Shenzhen Mason Technologies Co., Ltd. (SZSE:002654) signed an asset acquisition agreement to acquire Hangzhou Xinli Media Advertisement Co., Ltd. from a group of sellers for approximately CNY 770 million on August 31, 2017. Under the terms of the transaction, CNY 180.7 million will be paid in cash and CNY 584.3 million will be paid in shares. The shares to be issued as consideration will be issued at CNY 10.93 per share. Hangzhou Robam Appliances Co., Ltd. will receive only cash of CNY 19.5 million remaining shareholders will receive CNY 584.3 million in shares and CNY 161.2 million in cash. Shenzhen Mason Technologies Co., Ltd. will issue shares to not more than 10 designated investors in a private placement to raise supporting funds of not more than CNY 200 million which will be used as payment for the cash consideration in the transaction. Hangzhou Xinli Media Advertisement Co., Ltd. had total assets of CNY 185.6 million, net assets of CNY 106.6 million, revenue of CNY 481.4 million and net profit of CNY 46.03 million in 2016.

The transaction is subject to approval from the shareholders of Shenzhen Mason Technologies Co., Ltd. and China Securities Regulatory Commission. The transaction has received approvals from Hangzhou Chengsi Zhongxiang Equity Investment Partnership Enterprise (Limited Partnership), Hangzhou Xinli Zhuanshi Equity Investment Partnership Enterprise (Limited Partnership), Hangzhou Xinzhuan Equity Investment Partnership Enterprise (Limited Partnership) and Hangzhou Yonghao Investment Partnership Enterprise (Limited Partnership) in the respective partners' meeting on August 30, 2017, approved by General Manager of Hangzhou Robam Appliances Co., Ltd. on August 30, 2017 and by investment decision-making committee meeting of Hangzhou Jintou Zhihui Venture Capital Partnership Enterprise (Limited Partnership on August 23, 2017. The transaction has been approved by the Board of Directors of Shenzhen Mason Technologies Co., Ltd. during the 4th directorate's 3rd meeting and by the shareholders of Hangzhou Xinli Media Advertisement Co., Ltd. on August 31, 2017. On September 18, 2017, the shareholders of Shenzhen Mason Technologies Co., Ltd. approved the transaction. On January 11, 2018, the Market Supervision Administration of Shangcheng District in Hangzhou City approved the transaction. On January 5, 2018, the transaction was approved by the China Securities Regulatory Commission.

Guotai Junan Securities Co.,Ltd. (SHSE:601211) acted as the financial advisor, Grandall Law Firm acted as the legal advisor and BDO China SHU LUN PAN Certified Public Accountants LLP acted as the accountant to Shenzhen Mason Technologies Co., Ltd.

Shenzhen Mason Technologies Co., Ltd. (SZSE:002654) completed the acquisition of Hangzhou Xinli Media Advertisement Co., Ltd. from a group of sellers on January 11, 2018.