GEM Co., Ltd. (SZSE:002340) agreed to acquire 79.85% stake in Huaian Fanyang Enterprise Management Co., Ltd. on January 5, 2016. After this acquisition, GEM Co., Ltd plans to use its self-owned funds of CNY 219.46 million to carry out a capital increase in Fanyang Company to be used to subscribe to Jiangsu Canton Vivien Technology Co., Ltd.'s shares.