Harbin High-Tech (Group) Co.,Ltd (SHSE:600095) signed the letter of intent agreement to acquire Xiangcai Securities Co., Ltd. from a group of sellers on June 18, 2019. Harbin High-Tech (Group) Co.,Ltd will issue class A shares in consideration. Xinhu Holding Co., Ltd. and Xinhu Zhongbao Co., Ltd. commit to a lock period of 36 months. All other sellers commit to a lock period of 12 months since issuance date. Harbin High-Tech will also issue shares in a private placement to raise supporting funds. On December 30, 2019, Harbin High signed a cancellation agreement with Qinghai Provincial Investment Group Co., Ltd., agreeing to not include it in the acquisition thereby modifying the transaction to now acquire 99.73% stake. As on June 5, 2020, issue price of consideration shares is adjusted from CNY 4.8 to CNY 4.791, the number of shares issued being adjusted to be issued as consideration from 2.21 billion shares to 2.214 billion shares. The transaction is subject to the approval of Board and shareholders of Harbin High-Tech (Group) Co.,Ltd., approval of the external authority, approval of China Securities Regulatory Commission and other pre-approval approvals or consents required by laws, regulations and regulatory authorities. The transaction has been approved by 14th meeting of the 8th Board of Directors of Harbin High-Tech (Group) Co.,Ltd. As of January 23, 2020, transaction was approved by the shareholders of Harbin High-Tech. As of May 21, 2020, The transaction was unconditionally approved by China Securities Regulatory Commission. He Shengchou, Peng Qiang, Tang Ning, Yao Zhaowu, Chen Gongyan and Gai Xin of China Galaxy Securities Co., Ltd. acted as the financial advisors to Harbin High-Tech (Group) Co.,Ltd. Gao Yimin, Huang Renzhong and Liu Ning of King & Wood Mallesons, China acted as legal advisors and Li Yongli and Zhang Xiao Pan-China Certified Public Accountants LLP acted as accountants to Harbin High-Tech (Group) Co.,Ltd.

Harbin High-Tech (Group) Co.,Ltd (SHSE:600095) completed the acquisition of 99.7% stake in Xiangcai Securities Co., Ltd. from a group of sellers on June 4, 2020.