Jiangsu Province Metallurgical Design Institute Co.,LTD. agreed to acquire Jincheng Paper Co., Ltd. in a reverse merger transaction on August 25, 2015. Under the transaction, Jincheng Paper will issue 349.41 million A shares at CNY 9.29 per share in exchange for 100% stake in Jiangsu Province Metallurgical Design Institute Co Ltd. Jincheng Paper Co., Ltd. plans to raise supporting funds of not more than CNY 627 million out of which CNY 85 million will be used for the transaction. The Board of Directors of Jincheng Paper Co., Ltd. approved the transaction. In August 2015, shareholders of Beijing Shenwu Environment & Energy Technology Corp. and Jiangsu Province Metallurgical Design Institute Co.,LTD. approved the transaction. The transaction is still subject to approval by CSRC and shareholders of Jincheng Paper Co., Ltd. On June 17, 2016, China Securities Regulatory Commission approved the transaction. On April 29, 2016 the Board of Directors of Jincheng Paper Co., Ltd. approved the transaction. As on September 28, 2015, the shareholders of Jincheng Paper Co approved the deal. On December 17, 2015, Jincheng Paper Co., Ltd. received a notice from the CSRC that acquisition through the issuance of shares, and raising of supporting funds was not approved. Huachuang Securities Co., Ltd. and Nanjing Securities Co., Ltd acted as financial advisor, Grandway Law Offices acted as legal advisor and WUYIGE Certified Public Accountants LLP and Asia Pacific (Group) CPAs acted as accountant to Jincheng Paper Co., Ltd. Jiangsu Province Metallurgical Design Institute Co.,LTD. completed the acquisition of Jincheng Paper Co., Ltd. in a reverse merger transaction on October 10, 2016.