Hubei Guochuang Hi-tech Material Co., Ltd. (SZSE:002377) signed an agreement to acquire Qfang.com from a group of shareholders for CNY 3.8 billion on December 30, 2016. The consideration comprises cash of CNY 1.6 billion and 257 million shares of Hubei Guochuang Hi-tech Material Co., Ltd. for CNY 2.2 billion. Hubei Guochuang Hi-tech Material Co., Ltd. will finance the cash consideration of deal by a private placement of CNY 2.1 billion from eight investors. On April 6, 2017, Hubei Guochuang Hi-tech Material Co., Ltd adjusted the issue price, pursuant to which the number of shares to be issued as consideration were revised from 257.05 million shares to 258.27 million shares. The number of shares to be issued under private placement was also adjusted from 224.9 million shares to 226.01 million shares. For the year ended December 31, 2016, Qfang.com had total assets of CNY 1.19 billion, total equity of CNY 235.1 million, revenue of CNY 4.36 billion, and net profit of CNY 267.89 million. The transaction is subject to approval from the stockholders of Hubei Guochuang Hi-tech Material Co., Ltd. and the China Securities Regulatory Commission. On December 30, 2016, the Board of Directors of Hubei Guochuang Hi-tech Material Co., Ltd. approved the transaction. On February 6, 2017, the stockholders of Hubei Guochuang Hi-tech Material Co., Ltd. approved the transaction. On May 16, 2017, Merger, Acquisition and Reorganization Examination Committee of Listed Companies of China Securities Regulatory Commission held the 24th working meeting of 2017 and conditionally approved the transaction. On June 2, 2017, the Ministry of Commerce approved the transaction. Zhong De Securities Company Limited acted as a financial advisor and Grandway Law Offices acted as a legal advisor for Hubei Guochuang Hi-tech Material Co., Ltd. ZhongShen ZhongHuan acted as accountant for Hubei Guochuang Hi-tech Material Co., Ltd. and Qfang.com.