China Tangshang Holdings Limited agreed to acquire an additional 55% stake in Dongguan Huachuangwen Land Ltd from Shenzhen Yaoling for CNY 140 million on July 30, 2021. The Consideration shall be settled by way of (i) cash of CNY 40,000,000 (equivalent to HKD 48,000,000), (ii) the issue and allotment of 450,000,000 Consideration Shares at an issue price of HKD 0.2 per Consideration Share, resulting in the total value of the Consideration Shares being HKD 90,000,000 (equivalent to approximately CNY 74,700,000) and (iii) the issue of Convertible Bonds in the principal amount of HKD 27,120,000 (equivalent to approximately CNY 22,600,000). China Tangshang Holdings currently indirectly holds 35% equity interest in Dongguan. Dongguan Huachuangwen reported a net loss of CNY 9.7 million. The transaction is subject to approval by regulatory board/committee, approval of offer by acquirer shareholders and subject to shareholder approval, approval of offer by acquirer board. Rainbow Capital (HK) Limited acted as a financial advisor to China Tangshang. As of October 20, 2021, shareholders of China Tangshang approved the transaction. The long stop date for the transaction is October 29, 2021 and is further extended to December 31, 2021 and January 31, 2022. As of January 31, 2022, the long stop date for the transaction has been extended to March 31, 2022. As additional time is required for the fulfillment of the conditions precedent to the Equity Sale and Purchase Agreement, as of March 31, 2022, the long stop date for the transaction has been extended to June 30, 2022.

China Tangshang Holdings Limited (SEHK:674) completed the acquisition of an additional 55% stake in Dongguan Huachuangwen Land Ltd. from Shenzhen Yaoling Investment Ltd on July 6, 2022.