Tongwei Co.,Ltd. (SHSE:600438) agreed to acquire 99.99% stake in Yongxiang Co., Ltd from a group of sellers for CNY 2 billion on May 8, 2015. The group of sellers include Tongwei Group, Sichuan Giastar Group, Jiangsu Shuangliang Technology Co., Ltd., Hangzhou Yongyuan Investment Co., Ltd., Beijing Star Great Wall Cultural Industry Investment Fund (Limited Partnership), Wanjiang Logistic Industry Fund, Shanghai Jinxiang Fuhou Equity Investment Partnership (Limited Partnership), Shanghai Hongxinyuan Industrial Co., Ltd, Ningbo Xinjunyi No. 6 Equity Investment Partnership (Limited Partnership), Shanghai Ouqing Phase I Equity Investment Fund Partnership (Limited Partnership), Ningbo Hongyuan Heyi Equity Investment Partnership (Limited Partnership), Leshan Chuanyong Enterprise Management Consultancy Co., Ltd., Jiangyin City Quanshun Auto Co., Ltd, Chengdu Xinde Investment Co., Ltd., Sichuan Shengyuantai Commercial Management Co., Ltd., Dongfang Fuhai (Wuhu) Equity Investment Fund (Limited Partnership), Dongfang Fuhai (Wuhu) No. 2 Equity Investment Fund (Limited Partnership), Tang Guangyue, Zhuo Yujiao, Feng Dezhi, Wang Jinhong, Chen Xingyu, Liao Lan, Zhou Bin, Zhou Zonghua, Xu Hongtao, Qiu Jie, Yi Zhengyi, Li Bin, Wang Yunqing, Wu Zhaohua, Lai Yongbin, Liang Jin, Geng Ming, Shan Yulin, Sun Qun, Wang Mengde, Ma Peilin, Tang Hongjun, Shi Jingren, Sun Deyue, Peng Hui, Li Yan, Duan Yong, Xu Xiao and Xu Wenxin.

In a related transaction, Tongwei Co.,Ltd. agreed to acquire Tongwei New Energy Co., Ltd. Tongwei Co.,Ltd. will issue 232.9 million shares as consideration for both the transactions. Tongwei Co. will acquire 1.03 billion shares in Yongxiang. Tongwei Co., Ltd will also carry out a capital raising of not more than CNY 2 billion. Yongxiang Co., Ltd reported total assets of CNY 4.84 billion, net assets of CNY 1.79 billion, revenues of CNY 847.59 million, operating loss of CNY 167.37 million and net loss of CNY 128.68 million in 2014. The transaction is subject to approval of shareholders of Tongwei Co.,Ltd, another Directorate approval of Tongwei Co.,Ltd, approval of CSRC and approval of Ministry of Commerce of People's Republic of China Anti-monopoly Bureau. The transaction was approved by Board of Tongwei Co.,Ltd on May 8, 2015. On October 21, 2015, China Securities Regulatory Commission approved the transaction. As on November 10, 2015, the transaction was disapproved by the China Securities Regulatory Commission. China Securities Co., Ltd acted as the financial advisor to Tongwei Co.,Ltd. King & Wood Mallesons, China acted as legal advisor and Sichuan Huaxin Group Certified Public Accountants acted as auditor for Tongwei Co.,Ltd.

Tongwei Co.,Ltd. (SHSE:600438) completed the acquisition of 99.99% stake in Yongxiang Co., Ltd from a group of sellers on February 4, 2016.