideration of approximately CNY 320 million. For the year ended December 31, 2018, Zhejiang Xiaowangzi Food Co., Ltd. reported total assets of CNY 820 million, revenue of CNY 817 million and net profit of approximately CNY 117 million. The deal is subject to approval from CSRC and shareholders of Hainan Jingliang Holdings Co., Ltd. The deal was already approved in principle by Beijing Grain Group Co., Ltd., an investor in Hainan Jingliang Holdings Co., Ltd., Board of Directors and supervisory Board of Hainan Jingliang Holdings Co., Ltd. On March 25, 2020, the Merger, Acquisition and Reorganization Examination Committee of Listed Companies of the CSRC approved the acquisition unconditionally. As of April 24, 2020, the formal plan for this transaction has been approved by Beijing Capital Agribusiness Group Co., Ltd. and The transaction plan has been reviewed and approved by Hainan Jingliang Holdings 2019 fourth extraordinary general meeting of shareholders. Yang Jian, Sun Xu, Zou Qi, Chi Cheng, Guo Zhongchao of Guorong Securities Co., Ltd. acted as financial advisors and Li Yanli and Huang Weixiang of Zhong Lun Law Firm acted as legal advisors to Hainan Jingliang Holdings Co., Ltd. Liu Lian and Li Yunfei of Zhongxinghua Certified Public Accountants LLP acted as accountants in the transaction. China Appraisal Associates acted as asset evaluation agency in the transaction. Hainan Jingliang Holdings Co., Ltd. (SZSE:000505) and Beijing Jingliang Food Co., Ltd. completed the acquisition of 25.1% in Zhejiang Xiaowangzi Food Co., Ltd. from a group of sellers on May 11, 2020. On April 24, 2020, Hainan Jingliang received approval by the CSRC.