Shandong Longlive Bio-Technology Co., Ltd. (SZSE:002604) agreed to acquire 50% stake in Zhaorong Lianhe (Beijing) Technology Development Co., Ltd. from Zhang Dong and Sheng Yong for approximately CNY 440 million in cash and stock on November 23, 2015. As consideration, Shandong Longlive Bio-Technology Co., Ltd. will pay CNY 217.5 million in cash and will issue 18.45 million shares. In a related transaction, Shandong Longlive Bio-Technology Co., Ltd. (SZSE:002604) agreed to acquire Xiamen Kuaiyun Information Technology Co., Ltd. from Huang Xiaorong and Yang Feng for CNY 580 million.

Shandong Longlive Bio-Technology Co., Ltd. will fund the cash consideration via a private placement of its shares, generating proceeds of CNY 509.5 million. Zhaorong Lianhe (Beijing) Technology Development Co., Ltd. reported total assets of CNY 33 million, total owner's equity of CNY 19.36 million, revenue of CNY 67.05 million and net profit of CNY 10.14 million for the year ending December 31, 2014. The transaction is subject to approval from the shareholders of Shandong Longlive Bio-Technology Co., Ltd. and approval from the China Securities Regulatory Commission.

On March 28, 2016, the shareholders' of Shandong Longlive Bio-Technology Co., Ltd approved the transaction. On April 13, 2016, China Securities Regulatory Commission Listed Company Merger and Acquisitions Committee approved the transaction. Huaying Securities Co., Ltd. acted as financial advisor for Shandong Longlive Bio-Technology Co., Ltd. JunZeJun Law Offices acted as legal advisor and BDO China SHU LUN PAN Certified Public Accountants LLP acted as accountant for Shandong Longlive Bio-Technology Co., Ltd.