Wuxi New Hongtai Electrical Technology Co.,Ltd (SHSE:603016) agreed to acquire 97.7% stake in Beijing Tianyishangjia New Material Corp., Ltd. from group of sellers for CNY 5.2 billion on July 2, 2017. Wuxi New Hongtai Electrical signed asset acquisition agreement to acquire Beijing Tianyishangjia New Material on July 31, 2017. Wuxi New Hongtai Electrical will pay CNY 250 million in cash and issue 50.98 million shares to Wu Peifang as consideration. All other sellers will be issued 89.36 million shares as consideration. On October 9, 2017, BAIC Capital Co., Ltd., one of the sellers, withdrew its participation in the deal. Hence, BAIC's 2.32% stake will no longer be included in the transaction. Wuxi New Hongtai Electrical will issue A shares to not more than 10 specific investors to raise supporting funds of not more than CNY 785 million.

As of December 31, 2016, Beijing Tianyishangjia New Material reported total assets of CNY 1.1 billion and total owner's equity of CNY 994.1 million. For 2016, Beijing Tianyishangjia New Material reported revenues of CNY 471.5 million, operating profit of CNY 231.1 million and net profit of CNY 197 million. In July 2017, Jingdezhen Anpeng Automobile Industry Venture Capital Partnership Enterprise (Limited Partnership)'s general partner Beijing Anpeng Equity Investment Fund Management Co., Ltd., BAIC Capital's investment decision committee, Beijing Ruize Industrial Investment Fund (Limited Partnership)'s investment decision Committee, Beijing Zhongguancun Dengling Venture Capital Center (Limited Partnership)'s general partner, Beijing Zhongguancun Dengling Investment Fund Management Co., Ltd.'s investment decision committee, Beijing Zhongchuang Huiying Investment Management Center (Limited Partnership)'s partner, Qingdao Jinshi Haorui Investment Co., Ltd.'s post investment management committee, Beijing Jiutai Fanghe Asset Management Center (Limited Partnership)'s partner, Beijing Jinhuifeng Investment Management Co., Ltd.'s shareholders', Beijing Jinhuifeng Haoying Investment Partnership Enterprise (Limited Partnership)'s partner, Guizhou Maotai Jianxin Investment Management Center (Limited Partnership)'s general partner Maotai Jianxin (Guizhou) Investment Fund Management Co., Ltd., Xinyu Hongxingcheng Investment Management Center (Limited Partnership)'s partner approved the transaction. On July 2, 2017, Beijing Tianyishangjia New Material held the 12th session of its 1st directorate and approved the transaction. On July 18, 2017, Beijing Tianyishangjia New Material held its 3rd special shareholders' meeting for 2017, approved the transaction. On July 31, 2017, Wuxi New Hongtai Electrical held the 17th session of its 3rd directorate, approved the transaction. The transaction remains subject to approval from Wuxi New Hongtai Electrical's shareholder's and CSRC. Shareholders of Wuxi New Hongtai Electrical Technology Co.,Ltd approved the transaction on September 22, 2017. The shareholders of Beijing Tianyishangjia New Material approved the revised details on October 13, 2017 and the board of Wuxi New Hongtai Electrical Technology approved the revised restructuring plan on October 14, 2017. The China Securities Regulatory Commission did not approve the transaction in 77th working conference for 2017 held on December 28, 2017.

Lin Yusong and Cheng Nan of China Securities Co., Ltd. acted as financial advisor and Bao Huifang and Zhou Qun of Beijing Kang Da Law Firm acted as legal advisor for Wuxi New Hongtai Electrical Technology Co.,Ltd. Wang Chunsheng and Li Yunsong of Ruihua Certified Public Accountants, LLP and Yang Hongqing and Yao Ping of Union Power Certified Public Accountants Co., Ltd acted as accountants to Wuxi New Hongtai Electrical Technology Co.,Ltd.

Wuxi New Hongtai Electrical Technology Co.,Ltd (SHSE:603016) cancelled the acquisition of 97.7% stake in Beijing Tianyishangjia New Material Corp., Ltd. from group of sellers on January 17, 2018. Wuxi New Hongtai Electrical Technology Co.,Ltd held the 4th session of its 4th directorate and approved the termination of the transaction.