Shanghai Challenge Textile Co., Ltd. (SZSE:002486) signed an asset acquisition agreement to acquire Auxora (Shenzhen) Inc. from Shanghai Yongpu Machinery Manufacturing Co., Ltd. and Shenzhen Hepu Enterprise Planning Management Partnership Enterprise (Limited Partnership) for approximately CNY 280 million on August 5, 2019. The consideration comprises issuance of 83.33 million shares. Shanghai Yongpu Machinery Manufacturing Co., Ltd. will be issued 66.7 million shares and Shenzhen Hepu Enterprise Planning Management Partnership Enterprise (Limited Partnership) will be issued 16.7 million shares. The consideration is preliminary and will be finalized. In related deal, Shanghai Challenge Textile Co., Ltd. will issue shares to not more than 10 designated investors in a private placement and raise supporting funds of CNY 50 million. For the year ended December 31, 2018, Auxora (Shenzhen) Inc. reported revenues of CNY 100.2 million, total assets of CNY 143.3 million, net income of CNY 3.5 million and net assets of CNY 86.2 million. The deal is subject to approval from China Securities Regulatory Commission, shareholders and secondary approval from Board of Directors of Shanghai Challenge Textile Co., Ltd. The deal is approved by internal decision-making bodies of counterparties Shanghai Yongpu Machinery Manufacturing Co., Ltd. and Shenzhen Hepu Enterprise Planning Management Partnership Enterprise (Limited Partnership) and shareholders of Auxora (Shenzhen) Inc. Approval from 4th directorate of Shanghai Challenge Textile Co., Ltd. in its in its 34th meeting and 4th supervisory board in its 16th meeting have also been received. The thirty-sixth meeting of the fourth directorate of Shanghai Challenge Textile Co., Ltd. and the eighteenth meeting of the fourth board of supervisors have reviewed and approved the relevant proposals of this transaction. On October 22, 2019, CSRC rejected the transaction. On November 29, 2019, CSRC again rejected the transaction. ZTF Securities Co., Ltd. acted as financial advisor, Grandway Law Offices acted as legal adviser and ZhongXingCaiGuangHua CPA Office Co. Ltd acted as accountant for Shanghai Challenge Textile Co., Ltd. Shanghai Challenge Textile Co., Ltd. (SZSE:002486) cancelled the acquisition of Auxora (Shenzhen) Inc. from Shanghai Yongpu Machinery Manufacturing Co., Ltd. and Shenzhen Hepu Enterprise Planning Management Partnership Enterprise (Limited Partnership) on December 6, 2019.