SGSG Science&Technology Co., Ltd. Zhuhai (SZSE:300561) intends to acquire stake in Data Driver Network Technology (Shanghai) Co., Ltd. from Data Driver Information Technology (Shanghai) Co., Ltd., Lu Xiaoyi, Liang Banglong and Wang Yarong for approximately CNY 370 million on July 9, 2020. As per terms of the consideration, SGSG Science&Technology Co., Ltd. Zhuhai will pay CNY 110.4 million in cash, CNY 184 million will be paid by issuing 13.36 million of its common stock and CNY 73.6 million by issuing convertible corporate bonds. In the transaction Data Driver Information Technology (Shanghai) Co., Ltd., Lu Xiaoyi, Liang Banglong and Wang Yarong will sell 51%, 24%, 24% and 1% stake, respectively in Data Driver Network Technology (Shanghai) Co., Ltd. The consideration will be paid by raising a fund in a private placement of CNY 250 million of which CNY 110.4 million will be used for this transaction. For the year ended December 31, 2019, Data Driver Network Technology (Shanghai) Co., Ltd. reported total assets of CNY 41.5 million, net assets of CNY 23.4 million, operating revenue of CNY 37.3 million, net profit of CNY 11.2 million. The transaction is subject to approval from the shareholders of SGSG Science&Technology Co., Ltd. Zhuhai, Shenzhen Stock Exchange and the China Securities Regulatory Commission. The transaction is approved in the 26th meeting of the 3rd board of directors of SGSG Science&Technology Co., Ltd. Zhuhai. Zhao Hongbo, Li Shuilin and Liu Chi of Jianghai Securities Co., Ltd. acted as financial advisor; Long Bin, Li Yonghu and Diao Qingshan of Guangdong Jing Cheng Yue Heng Legal Advisor acted as legal advisor; Xu Hua, Wang Ying and Hu Jing of Grant Thornton China acted as accountant for SGSG Science&Technology Co., Ltd. Zhuhai. Beijing Tianjian Xingye Asset Evaluation Co., Ltd. acted as valuer in the transaction.