Shanghai Lianming Machinery Co., Ltd. (SHSE:603006) agreed to acquire Wuhan Lianming Automobile Packaging Co., Ltd. from Shanghai Lianming Investment Group Co., Ltd. for approximately CNY 710 million on May 27, 2020. The consideration shall be payable through issuance of 64.59 million shares. On March 3, 2021, the consideration was revised, and Shanghai Lianming will now issue 60.93 million shares. On May 25, 2021, The consideration shall be payable through issuance of 63.2 million shares at price of CNY 8.69 per share. For the year ended December 31, 2019, Wuhan Lianming had total assets of CNY 209.44 million, shareholder’s equity of CNY 93.64 million, revenues of CNY 285 million, operating profit of CNY 66.22 million and net profit of CNY 50.51 million. The meeting of fourth directorate of Shanghai Lianming has approved the transaction. On July 14, 2020, the shareholders of Shanghai Lianming and the shareholders of counter parties approved the transaction. The transaction is subject to approval from China Securities Regulatory Commission (CSRC). On October 21, 2020, CSRC has rejected the transaction. The M&A and Reorganization Committee of CSRC voted on the Shanghai Lianming's plan but the number of approved votes did not reach 3 and the plan was not passed. On November 16, 2020, the M&A and Reorganization Committee of CSRC notified that Shanghai Lianming did not fully explain the core competitiveness of the underlying assets, the reasonableness of the valuation of the transaction, and did not fully disclose that the transaction is conducive to improving the asset quality of listed companies, and it does not comply with the "Management Measures for Major Asset Restructurings of Listed Companies" provisions of Article 43. The Board of Directors of Shanghai Lianming hall will make a resolution on whether to modify or terminate this plan within 10 days from the date of receipt of this decision, and at the same time shall perform its information disclosure obligations in a timely manner in accordance with relevant regulations. On November 20, 2020, Shanghai Lianming's Board decided to continue the transaction and will further modify, supplement and improve the transaction plan and related application materials based on the review opinions of the M&A and Restructuring Commission combined with the actual situation of Shanghai Lianming. On March 3, 2021, the 3rd session of Shanghai Lianming's 5th directorate approved the transaction. As on May 25, 2021, CSRC approved the deal. China Securities Co., Ltd. acted as financial advisor, Grandall Law Firm Shanghai acted as legal advisor and Moore Stephens Da Hua Certified Public Accountants acted as accountant for Shanghai Lianming.