Beijing Baofeng Technology Co., Ltd. (SZSE:300431) agreed to acquire Gump Tech Co., Limited from Tianjin Road Technology Development Partnership (Limited Partnership) for approximately CNY 1 billion in cash and stock on March 11, 2016. Under the terms of the transaction, Beijing Baofeng Technology will issue 13.25 million of its shares and pay CNY 315 million in cash. In related transactions, Beijing Baofeng Technology Co., Ltd. agreed to acquire Livedoing Technology for approximately CNY 970 million cash and stock and 60% stake in Straw Bear for CNY 1.1 billion in cash and stock on March 14, 2016.

Beijing Baofeng Technology will fund the cash portion of transactions through issue of shares through private placement, to raise up to CNY 3 billion. For the year ended December 31, 2015, Gumptech had revenues of CNY 82.83 million, net income of CNY 25.89 million. As of December 31, 2015, Gumptech had total assets of CNY 19.13 million, totl common equity of CNY 8.88 million.

As of March 11, 2016, the transaction was approved by 20th session of the 2nd Directorate of Baofeng Group Co., Ltd. On March 29, 2016, the transaction was approved by the shareholders of Beijing Baofeng Technology Co., Ltd. As of July 7, 2016, CSRC disapproved the transaction. Beijing Baofeng 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. Huatai United Securities Co., Ltd. and China International Capital Corporation Limited acted as financial advisors, King & Wood PRC Lawyers acted as legal advisor, Moore Stephens Da Hua Certified Public Accountants acted as accountant for Beijing Baofeng Technology Co., Ltd.