Cao Liangfa signed stake transfer framework agreement to acquire 51% stake in Chenzhou Fengyue Science and Technology Co., Ltd. from Pengqi Technology Development Co., Ltd. (SHSE:900907) for CNY 1.3 billion on January 24, 2018. On March 22, 2018, an agreement was signed as per which, Shenzhen Zhongliang Industrial Co., Ltd. (owned by Cao Liangfa) will acquire the 51% stake for CNY 1.2 billion. Out of the consideration, CNY 628.9 million is payable on the next day of agreement and the balance CNY 604.3 million before December 31, 2018. Post completion, Pengqi Technology Development Co., Ltd. will hold 49% stake in Chenzhou Fengyue Science and Technology Co., Ltd. As on October 31, 2017, Chenzhou Fengyue Science and Technology Co., Ltd. reported total assets of CNY 3.3 billion and net assets of CNY 1.2 billion. The deal is subject to approval from shareholders of Pengqi Technology Development Co., Ltd. On March 22, 2018, the Board of Directors of Pengqi Technology Development Co., Ltd. approved the deal. As on April 25, 2018, Shenzhen Zhongliang Industrial Co., Ltd. plans to terminate the transaction which needs approval from the directorate of Shenzhen Zhongliang Industrial Co., Ltd. and is subject to the termination agreement being signed. Liu Hanxiang and Peng Bo of ZTF Securities Co., Ltd. acted as financial advisors, Sun Yanli and Ma Quan of DeHeng Law Offices acted as legal advisors and Xu Ran and Qu Junfang of Beijing Yongtuo Certified Public Accountants Co., Ltd. acted as accountants for Pengqi Technology Development Co., Ltd. Shenzhen Zhongliang Industrial Co., Ltd. cancelled the acquisition of 51% stake in Chenzhou Fengyue Science and Technology Co., Ltd. from Pengqi Technology Development Co., Ltd. (SHSE:900907) on April 25, 2018.