Tongfang Co., Ltd. (SHSE:600100) agreed to acquire assets of E Ren E Ben Information Technology Ltd. from group of investors for CNY 1.5 billion in cash and stock on January 8, 2013. Tongfang Co., Ltd. will issue shares to Du Guoying, Jiang Yufei, Zhou Jia, Yang Shuo, Rongyin Capital, Fang Liyong, Luo Zhuo, Kang Youzheng, Shenzhen Fuanda Investment Management Co., Ltd., Beijing Qidi Huide Venture Capital Co., Ltd., Beijing Huachuang Celian Venture Capital Center (Limited Partnership), Wu Yefei, Zhao Xinqin and other shareholders of Beijing Eren Eben Information Technology Co., Ltd. to acquire their 75.27% stake and Tongfang Co., Ltd. will acquire the 24.72% stake in Eren Eben from Jiankun Investment and Feng Jichao in cash. Tongfang will issue 155.4 million shares and pay remaining in cash.

In addition, Tongfang Co., Ltd. will issue new shares at not less than CNY 6.32 per share to up to 10 investors in private placement to raise funds. The funds will be used to acquire 24.73% stake of assets of E Ren E Ben Information Technology from Beijing Jiankun Investment Group Co., Ltd. and Feng Jichao. As of December 31, 2012, net book value of E Ren E Ben was CNY 242.07 million. The transaction has been approved unanimously by the Board of Directors of Tongfang Co. Ltd. The transaction is still subject to approval by shareholders of Tongfang Co., Ltd. The transaction was approved by Board of Directors of Beijing Huachuang Celian Venture Capital Center and Qidi Mingde on December 20, 2012 and by shareholders of Rongyin Capital on January 4, 2013 and by shareholders of Shenzhen Fuanda Investment Management on January 10, 2013. The transaction was approved by 16 shareholders of Beijing Eren Eben on January 7, 2013. Shareholders of Tongfang approved the transaction on February 25, 2013. The transaction was approved by the China Securities Regulatory Commission on June 26, 2013. China eCapital Corporation acted as financial advisor for Beijing Eren Eben Information Technology Co., Ltd.

Tongfang increased the number of shares to be issued in the transaction to 157.72 million shares for 75.27% stake and CNY 358.55 million as cash to be paid for 24.73% stake in E Ren E Ben. As on August 9, 2013, Tongfang Co., Ltd. completed the issuance of shares to 14 shareholders of Beijing Eren Eben Information Technology for the acquisition of 75.27% stake in Beijing Eren Eben Information. Southwest Securities Company Limited acted as financial advisor, Haiwen & Partners acted as legal advisor and Shinewing Certified Public Accountants acted as accountant to Tongfang. Beijing Zhuoxindahua Appraisal Co., Ltd. acted as asset appraisal institution to Tongfang.