Shanghai Qingpu Fire-Fighting Equipment Co. Ltd. (SEHK:8115) and Shanghai Liming Fire Testing Co., Ltd. entered into sale and purchase agreement to acquire Shanghai Anchor Pressure Vessel (Group) Co., Ltd. from Liancheng Fire-Fighting Group Company Limited and Wang Sheng for CNY 6 million in cash on November 7, 2012. The consideration has to be paid within 12 months after the completion of the registration procedure for the change of Shanghai Anchor's equity interest holders in connection with the acquisition. The consideration will be satisfied in cash by utilizing the existing CNY 50 million loan facilities from Liancheng Fire-Fighting Group Company.

Shanghai Anchor Pressure reported net profit before and after tax of CNY 2.7 million and CNY 1.5 million respectively for the year ended December 31, 2011 and net asset of CNY 35.47 million as at March 31, 2012. The transaction is subject to completion of the due diligence investigation, all requisite authorisations, approvals, waivers, permissions or in connection with the entering into the agreement having been obtained from relevant government authorities, the stock exchange and any other regulatory authorities, approval by the stock exchange of the application for resumption of trading in Shanghai Qingpu Fire-Fighting Equipment shares, approval by the shareholders of Shanghai Qingpu Fire-Fighting Equipment and all necessary approvals, consents and authorizations in respect of the transaction, completion of audit of Anchor Group within two months from the date of signing of the agreement and completion and provision of all other documents, evidence or matters as reasonably requested before completion. In the event that not all of the conditions precedent are fulfilled, or waived by February 28, 2013, then the sale and purchase agreement shall be terminated. Completion shall take place on the completion date, being the fifth business day following the fulfillment of the conditions precedent or such other date as the parties to the sale and purchase agreement may agree in writing. An independent Board committee comprising all the independent non-executive Directors has been established to advise the shareholders in connection with the acquisition. The Board of Shanghai Qingpu Fire-Fighting Equipment are of the opinion that the acquisition is on normal commercial terms and fair and reasonable and in the interests of Shanghai Qingpu Fire-Fighting and its shareholders as a whole. Completion of the transaction shall take place on the fifth day after the fulfillment of all conditions precedent. As additional time is required for the fulfillment of the conditions precedent, as on March 12, 2013, a supplemental agreement has been signed to extend the long stop date from February 28, 2013 to June 28, 2013. The deal is further postponed to December 31, 2013. The shareholder meeting is scheduled on July 23, 2013. In the event that not all of the conditions precedent are fulfilled, or waived, as the case may be, by December 31, 2013 or such other date as agreed, then the agreement shall be terminated. The Directors of Shanghai Qingpu Fire-Fighting Equipment Co., Ltd. recommended the shareholders to approve the transaction as on June 7, 2013. As on July 23, 2013, the transaction was approved by the shareholders of Shanghai Qingpu Fire-Fighting Equipment Co., Ltd. REORIENT Financial Markets Limited acted as the financial advisor and Computershare Hong Kong Investor Services Limited acted as registrar for Shanghai Qingpu Fire-Fighting Equipment Co., Ltd.

Shanghai Qingpu Fire-Fighting Equipment Co. Ltd. (SEHK:8115) and Shanghai Liming Fire Testing Co., Ltd. completed the acquisition of Shanghai Anchor Pressure Vessel (Group) Co., Ltd. from Liancheng Fire-Fighting Group Company Limited and Wang Sheng on July 29, 2013.