China CSSC Holdings Limited (SHSE:600150) signed a framework agreement to acquire an additional 12.1% stake in Chengxi Shipyard Co., Ltd. from China Structural Reform Fund Co., Ltd., China Pacific Property Insurance Co., Ltd., China Life Insurance Company Limited (SEHK:2628), PICC Property and Casualty Company Limited (SEHK:2328), New China Life Insurance Company Ltd. (SHSE:601336) and Huarong Ruitong Equity Investment Management Co., Ltd. on February 12, 2018. Under the terms of transaction, China CSSC Holdings Limited will issue shares as consideration. On February 26, 2018, China CSSC Holdings Limited signed an agreement to acquire an additional 12.1% stake in Chengxi Shipyard Co., Ltd. from China Structural Reform Fund Co., Ltd., China Pacific Property Insurance Co., Ltd., China Life Insurance Company Limited, PICC Property and Casualty Company Limited, New China Life Insurance Company Ltd. and Huarong Ruitong Equity Investment Management Co., Ltd. for approximately CNY 630 million. China CSSC Holdings Limited will pay the consideration in stock. In a related transaction, China CSSC Holdings Limited agreed to acquire an additional 36.27% stake in Shanghai Waigaoqiao Shipbuilding Co., Ltd. from a group of shareholders. As of April 4, 2019, the terms of the transaction were amended. China CSSC Holdings Limited will now acquire 21.46% stake in Chengxi Shipyard Co., Ltd. from a group of sellers for CNY 1.2 billion. The consideration will be paid in shares.

Chengxi Shipyard Co., Ltd reported total assets of CNY 8.33 billion and owners' equity of CNY 4.73 billion as at December 31, 2017. Chengxi Shipyard Co., Ltd reported revenues of CNY 3.41 billion, operating profit of CNY 42.14 million and net profit of CNY 37.19 million in 2017. The transaction is subject to approval of shareholders' of China CSSC Holdings Limited, approval of the State-owned Assets Supervision and Administration Commission of the State Council, approval of China Securities Regulatory Commission, approval of other relevant regulatory departments, approval of Board of Directors of China CSSC Holdings Limited and filing of the assessment reports of Chengxi Shipyard Co., Ltd. with state-owned departments. The Board of China CSSC Holdings Limited unanimously approved the transaction. China State Shipbuilding Corporation's internal decision-making institutions approved the transaction. The internal decision-making institutions of Huarong Ruitong Equity Investment Management Co., Ltd., New China Life Insurance Company Ltd., China Structural Reform Fund Co., Ltd., China Pacific Property Insurance Co., Ltd., China Life Insurance Company Limited and PICC Property and Casualty Company Limited approved the transaction. State-owned Assets Supervision and Administration Commission of the State Council agreed in principle to the transaction. National Defense Science and Industry Bureau approved the transaction. The amendment was approved by the 2nd Meeting of the 7th Directorate of China CSSC Holdings Limited on April 4, 2019. The transaction has been approved by CSRC and shareholders of China CSSC Holdings Limited.

Wang Ling, Zhu Yexin, Guo Dan, Shi Menghan, He Yang, Zhu Hongyi, Zhang Yihe, Bao Dandan, Sun Shouan, Yu Haiyue, Rong Xiaolong, Qi Zeyu, Cai Yangzhen, Xu Wenlu, Zhu Sihao, Hu An, Xue Wanbao, Yao Yiyu and Ling Weihao of CITIC Securities Co., Ltd. acted as the financial advisors, Sun Yitao, Qian Zhengying and Yang Hui of AllBright Law Offices acted as legal advisors, and Yang Xin, Xu Feng, Xu Zongliang, Xiao Zuguang and Shan Guoming of Wuyige Certified Public Accountants LLP acted as accountants to China CSSC Holdings Limited. Qian Feng and Yang Liming of Shanghai Orient Appraisal Co., Ltd. acted as appraisers.

China CSSC Holdings Limited (SHSE:600150) completed the acquisition of additional 12.1% stake in Chengxi Shipyard Co., Ltd. from China Structural Reform Fund Co., Ltd., China Pacific Property Insurance Co., Ltd., China Life Insurance Company Limited (SEHK:2628), PICC Property and Casualty Company Limited (SEHK:2328), New China Life Insurance Company Ltd. (SHSE:601336) and Huarong Ruitong Equity Investment Management Co., Ltd. on March 19, 2020.