Glarun Technology Co., Ltd. (SHSE:600562) signed an agreement to acquire 95% stake in Nanjing Glaway Software Co., Ltd. from Glarun Group Co., Ltd., Shanghai Xunqian Investment Management Partnership Enterprise (Limited Partnership), Beijing Huaxia Zhixun Technology Co., Ltd., Zhang Shaohua and Hu Huabo for approximately CNY 590 million on November 3, 2018. As per terms, Glarun Group will sell 40% stake and receive 19.39 million shares of Glarun Technology Co., Ltd. in consideration, Xunqian Investment will sell 25% stake and receive 9.7 million shares of Glarun Technology and cash of CNY 25.5 million, Huaxia Zhixun will sell 18% stake and receive 8.5 million shares of Glarun Technology, Zhang Shaohua will sell 7.5% stake and receive 2.9 million shares of Glarun Technology and cash of CNY 7.8 million, Hu Huabo will sell 4.5% stake and receive 1.78 million shares of Glarun Technology and cash of CNY 4.66 million. As of April 30, 2019, the transaction price was revised to approximately CNY 710 million. As per the new update terms, Glarun Group will sell 40% stake and receive 19.36 million shares of Glarun Technology Co., Ltd. Xunqian Investment will sell 25% stake and receive 9.93 million shares of Glarun Technology and cash of CNY 25.53 million, Huaxia Zhixun will sell 18% stake and receive 8.71 million shares of Glarun Technology, Zhang Shaohua will sell 7.5% stake and receive 2.9 million shares of Glarun Technology and cash of CNY 7.8 million, Hu Huabo will sell 4.5% stake and receive 1.78 million shares of Glarun Technology and cash of CNY 4.66 million. In related deals, Glarun Technology Co., Ltd. agreed to acquire 100% stake in Nanjing Guorui Defense System Co., Ltd. From China Electronics Technology Group Corporation by way of share issuance and 59% stake in Nanjing Glarun-Atten Technology Co., Ltd. from Glarun Group Co., Ltd., Nanjing Ruihongyi Equity Investment Enterprise (Limited Partnership) by way of share issuance and cash payment. Glarun Technology will fund the acquisition by issuing shares to not more than 10 designated investors in a private placement to raise supporting funds of not more than CNY 600 million. This transaction still needs to be approved by Glarun Technology’s shareholders’ meeting; CSRC and after the completion of the audit and appraisal works, Glarun Technology would need to hold another directorate to approve this reorganization. This transaction is approved by China Electronics Technology Group Corporation’s internal decision-making body and 2nd session of Glarun Technology’s 8th directorate. As of April 30, 2019, the transaction is subject to approval from the State Administration of Science, Technology and Industry for National Defense regarding the transaction’s military matters review and formal approval from the State-Owned Assets Supervision and Administration Commission. Approval received for Approval in principle by the State-Owned Assets Supervision and Administration Commission and Approval of the transfer of stake in Nanjing Guorui Defense System Co., Ltd. by the Ministry of Finance. As of September 17, 2019, transaction has been approved by National Defense Science and Technology Bureau. As of December 25, 2019, the transaction has been approved by Merger, Acquisition, and Reorganization Examination Committee of Listed Companies of the China Securities Regulatory Commission. As of January 22, 2020, Glarun Technology Co., Ltd. received the approval of the issuance of shares and raising of supporting funds issued by China Securities Regulatory Commission. On April 28, 2020, shareholders of Glarun Technology Co., Ltd. has approved the transaction. Wang Chenning, Liu Xianfeng, Luo Wenchao, Wu Xiaofeng, Yuan Dejiang, Zhang Hengzheng, Wan Qian, Ye Dan, Zhang Tongyuan and Han Xing of China Securities Co., Ltd. acted as financial advisor to Glarun Technology. Fang Xiaojie, Sun Zuan, Dong Junnan, Wang Chao and Hu Han of AllBright Law Offices acted as a legal advisor to Glarun Technology. Yang Zhi and Gai Dajiang of Grant Thornton China acted as a accountant to Glarun Technology. Glarun Technology Co., Ltd. (SHSE:600562) completed the acquisition of 95% stake in Nanjing Glaway Software Co., Ltd. from Glarun Group Co., Ltd., Shanghai Xunqian Investment Management Partnership Enterprise (Limited Partnership), Beijing Huaxia Zhixun Technology Co., Ltd., Zhang Shaohua and Hu Huabo on May 22, 2020.