Zhejiang Sanwei Rubber Item Co., Ltd. (SHSE:603033) agreed to acquire Guangxi Sanwei Railway Track Manufacturing Co., Ltd. from a group of shareholders for CNY 1.5 billion on April 27, 2018. The consideration comprises issuance of 90.5 million class A common shares of Zhejiang Sanwei Rubber Item Co., Ltd. at CNY 16.25 per share. For the year ended December 31, 2017, Guangxi Sanwei Railway Track Manufacturing Co., Ltd. reported revenues of CNY 431.7 million, operating profit of CNY 175.8 million and net profit of CNY 143.5 million. As on December 31, 2017, Guangxi Sanwei Railway Track Manufacturing Co., Ltd. reported total assets of CNY 778.9 million and total equity of CNY 674.5 million. The deal is subject to approval from China Securities Regulatory Commission, shareholders of Zhejiang Sanwei Rubber Item Co., Ltd., a second approval from the Board of Zhejiang Sanwei Rubber Item Co., Ltd. and the respective government departments and other possible approvals as requested. On April 27, 2018, the Board of Directors of Zhejiang Sanwei Rubber Item Co., Ltd. approved the pre-plan. On June 10, 2018, the Board of Directors of Zhejiang Sanwei Rubber Item Co., Ltd. approved the acquisition. On June 27, 2018, the shareholders of Zhejiang Sanwei Rubber Item Co., Ltd. approved the acquisition. On August 12, 2018, the Board of Directors of Zhejiang Sanwei Rubber Item Co., Ltd. approved the proposal. On November 14, 2018, Zhejiang Sanwei held the 23rd meeting of the third board of directors, and the relevant resolutions such as the proposal on signing the supplementary agreement on performance commitment with the effective conditions were passed. On November 27, 2018, China Securities Regulatory Commission conditionally approved the transaction. On December 24, 2018, Zhejiang Sanwei Rubber received the approval of the China Securities Regulatory Commission on the approval of Zhejiang Sanwei Rubber Item Co., Ltd. to issue shares to Wu Shanguo and other sellers to purchase assets. Zhao Zhen and Liu Qi of China Merchants Securities Co.,Ltd. (SHSE:600999) acted as financial advisors, Hu Qi and Dong Yiping of Grandway Law Offices acted as legal advisors and Lv Suyang, Bu Gangjun and Zhao Hairong of Pan-China Certified Public Accountants LLP acted as accountant to Zhejiang Sanwei Rubber Item Co., Ltd. Zhejiang Sanwei Rubber Item Co., Ltd. (SHSE:603033) completed acquisition of Guangxi Sanwei Railway Track Manufacturing Co., Ltd. from a group of shareholders on January 4, 2019.