Shenzhen Capstone Industrial Co.,Ltd. (SHE:000038) signed the agreement to acquire Zhejiang Seeco Media Co., Ltd from a group of sellers for CNY 1.7 billion in cash and stock on July 21, 2015. Amount of stake consideration is CNY 1.2 billion and amount of cash consideration is CNY 457 million. Shenzhen Capstone Industrial will issue 60.8 million shares. The group of sellers includes Xia Dongming, Zhu Lanying, Luo Cheng, Xiu Laigui, Jiang Jiping, Huang Yanhong, Gong Lirong and Ningbo Huaxia Jiayuan Management Consultancy Co., Ltd. Zhu Lanying owns 22% stake in Seeco Media. In a related transaction, Shenzhen Capstone Industrial Co.,Ltd. (SHE:000038) signed the agreement to acquire Beijing Ranshi Technology for CNY 1.1 billion on July 23, 2015. Under the terms of the transaction, Shenzhen Capstone Industrial will issue 95.84 million A shares and pay approximately CNY 790 million for both the transactions. Shenzhen Capstone Industrial will issue 134.67 million shares to raise CNY 2.75 billion funds and a portion of the proceeds will be used to fund the transaction. Zhejiang Seeco Media reported total assets of CNY 140.016 million, revenue of CNY 83.585 million, operating profit of CNY 41.687 million, net profit of CNY 30.656 million and shareholders equity of CNY 102.936 million on December 31, 2014.

The transaction is subject to approval by shareholders of Shenzhen Capstone Industrial and approval of CSRC. The Board of Shenzhen Capstone Industrial approved the transaction on July 21, 2015. On August 27, 2015, the transaction has been approved by the shareholders of Shenzhen Capstone Industrial Co. On July 21, 2015, Zhejiang Seeco held the shareholders' meeting and approved the deal. On December 16, 2015, CSRC approved the transaction. Guangzhou Securities Co., Ltd. acted as the financial advisor and Grandway Law Offices acted as the legal advisor, Ruihua Certified Public Accountants, LLP acted as the accountant to Shenzhen Capstone Industrial Co.,Ltd.

Shenzhen Capstone Industrial Co.,Ltd. (SHE:000038) completed the acquisition of Zhejiang Seeco Media Co., Ltd from a group of sellers on January 6, 2016.