Baofeng Group Co., Ltd. (SZSE:300431). agreed to acquire Hangzhou Lidong Communication Technology Co., Ltd from Yingtan San’ai Brother Investment Management Advisory Center (Limited Partnership) and Ferry Network Technologies Co., Ltd for approximately CNY 970 million on March 14, 2016. Under the terms, 12.3 million shares will be issued at CNY 55.5 per share. In related transactions, Beijing Baofeng Technology Co., Ltd. agreed to acquire Gump Tech Co., Limited and Straw Bear for CNY 1.1 billion individually. The transactions will be financed from a private placement of CNY 3.1 billion. As of December 31, 2015, Hangzhou Lidong Communication Technology reported total assets of CNY 34.83 million, owner’s equity of CNY 14.74 million, revenues of CNY 20.38 million and net profit of 4.74 million. On March 11, 2016, Beijing Baofeng Technology’s Directors approved the acquisition and on March 29, 2016, its shareholders approved. On June 7, 2016, China Securities Regulatory Commission Merger and Reorganization Examination Committee disapproved the transaction. On July 7, 2016, China Securities Regulatory Commission Merger and Reorganization Examination Committee disapproved the transaction. Baofeng Group Co., Ltd. will continue to prudently study the plan of this assets restructuring after receipt of the disapproval decision on this transaction from CSRC, and will make a resolution on whether to revise or to terminate this plan within 10 days. From use of proceeds, cash payment and intermediary fees will be used for the asset reorganization, DT big entertainment core platform upgrade project, DT large entertainment complex copyright purchases, DT Big Data Support Platform construction project and supplement the working capital. This has lock-up period within 12 months from the end of the issuance. Huatai United Securities Co., Ltd. and China International Capital Corporation Limited (SEHK:3908) acted as financial advisors and King & Wood PRC Lawyers acted as a legal advisor to Beijing Baofeng Technology. Baofeng Group Co., Ltd. (SZSE:300431). cancelled the acquisition of Hangzhou Lidong Communication Technology Co., Ltd from Yingtan San’ai Brother Investment Management Advisory Center (Limited Partnership) and Ferry Network Technologies Co., Ltd on March 14, 2017.